Hero MotoCorp adds ₹275 crore to Euler Motors as Q3 profit climbs 14%

Hero MotoCorp's board has approved an additional ₹275 crore ($28.6 million) investment in Euler Motors, a Delhi-based commercial electric vehicle maker. India's largest two-wheeler manufacturer expects the transaction to close by April 30, 2026.

The stake builds on Hero's earlier backing of Euler, which closed a ₹638 crore Series D round led by Hero MotoCorp, with British International Investment among the other investors. Management has described such startup investments as part of a long-term strategy to create collaboration opportunities over time.

Euler Motors builds electric three-wheelers and four-wheelers for commercial use. It plans to expand from 40 cities to 80-100 cities over the next 12-15 months, double revenue in the same window, and reach profitability by 2029.

Hero MotoCorp reported consolidated Q3 FY26 profit of ₹1,267.55 crore, up 14.4% from ₹1,107.55 crore a year earlier. The quarter included a one-time ₹119 crore charge tied to India's four new Labour Codes, effective November 21, 2025, which the company classified as an exceptional item.

The board also approved a Special Purpose Vehicle (SPV) with Clean Maxiro Energy for a solar power wheeling project covering Hero's Neemrana facility, its Global Parts Centre, and its Centre for Innovation and Technology in Jaipur. Hero declared an interim dividend of ₹110 per share.

The investment ties together two threads investors watch in India's auto sector: capital flowing toward electric mobility, and moves to cut energy costs through renewable power. For Hero, deepening its Euler stake is a bet on commercial EVs as its two-wheeler core keeps generating profit.