Euler Motors achieves positive net worth in FY26 with strong backing from Hero MotoCorp

Euler Motors Private Limited, a prominent electric commercial vehicle manufacturer, has reported a positive net worth of Rs 421.30 crore for the fiscal year ending March 31, 2026. This marks a significant turnaround from the previous fiscal year, when the company had a negative net worth of Rs 576.38 crore. The improvement comes despite ongoing operational losses and increased spending on expansion and workforce growth.

Key Highlights

• Euler Motors reports positive net worth of Rs 421.30 crore for FY26.
• Raised over Rs 1,075 crore through preference shares and restructured investor agreements.
• Hero MotoCorp now holds significant influence and participated in FY26 funding rounds.
• Revenue from operations more than doubled to Rs 432.96 crore in FY26.
• Total expenses rose to Rs 747.54 crore as the company invested in R&D and workforce.

Financial Turnaround and Capital Infusion

The company’s latest standalone financial filings show that Euler Motors achieved this recovery through a combination of fresh capital infusion and changes to investor agreements. Euler Motors raised over Rs 1,075 crore during FY26 by issuing preference shares. This capital was essential for maintaining liquidity as the company expanded its manufacturing operations in Palwal, Haryana.

Under Indian accounting standards (Ind AS), certain investor shares known as Compulsorily Convertible Preference Shares (CCPS) were previously classified as liabilities. In FY26, Euler and its investors agreed to revise the terms of these shares. As a result, approximately Rs 1,306 crore was reclassified from liabilities to equity. This reclassification removed a significant amount of debt from the company’s books and led to a substantial increase in net worth.

Despite these improvements, Euler Motors recorded a consolidated net loss of Rs 314.75 crore for FY26. The company remains in a high-growth phase, with operational losses expected as it invests in expansion and product development.

Role of Hero MotoCorp and Industry Impact

Hero MotoCorp Limited has become a key player in Euler Motors’ recent progress. The automotive giant now holds significant influence over Euler Motors and participated heavily in the FY26 funding rounds, subscribing to Series D Equity and Preference Shares. Hero MotoCorp’s involvement provides Euler with both financial support and strategic advantages in supply chain management and distribution.

This partnership strengthens Euler Motors’ position in the competitive commercial EV sector, where access to capital and reliable supply chains are crucial for growth and stability.

Operational Growth and Expense Increase

Euler Motors’ operational performance improved notably in FY26. The company’s consolidated revenue from operations more than doubled, rising from Rs 215.85 crore in FY25 to Rs 432.96 crore in FY26. Management attributed this growth to higher sales in both the three-wheeler and four-wheeler segments, as well as improved collection cycles.

The company’s current ratio, which measures its ability to meet short-term obligations, improved to 2.97 from 1.15 in the previous year. This indicates a stronger cash position and better liquidity management.

However, total expenses also increased sharply, reaching Rs 747.54 crore in FY26 compared to Rs 464.1 crore in FY25. Research and Development spending rose to Rs 14.68 crore, up from Rs 7.17 crore. Marketing expenses nearly quadrupled to Rs 50.79 crore, and staff costs increased to Rs 103.88 crore to support workforce expansion.

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CarBike 360 Says

Euler Motors’ transition to a positive net worth in FY26 highlights its strengthening financial foundation despite increasing operational costs. With strategic backing from Hero MotoCorp and a growing footprint in the electric commercial vehicle segment, the company appears well-positioned for sustained growth. However, managing expenses efficiently will remain critical as it scales operations in a competitive EV market.