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    Endurance Tech.

    ENDURANCE
    Automobile and Auto Components·14 Aug 2025
    Management Summary

    Endurance Technologies reported a strong Q1 FY26 with consolidated total income growing 17.3% and EBITDA up 17.5%, maintaining margins despite commodity inflation. The company accelerated its EV transition by acquiring full ownership of Maxwell and made significant strides in ABS capacity expansion and new product development. While facing global uncertainties and potential delays in ABS regulation, Endurance secured substantial new orders and is focused on profitable growth and high-technology product offerings.

    Highlights

    5
    • Consolidated total income increased by 17.3% to ₹3,355 crores in Q1 FY26.

    • Consolidated EBITDA grew 17.5% to ₹480 crores, maintaining a 14.3% margin.

    • European operations saw a 28.5% top line increase in Euros, with PAT growing 42% over Q1 FY21.

    • Accelerated purchase of balance 38.5% stake in Maxwell, making Endurance 100% owner of the electronics and energy business.

    • Secured new orders worth ₹252 crores in India (₹247 crores new business) and EUR 2 million in Europe during Q1 FY26.

    Concerns

    3
    • Standalone EBITDA margins dropped by 0.5% due to commodity inflation-based total income increase and investment in future growth.

    • Potential 3-6 month delay in the implementation of new ABS safety requirements (mandated from January 2026).

    • European new car sales dropped 1.8% in Q1 FY26, and the market is awaiting official government incentives.

    What Changed2

    vs Q2 FY26

    Guidance items30 → 11 (-19)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Total Income₹3,355 Cr+17.3%YoY
    2. 02Consolidated EBITDA₹480 Cr+17.5%YoY
    3. 03Consolidated EBITDA Margin14.3%
    4. 04Consolidated PAT₹226 Cr+11%YoY
    5. 05Standalone Total Income₹2,351 Cr+10.1%YoY

    Segment breakdown

    European Operations (including Stöferle)
    103.2 Mn Turnover18 Mn EBITDA17.4% EBITDA Margin6.4 Mn Net Results
    European Operations (excluding Stöferle)
    0.6% Top Line Growth0.2% EBITDA Percentage Growth
    List

    Order Book

    high confidence

    Total Value

    ₹ 4,329 crores

    as of 2025-06-30

    quantified

    Inflow this qtr

    ₹ 252 crores

    Execution

    Of the 3,612 crores new business, close to ₹1,400 crores saw SOP in FY '25. A further ₹ 1,150 crores is expected in this year FY 26. The rest of the business will be realised in FY 27 and FY 28.

    Composition

    Mix4 products
    • Battery Packs (2W OEM)₹ 300 crores31.4%
    • Maxwell (BMS)₹ 156 crores16.3%
    • AURIC Shendra (e-4W)₹ 300 crores31.4%
    • Solar Suspension₹ 200 crores20.9%

    Share of order book by product (derived from disclosed amounts)

    Pipeline

    qualified rfp

    RFQs in hand

    "The company has a strong order book with significant new business wins, especially in the EV segment and for advanced braking systems, with a substantial portion expected to be realized in FY26 and beyond."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹286 crores this quarter · ₹800 crores (FY26) planned

    M&A

    Stöferle entities

    acquisition · closed · Consideration ₹NaN (cash)

    M&A

    Maxwell

    acquisition · closed

    Guidance & targets

    11
    CategoryTargetPriority
    Capex
    India Capex
    crossing 800 crores
    Medium
    Capex
    Europe Capex
    maximum of €20-25 million
    High
    Capacity
    ABS Capacity Addition
    2.4 million units
    High
    Market Share
    ABS Market Share
    at least 25%
    Medium
    Product Launch
    2W Alloy Wheel Plant SOP
    Week 4 of this month
    High
    Product Launch
    Battery-pack Manufacturing Facility SOP
    January 2026
    High
    Product Launch
    AURIC Shendra Plant SOP
    Q4 of this financial year
    High
    Product Launch
    Hero MotoCorp Clutch Peak Requirement
    100k clutch assemblies per month
    High
    Product Launch
    APTC Clutches SOP (Royal Enfield/Bajaj)
    September
    High
    Product Launch
    Jaguar Land Rover Aluminum Forging Supplies
    January 2026
    High
    Industry Growth
    2W Industry Volume
    29-30 million vehicles
    Medium

    ABS Regulation Clarification

    next month
    CurrentDraft regulation for 100% ABS use from Jan 2026, but potential 3-6 month delay.
    TargetOfficial clarification on the effective date of ABS mandate.

    Why it matters

    The final timeline for ABS mandate will significantly impact the ramp-up and order book for Endurance's ABS business.

    But of course, we don't know what will happen. We expect that we will get some clarification by next month.

    How to verify

    guidance_and_targets[category='Regulatory', metric='ABS Mandate Effective Date']

    Risks & concerns

    3
    RiskSeverity

    Global Economic Uncertainties

    Businesses worldwide face uncertainties regarding trade barriers, rare earth magnet supplies, inflation, and end-user demand.Management acknowledged

    medium

    Delay in ABS Regulation Implementation

    While the new ABS safety requirements are expected from January 2026, past experience suggests a potential delay of 3-6 months.Management acknowledged

    medium

    European EV Market Growth Dependent on Incentives

    New car sales in the European Union dropped 1.8% in Q1 FY26, and market growth is contingent on official government incentives for electric vehicles.Management acknowledged

    medium

    Q&A highlights

    8

    “We are today engaged with most OEMs, because there are not many players. You have Bosch, Continental, Nissin, and Endurance. We are the only Indian Company doing ABS. And as I mentioned, at least 16 million, 2W, if not more, will need ABS. [...] As far as Endurance is concerned, of course, our capacity is 640,000. We are expecting a tenfold growth for sure. So, the commitments which we have already got from certain customers, we are immediately going ahead with 2 lines which will add another 2.4 million. These lines should be ready by March 2026.”

    Clarifies the significant market opportunity for ABS (16 million units) and Endurance's aggressive capacity expansion plans (10x growth target) and timeline for readiness.

    asked by Aditya Jhawar

    3 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.