Endurance Technologies Limited
Q1 FY26
Call date · August 14, 2025

1 · Management Commentary

Key Positives

  • Standalone total income grew 10.1% YoY to ₹2,351 crores, driven by content addition and new business, especially in brakes and suspension.
  • European business saw a 28.5% YoY increase in total income (to €103.2 million), with Stöferle acquisition contributing €22 million.
  • Consolidated total income up 17.3% YoY to ₹3,355 crores; EBITDA up 17.5% to ₹480 crores; PAT up 11% to ₹226 crores.
  • Significant progress in new product launches (ABS, battery packs, alloy wheels, aluminium forging, and clutches).
  • Strong order wins: ₹252 crores new business in India (excluding Bajaj Auto), ₹300 crores per annum battery pack order, and cumulative EV segment orders at ₹1,017 crores per annum (with Bajaj Auto).
  • Market share gains in braking systems and disc brakes; leadership in inverted front forks.

Key Negatives

  • 2W industry volumes declined 1.6% YoY; motorcycles down 1.8%, scooters down 0.8%.
  • EBITDA margin dropped 0.5% due to commodity inflation and price corrections.
  • European car market remains 20% below pre-Covid levels; future growth dependent on government incentives.
  • KTM export offtake lower than earlier years.

Forward Guidance

  • Capex plans: FY26 India capex expected to cross ₹800 crores; Europe capex to be €20–25 million (50% of previous year); further expansion planned for ABS, disc brakes, and new plants.
  • New products/segments: SOP for dual-channel ABS (next month), disc brake plant in Chennai, battery pack plant (SOP Jan 2026), aluminium forging plant, and new R&D centers.
  • Expected client wins/losses: Orders from Royal Enfield, TVS, Yamaha India, Tata Motors, Mahindra, Hero MotoCorp, and a leading Chinese OEM; new business in 4W brakes and driveshafts.
  • Revenue/margin outlook: Focus on profitable growth, value engineering, and increasing market share in high-growth segments.
  • Other strategic initiatives: Expansion in non-auto (solar suspension), increased renewable energy share (31% in Q1), and ongoing inorganic growth opportunities in India and Europe.

2 · Q&A Highlights

Q 1 (Composite): What is the opportunity size and Endurance’s preparedness for ABS and disc brake demand following new safety regulations?
A (Management):

  • ABS market expected to grow five- to tenfold (16 million units conservatively); Endurance’s capacity to expand from 640,000 to 3 million by March 2026, targeting at least 25% market share.
  • Disc brake demand will rise in tandem with ABS; new plant planned in Chennai.
  • Endurance is the only Indian ABS supplier, with strong R&D and cost advantages; already receiving OEM commitments.

Q 2 (Composite): Details and outlook for capex in India and Europe for FY26 and beyond?
A (Management):

  • India capex for FY26 expected to exceed ₹800 crores, driven by new plants and capacity expansions.
  • Europe capex to be €20–25 million in FY26, down from €51 million last year; focus on inorganic growth and synergies post-Stöferle acquisition.

Q 3 (Composite): Stöferle acquisition: financial contribution, rationale, and consolidation details?
A (Management):

  • Stöferle contributed €22 million in revenue and €4.5 million in EBITDA in Q1.
  • 100% of results consolidated; liability created for future 40% purchase.
  • Strategic acquisition for customer consolidation (Mercedes), machine-building capability, and synergies in machining and foundry.

Q 4 (Composite): Market share and growth plans in braking systems, disc brakes, and ABS?
A (Management):

  • 43% market share in braking systems, over 60% in brake discs.
  • ABS capacity expansion underway; targeting 25% share as new norms take effect.
  • Stepwise approach to supplying full systems or components based on customer needs.

Q 5 (Composite): R&D capabilities and readiness for upcoming demand surge?
A (Management):

  • Significant improvements in R&D, value engineering, and software development.
  • In-house production of key ABS components; reduced development time and costs.
  • New R&D centers operational for advanced suspension and brake systems.

Q 6 (Composite): European business outlook and impact of government incentives?
A (Management):

  • Market growth in Europe hinges on government incentives; Spain growing due to incentives, while Germany, France, and Italy await policy clarity.
  • EV share in Europe at 25% (BEV 15.9%, PHEV 9.2%) in Q1 FY26.

Q 7 (Composite): Details on new orders, client wins, and non-auto business expansion?
A (Management):

  • Orders from Tata Motors (4W drum brakes), Royal Enfield, TVS, Mahindra, Hero MotoCorp, and a leading Chinese OEM.
  • ₹200 crores order for solar suspension from a Spanish client; non-auto business expansion planned.

3 · Other Key Numbers

  • Standalone total income: ₹2,351 crores (Q1 FY26), up 10.1% YoY.
  • Standalone PAT: ₹166 crores (7.1% margin) vs ₹163 crores (7.6%) in Q1 FY25.
  • Consolidated total income: ₹3,355 crores (Q1 FY26), up 17.3% YoY.
  • Consolidated EBITDA: ₹480 crores (14.3% margin), up from ₹408 crores.
  • Consolidated PAT: ₹226 crores (6.7% margin), up 11% YoY.
  • Europe revenue: €103.2 million (Q1 FY26) vs €80.3 million; EBITDA: €18 million (17.4% margin) vs €13.3 million (16.5%).
  • Stöferle acquisition: €22 million revenue, €4.5 million EBITDA in Q1; €37.7 million paid for 60% stake.
  • India business new orders: ₹252 crores (Q1 FY26), excluding ₹300 crores battery pack order.
  • Cumulative India EV segment orders: ₹1,017 crores per annum (with Bajaj Auto).
  • Total orders won since FY22: ₹4,329 crores; ₹3,612 crores new business.
  • CAPEX spent in Q1 FY26: ₹286 crores (India); €9 million (Europe).
  • PSI incentive recorded: ₹32.91 crores in Q1 FY26.
  • Renewable power share: 31% in Q1 FY26 (up from 23% in FY24).
  • Water augmentation: 300,000 KL contributed.
  • CSR: 55 schools transformed, 900 girls trained, 4,000 farmers benefited, 2,000 youth trained (85% employment), 17,000 people reached via health initiatives, 2,300 toilets built, 40,000 animals treated.
  • Market share: 43% in braking systems, >60% in brake discs, <15% in ABS (targeting 25%+).
  • ABS capacity: 640,000 units (current), adding 2.4 million by March 2026.
  • Alloy wheel plant capacity: 3.6 million wheels per annum.
  • Maxwell BMS orders: ₹156 crores per annum (peak in Q1 FY27); pursuing ₹150 crores per annum leads.
  • Aluminium forging: supplies to Jaguar Land Rover to begin Jan 2026; fifth press ordered.
  • SOP for Hero MotoCorp clutch: May 2025; peak 100,000 assemblies/month in Q4 FY26.
  • SOP for assist-and-slip APTC clutches to Royal Enfield and Bajaj: September 2025.
  • 3 plants received National Award for Manufacturing Competitiveness.

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