Euler Motors, which manufactures electric commercial vehicles, more than doubled its revenues in fiscal 2026 to Rs 402 crore, founder and CEO Saurav Kumar said, driven by rising EV adoption across segments.

The Delhi-based company, backed by Hero MotoCorp and GIC, also saw losses widen 50% to Rs 308 crore, even as operating margins improved. Kumar said the company expects to break even in the next two to three years. For FY26, it reported an Ebitda margin of -62.9% compared to -119% in FY25 — showcasing improved operating leverage. However, cost increases dragged down the company's bottomline.

“We have seen cost pressures across multiple areas. Memory chip prices surged due to AI-driven demand, in some cases rising 2-4x. Lithium (battery) prices impacted overall vehicle costs by around 4%. There were also increases in the cost of aluminium, copper, plastics, and other materials, partly due to geopolitical factors,” Kumar told ET.

Euler Motors said it had absorbed part of the costs pressures while passing on some through price hikes across its three- and four-wheeler models.

Total expenses rose to Rs 741 crore from Rs 464 crore a year earlier, led by higher material costs of Rs 356 crore in line with volume growth.

Employee benefit expenses increased 40% to Rs 104 crore due to hiring for manufacturing scale-up and after-sales operations. Depreciation and amortisation nearly doubled to Rs 50 crore, while finance costs rose 57% to Rs 37 crore following an expanded asset base after its Rs 638 crore (about $75 million) funding round in May 2025.

Founded in 2018, Euler Motors has raised over $200 million to date.

Euler Motors raised Rs 437.5 crore (approx. $47 million) in March 2026 in a round led by Lightrock, with participation from Hero MotoCorp and Blume Ventures. The company also secured an additional Rs 250 crore in debt from BlackSoil, Trifecta, InnoVen, and Alteria Capital.

In FY26, the company delivered 7,576 electric vehicles (EVs), up 181% from 4,172 units a year earlier. Volumes grew 38% quarter-on-quarter on average, while revenues rose 43%.

“The four-wheeler cargo EV has been a standout. We entered the segment relatively late when penetration was about 1%, and it has now grown to around 3.4%. We have captured roughly 25-26% market share in that segment,” Kumar said.

“We have already achieved positive unit economics and are no longer losing money on each vehicle sold. That is a key milestone. Going forward, we are shifting from a ‘growth at all costs’ mindset to a more balanced approach focussed on profitability and sustainable scale,” he added.

Euler is among the EV makers that remain outside the government’s auto production-linked incentive (PLI) scheme due to stringent eligibility criteria, putting them at a cost disadvantage versus traditional OEMs.