Detailed Narrative
Macroeconomic Headwinds and Domestic Strength
The global environment became more complex due to the Middle East conflict, leading to volatility in energy, logistics, and supply chains, impacting input costs and raw material availability. Domestically, India's economic performance remained strong through FY26, supported by steady consumption, investment activity, and GST rate rationalization. The RBI maintained the repo rate at 5.25% in April 2026, keeping rates unchanged.
Strong Financial Performance in Q4 FY26
Endurance Technologies reported a robust Q4 FY26 with consolidated total income growing 37.3% year-on-year to ₹4,116 crores. Consolidated EBITDA increased by 30.8% to ₹598 crores, achieving a margin of 14.5%. For the full fiscal year FY26, consolidated total income grew 26.1% to ₹14,720 crores, with EBITDA reaching ₹2,090 crores, representing a 14.2% margin.
Expansion in ABS and Braking Systems
The company is significantly expanding its ABS capacity by adding 1.2 million units per annum to its existing 0.64 million units, with SOP expected by September 2026. Dual-channel ABS SOP for Bajaj Auto is scheduled for June 2026, targeting 120,000 units per annum. A new Chennai plant for disc brake assemblies, with a capacity of 3 million assemblies and 4 million discs per annum, will commence SOP for Royal Enfield in July 2026.
Growth in EV Components and New Technologies
Endurance is advancing its EV component business, with battery pack manufacturing SOP set for the fourth week of May 2026, targeting an initial order potential of ₹300-360 crores per annum, potentially reaching ₹600 crores next FY. Subsidiary Maxwell achieved a record turnover of ₹162 crores in FY26 and secured new business worth ₹56 crores, with a DC-DC converter SOP in June 2026 and motorcycle BMS SOP in early FY27.
Aluminium Casting and Forging Business Development
The AURIC Shendra plant continues to secure new business, with cumulative orders translating to a peak annual business potential of ₹513 crores, including orders from a large US EV OEM and JLR. SOP for key programs at this plant is staggered between Q1 and Q3 FY27. The company is also adding a fifth aluminium forging press, with SOP in Q3 FY27, to support increased captive consumption and external orders for Royal Enfield and JLR.
European Operations Outperform Despite Challenges
Despite a challenging European operating environment marked by increased energy costs and competition, the company's European operations achieved their best quarter in history in Q4 FY26. Turnover reached €106.9 million, a 33.6% YoY growth, and EBITDA was €21.9 million, representing a 20.5% margin. For the full year, European EBITDA grew 41.7% to €72.4 million, with an 18.5% margin.
Strategic Focus on Aftermarket and Sustainability
The aftermarket business in India is a strategic priority, with ambitious growth goals for 2030, focusing on long-term partnerships with distributors and leveraging an AI-enabled tech platform for secondary order maximization. On the sustainability front, the company achieved a carbon-neutral percentage of 51.67% and 98% hazardous waste recycling, with 14 plants achieving zero waste to landfill status.