Detailed Narrative
India Economic & Automotive Sector Performance
India's economic backdrop remains strong, with the RBI revising its FY26 growth forecast from 6.5% to 6.8% and lowering CPI inflation to 2.6%. The recent GST rationalization, implemented from September 22, 2025, is expected to boost automotive growth by improving affordability. In Q2 FY26, 2W sales grew 10.3% YoY to 6.9 million units, PV sales increased 2.4% to 1.3 million units, and 3W sales rose 21.4% to 0.4 million units. Endurance's standalone financials saw a 16.2% YoY growth.
Strategic Expansion in ABS and Disc Brake Systems
Endurance is significantly expanding its ABS capacity by 2.4 million units per annum, a five-fold increase, with the first 1.2 million unit line becoming operational by Q1 FY27. The company anticipates incremental demand from 125cc or lower 2-wheelers for single-channel ABS. A new Chennai plant is under civil work, expected to be operational by Q2 FY27, with a capacity to produce 3 million disc brake assembly systems and 4 million brake discs per annum. This expansion will serve South India OEMs and free up space in the existing Chhatrapati Sambhajinagar plant.
New Manufacturing Facilities and Order Wins
The new AURIC Shendra facility, focusing on critical machined castings for 4W and non-auto applications, is set to begin SOP in January 2026, with peak sales of Rs. 388 crores per annum by FY28. The AURIC Bidkin 2W alloy plant started SOP in October for Bajaj Auto, with annualized sales expected to exceed Rs. 600 crores by Q2 FY27. A Battery-Pack manufacturing facility near Pune will commence SOP in January 2026 for a leading 2W OEM, with proto samples already submitted for a Rs. 300 crore/annum business win.
Maxwell's Diversification and Growth
Maxwell, the wholly-owned subsidiary, achieved a record turnover of Rs. 74 crores in H1 FY26, surpassing its full FY25 turnover of Rs. 70 crores. Cumulative orders won by Maxwell reached Rs. 209 crores per annum, expected to peak in Q3 FY27. The company is expanding its Battery Management System (BMS) offerings beyond 2W and 3W to tractors, construction equipment, and 4W, with a strong pipeline of RFQs worth Rs. 137 crores.
European Operations and Stöferle Integration
In the European Union, new car sales rose 7.7% in Q2 FY26. Endurance Europe's total income grew 32.5% with Stöferle consolidation; excluding Stöferle and tooling sales, income grew 7.8%. The acquisition of a 60% stake in Stöferle entities, with an annual turnover of approximately €80 million, was completed in Q1 FY26 and consolidated from April 2025. The company aims to acquire the remaining 40% in 5 years.
Financial Performance and Margin Pressures
In Q2 FY26, standalone total income grew 16.2% YoY to Rs. 2,692.2 crores, but EBITDA grew only 6.3% to Rs. 335.9 crores, resulting in a 1.16% drop in EBITDA margin to 12.5%. This compression was primarily due to a 1.36% increase in material costs, mainly aluminum, and investments of approximately Rs. 10 crores each in people for future growth and two special projects. Consolidated total income, however, grew 22.6% to Rs. 3,603.8 crores, with EBITDA up 21.9% to Rs. 497.8 crores, and a margin of 13.8%.
Sustainability and CSR Initiatives
Endurance made significant progress towards its FY30 sustainability goals, achieving a 48% carbon-neutral percentage. Specific electrical and thermal energy consumption, as well as water consumption, were lowered, with recycling rates for water and hazardous waste at 98% each. Renewable power share increased to 28% in Q2 FY26. The company's CSR arm, Sevak Trust, transformed 61 schools with solar energy and hygiene facilities, benefited over 4,900 people through agricultural training, and imparted vocational training to over 2,300 youth.