Key Financial Performance

Revenue & Profitability

  • Revenue from operations: ₹3,671.76 crores (FY25: ₹2,255.01 crores) - 63% growth
  • Net loss: ₹517.17 crores (FY25: ₹812.28 crores) - 36% improvement
  • Loss per share: ₹(13.99) (FY25: ₹(32.24))
  • Other income: ₹151.32 crores (FY25: ₹50.21 crores)
  • Total comprehensive loss: ₹516.75 crores (FY25: ₹816.92 crores)

Expenses

  • Cost of materials consumed: ₹2,808.15 crores (FY25: ₹1,826.88 crores)
  • Employee benefits expense: ₹481.60 crores (FY25: ₹412.38 crores)
  • Finance costs: ₹82.20 crores (FY25: ₹110.62 crores)
  • Depreciation and amortization: ₹172.89 crores (FY25: ₹171.02 crores)
  • Other expenses: ₹700.91 crores (FY25: ₹546.73 crores)

Balance Sheet Position

  • Total assets: ₹4,721.51 crores (FY25: ₹2,100.61 crores) - 125% increase
  • Total equity: ₹2,572.63 crores (FY25: ₹492.99 crores) - 422% increase
  • Cash and cash equivalents: ₹111.94 crores (FY25: ₹69.80 crores)
  • Bank balances (other than cash): ₹711.21 crores (FY25: ₹300.63 crores)
  • Investments: ₹552.01 crores (FY25: ₹41.00 crores)
  • Inventories: ₹281.56 crores (FY25: ₹244.63 crores)

Capital Structure

  • Equity share capital: ₹38.27 crores (29,06,43,469 shares increased to 38,26,73,164 shares)
  • Other equity: ₹2,534.36 crores (FY25: ₹463.93 crores)
  • Securities premium reserve: ₹6,664.05 crores (FY25: ₹4,009.06 crores)
  • Retained earnings: ₹(4,248.91) crores (FY25: ₹(3,732.16) crores)

IPO Proceeds Utilization

The company completed its Initial Public Offer (IPO) on May 06, 2025:

  • Fresh issue: 8,18,16,199 shares raising ₹2,626.00 crores
  • Offer for sale: 1,10,51,746 shares by selling shareholders

Utilization as of March 31, 2026:

  • ₹139.63 crores for Maharashtra E2W factory establishment (out of ₹927.20 crores allocated)
  • ₹40.00 crores for debt repayment (full allocation utilized)
  • ₹272.42 crores for R&D (out of ₹750.00 crores allocated)
  • ₹90.44 crores for marketing initiatives (out of ₹300.00 crores allocated)
  • ₹358.50 crores for general corporate purposes (out of ₹498.80 crores allocated)
  • ₹107.94 crores for issue expenses (out of ₹110.00 crores allocated)
  • Total utilized: ₹1,008.93 crores out of ₹2,626.00 crores
  • Unutilized amount: ₹1,617.07 crores temporarily invested in fixed deposits

Key Audit Matters

Intangible Assets Under Development

  • Carrying value: ₹237.57 crores (FY25: ₹116.27 crores)
  • Auditor identified initial recognition and measurement as key audit matter due to materiality and management judgment involved
  • Audit procedures included assessment of capitalization policy compliance and test of details for sample projects

Tax Matters and Disputes

Significant Tax Disputes

| Statute | Nature of Dues | Forum | Period | Amount (₹ crores) | Unpaid (₹ crores) |

| Income Tax Act, 1961 | Income Tax | CIT(A) | FY 2016-17 | 0.01* | 0.01 |

| Customs Act, 1962 | Duty of Custom | CESTAT | FY 2018-19 & 2019-20 | 0.16 | 0.15 |

| IGST Act, 2017 | IGST | Commissioner of State Taxes (Appeals) | FY 2019-20 | 0.15 | 0.13 |

| IGST Act, 2017 | IGST | Commissioner of State Taxes (Appeals) | FY 2022-23 | 76.33 | 70.34 |

| IGST Act, 2017 | IGST | Commissioner of State Taxes (Appeals) | FY 2023-24 | 2.77 | 2.77 |

*represents penalty amount

GST Show Cause Notice

  • Received SCN dated April 16, 2024 for FY 2022-23 demanding ₹59.81 crores for input tax credit discrepancies
  • Company filed reply explaining compliance; order issued November 04, 2024 confirming demand
  • Application for rectification filed with Assistant Commissioner, matter pending adjudication

Exceptional Items

  • Impact of New Labour Codes: ₹5.04 crores additional provision for gratuity and compensated absences due to enactment of new labour laws

Property, Plant and Equipment

  • Net carrying amount: ₹307.31 crores (FY25: ₹267.36 crores)
  • Additions: ₹119.32 crores (FY25: ₹125.65 crores)
  • Depreciation: ₹77.85 crores (FY25: ₹44.25 crores)

Right of Use Assets

  • Net carrying amount: ₹218.35 crores (FY25: ₹244.30 crores)
  • Lease liabilities: ₹151.15 crores (FY25: ₹169.37 crores)

Borrowings

  • Total borrowings: ₹513.07 crores (FY25: ₹449.85 crores)
  • Non-current borrowings: ₹367.42 crores (FY25: ₹116.86 crores)
  • Current borrowings: ₹145.65 crores (FY25: ₹332.99 crores)
  • Secured by charge on movable/immovable PPE, current assets, and intellectual property rights

Contingent Liabilities

  • Claims not acknowledged as debt: ₹61.17 crores (FY25: Not quantified)
  • Capital commitments: ₹505.15 crores (FY25: ₹39.76 crores)
  • Battery Waste Management Rules 2022: Potential obligations pending further guidance from ministry

Related Party Transactions

Significant Transactions

  • Hero MotoCorp Limited: Revenue from charging infrastructure usage ₹4.63 crores (FY25: ₹1.37 crores)
  • Hero FinCorp Limited: Commission income ₹0.04 crores (FY25: ₹0.01 crores)
  • Key managerial personnel remuneration: ₹8.47 crores short-term benefits + ₹4.10 crores share-based payments

Subsequent Events

  • No significant adjusting events post balance sheet date other than those disclosed
  • Planning to incorporate two wholly owned subsidiaries: Insurance corporate agent and Hong Kong procurement entity

Auditor's Opinion

  • Unmodified opinion issued by Deloitte Haskins & Sells
  • Internal financial controls found adequate and operating effectively
  • No fraud reported or detected during the audit