Metrics raised 1
- Maharashtra Package Scheme of Incentives increased to ₹858 crores (from ₹600 crores)
Metrics cut 1
- ABS capacity expansion reduced to 9 lakh units per annum (revised from 12 lakh)
Friday, August 14, 2026, 11:00 AM IST
Event Participants
Executives
5 Anurang Jain (Managing Director), Massimo Venuti (Director & CEO, Endurance Overseas), Rajendra Bhange (Director & COO), Raja Gopal Sastry (Group CFO), Raj Mundra (Treasurer & Investor Relations)
Analysts
3 Aditya Jhawar (Investec), Arvind Sharma (Citigroup), Nishit Jalan (Axis Capital), Ravi Gupta (InCred Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Standalone Total Income | ₹3,194.15 crores | Up 35.9% YoY from ₹2,350.7 crores; growth partly inflated by commodity cost pass-through |
| Consolidated Total Income | ₹4,348.28 crores | Up 29.6% YoY from ₹3,353.54 crores |
| Standalone EBITDA | ₹357.78 crores | Up 17.1% YoY; margin at 11.2%, impacted by commodity cost inflation which had no value add |
| Consolidated EBITDA | ₹569.21 crores | Up 18.7% YoY; margin at 13.1% |
| Standalone PAT | ₹194.62 crores | Up 17.4% YoY; margin at 6.1% |
| Consolidated PAT | ₹244.52 crores | Up 8% YoY; margin at 5.6%, impacted by higher depreciation in Europe |
| Raw Material Cost % | 68.4% | Up from 64.8% in Q1 FY26; commodity increases of ~₹318.06 crores paid upfront by Endurance |
| Normalized Standalone EBITDA Margin (ex-commodity impact) | 13.33% | Reported margin of 11.2% excluding non-value-add commodity increases |
| Standalone Net Cash | ₹415.7 crores | Net cash position at end of Q1 FY27 despite upfront commodity cost payments |
| India EV Sales (Standalone) | ₹129.7 crores | Up 87.4% YoY from ₹69.2 crores |
| Overseas EV & Plug-in Hybrid Sales | ₹802.2 crores | Up 14.4% YoY from ₹701.4 crores |
| Consolidated EV & Plug-in Hybrid Sales Growth | 20.9% YoY | Grew to ₹931.9 crores from ₹770.6 crores |
| India Orders Won (Q1 FY27) | ₹391.6 crores | Includes ₹26.1 crores new business, ₹365.4 crores replacement; excludes Bajaj Auto |
| Europe Orders Booked (Q1 FY27) | €13.9 million | Includes large Mercedes hybrid program order and Stellantis ICE order |
Geographic & Segment Commentary
India Business: Revenue grew 35.9% YoY to ₹3,194.15 crores, driven by strong automotive industry growth (two-wheeler sales up 23.5% YoY, PV sales up 23% YoY). Margin expansion was constrained by commodity price inflation (RMC at 68.4% vs 64.8% last year). EV sales grew 87.4% YoY to ₹129.7 crores. Management highlighted ramp-up of new plants at Bidkin and Mindevadi to reach optimum capacity by Q3 FY27.
Europe Business (Endurance Overseas): Turnover of €104.3 million, up 1.1% YoY; EBITDA of €18.9 million (18.2% margin, up from 17.4% YoY); net result declined 31% to €4.4 million due to accelerated depreciation of ~€3.1 million on ICE-specific fixed assets. Market remains challenging with Chinese OEM share rising significantly (Chery +272%, Leapmotor +500% YoY). Focus is on M&A opportunities and capturing business from bankrupt competitors.
Aftermarket: Strategic growth priority with ambitious targets till 2030. Company is deepening distributor partnerships, running mechanic loyalty programs (certification trainings BS4 to BS6, EVs), and deploying first-in-industry AI-enabled tech platform for secondary order maximization in exports.
Non-Auto (Solar & Electronics): Solar damper plant at Sanon is ready; SOP started for Spanish client, US client validation in progress, solar actuator SOP expected Q4 FY27. Total business won: ₹118 crores for dampers and ₹227 crores for actuators (₹345 crores total). Maxwell achieved first-ever PAT positive quarter with 21% QoQ growth.
Company-Specific & Strategic Commentary
ABS Expansion: Adding 9 lakh ABS units per annum capacity (revised from 12 lakh due to strong brake assembly demand requiring machine reallocation). Dual-channel ABS SOP for Bajaj Auto scheduled for Q3 FY27 (120,000 units/annum), second program in Q4 FY27. New features like traction control being added for margin improvement.
New Chennai Plant: Civil construction final stage for disc brake assembly plant; phase one machinery moving from Balochi, phase two completing in Q3 FY27. SOP for Royal Enfield next month, other OEMs following. Capacity of 3 million disc brake assemblies annually (total Endurance capacity target: 9 million disc brake assemblies and 9.6 million brake discs by Q1 FY28).
Four-Wheeler Casting Growth: Strong focus shift towards four-wheeler and non-auto castings. Shendra plant cumulative bookings at ₹513 crores/annum from US EV OEM, Jaguar Land Rover, and Valeo (for Mahindra & Tata EV platforms). New Hyundai/Kia orders ₹80 crores/annum already commenced. Existing ₹180 crore Q1 four-wheeler business expected to grow significantly.
Battery Pack Business: Two-wheeler battery pack SOP for Hero MotoCorp commenced June 2026, ramping to 17-18,000 packs/month capacity by October. New ₹62 crore capex for four-wheeler battery packs, SOP expected Q4 FY27. Company will use own BMS and aluminium castings, expecting margins to reach company average over time.
Order Wins & Market Share: India order wins of ₹391.6 crores in Q1 (₹336 crores from HMSI including ₹219.6 crores suspension facelift business). Cumulative order wins since FY23: ₹5,720 crores (₹4,241 crores new business). Market share: brakes 42-44%, front forks 43.8%, shock absorbers 37% in India.
Capex Guidance: India capex of ₹800 crores in FY27, similar to FY26. Investments focused on automation across existing plants. Additional incentives under Maharashtra Package Scheme of Incentives increased from ₹600 crores to ₹858 crores (S-GST refund over ~7 years).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| India Capex FY27 | ~₹800 crores | Similar to FY26; could increase if large opportunities materialize (not currently reflected) |
| Q2 FY27 Margins | Expected improvement | All raw material increases to be recovered in current quarter; aluminium alloy softening by ₹12-17/kg will be a gain; conversion cost increases being negotiated for partial recovery this quarter |
| Alloy Wheel Capacity | Full utilization by end FY27 | New Bidkin plant currently at 60% capacity; SOPs with Royal Enfield, Ather, Suzuki, Piaget to fill through Q3-Q4 FY27 |
| Shendra Casting Plant | Significant pickup from Q4 FY27 | SOPs starting September 2026 for US EV OEM, JLR, Valeo programs; peak volumes in FY29 |
| New Chennai Plant | SOP next month | Royal Enfield first customer, other OEMs in Q3; full capacity 3 million disc brake assemblies/annum |
| Europe M&A | Potential announcements in near-term | Management indicated excellent M&A opportunities at attractive prices in Europe; more clarity in next investor call |
| Return on (4W) Battery Pack | SOP by Q4 FY27 | New customer cannot be named yet; company targeting company-average margins over time |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Price Inflation | ~₹318 crores of commodity increases paid upfront by Endurance in Q1; most purchase order amendments not yet effective. Recovery expected in Q2 but conversion cost increases may only be partially recovered this quarter. Aluminium softening provides some offset. |
| European Market Structural Decline | Accelerated depreciation on ICE-specific assets (€3.1 million in Q1) indicates planned rationalization of ICE product lines. Continuing reduction in production capacity, restructurings, and plant closures in European auto industry. Chinese OEMs importing powertrains from China creates order book uncertainty. |
| New Plant Ramp-up Execution | Bidkin alloy wheel and Mindevadi battery pack plants still at sub-optimal capacity utilization; if customer SOPs slip, profitability could be impacted. Shendra four-wheeler casting business depends on successful certifications for foreign OEM programs. |
| Geopolitical & Energy Costs | West Asia conflict keeping energy prices elevated, impacting freight, fuels, gases, and consumables costs. RBI raised FY27 inflation forecast to 5%, though Q1 actual came in below estimates. |
| Regulatory Uncertainty | Government draft guideline for ABS (extending to lower engine CC vehicles) not yet finalized—the company has invested ~₹9-12 lakh ABS capacity expansion ahead of final guidelines. Any change in implementation timeline could delay returns. |
| EV Transition Risk in Two-Wheelers | With EVs gaining traction (particularly scooters) and 36.1% hybrid + 21.9% BEV share in Europe, company's 3.5% clutch business is ICE-specific. Faster EV adoption could impact this segment before replacement products (battery packs, BMS) reach scale. |
Q&A Highlights
Europe - Mercedes Order & Sogefi Integration
- Question: Can you provide details on the quality of European order wins and how is Sogefi integration progressing? (Aditya Jhawar)
- Answer: The Mercedes order came from a competitor's bankruptcy—Endurance had 60% of the component volume, competitor had 40%, and now takes 100% with SOP January 2027 (~€14 million). Integration with Sogefi is complete commercially and managerially; we're reviewing production capacity sharing to maximize contribution margin. We hope to give positive news on integrating a specific component into our large pressure die-casting machine by January 2027, with full impact visible from September 2027. (Massimo Venuti)
Europe - Financials & Demand Outlook
- Question: Can you share European revenue/EBITDA/PAT in euros and the demand outlook? (Arvind Sharma)
- Answer: Q1 FY27 Europe: turnover €104.3 million (+1.1% YoY), EBITDA €18.9 million (18.2% margin, +5.5% YoY growth), net result €4.4 million (-31% YoY) due to accelerated depreciation (increased from €8.5M to €11.6M on ICE assets to be discontinued in 18 months). Excluding depreciation, cash profit was €16 million, up 7.9% YoY. The market grew 7.4% but production declined 5%; Chinese OEMs (Chery +272%, Leapmotor +500%) drove registrations. We don't see significant volume reduction for Endurance and expect continued growth. (Massimo Venuti)
Margin Recovery & Four-Wheeler Strategy
- Question: Can you quantify the commodity headwind recovery and share progress in four-wheeler die-casting? (Aditya Jhawar)
- Answer: All raw material increases will be recovered this quarter—we'll operate on Q1 base in Q2 (much higher than Q4 base). Aluminium alloy softening of ₹12-17/kg will be a gain. I cannot give an exact figure due to variables, but Q2 and Q3 will definitely be better than Q1. On four-wheelers, current business is ~₹180 crores annually; Shendra adds ₹513 crores at peak (FY29). Hyundai/Kia orders of ₹80 crores/annum have started. Focus is shifting to four-wheeler and non-automotive castings for margin improvement. (Anurang Jain)
Battery Pack Margins & Profitability
- Question: What should we expect for battery pack profitability? (Aditya Jhawar)
- Answer: This is a high-value business; we're working on BOM and raw material optimization. I'll share margin details next call. The two-wheeler plant (17-18,000 packs/month capacity) will be fully utilized by October. We target reaching company-average margins. For the four-wheeler pack, both BMS and aluminium castings will be our own (sourcing internally adds separate margins). The four-wheeler battery pack can be as high as ~₹1 lakh per unit pricing. (Anurang Jain)
Capex & Two-Wheeler Mix
- Question: OEMs are expanding capex; what's stopping Endurance from increasing capex? And is scooterization reducing exposure? (Ravi Gupta)
- Answer: There's no gap—we already have capacities and use strong tier-2 vendors who also invest. Our 35.9% growth (23.5-24% ex-commodity) proves we're gaining orders. The ₹800 crore guide could increase if large opportunities materialize, but I cannot discuss specifics now. On scooters, our share has grown from under 10% to 14.3% (from 3 years ago); scooters grew 37% but our content per vehicle is increasing. We're not losing ground in two-wheelers. (Anurang Jain)
Market Share & EV-Specific Products
- Question: What are current market shares and any plans for other EV-specific products? Also, what's alloy wheel utilization? (Nishit Jalan)
- Answer: Q1 market share: brake systems ~44% (India), front forks 43.8%, shock absorbers 37%. Alloy wheel capacity is 4.8 million wheel sets (9.6 million wheels) annually—Chakan is fully utilized; Bidkin at ~60% with Royal Enfield/Ather/Suzuki/Piaggio ramping through Q4. On EV products, except clutch assembly (now 3.5% of sales), everything is EV-agnostic. Battery packs, BMS, motor controllers, DC-DC converters are focus areas; we'll go step-by-step. We're meeting a large OEM on August 17 to finalize new EV engagements. (Anurang Jain)
India Business - Order Wins Breakdown
- Question: Can you share the segment-wise breakdown of Q1 order wins? (Nishit Jalan)
- Answer: Of the ₹391.6 crores total order wins: ₹26.1 crores new business, ₹365.4 crores replacement; ₹11.3 crores EV-related, ₹380.3 crores ICE; ₹18.6 crores four-wheeler, ₹373 crores two-wheeler. HMSI contributed ₹336 crores (including ₹219.6 crores suspension facelift business with better margins). TBS brakes added ₹35 crores this quarter, reaching ₹250+ crores annually. US EV OEM added ₹10.5 crores at Shendra (total ₹223 crores). (Anurang Jain)
Key Takeaway
Endurance Technologies delivered strong volume growth (standalone revenue +35.9% YoY; India EV sales +87.4%) but faced significant margin pressure from commodity inflation (RMC at 68.4% vs 64.8%), with ~₹318 crores of cost increases paid upfront before recovery. Management expects all raw material increases to be recovered in Q2, with aluminium alloy softening providing additional tailwind, suggesting normalization of reported margins toward 13%+ (ex-commodity base was 13.33% in Q1). Strategic focus remains on accelerating four-wheeler and non-auto casting growth (Shendra order book at ₹513 crores/annum), battery pack business (two-wheeler capacity fully utilized by October; four-wheeler SOP in Q4), and expanding ABS capacity ahead of regulatory changes. Europe continues to face structural headwinds (Chinese OEM import growth, declining production) but remains defensive with strong EBITDA margins (18.2%) and opportunistic gains from competitor bankruptcies (Mercedes order worth €14 million). Watch points include successful settlement of conversion cost increases across OEMs, execution of new plant ramp-ups (Bidkin, Shendra, Chennai), and timing of potential European M&A announcements, which management indicated could materialize by the next investor call.