Detailed Narrative
Economic Landscape and Business Strategy
India's economy achieved a GDP growth of 6.5% in FY25, with similar guidance for FY26. Despite global uncertainties like trade barriers and inflation, Endurance is focused on building strength and diversity, serving multiple OEMs across India and Europe. The company is expanding its product portfolio to include both ICE and electric vehicles, aiming to grow its presence in the 4W segment, an area of strength in Europe.
Indian Automotive Market Performance and Standalone Results
In Q1 FY26, the Indian 2W market saw a 1.6% YoY decline in sales (5.81 million units), with motorcycles down 1.8% and scooters down 0.8%. Passenger vehicle sales increased by 0.8% to 1.22 million units, while 3W sales rose 10.4% to 0.26 million units. Endurance's standalone financials for Q1 FY26 showed a 10.1% YoY growth in total income to ₹2,351 crores, primarily driven by content addition and price corrections. However, commodity inflation led to a 0.5% drop in EBITDA margins, with standalone PAT at ₹166 crores.
European Market Performance and Stöferle Acquisition Impact
The European new car sales experienced a 1.8% YoY drop in Q1 FY26. Despite this, Endurance Europe's total income grew significantly by 28.5% in Euros. This growth was largely due to the acquisition of Stöferle, which contributed €22 million to turnover and €4.5 million to EBITDA. Excluding Stöferle, European top line grew 0.6%. The European market saw a 25% share of electric vehicles (15.9% BEV, 9.2% PHEV, 34.2% hybrids) in Q1 FY26, but market growth is currently awaiting official government incentives.
Strategic Growth Initiatives: ABS and Disc Brakes
New safety requirements mandating 100% ABS for 2W (above 50cc) from January 2026 are expected to increase ABS demand five-fold. Endurance, the only Indian auto-ancillary in this domain, plans to expand its ABS capacity from 640,000 units to an additional 2.4 million units by March 2026. The company is also setting up a new disc brake assembly plant in Chennai to cater to the increased demand, as ABS mandates disc brakes over drum brakes, creating additional volume opportunities.
New Product Development and R&D Expansion
Endurance is launching several new products and facilities. The 2W alloy wheel plant in AURIC Bidkin will start SOP in August 2025 with a capacity of 3.6 million wheels per annum. The AURIC Shendra plant, a green building die casting facility for EVs, is planned for SOP in Q4 FY26. New generation suspension R&D centers for 2W, 3W, and 4W applications are fully operational, enhancing co-creation with OEMs. The company also secured its first order for 4W drum brakes from Tata Motors.
EV Transition and Battery Management Systems
Endurance accelerated its EV transition by acquiring the remaining 38.5% stake in Maxwell, making it a 100% subsidiary and cornerstone for electronics and energy business. Maxwell has seen a healthy uptick in battery management system (BMS) sales, securing cumulative orders of ₹156 crores per annum (peaking Q1 FY27) and pursuing leads of ₹150 crores per annum. A new battery-pack manufacturing facility near Pune is slated for SOP in January 2026.
Order Book and Future Outlook
Total orders won since FY22 amount to ₹4,329 crores, with ₹3,612 crores being new business. Of this, ₹1,400 crores saw SOP in FY25, and ₹1,150 crores are expected in FY26. The company has ₹3,225 crores worth of RFQs in hand. Overall order booking in Q1 FY26 for India was ₹252 crores (₹247 crores new business), excluding a ₹300 crores per annum LOI for battery packs. Europe booked EUR 2 million in EV component orders. The company aims for at least 25% market share in ABS and expects the 2W industry to reach 29-30 million vehicles by FY30.