Euler Motors: Transforming the Electric Vehicle Industry

Euler Motors, a prominent name in the electric vehicle sector, successfully raised Rs 638 crore in its Series D funding round in May 2025, primarily backed by Hero MotoCorp. The implications of this funding are anticipated to reflect in its financial performance for FY26. During the fiscal year ending March 2025, Euler experienced a revenue increase of 12%, while simultaneously managing to limit losses at the same rate.

For the last fiscal year, Euler Motors reported a revenue growth of 12% year-on-year, reaching Rs 192.26 crore compared to Rs 170.82 crore in FY24, as detailed in the company’s annual financial statement submitted to the RoC. The firm focuses on the manufacturing and selling of electric vehicles. Based on data from Vahan, approximately 3,305 electric vehicles were sold in FY25, contributing Rs 173 crore from vehicle sales. Additionally, income from battery sales, accessories, and other operations added another Rs 12 crore to its total operating revenue.

The company also recorded Rs 14.73 crore in non-operating income, which includes interest earnings, bringing the total revenue to Rs 206 crore in FY25.

Expenditure Breakdown

On the expenses front, material costs represented the largest portion, accounting for 47.5% of overall expenses, which totaled Rs 192 crore in FY25. This figure showed a reduction of 10% from FY24. Employee benefit expenses surged by 46% year-on-year, reaching Rs 74.4 crore in FY25. Furthermore, expenditures for security and manpower services rose significantly by 55% to Rs 24.44 crore during the same period. Finance costs and depreciation and amortization expenses were recorded at Rs 17.3 crore and Rs 18.46 crore, respectively.

Additionally, advertising expenditures skyrocketed by 4.6 times to Rs 12.77 crore in FY25, soaring from Rs 2.75 crore in FY24. Other overhead costs, which included rent, research and development, travel, professional services, transportation, maintenance, software, and other miscellaneous expenses, amounted to Rs 64.8 crore, keeping the overall expenditure at approximately Rs 404 crore, similar to FY24.

Financial Performance Insights

Ultimately, a 12% rise in operating revenue, combined with enhanced non-operating income and controlled spending, allowed the company supported by Hero MotoCorp to diminish its losses by 12%, bringing them down to Rs 200 crore in FY25.

On a per-unit basis, Euler Motors expended Rs 2.11 to generate a single rupee of operating income. The company’s EBITDA margin improved to -92.6%, while the return on capital employed (ROCE) likewise improved to -93.7%. By March 2025, Euler’s current assets reached Rs 214.3 crore, which included cash and bank balances of Rs 95 crore.

According to startup data platforms and various sources, the Delhi-based company has successfully raised over $200 million to date, with notable investment support from Hero MotoCorp, GIC, and British International Investment among its primary backers.