Electric vehicle maker Euler Motors aims to reach Rs 800 crore in annual revenue for FY27, doubling its previous performance. Backed by Hero MotoCorp, the company is pivoting to the electric four-wheeler cargo segment, which now drives most of its income. While expansion is rapid, the company remains in a growth phase characterized by high capital spending and ongoing operational losses.
Delhi-based Euler Motors is setting an ambitious target of Rs 800 crore in revenue for the financial year 2027, as it continues to scale its presence in India’s electric commercial vehicle market. The company, which is an unlisted entity, is rapidly shifting its business model from three-wheelers to the electric four-wheeler cargo segment. This high-value category has now become the primary growth driver, accounting for roughly 70% to 75% of the firm's total revenue.
Strategic Pivot to Four-Wheelers
The company’s transition is anchored by the performance of its Storm EV and Turbo EV models. These vehicles are designed for the light commercial segment and have allowed the manufacturer to capture an estimated 25% to 28% market share in the electric four-wheeler cargo space. To support this growth, Euler Motors has been investing heavily in its manufacturing infrastructure, including the setup of a dedicated production line at its Palwal facility in Haryana, which now holds a capacity of 2,000 four-wheelers monthly.
Financial and Operational Context
For those tracking the startup's financial trajectory, the growth comes with significant capital requirements. In FY26, the company reported revenue of Rs 402 crore, representing a 110% increase from the previous year. However, the firm remains in a loss-making phase, having posted a net loss of Rs 308 crore in the same period. The business relies on frequent capital infusions to fund its aggressive expansion into new markets and its growing retail network, which now exceeds 100 touchpoints across India.
Support from Hero MotoCorp
A key factor for the company’s stability has been the backing of Hero MotoCorp, which remains the largest shareholder with a 36% equity stake. This partnership provides not only financial support but also strategic alignment within the broader electric mobility sector. The financial health of the company was bolstered in FY26 by the reclassification of Compulsorily Convertible Preference Shares (CCPS) into equity, which helped reflect a positive net worth, though the core business continues to burn cash to sustain its expansion.
Risks and Monitoring Factors
While the company is scaling, investors and industry observers are watching several risk factors. The primary challenge remains the high cash burn rate associated with nationwide retail and manufacturing expansion. Additionally, the company faces typical automotive sector risks, including supply chain volatility for critical components like semiconductors, copper, and lithium-ion cells. As the company moves toward its Rs 800 crore revenue target, the focus for stakeholders will be on whether it can improve its operating margins and reduce its dependence on external capital in the coming quarters. The next significant milestones to track will be production ramp-up efficiency and the company's ability to maintain its market share against increasing competition in the electric cargo space.