Will morale increase during battles?

[cristianwj]

I have created a custom scenario that observed a Soviet tank battalion attacking a West German-held town. I have noticed that the morale of the Soviet motorized infantry company before the battle started was 66%. After a fierce battle, although the infantry company suffered some losses, it also took out a comparable number of enemy troops losses, morale increased to 77% at this time.
I'd like to know if there are any clear rules regarding morale in the game? According to my understanding, considering the cruelty of the battle, the morale of the units participating in the battle will become lower and lower as the battle progresses until they collapse and withdraw from the battle.

before battle:

1.jpg (214.29 KiB) Viewed 637 times

after battle

Image_1705323106943.jpg (279.47 KiB) Viewed 637 times

[CapnDarwin]

Morale can go up from its initial value in cases where the unit's local HQ is nearby and visible, there are spotted friendly units, enemy units that are spotted take losses, and a few other factors that could out strip the losses from subunit losses. This value, if over the units starting morale, should decay quickly over time back down to the starting value. Looking at your pictures, the units is amungst many friendly units, small number of enemies and losses are occurring but not at a rate or state that is causing a morale collapse.