Endurance Tech.

Endurance Technologies reported a robust Q3 FY26 with consolidated total income growing 26.5% year-on-year to ₹3,645.6 crores. Consolidated EBITDA increased by 30.4% to ₹514.5 crores, resulting in a healthy margin of 14.1%. Consolidated PAT also saw a significant rise of 20.2% to ₹221.6 crores, with a PAT margin of 6.1%. This growth was supported by strong industry sales numbers, particularly in the two-wheeler and passenger vehicle segments, and the impact of GST rate rationalization.

The company is making significant strategic investments, with four new greenfield plants expected to be fully operational over the next few quarters, contributing to full impact in H2 FY27. Key projects include the Chennai plant for disc brake systems (SOP Q2 FY27) with a capacity of 3 million assemblies and 4 million brake discs, and the AURIC Shendra plant for machined castings (SOP Q2 FY27 for UK/US OEMs). The battery pack manufacturing plant near Pune is set for commercial ramp-up by end of March or early April 2026. These expansions are aimed at balancing volumes, ensuring flexibility, and improving overall sales growth.

Endurance secured substantial new business, with India order wins totaling ₹1,265.5 crores in the first nine months of FY26, including ₹300 crores for Battery Packs and ₹45 crores for BMS. The 4-wheeler and non-automotive segments contributed ₹530 crores in new business during the same period. Total EV business wins, including Maxwell and Battery Pack, reached ₹1,636.5 crores. In Q3 alone, new business wins amounted to ₹354 crores, with ₹163 crores from 4-wheeler and non-automotive sectors. The company also expects to win over ₹1,500 crores in new orders in the next 12-18 months.

European operations continued to sustain profitable growth despite a challenging environment marked by semiconductor shortages, energy crisis, and geopolitical tensions. The acquisition of Stöferle, completed in April 2025, added approximately €80 million in profitable annual sales, contributing €20 million to Q3 FY26 turnover. The company reported €15 million in new orders in Europe during the first nine months of FY26. Management noted a marginal reduction in organic European turnover, primarily due to lower tooling sales, but production grew 4.2% year-on-year without Stöferle.

In India, the company is intensely focused on improving profit margins by manufacturing in-house rather than outsourcing, implementing price increases to OEMs to offset rising power and manpower costs, and strategically pursuing new business with better profit margins to enhance the product mix. The standalone EBITDA margin saw a 0.4% drop, largely due to increased raw material costs, particularly aluminum, which constitutes 55% of total raw material purchases. An exceptional cost of ₹20.6 crores related to new labor codes also impacted PAT by ₹15 crores.

Endurance is well-positioned for the EV transition, with EV sales growing 65.6% to ₹287 crores in the first nine months of FY26, and a 4-year CAGR of 71%. The company is awaiting final guidelines for ABS mandates for two-wheelers and EVs, which are expected to clarify by the end of the current quarter. The aftermarket business is a strategic priority with ambitious growth goals until 2030, focusing on long-term partnerships with distributors, secondary demand generation, and leveraging an AI-enabled tech platform for order booking.