Endurance Technologies Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Endurance Technologies reported strong consolidated financial performance in Q3 FY26, with significant revenue and EBITDA growth driven by new business wins in India, particularly in the EV and 4W segments, and the Stöferle acquisition in Europe. Despite raw material cost pressures and an exceptional charge, the company maintained healthy margins and a net debt-free position. Management highlighted strategic investments in new plants and R&D, alongside a cautious outlook for the challenging European market.

Highlights

  • Consolidated total income for Q3 FY26 grew 26.5% YoY to ₹3,645.6 crores.

  • Consolidated EBITDA for Q3 FY26 grew 30.4% YoY to ₹514.5 crores, with margin at 14.1%.

  • Cumulative India EV business wins, including Maxwell and Battery Pack, reached ₹1,636.5 crores.

  • Maxwell, a wholly-owned subsidiary, achieved a record turnover of ₹114 crores in the first nine months of FY26, up from ₹70 crores in full-year FY25.

  • The Stöferle acquisition, completed in April 2025, added around €80 million of profitable sales to the topline.

  • The company remains net debt-free despite significant investments in M&A and CAPEX.

Concerns

  • Standalone EBITDA margin dropped 0.4% due to raw material cost increases, with aluminum forming 55% of purchases.

  • An exceptional cost of ₹20.6 crores related to assessed impact of new labour codes impacted PAT by ₹15 crores.

  • European order inflow for the first 9 months of FY26 was only €15 million, significantly lower than the €40 million in the previous financial year, attributed to market stagnation and geopolitical uncertainties.

Key financials

  1. Standalone Total Income ₹2,678.3 Cr +22.2%YoY
  2. Standalone EBITDA ₹339.1 Cr +18%YoY
  3. Standalone EBITDA Margin 12.7%
  4. Standalone PAT ₹170.7 Cr +8.8%YoY
  5. Consolidated Total Income ₹3,645.6 Cr +26.5%YoY
  6. Consolidated EBITDA ₹514.5 Cr +30.4%YoY
  7. Consolidated EBITDA Margin 14.1%
  8. Consolidated PAT ₹221.6 Cr +20.2%YoY
  9. Consolidated PAT Margin 6.1%

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.

Order book

high confidence

Total value

₹5,021 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹354 Cr

Composition

Mix 8 products
  • Battery Packs (Talegaon-Pune) ₹300 Cr 6.1%
  • Battery Management Systems (Maxwell) ₹45 Cr 0.9%
  • EV (India, conventional products without Bajaj Auto) ₹1,058.7 Cr 21.6%
  • EV (India, conventional products with Bajaj Auto) ₹1,241.5 Cr 25.3%
  • Total EV Business (with Maxwell & Battery Pack) ₹1,636.5 Cr 33.4%
  • Maxwell Cumulative Orders Won ₹232 Cr 4.7%
  • Aluminum Forging (annual business value) ₹140 Cr 2.9%
  • Solar Dampers & Actuators (total won till date) ₹250 Cr 5.1%

Share of order book by product, derived from disclosed amounts

Pipeline

qualified rfp

Requests for quotes in hand

Cancellations & deferrals

  • deferred: Delay in SOP for UK-based OEM at AURIC Shendra plant
The company has a strong order book across various segments, including significant wins in EV and non-automotive sectors, and expects to win over ₹1,500 crores in the next 12-18 months.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹800 Cr
    • New facilities (AURIC-Bidkin, Shendra, Chennai)
    • Brakes expansions
    • Profitable growth products (4W castings, solar dampers)
    • Automation, environmental health and safety, statutory compliances, quality improvement
    We have been investing in the last 3 years, with an average CAPEX of 400 crores in India. Of course, the CAPEX was about 600 crores in FY 25, where in the new plants, the CAPEX had already started. We had bought two lands, in AURIC-Bidkin & Shendra, and in Chennai, where the braking system plant is coming in. This year, we will be slightly less than 800 crores, largely because of these 4 new facilities, plus expansions which we are doing in Brakes. So, going forward now, our plan is very clear. Our investments will be in profitable growth products, mainly. To retain business, if I have to do products which are at existing margins, I may do it. That is why I specifically mentioned in my opening remarks, that 530 crores of the 930 crores, more than two-thirds business is on four-wheeler castings and on solar dampers, which are much higher margin businesses. So, the CAPEX will be mainly on such businesses. We are making a plan for this, in the next week, we will be more clear on the CAPEX plan for next year. Our focus will be more on automation now, for better consistency in quality and lowering contract labor. On CAPEX, I would say it will be more on automation, on environmental health and safety, some statutory compliances, on improvement of quality, or it will be on profitable growth, expansions or new plans.
  • M&A Stöferle Acquisition · Integrated · Consideration ₹[object Object] (cash)

    Added profitable sales to topline and expanded European operations.

    Stöferle contributed €20 million to Q3 FY26 turnover and €80 million annual profitable sales. The company remains net debt-free despite this acquisition.

    Our acquisition of Stöferle was completed in April 2025, adding around € 80 million of profitable sales to our topline.
  • Liquidity Liquidity disclosed The company is net debt-free and net cash increased this financial year despite the Stöferle acquisition and capex.
    But I want to underline that despite the acquisition of Stöferle on 1st of April 2025, we continue to be net debt-free. In fact, our net cash saw an increase in this financial year despite payment of € 38 million for the 60% stake and despite the capex of another € 38 million.

Guidance & targets

Regulatory

  • ABS final guidelines clarity Regulatory · Q3 FY26 · Medium confidence Clarified by end of this quarter
    We are awaiting the final guidelines for the same, which we hope should be clarified by end of this quarter.

    — Anurang Jain

Capacity

  • Single channel ABS ECU in-house SOP Capacity · Q1 FY27 · High confidence Begin in Q1 FY27
    in-house SOP for the single channel ABS is expected to begin in Q1 of FY 27 on our surface-mounted technology line at Waluj, Chh. Sambhajinagar.

    — Anurang Jain

  • Dual channel ECU in-house SOP Capacity · FY27 · High confidence Later in same financial year
    The dual channel ECU will follow later in the same financial year.

    — Anurang Jain

  • Chennai plant (disc brake systems) SOP Capacity · Q2 FY27 · High confidence Q2 FY27
    Key machinery will be installed from Q1 FY 27 onwards, and the SOP is planned for Q2 FY 27.

    — Anurang Jain

  • 4W passenger vehicle drum brakes (Tata Motors) SOP Capacity · Q1 FY27 · High confidence Q1 FY27
    We have also installed an assembly line for 4W passenger vehicle drum brakes for Tata Motors, with SOP expected in Q1 of FY 27.

    — Anurang Jain

  • AURIC Shendra plant (machined castings) SOP for UK/US OEMs Capacity · Q2 FY27 · High confidence Q2 next financial year
    where the SOP for both UK and the U.S. OEMs will start by Q2 of the next financial year, with peak sales expected in the FY 29.

    — Anurang Jain

  • AURIC Bidkin (alloy wheels) SOP for Royal Enfield Capacity · Q2 FY27 · High confidence Q2 FY27
    Supplies to Royal Enfield will start in Q2 of FY 27

    — Anurang Jain

  • AURIC Bidkin (alloy wheels) SOP for Suzuki and Ather Capacity · Q3 FY27 · High confidence Q3 FY27
    and supplies to Suzuki and Ather are expected to begin by Q3 of FY 27, reaching peak order win sales in Q3, FY 27.

    — Anurang Jain

  • Battery pack manufacturing plant commercial ramp-up Capacity · Q4 FY26/Q1 FY27 · High confidence End March 2026 or early April 2026
    Post OEM and regulatory approvals, commercial ramp-up activities will be started to support the SOP from end of March 2026 or early April 2026.

    — Anurang Jain

  • Aluminum forging new plant SOP (Waluj) Capacity · Q2 FY27 · High confidence Q2 FY27
    This new plant will come up in Q2 of FY 27.

    — Anurang Jain

  • Solar dampers (Sanand) SOP Capacity · Q1 FY27 · High confidence April 2026
    The building work is nearly complete, and we expect to start SOP of solar dampers by April 2026.

    — Anurang Jain

  • Assist and slip clutches (Bajaj Auto) SOP Capacity · Q2 FY27 · High confidence Q2 FY27
    The SOP for Bajaj Auto is expected in Q2 of FY 27.

    — Anurang Jain

  • 4-wheeler driveshafts SOP Capacity · Q4 FY26 · High confidence March 2026
    The customer PPAP is planned towards the end of this month with SOP expected by March 2026.

    — Anurang Jain

Financial Impact

  • Full impact of four Greenfield plants Financial Impact · H2 FY27 · High confidence Second half of FY27
    All the above four Greenfield plants, will be fully operational over the next few quarters, and we will feel the full impact in the second half of FY 27.

    — Anurang Jain

Volume

  • Inverted front forks sales Volume · FY26 · High confidence >650,000 units
    Our total sales of inverted front forks are expected to reach more than 650,000 units in this financial year, and we expect to substantially increase in further years, starting from next financial year.

    — Anurang Jain

Sales

  • Sales to Hero MotoCorp Sales · next 2 years · Medium confidence Double sales
    With this increased business, we have a line of sight to double our sales to Hero MotoCorp over the next 2 years.

    — Anurang Jain

Order Book

  • Order wins (products other than energy & electronics) Order Book · next 12 to 18 months · Medium confidence >1,500 crores
    We expect to win more than 1,500 crores of business in the next 12 to 18 months.

    — Anurang Jain

CAPEX

  • Europe CAPEX CAPEX · next financial year · High confidence €25-30 million
    The expectation for next financial year is to stabilise the total investment with more or less € 25-30 million.

    — Massimo Venuti

What to watch in Q4 FY26

ABS final guidelines clarity

next quarter (by end of Q3 FY26)
Current Awaiting final guidelines
Target Clarified

Why it matters

Clarity on ABS regulations will define market opportunity and product strategy for 2W and EV segments.

We are awaiting the final guidelines for the same, which we hope should be clarified by end of this quarter.

Risks & concerns

  • Challenging European market conditions

    high

    Europe faces semiconductor shortages, energy crisis, geopolitical tensions, inflation, high interest rates, duties, and competition from Chinese OEMs, leading to muted automotive market growth and reduced order inflow.

    Management acknowledged

  • Global growth moderation and geopolitical uncertainties

    medium

    Global growth in 2026 is expected to be more moderate due to softer demand in advanced economies and slower trade expansion amid ongoing geopolitical and trade uncertainties.

    Management acknowledged

  • Raw material cost increases

    medium

    EBITDA margin drop of 0.4% on total income is largely contributed by raw material cost increases, led by aluminum alloy which forms 55% of total raw material purchases.

    Management acknowledged

  • Regulatory uncertainty for ABS mandate

    medium

    Final guidelines for ABS mandate for two-wheelers >50cc and EVs >4kW motor power are still awaited, creating uncertainty for future demand.

    Management acknowledged

  • Delay in SOP for AURIC Shendra plant

    low

    SOP for the AURIC Shendra plant was delayed by two quarters for a UK-based OEM, though other orders are progressing.

    Management acknowledged

Q&A highlights

6 direct
ABS vs. CBS opportunity Direct
If ABS comes like I mentioned, it will be for 120 cc and below up to 50 cc vehicles... Now, in case they go for a CBS, which is not electronic, it is a mechanical CBS. What happens is all the vehicles that are on drum brakes will graduate to our hydraulic braking system, which consists of a master cylinder caliper and a brake disc. Now, if this happens also, it's a huge increase in business because the value of a brake assembly of these three parts is higher than an ABS price. So, we gain both ways, but of course, if the ABS does come in, the gain is much higher because the value goes higher.

Clarifies the company's strategic positioning and potential for growth regardless of the final regulatory outcome for ABS, highlighting opportunities in both ABS and hydraulic braking systems.

Asked by Aditya

Europe growth breakdown (Stöferle vs. organic) Direct
So, Endurance overseas closed the quarter with a € 93 million turnover compared to € 76.8 million of the previous financial year, with an increase of 21%, of which Stöferle was € 20 million. EBITDA was € 16.8 million, with a margin of 18%, compared to € 12.4 million of the previous financial year, with margin of 16.2%. The increase of € 4.3 million means 34.9% compared to the previous year. In terms of net profit, we closed with € 4.9 million, with a margin of 5.3%, compared to € 3.8 million of the previous financial year, with a margin of 5%, an increase in terms of net profit of € 1.1 million, with 28.5% growth. If I don't consider Stöferle, we have had a marginal reduction of turnover but this is entirely due to a reduction of tooling sales. Our production compared to the previous financial year, also without Stöferle, grew 4.2% compared to the previous year, with more or less all the customers, Stellantis, Mercedes and Volkswagen Group.

Provides a detailed breakdown of European performance, distinguishing between the acquired Stöferle business and organic growth, and explaining the impact of tooling sales on organic turnover.

Asked by Aditya

CAPEX intensity for India and Europe Partial
No, we are going to sweat our assets. If you see the impact on ROCE, in India, the customers don't give you any take-or-pay contracts. There are high risk on volumes and high risk on uncertainties. So, though we are going to in-house some of the high-cost outsourced components, but definitely there are certain components where we may use a balance about outsourcing and doing it in-house and controlling CAPEX. Unless there is a M&A, which we are already in process with. But according to me, in India, the CAPEX will be controlled much below this figure of 800 crores. And this is our focus. And I cannot speak from FY 28 onwards. I can say FY 27 is what we are seeing right now in India. As far as Europe is concerned, I think let Massimo give you the answer.

Addresses concerns about future CAPEX intensity, indicating a focus on asset utilization and controlled CAPEX in India, while Europe's CAPEX is expected to stabilize.

Asked by Aditya

AURIC plant SOP date change reason Direct
There has been a delay mainly from the UK-based OEM. That was an SOP which was to start in this quarter, actually. Now they will be starting in Q2 only, we have the schedules. And the US-based OEM should start by the end of Q1. So that is the line of sight we have. But in the meantime, we are also going to start orders for other customers like Valeo, for example. I think the plant will start from April. But these two large OEM customers will come in end of Q1 and Q2. The US-based customer was always end of Q1. It was this UK-based OEM where there's a delay of two quarters.

Explains the specific reason for the delay in SOP for the AURIC Shendra plant, attributing it to a UK-based OEM, and provides updated timelines for other customers.

Asked by Mumuksh Mandlesha

Europe order inflow dwindling reason Direct
Sure. Yes, in the 9 months of this financial year, we acquired only € 15 million of new business. This is lower compared to € 40 million the previous financial year. But we will have to consider that the market is in a very difficult situation. As you know, in December 2025, the European Commission proposed a review of the 2035 rules. This is not yet finalized, but suggests a potential shift from 100% to 90% of emission reduction target, allowing some residual emission to be offset through measures like green steel production or biofuel. And the market, reaction, as you can imagine, was not so positive.

Provides a comprehensive explanation for the reduced order inflow in Europe, citing market stagnation, regulatory uncertainties around emission targets, and increased competition from Chinese imports.

Asked by Pramod Amthe

M&A strategy for larger deals Direct
See, firstly the M&A strategy will be mainly in our existing areas- like we have done, for example in the solar business. It is suspension for non-auto applications. It could be castings in non- automotive. Our strategy will be in those segments where the margins are much higher with good target markets. It is very important that we enter new areas where there is a target market. We are already working on a deal right now and we will see how that goes. So, we are always looking for the M&A opportunities, but of course, we will be aggressively going ahead with it, but we will only do it if it makes sense to our business, I just gave you these examples. What's definitely high on our minds is not only automotive but also non-automotive applications, which will be partly in our products like suspension or casting, or it could be something else.

Outlines the company's M&A strategy, emphasizing focus on existing high-margin areas and non-automotive applications with strong target markets, indicating a disciplined approach to future acquisitions.

Asked by Pramod Amthe

Chinese OEMs in Europe Partial
Yes, this is true. We are discussing with some of these OEMs, but I repeat, in my opinion, we need to wait for a clear position from the European government, because these companies are coming and opening new plants, but only for assembly of the car. So we need to understand whether they will import components like the powertrain components and battery case components and assemble them here, or whether, to reduce tariffs, they will be obliged to produce here. As you know, we are discussing with BYD. They are expected to start at the end of this financial year in Hungary and in the next financial year in Turkey, but only for assembling the car. So, there are no benefits for our product range at the moment. If they are obliged to produce parts here in Europe, it could be an opportunity for us.

Discusses the potential impact and opportunities from Chinese OEMs setting up plants in Europe, highlighting the need for clarity on local content requirements and potential for component supply.

Asked by Mihir

Clarification on ABS vs Brake System pricing Direct
I just wanted to clear one point to everybody on the call. When I talked about ABS and the Brake Systems pricing, I had considered some other items and I took mainly for bikes of higher cc. So I think the pricing would be quite similar because there would be no Stainless Steel Braided Hoses and some other items which are there in the higher end bikes. So I would say the prices of the Brake System would be similar in some cases or even slightly lower. So I just want to clear my statement where I said earlier that they would be higher than ABS, the Master Cylinder, Caliper and the Brake Disc. So please make a note of that. It may be same or a bit lower.

Corrects a previous statement regarding the relative pricing of hydraulic brake systems versus ABS, clarifying that the value might be similar or slightly lower, which is important for revenue projections.

3 min read 6 chapters

Detailed narrative

Strong Consolidated Performance Driven by New Business

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.

Strategic Investments and Capacity Expansion

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.

Significant Order Wins Across Segments

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 and Stöferle Integration

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.

Focus on Profitability and Product Mix in India

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.

EV Transition Readiness and Aftermarket Growth

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.

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