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Endurance Technologies Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Endurance Technologies reported strong consolidated growth in Q2 FY26, with total income up 22.6% and EBITDA up 21.9%. Strategic investments in ABS capacity, a new Chennai plant, and other facilities are underway to support future growth. However, standalone margins faced pressure from rising raw material costs and strategic investments. The company continues to secure significant new orders across various segments, including EV and 4W components, and is optimistic about future profitability and market share gains.

Highlights

Consolidated total income increased by 22.6% YoY to ₹3,603.8 crores in Q2 FY26.
Consolidated EBITDA grew 21.9% YoY to ₹497.8 crores, maintaining a 13.8% margin.
New ABS capacity of 2.4 million units per annum is being added, with the first 1.2 million line operational by Q1 FY27.
New Chennai plant for disc brake systems will produce 3 million assembly systems and 4 million brake discs per annum by Q2 FY27.
Total orders won since FY22 reached ₹4,671 crores per annum, with ₹3,500 crores expected to peak by FY28.

Concerns

Standalone EBITDA margin dropped by 1.16% on total income, primarily due to raw material cost increases (aluminum).
Standalone margins were also impacted by investments in people for future growth (₹10 crores) and two special projects (₹10 crores).
Scooter segment saw a 4.4% decline in sales, mainly attributed to degrowth from Honda Motorcycles and Scooters (HMSI).
World Bank cut India's FY27 GDP growth forecast to 6.3% due to US tariffs and slower global demand.

Key financials

01 Standalone Total Income ₹2,692.2 Cr +16.2%YoY
02 Standalone EBITDA ₹335.9 Cr +6.3%YoY
03 Standalone EBITDA Margin 12.5%
04 Standalone PAT ₹187.6 Cr +1.5%YoY
05 Consolidated Total Income ₹3,603.8 Cr +22.6%YoY
06 Consolidated EBITDA ₹497.8 Cr +21.9%YoY
07 Consolidated EBITDA Margin 13.8%
08 Consolidated PAT ₹227.3 Cr +12%YoY

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	2,913	2,859	2,963	3,319	3,583 +23%	3,608 +26%	4,086 +38%	4,315 +30%
Expenses	2,531	2,487	2,541	2,875	3,106	3,131	3,518	3,779
EBITDA	382	373	422	444	477 +25%	477 +28%	568 +35%	536 +21%
Margin	13%	13%	14%	13%	13%	13%	14%	12%
Other income	27	22	47	36	21	16	30	33
Interest	12	12	12	14	14	15	15	17
Depreciation	131	136	142	164	180	178	212	222
Profit before tax	266	247	314	302	304 +14%	301 +22%	371 +18%	330 +9%
Tax rate	24%	25%	22%	25%	25%	26%	25%	26%
Net profit	203	184	245	226	227 +12%	222 +21%	276 +13%	245 +8%
EPS	14.43	13.11	17.43	16.09	16.16	15.76	19.65	17.38

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.

Order book

high confidence

Total value

₹4,671 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹1,124.8 Cr

Execution

We expect Rs. 3,500 crores per annum out of this to peak in FY 28.

Composition

Mix 8 segments

India Business (H1 FY26) ₹909 Cr 29.7%
Battery Pack (new business) ₹300 Cr 9.8%
BMS at Maxwell (new order) ₹21 Cr 0.7%
4W Business (H1 FY26) ₹355.8 Cr 11.6%
EV Casting (US OEM) ₹103 Cr 3.4%
Aluminum Casting (Hyundai/Kia) ₹146 Cr 4.8%
Ather Energy Alloy Wheel ₹31 Cr 1%
EV Segment (cumulative since FY22) ₹1,195 Cr 39%

Share of order book by segment, derived from disclosed amounts

Pipeline

qualified rfp

Total RFQs in hand

The company has won cumulative orders worth Rs. 4,671 crores per annum since FY22, with Rs. 3,953 crores being new business. Management expects Rs. 3,500 crores per annum from these orders to peak in FY28. There is a strong pipeline of Rs. 4,209 crores worth of RFQs, with an expectation to win over Rs. 1,500 crores in the next 12-18 months.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹750 Cr New plan
- ABS capacity expansion
- New Chennai plant for disc brake systems
- New integrated R&D facility for brakes
- AURIC Shendra facility for machined castings
- AURIC Bidkin 2W alloy plant
- Battery-Pack manufacturing facility near Pune
In India, standalone business, we may be closing the year with close to INR 750 to INR 800 crores, and we already have done INR 460 crores in the first half. So, there will be an incremental INR 300 to INR 350 crores. Yes. Mainly it's in 3 new plants, which are coming up this year.
M&A Stöferle entities (Germany) Acquisition · Closed

Strategic expansion in European market, annual turnover of approximately €80 million.
60% stake acquired, consolidated from April 2025. Line of sight to acquire remaining 40% in 5 years.

As informed in the previous calls, we completed the acquisition of the 60% stake in Stöferle entities in Germany in the beginning of Q1 of this financial year, with a line of sight of acquiring the remaining 40% in 5 years. Stöferle has an annual turnover of approximately €80 million. From April 2025, Stöferle financials are consolidated in the Endurance Group financials.

Guidance & targets

Capacity

ABS Capacity Expansion (Phase 1) Capacity · Q1 FY27 · High confidence 1.2 million units per annum

Our new ABS capacity of 2.4 million per annum will be installed in two phases, with the first line of 1.2 million operational in Quarter 1 FY '27

— Anurang Jain
ABS Capacity Expansion (Phase 2) Capacity · linked to final guidelines (expected this month) · Medium confidence 1.2 million units per annum

and the second line linked to the timing based on the final guidelines, which are expected in this month.

— Anurang Jain
Chennai Plant Disc Brake Assembly Systems Capacity · Q2 FY27 · High confidence 3 million per annum

Here we will produce 3-million-disc brake assembly systems per annum and 4 million brake discs per annum.

— Anurang Jain
Chennai Plant Brake Discs Capacity · Q2 FY27 · High confidence 4 million per annum

— Anurang Jain
4W Driveshaft Assembly Line Setup Capacity · Q2 FY26 · High confidence Set up during this quarter

we plan to set up a separate 4W Driveshaft assembly line during this quarter.

— Anurang Jain

Volume

Dual Channel ABS Run Rate Volume · Quarter 4 of this financial year · High confidence 640,000 units per annum

So, the run rate of 640,000 ABS per annum capacity, will be reached in Quarter 4 of this financial year.

— Anurang Jain

New Plant SOP

Chennai Plant SOP New Plant SOP · Q2 FY27 · High confidence SOP in Q2 FY '27

We have started civil work for setting up a new Chennai plant for disc brake systems, which includes the master cylinder, caliper, brake disc and brake hoses, where we expect SOP in Q2 FY '27.

— Anurang Jain
AURIC Shendra Plant SOP New Plant SOP · January 2026 · High confidence January 2026

The SOP for the AURIC Shendra plant is going to be in January 2026.

— Anurang Jain
AURIC Bidkin 2W Alloy Plant SOP (Suzuki) New Plant SOP · Q1 FY27 · High confidence End of Q1 FY27

while supplies for Royal Enfield will start next month, and Suzuki alloy wheels will start by the end of Q1 FY 27.

— Anurang Jain
Battery-Pack Manufacturing Facility SOP New Plant SOP · January 2026 · High confidence January 2026

For our Battery-Pack manufacturing facility near Pune, key imported machinery shall be installed by next month and SOP will be from January 2026 for a leading 2W OEM in India.

— Anurang Jain

R&D Facility

New R&D Facility Commissioning R&D Facility · Q4 FY26 · High confidence Ready and commissioned by Quarter 4

The new R&D facility will be ready and commissioned by Quarter 4 of this financial year

— Anurang Jain

Sales

AURIC Shendra Plant Peak Sales Sales · FY28 · High confidence Rs. 388 crores per annum

And now we have added Yazaki as a customer taking the total sales close to Rs. 388 crores per annum at peak. SOP for both the U.S. and UK OEMs will start in Quarter 1 of FY '27, and we will reach peak sales in FY 28.

— Anurang Jain
AURIC Bidkin 2W Alloy Plant Annualized Sales Sales · Q2 FY27 · High confidence More than Rs. 600 crores

This plant will have annualized sales of more than Rs. 600 crores by Q2 of FY 27.

— Anurang Jain
Inverted Front Fork Sales (KTM) Sales · this financial year · High confidence 650,000 units

Our overseas OEM client KTM has also started increasing schedules for Inverted Front Forks, which should cross a total of 650,000 Inverted Front Fork sales in this financial year.

— Anurang Jain
Aluminum Forging Business (next year) Sales · next year · Medium confidence Around Rs. 140 crores

Our line of sight for aluminum forging business next year is around Rs. 140 crores.

— Anurang Jain
Solar Dampers (Spanish OEM) Sales · FY27 · High confidence Rs. 200 crores

This business value won from a Spanish OEM is Rs. 200 crores, which will be executed by FY 27.

— Anurang Jain
India Business Realized from FY22 Orders Sales · this year · High confidence INR 1,160 crores

As far as India is concerned, we have won since FY 22, INR 3,953 crores of business, out of which we have realized around INR 1,440 crores last year. And this year, we will do about INR 1,160 crores of this business. And the balance will be in the next 2 years.

— Anurang Jain

Order Book

Maxwell Orders Peak Order Book · Q3 FY27 · High confidence Rs. 209 crores per annum

The orders won are for 2W, e-rickshaws, e-bikes, electrical construction equipments and for airline buggies. In H1 FY 26, at Maxwell, we have won Rs. 21 crores of new business, which has taken the total cumulative orders won to Rs. 209 crores/annum, which will peak in Q3 FY 27.

— Anurang Jain
Peak Annual Revenue from Orders Won Since FY22 Order Book · FY28 · High confidence Rs. 3,500 crores per annum

We expect Rs. 3,500 crores per annum out of this to peak in FY 28.

— Anurang Jain
New Business Wins from RFQs Order Book · next 12 to 18 months · Medium confidence More than Rs 1,500 crores

We expect to win more than Rs 1,500 crores of business in the next 12 to 18 months.

— Anurang Jain

New Product SOP

Inverted Front Forks (Chinese 2W OEM) New Product SOP · Q1 FY27 · High confidence SOP in Q1 FY27

while SOP for a leading Chinese 2W OEM is expected to start in Q1 of FY 27.

— Anurang Jain
Aluminum Forging (German OEM) New Product SOP · Q1 FY28 · High confidence SOP in Q1 FY28

SOP is planned in Q1 FY 28.

— Anurang Jain
Aluminum Forging (Jaguar Land Rover) New Product SOP · Q4 FY26 · High confidence Business start in Q4 FY26

for which business will start in Q4 of this financial year.

— Anurang Jain
Aluminum Forging (Royal Enfield) New Product SOP · Q1 FY27 · High confidence SOP in Q1 FY27

for which SOP is in Q1 FY 27.

— Anurang Jain
APTC Clutches (Bajaj Auto) New Product SOP · Q3 FY26 · High confidence SOP in next quarter

SOP for Bajaj Auto is expected in the next quarter.

— Anurang Jain
4W Driveshaft New Product SOP · Q4 FY26 · High confidence SOP in Q4 FY26

We expect to commence SOP in Q4 FY 26.

— Anurang Jain

PSI Incentive

Additional PSI Eligibility Certificate PSI Incentive · FY26 · High confidence Apply for CAPEX up to full FY2026

Under this 2019 scheme, we will now apply for an additional eligibility certificate for CAPEX up to full FY2026.

— Anurang Jain

Capex

Europe Capex Capex · total financial year · High confidence EUR 30 million to EUR 32 million

Speaking about Europe, more or less, it is EUR 22 million. Our expectation is to reach EUR 30 million to EUR 32 million in the total financial year.

— Massimo Venuti
India Standalone Capex Capex · this financial year · High confidence INR 750 to INR 800 crores

In India, standalone business, we may be closing the year with close to INR 750 to INR 800 crores, and we already have done INR 460 crores in the first half.

— Raja Gopal Sastry

Margin

Standalone Margin Trajectory Margin · next financial year · Medium confidence Back to historical margin trajectory

Yes, that's good to know. So, do we expect that next financial year we will be back to historical margin trajectory for the standalone business? Is it fair to assume that some of these headwinds might no longer be there?

— Anurang Jain

What to watch in Q3 FY26

Final ABS Guidelines Publication

next quarter

Current Expected this month

Target Published

Why it matters

Final guidelines will dictate the timeline and scope for the second phase of ABS capacity expansion and market adoption.

and the second line linked to the timing based on the final guidelines, which are expected in this month.

Risks & concerns

Global Uncertainties and Economic Headwinds
medium

Global uncertainties persist, and the World Bank cut India's FY27 GDP growth forecast to 6.3% due to headwinds from US tariffs and slower global demand.

India's economic backdrop remains strong, even as global uncertainties persist. The World Bank too has raised India's GDP growth forecast for FY 26 but have cut their FY 27 forecast to 6.3%, citing headwinds from the recent 50% U.S. tariffs impacting Indian exports and slower global demand.

Management acknowledged
Raw Material Cost Inflation
medium

Standalone EBITDA margin was impacted by a 1.36% increase in material cost, predominantly from aluminum price increases.

The EBITDA drop of 1.16% on total income is largely contributed by raw material cost increase led by aluminum alloy, which forms 55% of the total raw material purchases.

Management acknowledged
Competitive Intensity in 4W Suspension
medium

The 4W suspension business is tough with established players, requiring frugal technology and local expertise to compete.

It's a tough business to get into. We are a late entrant, rather, we have not entered the 4W suspension as yet. There are established players in the market.

Analyst acknowledged
Scooter Segment Volume Decline
low

Scooter segment sales declined by 4.4% in Q2 FY26, primarily due to degrowth from Honda Motorcycles and Scooters (HMSI), a key OEM customer.

I think this decline is mainly due to the decline of Honda Motorcycles and Scooters. As you know, they have had a degrowth. HMSI is the second largest OEM customer, and when they get impacted, we also get impacted.

Management acknowledged

Q&A highlights

6 direct

Standalone Margin Compression Direct

We did get a flavor of that when the Managing Director spoke. We did have a compression in margin. When we compare with our product sales, there is close to a 1.36% increase in material cost. And this is coming predominantly, about 40%, from aluminum price increase. Also, strategically we have been consuming some material for our R&D projects, because we are getting a lot of suspension orders, and also we are getting ready for the upcoming legislation on ABS.

Clarified the specific factors contributing to the standalone margin decline, including raw material costs, R&D investments, and special projects.

Asked by Aditya Jhawar

Standalone Margin Recovery Outlook Direct

Yes. We are very, very focused on that, and we will put all our efforts to improve the product mix also. That's clearly our target as we go forward. As we believe in only profitable growth, but I think this raw material cost increase and these 2 special projects as well as our investment in people for the future was very important for us.

Management confirmed focus on returning to historical margin trajectory next financial year through product mix improvement and profitable growth, acknowledging current investments.

Asked by Aditya Jhawar

4W Suspension Business Entry Strategy Direct

It's a tough business to get into. We are a late entrant, rather, we have not entered the 4W suspension as yet. There are established players in the market. But as you know, we always strive to give best value to our customers by way of the frugal technology. As we told you in the last time, we already have a technology partner from Korea, that is very formidable. And we feel their technology will be highly suited for the Indian cars, especially the small size cars. And we will definitely bring some value through local expertise.

Provided insight into the company's strategy for entering the competitive 4W suspension market, leveraging frugal technology, a Korean partner, and local expertise.

Asked by Viraj Kacharia

Solar Damper Business Potential Partial

Last time, I mentioned that the market potential is huge. Without floating any number, I can tell you that it can be a very significant part of our total business. It all depends upon how well we are able to garner customer support. There are multiple players in this space, one Spanish company is already with us, and we are going to 2 more companies. We are in deep discussions, if that works out, the size of this business could be very significant.

Management highlighted the significant, albeit unquantified, potential of the solar damper business, indicating ongoing discussions with additional clients.

Asked by Viraj Kacharia

European Business Performance and Seasonality Direct

If you compare this quarter with the previous quarter, the reduction is only due to the normal seasonality of the business in Europe. In fact, we closed with EUR 88.7 million turnover, compared to EUR 103 million of the previous quarter, of Q1 FY26, but the market went down 13.3% compared to the previous quarter. In the European Union, 2.5 million new cars were registered in this quarter compared to 2.9 million in the previous quarter. This is normal for Europe, because the 2nd Quarter of the financial year, there is a typical slowdown because of holidays.

Explained the sequential decline in European turnover as normal seasonality and market slowdown, rather than a fundamental issue, while maintaining strong EBITDA margins.

Asked by Rajit Aggarwal

Impact of EV Investment on Europe Depreciation Direct

In Europe, I confirm that the increase in depreciation in the quarter is due to the start of the important investment we have made for Stellantis and Volkswagen. And there will be another step-up increase of depreciation in the next quarter for the start of the new lines for Volkswagen 1.5 L gasoline.

Confirmed that increased depreciation in Europe is directly linked to new EV-related investments for major OEMs, indicating ongoing capital deployment for future growth.

Asked by Nishit Jalan

Maxwell's Business Diversification Direct

We have done a forward integration to Battery Packs, that is going to start in January 2026 with one major OEM EV customer. Everybody wants to see our cylindrical assembly line of Battery Packs running. And that will help us to get into the non-auto, because when they see such a good, automated line, which is imported from China and will be commissioned by next month. Then seeing is believing, and then potential customers get confidence.

Management outlined Maxwell's strategy to diversify beyond e2W and auto into non-auto segments like energy storage, leveraging its Battery Pack technology and manufacturing capabilities.

Asked by Jinesh Gandhi

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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.

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