Endurance Technologies Limited — Q1 FY26 earnings call

Call held 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

  • 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

  • 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.

Key financials

  1. Consolidated Total Income ₹3,355 Cr +17.3%YoY
  2. Consolidated EBITDA ₹480 Cr +17.5%YoY
  3. Consolidated EBITDA Margin 14.3%
  4. Consolidated PAT ₹226 Cr +11%YoY
  5. Standalone Total Income ₹2,351 Cr +10.1%YoY
  6. Standalone PAT ₹166 Cr

What they filed

Q1 FY27: revenue up 30.0%, net profit up 8.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,913 2,859 2,963 3,319 3,583 +23%3,608 +26%4,086 +38%4,315 +30%
EBITDA382 373 422 444 477 +25%477 +28%568 +35%536 +21%
Net profit203 184 245 226 227 +12%222 +21%276 +13%245 +8%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

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

Order book

high confidence

Total value

₹4,329 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹252 Cr

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

Mix 4 products
  • Battery Packs (2W OEM) ₹300 Cr 31.4%
  • Maxwell (BMS) ₹156 Cr 16.3%
  • AURIC Shendra (e-4W) ₹300 Cr 31.4%
  • Solar Suspension ₹200 Cr 20.9%

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

high confidence
  • Capex ₹286 Cr this quarter · ₹800 Cr (FY26) planned
    • AURIC Shendra facility
    • AURIC Bidkin 2W alloy wheel plant
    • Battery-pack plant
    • ABS expansion in Waluj
    • New disc brake assembly plant in Chennai
    If you see Q1 in India, we have spent 286 crores on Capex. And as you know, there are 3 big projects which I have already mentioned. The big ones are the AURIC Shendra, starting in Q4. And then you have the AURIC Bidkin, which is starting in week 4 of this month. And also, we have the battery-pack plant, which is starting in January 26. [...] Looking at the capacities which we need to sweat, the CAPEX might be crossing 800 crores in this year.
  • M&A Stöferle entities Acquisition · Closed · Consideration ₹[object Object] (cash)

    Consolidation of a key customer (Mercedes) and strategic synergy for parts production.

    Stöferle contributed €22 million to turnover and €4.5 million to EBITDA in Q1 FY26. Profitability is high (18.7-20% EBITDA margin).

    We spent €37.7 million to buy 60% of shares. [...] Stöferle has an annual turnover of approximately EUR 80 million. From April 2025, Stöferle financials are consolidated in the Endurance Group Financials. [...] So, we closed this quarter with €103.2 million of turnover compared to €80.3 million of the previous financial year. So, we grew 28.5% of which Stoferle is €22 million. [...] And speaking about EBITDA, €18 million was the actual for Q1, compared to €13.3 million in the previous financial year. And so, it means €4.5 million is Stöferle. [...] the profitability of the company is 20% or 18.7%.
  • M&A Maxwell Acquisition · Closed

    To make it the cornerstone of electronics and energy business.

    Now 100% owners, with strong plans for electronics and energy business. Maxwell has seen healthy uptick in battery management system sales.

    In Q1 of FY 26, we accelerated the purchase of the balance 38.5% stake in Maxwell. We are now 100% owners of this business and have strong plans to make it the cornerstone of our electronics and energy business.

Guidance & targets

Capex

  • India Capex Capex · FY26 · Medium confidence crossing 800 crores
    Looking at the capacities which we need to sweat, the CAPEX might be crossing 800 crores in this year.

    — Anurang Jain

  • Europe Capex Capex · FY26 · High confidence maximum of €20-25 million

    Previously €51 million → maximum of €20-25 million

    For sure, the impact of the CAPEX for this financial year will be 50% compared to the previous year, and at a maximum of €20-25 million.

    — Massimo Venuti

Capacity

  • ABS Capacity Addition Capacity · by March 2026 · High confidence 2.4 million units
    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.

    — Anurang Jain

Market Share

  • ABS Market Share Market Share · Medium confidence at least 25%

    From less than 15% today

    Right now, it is less than 15%, but we should now, with this higher volume. Our target is at least 25%, or higher number.

    — Anurang Jain

Product Launch

  • 2W Alloy Wheel Plant SOP Product Launch · August 2025 · High confidence Week 4 of this month
    I am pleased to inform you that the SOP at our 2W alloy wheel plant in AURIC Bidkin will start in week 4 of this month.

    — Anurang Jain

  • Battery-pack Manufacturing Facility SOP Product Launch · January 2026 · High confidence January 2026
    And then you have the battery-pack plant, which is starting in January 26.

    — Anurang Jain

  • AURIC Shendra Plant SOP Product Launch · Q4 FY26 · High confidence Q4 of this financial year
    The SOP is now planned in Quarter 4 of this financial year.

    — Anurang Jain

  • Hero MotoCorp Clutch Peak Requirement Product Launch · in Q4 of this financial year · High confidence 100k clutch assemblies per month
    We have begun SOP in May 25 for the first Hero MotoCorp clutch, for which peak requirement will reach 100k clutch assemblies per month, which we hope to do in Q4 of this financial year.

    — Anurang Jain

  • APTC Clutches SOP (Royal Enfield/Bajaj) Product Launch · September 2025 · High confidence September
    In September, we will begin SOP for the first assist-and-slip APTC clutches to Royal Enfield and Bajaj Auto.

    — Anurang Jain

  • Jaguar Land Rover Aluminum Forging Supplies Product Launch · January 2026 · High confidence January 2026
    Our supplies to Jaguar Land Rover are expected to begin in January 2026.

    — Anurang Jain

Industry Growth

  • 2W Industry Volume Industry Growth · by FY30 · Medium confidence 29-30 million vehicles
    Because as per figures for FY 30, even if we take a small growth, I think we should reach 29-30 million vehicles.

    — Anurang Jain

What to watch in Q2 FY26

ABS Regulation Clarification

next month
Current Draft regulation for 100% ABS use from Jan 2026, but potential 3-6 month delay.
Target Official 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.

Risks & concerns

  • Global Economic Uncertainties

    medium

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

    Management acknowledged

  • Delay in ABS Regulation Implementation

    medium

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

    Management acknowledged

  • European EV Market Growth Dependent on Incentives

    medium

    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

Q&A highlights

8 direct
ABS Opportunity Size and Timeline Direct
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

CAPEX for FY26 and Future Years Direct
Looking at the capacities which we need to sweat, the CAPEX might be crossing 800 crores in this year. For FY 27, this figure is very difficult to say. We believe in sweating our assets, that's why you see operational efficiency is quite good, since the beginning. So, we only spend when there is a requirement to spend. But as we look at inorganic growth opportunities also, both in India and Europe, and which is actively going on as we speak, I don't see this figure going down in FY 27.

Provides full-year CAPEX guidance for India (crossing ₹800 crores) and indicates continued high CAPEX in future years due to growth opportunities and inorganic expansion.

Asked by Aditya Jhawar

Stöferle Financial Contribution and Profitability Direct
So, we closed this quarter with €103.2 million of turnover compared to €80.3 million of the previous financial year. So, we grew 28.5% of which Stoferle is €22 million. [...] And speaking about EBITDA, €18 million was the actual for Q1, compared to €13.3 million in the previous financial year. And so, it means €4.5 million is Stöferle. [...] the profitability of the company is 20% or 18.7%.

Quantifies Stöferle's contribution to European financials (€22M turnover, €4.5M EBITDA in Q1) and confirms its high profitability, addressing analyst's query about the acquisition rationale.

Asked by Pramod

ABS Market Share Target Direct
Right now, it is less than 15%, but we should now, with this higher volume. Our target is at least 25%, or higher number.

Reveals current low market share in ABS and sets an ambitious target of 25% or higher, indicating significant growth potential.

Asked by Pramod

ABS R&D Capability Direct
See, I don't like to comment about others. I would like to talk about ourselves. We are fully ready. I can only say that. [...] Yes, absolutely, a lot of learnings. Because you learn a lot from customers, your experience, cutting costs, improving efficiencies. Then the main thing is on the software part, the collaboration of software. We used to depend a lot on our collaborator, Beijing West Industries or BWI. Now with the test riders, and our internal team, we are able to do a lot ourselves. And that, I would say is one of the biggest learning. The speed, and the cost also comes down.

Management expresses high confidence in their R&D capabilities for ABS, highlighting internal learnings, cost efficiencies, and reduced reliance on external collaborators.

Asked by Pramod

ABS Impact on Disc Brake Penetration Direct
It is not only ABS growth, and it took us a day to realize that there is also disc brake systems growth because ABS needs disc brakes, and not a drum brake. So, for example, if scooters had drum brakes, now they will have an ABS with a disc brake. [...] When you have an ABS, it requires a disc brake assembly and caliper in disc. It doesn't need a drum brake. So, that becomes an added volume. And the reason for the planned Chennai plant is that those volumes are also going up.

Explains the synergistic growth opportunity for disc brakes driven by ABS mandate, leading to increased volumes and the need for a new manufacturing plant.

Asked by Pramod

European EV Market Slowdown and Incentives Direct
Yes. In this moment, it is very difficult to predict the next 18 months, as you can imagine. I can tell you only one thing. In Q1 of this financial year, the European market reached 25% share in electrical vehicles, BEV at 15.9, and PHEV at 9.2%, and this is an important signal. We await the official position of the governments on the incentive.

Highlights the uncertainty in the European market due to pending government incentives, despite a high share of electric vehicles, which could impact future growth.

Asked by Arvind Sharma

Stöferle Acquisition Accounting (Minority Interest) Direct
For the first answer, I repeat that there are no minority interest in the acquisition of Stöferle. We are consolidating 100% of the results, and also 100% of the assets and are creating a liability towards future purchase of 40%.

Clarifies that despite acquiring 60% stake, 100% of Stöferle's results are consolidated, with a liability created for the future purchase of the remaining 40%.

Asked by Shagun Beria

3 min read 7 chapters

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.

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