Endurance Technologies Limited — Q4 FY25 earnings call

Call held 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

  • 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

  • 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.

Key financials

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

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.

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

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

Mix 2 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

high confidence
  • Capex Capex disclosed
    • Total investment in FY25 6,11,00,00,000 INR
    • Battery Pack manufacturing plant
    • AURIC Shendra 4-wheeler casting plant
    • AURIC Bidkin 2-wheeler alloy wheel plant
    • Aluminum Forging plant relocation
    If you see our presentation, we have invested close to Rs. 611 crores in FY 25. And quite a few of them are growth and strategic projects which are still in their gestation period. So, there will be investments in FY 26 also to complete those projects, which are our AURIC Shendra, AURIC Bidkin and also certain investments for the Battery Pack which we have announced. I will not be able to give you the exact number, but it is going to be a significant number of CAPEX even in FY 26.
  • M&A Maxwell Energy Acquisition · Integrated · Consideration ₹[object Object] (cash)

    Accelerated sale of balance stake to gain early total control and strategic advantages, strengthening outlook on electric and electronic business.

    Reversed liability of ₹913 million in Q4 FY25 against estimated price for balance shares; goodwill pertaining to Maxwell lowered by ₹582 million based on conservative accounting principles.

    Based on the minority shareholder's request for an accelerated sale of the balance 38.5% stake, the Company considered the strategic advantages of early total control and agreed to buy the same for a consideration of Rs. 75 million. As a result of this agreement, the Company had to reverse the liability recorded in the consolidated financials against the estimated price for the balance shares to the extent of Rs. 913 million in Q4 FY 25. Further, the independent Big 4 valuer retained by us to evaluate the goodwill pertaining to Maxwell advised a scenario, where margins in new age automotive products may normalize in the long run, which the Company accepted, applying conservative accounting principles. This led to lowering the value of goodwill pertaining to Maxwell by Rs. 582 million.
  • M&A Stöferle entities (Germany) Acquisition · Closed

    Enhances manufacturing capabilities and expands total number of plants in Europe to 14, consolidating financials from April 2025.

    Stöferle financials will be consolidated in the Endurance group financials from April 2025.

    We have completed the acquisition of the 60% stake and will acquire the remaining 40% over 5 years as per the Share Purchase Agreement. The addition of these two Stöferle plants in Germany enhances our manufacturing capabilities and takes our total number of plants in Europe to 14. We have already begun to add new orders in this business. As mentioned earlier, from April 2025, Stöferle financials will be consolidated in the Endurance group financials.

Guidance & targets

Capacity

  • Battery Pack Plant SOP Capacity · January 2026 · High confidence January 2026
    The SOP is planned in January 2026.

    — Anurang Jain

  • AURIC Shendra 4-wheeler casting plant SOP Capacity · September 2025 · High confidence September 2025
    At our AURIC Shendra four-wheeler casting plant, the SOP is from September 2025.

    — Anurang Jain

  • AURIC Bidkin 2-wheeler alloy wheel plant SOP Capacity · Q2 FY26 · High confidence Q2 FY26
    The new 2-wheeler alloy wheel plant at AURIC Bidkin is gearing up for SOP in Q2 of FY 26.

    — Anurang Jain

  • Hero MotoCorp Harley-Davidson forks SOP Capacity · Q3 FY26 · High confidence Q3 FY26
    The Hero MotoCorp order includes inverted front forks for the Harley-Davidson bikes, with SOP planned in Q3 FY 26.

    — Anurang Jain

  • Twin-channel ABS SOP Capacity · Q2 FY26 · High confidence Q2 FY26
    Trial lots have begun with SOP planned for Q2 of this financial year.

    — Anurang Jain

  • Clutch Orders Peak Capacity · Q4 FY26 · High confidence Q4 FY26
    These orders will see SOP in May and July respectively and will peak in Q4 of this financial year.

    — Anurang Jain

  • Maxwell Motor Controller Units SOP Capacity · October 2025 · High confidence October 2025
    And SOP is in October 2025, and January 2026 respectively.

    — Anurang Jain

  • Maxwell IoT Segment SOP Capacity · January 2026 · High confidence January 2026

    — Anurang Jain

Order Book

  • New Business SOP (FY26) Order Book · FY26 · High confidence ₹10 billion
    Of this 37.34 billion new business, close to Rs. 14 billion has seen SOP in FY 25, and the further Rs. 10 billion is expected in this year.

    — Anurang Jain

  • New Business SOP (FY27/FY28) Order Book · FY27 and FY28 · High confidence Remaining business
    The rest of the business will be realized in FY 27 and FY 28.

    — Anurang Jain

Sales

  • Annual Sale from Quoting Sales · Annual · Medium confidence ₹34 billion
    In the standalone business, we are actively quoting and pursuing requests for quotation for an annual sale of Rs. 34 billion from various OEM clients other than Bajaj and across all our product segments.

    — Anurang Jain

  • Solar Dampers Initial Business Sales · Initial · Medium confidence ₹25-50 crores
    But we are going to start in a small way, I would say between Rs. 25 to Rs. 50 crores to begin with.

    — Rajendra Abhange

  • Solar Dampers Potential Business Sales · Long-term · Low confidence ₹500-1000 crores
    But the potential is to get to over Rs. 500 to Rs. 1000 crores business.

    — Rajendra Abhange

Supplies

  • KTM Austria Supplies Start Supplies · June 2025 · High confidence June 2025
    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.

    — Anurang Jain

Diversity

  • Female Blue-collar Employees Diversity · by 2030 · Medium confidence 10%
    We continue to drive strategic workforce planning with women now comprising 8% of our hiring, reflecting ongoing commitment to diversity with a target to take female population to 10% and 15% for our blue and white-collar employees by 2030.

    — Anurang Jain

  • Female White-collar Employees Diversity · by 2030 · Medium confidence 15%

    — Anurang Jain

Incentives

  • Maharashtra PSI 2019 Scheme Annual Booking Incentives · Annual · Medium confidence ₹65-70 crores
    The total eligibility certificate received by us was Rs. 606 crores, and we are expecting that in the year, it should be anywhere in the range of Rs. 65 to Rs. 70 crores, we should be able to book 75 also.

    — Raja Gopal Sastry

  • Maharashtra PSI 2019 Scheme Booking Pattern Incentives · Each year · Medium confidence First 2-3 quarters
    Generally, this is a function of the quantum of state GST which we are paying. And given the current run rate of how we are paying the state GST, we do expect that in the first 2 quarters, and a little bit in the third quarter, we should be booking that in each year.

    — Raja Gopal Sastry

Growth

  • European Business Growth Growth · Next Financial Year · Low confidence Grow and outperform industry
    Despite these market challenges, we expect Endurance's European business to grow. ... We expect to continue outperforming the industry.

    — Massimo Venuti

What to watch in Q1 FY26

KTM Supplies Start

Next quarter
Current Not yet started
Target Supplies 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

  • US duty structure and tariff changes

    medium

    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

  • European market instability and production decline

    medium

    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

  • VW Group brands suffering from China situation and US duties

    medium

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

    Management acknowledged

  • KTM Austria restructuring

    low

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

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
Margin profile of Lithium-Ion battery pack assembly business Evasive
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

Commercialization timeline and customer engagement for 4-wheeler suspension technical tie-up Partial
Currently we have 3 programs in discussion, and most of them are going to be very crucial projects. The development time, could be anywhere between 8-12 months. During this period, we will also decide the location of the plant, as it will require a greenfield facility.

Provides insight into the development phase and future investment needs for the 4-wheeler suspension business, indicating a longer gestation period.

Asked by Aditya Jhawar

Size and drivers of the Solar Damper assembly order Direct
But we are going to start in a small way, I would say between Rs. 25 to Rs. 50 crores to begin with. But the potential is to get to over Rs. 500 to Rs. 1000 crores business.

Quantifies the initial and long-term potential of the non-auto Solar Damper business, highlighting a significant diversification opportunity.

Asked by Mumuksh Mandlesha

Ramp-up of the ₹2.75 crore order for the AURIC plant Direct
The peak of this Rs. 275 crores will reach in FY 27.

Clarifies the timeline for the full revenue realization from the AURIC Shendra plant's initial orders, indicating a phased ramp-up.

Asked by Mumuksh Mandlesha

Margins and ROCE of the alloy wheel business compared to current operations Partial
Our focus is to see that the margins are in line with the Company. That's our target. And we have made a lot of effort based on the product mix and the operational efficiency, to see that we are able to do it.

Addresses concerns about competitive intensity in the alloy wheel segment, with management emphasizing efforts to maintain company-level margins through efficiency.

Asked by Mumuksh Mandlesha

Impact of KTM restructuring and provision made Direct
In fact, we have already made a provision of Rs. 5.3 crores in Q4 FY 25. Going forward, we are not worried because as far as the assets are concerned, if something goes wrong, they are very flexible, they can be used for other OEMs, we are not worried.

Confirms a specific financial impact from the KTM restructuring but reassures that assets are flexible and future impact is manageable.

Asked by Pramod Amthe

Revenue impact on European business from US market tariffs Direct
A rough estimation of the effects on sales could be about 20/30 €/mn particularly for Porsche applications.

Quantifies the potential revenue at risk for the European business due to US tariffs, providing a specific figure for investor assessment.

Asked by Aniruddha Mane

Growth outlook for European business post-Stöferle acquisition Partial
With the consolidation of Stöferle, our growth will have an immediate boost for its contribution to the consolidated revenues after we will track the market to try to perform better but it is still unpredictable. With large orders recently booked, we are expecting to grow faster than the market, even without Stöferle.

Indicates an immediate boost from Stöferle consolidation and an expectation to outperform the market, but acknowledges market unpredictability.

Asked by Niril Parekh

2 min read 6 chapters

Detailed narrative

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.

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).

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.

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.

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.

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.

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