How Did Euler Motors Perform In FY26?
Commercial electric vehicle startup Euler Motors delivered strong top-line growth in FY26, with operating revenue more than doubling as the company expanded vehicle sales and strengthened its market presence.
According to its filings with the Registrar of Companies (RoC), revenue from operations surged 110% to ₹402 crore in FY26 from ₹191 crore in FY25.
The growth followed the company’s ₹638 crore Series D funding round led by Hero MotoCorp in May 2025, which provided capital to scale production, expand distribution, and launch new vehicle categories.
What Drove Revenue Growth?
Euler Motors generates the majority of its revenue from electric vehicle sales.
The company sold 7,576 vehicles during FY26, compared to 4,172 units in the previous fiscal year, reflecting an 82% increase in volumes.
Its sales mix included 3,088 three-wheeler cargo vehicles, 2,728 four-wheeler cargo vehicles, and 1,760 three-wheeler passenger vehicles, making the passenger segment one of its newest growth areas.
How Much Revenue Came From Vehicle Sales?
Vehicle sales contributed ₹381 crore to the company’s operating revenue.
Battery sales, accessories, and other operating income added another ₹21 crore, taking total operating revenue to ₹402 crore.
The company also generated ₹31 crore in non-operating income, primarily from interest earned on bank deposits following recent fundraising activities, pushing total revenue to ₹433 crore.
Why Did Losses Increase Despite Strong Growth?
While revenue expanded rapidly, Euler Motors significantly increased spending to support its growth ambitions.
As a result, net losses widened by 21% to ₹315 crore in FY26 from ₹261 crore in FY25.
The higher losses were driven by increased manufacturing costs, employee expenses, marketing investments, and operational expansion across markets.
What Was The Company’s Biggest Expense?
Material costs remained the largest expenditure item, accounting for 47.6% of total spending.
These costs rose more than 85% year-on-year to ₹356 crore, largely in line with higher vehicle production and sales volumes.
How Much Did Employee And Marketing Costs Rise?
Euler Motors continued investing aggressively in talent acquisition and business expansion.
Employee benefit expenses increased over 40% to ₹104 crore during FY26, including approximately ₹11 crore in ESOP-related costs.
Meanwhile, advertising and promotional expenses nearly quadrupled to ₹51 crore from ₹13 crore in FY25 as the company intensified efforts to build brand awareness and drive customer acquisition.
What Other Costs Impacted Profitability?
Additional expenses such as finance costs, research and development, software, transportation, travel, rent, professional fees, and maintenance collectively contributed ₹153 crore to overall expenditure.
As a result, total spending increased 61% to ₹748 crore in FY26 compared to ₹464 crore a year earlier.
Did Operational Metrics Improve?
Despite remaining loss-making, Euler Motors showed improvement in several key financial indicators.
The company’s EBITDA margin improved to -64.43%, while Return on Capital Employed (ROCE) improved to -27.3%.
These improvements indicate that operational efficiency is gradually improving even as the company continues to invest heavily in growth.
How Efficient Is The Business Currently?
According to the filings, Euler Motors spent ₹1.86 to generate every ₹1 of operating revenue during FY26.
While still operating at a loss, the ratio reflects progress compared to earlier stages of growth when electric vehicle startups typically face significantly higher cash burn.
How Strong Is Euler Motors’ Balance Sheet?
The company ended FY26 with a strong liquidity position following multiple funding rounds.
As of March 2026, current assets stood at ₹879 crore, including cash and bank balances of ₹632 crore.
The healthy cash reserves provide the company with substantial financial flexibility to continue expanding operations and investing in product development.
How Much Funding Has Euler Motors Raised?
Euler Motors has raised more than $200 million to date from prominent investors including Hero MotoCorp, GIC, and British International Investment.
Earlier in 2026, the company secured an additional $47 million through a Series E round led by Lightrock, comprising a combination of equity and debt financing.
The funding is expected to support future growth initiatives and strengthen the company’s position in India’s rapidly expanding commercial EV market.
What Does This Mean For Euler Motors?
Euler Motors is currently prioritising growth over profitability as it scales production, expands into new vehicle segments, and strengthens its market presence.
While losses continue to rise, the company’s strong revenue growth, increasing vehicle sales, and healthy cash reserves suggest it remains focused on capturing market share in India’s commercial electric vehicle sector.
