Euler Motors more than doubled its revenue in FY26, reporting a 110% year-on-year rise to ₹402 crore from ₹191 crore in FY25, but the electric commercial vehicle maker remained deep in the red with a net loss of ₹308 crore in FY26, highlighting the gap between rapid scale-up and profitability.
While operating performance improved in FY26, with EBITDA margin narrowing to -62.9% in FY26 from -119% a year earlier, rising input and battery costs, along with continued investments in capacity, R&D and network expansion, are expected to keep margins under pressure in the near term.
Even as the company accelerates expansion — targeting higher capacity, deeper market reach and a growing four-wheeler EV portfolio — questions remain around unit economics, the timeline to profitability, and the ability to absorb cost pressures without eroding margins. businessline spoke to Saurav Kumar, Founder & CEO of Euler Motors, on how the company plans to navigate these challenges.
Edited excerpts:
Despite strong revenue growth in FY26, losses remain high. What is the path to profitability and what scale is needed to get there?
At the product level, we are no longer burning money to sell vehicles, unit economics are close to break-even. But at the company level, profitability will take another two to three years as we continue to invest in scaling the business. We are targeting EBITDA neutrality over that time frame, and while it’s early to give a precise number, breakeven could come at a scale of around ₹2,000–₹2,500 crore in revenue.
Input costs, especially batteries, are rising. How is that impacting margins, and how much can you pass on?
We’ve seen around 4–5% cost pressure from commodities like battery cells, plastics and electronics. We’ve passed on about 1–1.5% of this increase to customers, while absorbing the rest. Overall, including batteries, cost pressures are in the 4–6% range. That said, margins have still improved significantly—from around -119% earlier to about -63%—as scale and operating leverage kick in.
You are investing heavily in expansion. What are the key areas of investment right now?
We are investing across manufacturing capacity, product development and network expansion. We’ve expanded from about 45 touchpoints to over 100 and plan to add another 100 this year. We are targeting production capacity of around 2,000 vehicles per month, with a new plant coming up mid-year that will significantly expand capacity. A significant portion of our investments is also going into R&D over the next 18 months, including new variants and improvements in battery and vehicle technology.
What were the key growth drivers in FY26 and how is demand shaping up?
The four-wheeler cargo segment has been a major growth driver, and we’ve achieved about 25.9% market share in that segment. The shift in mix towards four-wheelers is helping improve realisations. Demand remains strong, with around 80–85% coming from retail customers, and we are seeing a steady shift towards EVs driven by better economics.
What are your priorities going into FY27, and how are you thinking about expansion and capital?
Expanding to around 200 touchpoints and 100 cities is a key priority, along with strengthening products and customer value. We are well capitalised for the current year and do not have any immediate funding constraints, though we remain open to strategic investors. Exports are on the roadmap, but our immediate focus remains India.