Hero MotoCorp boosts Euler stake, Q3 profit up 14%

What Hero MotoCorp’s board approved

Hero MotoCorp, India’s largest two-wheeler manufacturer, said its board has sanctioned an additional investment of ₹275 crore in Euler Motors. The company indicated the transaction is expected to be completed by April 30, 2026. The update comes alongside a set of other board decisions that include a renewable energy partnership structure for select facilities.

The announcements matter because they link two themes investors track closely in the auto sector: capital allocation towards electric mobility and steps to reduce energy costs and emissions through renewable power procurement.

Additional ₹275 crore planned for Euler Motors

The additional ₹275 crore investment adds to the broader set of disclosures around Hero MotoCorp’s participation in Euler Motors. The provided information includes multiple references to earlier investments and board approvals, including an approval to invest up to ₹525 crore in one or more tranches for a stake of about 32.5% in Euler Motors.

Separately, the text also references a May 2025 investment of ₹510 crore in Euler Motors, described as resulting in a 34.1% stake. Since the numbers and stakes appear in different portions of the provided material, they should be read as separate reported disclosures within the same compilation.

Hero MotoCorp has described its investments in such startups as part of a long-term strategy, with management noting on a post-results earnings call dated May 14 that these investments are intended to create collaboration opportunities over time.

Euler Motors and the segment Hero is targeting

Euler Motors is described as a Delhi-based commercial electric vehicle manufacturer focused on electric three-wheelers and four-wheelers. The company reportedly plans to expand its sales and distribution footprint to 80-100 cities over the next 12-15 months, from 40 cities currently.

The same material also says Euler Motors aims to double its revenue in the next 12-15 months and targets profitability by 2029. It further notes that Euler closed a ₹638 crore Series D funding round led by Hero MotoCorp, with other investors including British International Investment (BII).

Clean Maxiro Energy tie-up for a solar wheeling SPV

Hero MotoCorp also said its board has approved a collaboration with Clean Maxiro Energy (Clean) to set up a Special Purpose Vehicle (SPV). The SPV is intended for a Solar Power Wheeling project using a Group Captive mechanism.

As described, the SPV will cover Hero MotoCorp’s facility in Neemrana, the Global Parts Centre in Neemrana, and the Centre for Innovation and Technology in Jaipur, Rajasthan. The broader compilation also references renewable energy investments at Haridwar and Neemrana plants.

Q3 FY26 profit: up 14.4% year-on-year

On financial performance, Hero MotoCorp reported consolidated profit of ₹1,267.55 crore for the third quarter ending in Q3 FY26. This was a 14.4% year-on-year increase compared with ₹1,107.55 crore in the same quarter of the previous fiscal year.

The update indicates that the company’s quarterly profitability improved meaningfully on a year-on-year basis, even as it also recorded a one-time labour-related cost classified separately as an exceptional item.

One-time exceptional charge linked to new labour codes

Hero MotoCorp said the introduction of four new Labour Codes effective from November 21, 2025 resulted in a one-time expense of ₹119 crore. The company classified this as an exceptional item in its financial statements.

For investors, the classification is relevant because exceptional items can affect comparability across periods. It also signals that the company has already recognised a specific one-off impact tied to the change in labour regulations, as stated in the provided material.

Interim dividend: ₹110 per share (5,500%)

Hero MotoCorp announced an interim dividend of ₹110 per share, described as 5,500%. Dividend announcements tend to be closely watched by shareholders as they reflect board decisions on cash returns alongside reinvestment plans.

In this case, the company’s updates combine an expanded EV investment agenda with a high interim payout, highlighting the parallel tracks of growth investments and shareholder distributions.

Stock market reaction

On Thursday, Hero MotoCorp shares ended at ₹5,768.80 apiece, down 1.51% from the previous trading session. The move suggests the market digested the board updates and financial disclosures without an immediate positive price reaction on the day.

Snapshot of key facts

Other EV exposure cited: Ather Energy

The provided material also references Hero MotoCorp’s investments in Ather Energy and states Hero holds about 30% of the listed entity in one portion, while another portion cites a higher holding after additional stake purchases. It also states Ather’s FY24 consolidated revenue at ₹1,789 crore versus ₹1,773 crore in FY23, and FY24 losses of ₹1,059 crore.

These references matter because they position Hero MotoCorp as a strategic investor across multiple EV platforms, spanning electric scooters (Ather) and electric commercial vehicles (Euler).

Why the combination of EV and renewable power matters

The set of announcements connects product transition and operating infrastructure. EV investments can diversify a two-wheeler manufacturer’s exposure into adjacent mobility categories, while renewable power procurement through a wheeling arrangement can support energy cost management for manufacturing and R&D sites.

What remains clear from the provided information is that Hero MotoCorp is simultaneously allocating capital to EV bets and setting up structures aimed at renewable energy sourcing for facilities, while continuing to report profit growth and return cash to shareholders.

What to watch next

The immediate next milestone disclosed is the expected completion of the additional ₹275 crore Euler investment by April 30, 2026. Investors may also track further details on the SPV structure and commissioning timelines for the Group Captive solar wheeling arrangement across Neemrana and Jaipur-linked sites.

Separately, future updates around Euler’s execution plans, including its city expansion and the timeline for profitability by 2029, will likely remain key data points tied to Hero MotoCorp’s broader emerging mobility strategy.