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    Endurance Technologies Limited

    ENDURANCE
    Automobile and Auto Components·16 May 2025
    Management Summary

    Endurance Technologies reported robust Q4 and FY25 results, driven by strong performance in both Indian and European markets. The company is making significant strides in EV components with new battery pack orders and strategic acquisitions, while also expanding its manufacturing footprint and R&D capabilities. Despite macroeconomic headwinds in Europe and tariff concerns, management expressed confidence in continued growth and outperformance.

    Highlights

    6
    • Consolidated total income for FY25 grew 13.1% to ₹116.8 billion, with PAT at ₹8.36 billion.

    • European business grew 15.4% YoY in FY25 with EBITDA growth of 20.9%, outperforming the industry.

    • Won a ₹3 billion per annum order for e-scooter battery packs, with SOP planned for January 2026.

    • Completed acquisition of 60% stake in Stöferle entities in Germany, enhancing manufacturing capabilities and adding new orders.

    • Received eligibility certificate for ₹6.06 billion under Maharashtra PSI 2019 scheme, with ₹4.37 billion accounted till FY25.

    • AURIC Shendra 4-wheeler casting plant secured ₹2.75 billion per annum in orders, with SOP from September 2025.

    Concerns

    3
    • Made a provision of ₹5.3 crores in Q4 FY25 related to KTM Austria restructuring.

    • European new car sales dropped 1.9% in Q4 FY25, with production expected to decline over 2% in calendar year 2025 due to instability and tariff escalations.

    • Potential impact on European components for US markets due to US duty structure and tariff changes, with an estimated effect of 20-30 €/mn for Porsche applications.

    What Changed2

    vs Q1 FY26

    Guidance items11 → 19 (+8)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    05 metrics
    1. 01Total Income (Standalone)₹89,10,00,00,000+12.5%YoY
    2. 02Total Income (Consolidated)₹1,16,80,00,00,000+13.1%YoY
    3. 03PAT (Standalone)₹6,79,00,00,000
    4. 04PAT (Consolidated)₹8,36,00,00,000
    5. 05EPS (Consolidated)₹59.46

    Segment breakdown

    European Business (FY25)
    15.4% Growth20.9% EBITDA Growth
    European Business (Q4 FY25)
    17% Top-line Growth21.2% EBITDA Growth80 Mn Turnover14.7 Mn EBITDA4.8 Mn Net Results
    List

    Order Book

    high confidence

    Total Value

    ₹ 32,92,00,00,000 INR

    as of 2025-03-31

    quantified

    Execution

    Close to ₹14 billion of new business saw SOP in FY25, ₹10 billion expected in FY26, and the rest in FY27 and FY28.

    Composition

    Mix2 business types
    • New Business (since FY21)70.9%
    • Replacement Business (since FY21)29.1%

    Share of order book by business type

    "The company has a strong order book with significant new business expected to be realized over the next few financial years, indicating good revenue visibility."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Maxwell Energy

    acquisition · integrated · Consideration ₹NaN (cash)

    M&A

    Stöferle entities (Germany)

    acquisition · closed

    Guidance & targets

    19
    CategoryTargetPriority
    Capacity
    Battery Pack Plant SOP
    January 2026
    High
    Capacity
    AURIC Shendra 4-wheeler casting plant SOP
    September 2025
    High
    Capacity
    AURIC Bidkin 2-wheeler alloy wheel plant SOP
    Q2 FY26
    High
    Capacity
    Hero MotoCorp Harley-Davidson forks SOP
    Q3 FY26
    High
    Capacity
    Twin-channel ABS SOP
    Q2 FY26
    High
    Capacity
    Clutch Orders Peak
    Q4 FY26
    High
    Capacity
    Maxwell Motor Controller Units SOP
    October 2025
    High
    Capacity
    Maxwell IoT Segment SOP
    January 2026
    High
    Order Book
    New Business SOP (FY26)
    ₹10 billion
    High
    Order Book
    New Business SOP (FY27/FY28)
    Remaining business
    High
    Sales
    Annual Sale from Quoting
    ₹34 billion
    Medium
    Sales
    Solar Dampers Initial Business
    ₹25-50 crores
    Medium
    Sales
    Solar Dampers Potential Business
    ₹500-1000 crores
    Low
    Supplies
    KTM Austria Supplies Start
    June 2025
    High
    Diversity
    Female Blue-collar Employees
    10%
    Medium
    Diversity
    Female White-collar Employees
    15%
    Medium
    Incentives
    Maharashtra PSI 2019 Scheme Annual Booking
    ₹65-70 crores
    Medium
    Incentives
    Maharashtra PSI 2019 Scheme Booking Pattern
    First 2-3 quarters
    Medium
    Growth
    European Business Growth
    Grow and outperform industry
    Low

    What to watch in Q1 FY26

    5

    KTM Supplies Start

    Next quarter
    CurrentNot yet started
    TargetSupplies start in June 2025

    Why it matters

    Verification of new business commencement and resolution of KTM restructuring impact.

    We expect to start supplies of inverted front forks and rear mono-shocks in a small way from June of this year, which is next month.

    Risks & concerns

    4
    RiskSeverity

    US duty structure and tariff changes

    Potential impact on European components for higher segment cars exported to the US, with an estimated 20-30 €/mn effect for Porsche applications.Management acknowledged

    medium

    KTM Austria restructuring

    A provision of ₹5.3 crores was made in Q4 FY25; management is confident due to asset flexibility and firm order schedules.Management acknowledged

    low

    European market instability and production decline

    New car sales dropped 1.9% in Q4 FY25, and light vehicle production is expected to decline over 2% in 2025 due to tariff escalations and other factors.Management acknowledged

    medium

    VW Group brands suffering from China situation and US duties

    Some brands like Porsche and Audi are experiencing headwinds from the China market situation and US duties.Management acknowledged

    medium

    Q&A highlights

    8

    “I will not be able to talk about the margin, as this is sensitive information.”

    Highlights management's reluctance to disclose margin specifics for a key new growth area, indicating potential competitive sensitivity or early-stage uncertainty.

    asked by Aditya Jhawar

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY25 and Q4 FY25

    Endurance Technologies reported a consolidated total income of ₹116.8 billion for FY25, marking a 13.1% year-on-year growth. Consolidated Profit After Tax (PAT) stood at ₹8.36 billion, with Earnings Per Share (EPS) more than doubling since the IPO year to ₹59.46. For Q4 FY25, consolidated total income grew 10.6% year-on-year to ₹29.98 billion, and PAT was ₹2.45 billion. The European business demonstrated robust growth, with a 15.4% increase in income and a 20.9% rise in EBITDA for FY25.

    02

    Strategic Acquisitions and EV Component Expansion

    The company completed the acquisition of a 60% stake in Stöferle entities in Germany, with the remaining 40% to be acquired over five years, enhancing European manufacturing capabilities. In India, Endurance accelerated the acquisition of the remaining 38.5% stake in Maxwell Energy for ₹75 million, reversing a liability of ₹913 million in Q4 FY25. This move aims to gain early total control over Maxwell, which is crucial for the company's electric and electronic business, including battery packs and Battery Management Systems (BMS).

    03

    New Battery Pack Manufacturing Plant and Order Wins

    Endurance is establishing a state-of-the-art lithium-ion Battery Pack manufacturing plant near Pune, with SOP planned for January 2026. This facility will leverage in-house developed battery technology and Maxwell's BMS expertise. The company secured a significant order of ₹3 billion per annum from a large OEM for e-scooter battery packs, highlighting its focus on electric vehicle components. Additionally, Maxwell Energy has won cumulative orders totaling ₹2.5 billion.

    04

    Expansion in 4-Wheeler and Alloy Wheel Segments

    The AURIC Shendra 4-wheeler casting plant is set to commence SOP in September 2025, with an order book of ₹2.75 billion per annum, including export business for premium EV cars. A new 2-wheeler alloy wheel plant at AURIC Bidkin is gearing up for SOP in Q2 FY26, with a capacity of 3.6 million wheels per annum. The company also won ₹6.1 billion in aluminum castings orders in FY25, covering 2-wheeler, 4-wheeler, and non-automotive applications.

    05

    Product Development and Aftermarket Growth

    The new G45 Waluj R&D facility for two, three, and four-wheeler suspensions will be fully operational soon, aiming to co-create advanced suspension solutions with OEMs. The company won ₹2.351 billion per annum in suspension orders and ₹2.366 billion per annum in braking orders in FY25, including twin-channel ABS orders with SOP planned for Q2 FY26. The Indian Aftermarket business grew 29% in exports during FY25, with value-add products contributing over 14% to aftermarket sales.

    06

    Maharashtra PSI Scheme and Sustainability Initiatives

    Endurance received an eligibility certificate for ₹6.06 billion under the Maharashtra PSI 2019 scheme, with ₹4.37 billion accounted till FY25. The company is committed to sustainability, achieving a 45% carbon-neutral percentage and increasing its renewable power share from 23% in FY24 to 25.2% in FY25. It also aims to increase female representation in its workforce to 10% for blue-collar and 15% for white-collar employees by 2030.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.