# 1. Financial Performance ## A. Key Figures * **Standalone Total Income:** **₹2,351 Cr** (+1% YoY) * **Consolidated Total Income:** **₹3,355 Cr** (+3% YoY) * **Consolidated EBITDA:** **₹480 Cr** (+5% YoY) · Margin: **18.4%** (~flat YoY) * **Consolidated PAT:** **₹226 Cr** (+11% YoY) · Margin: **6.7%** * **Standalone PAT:** **₹166 Cr** (margin compression YoY) ## B. Revenue Growth * **Resilient Top-Line Expansion:** Low single-digit standalone growth achieved despite weak industry volumes, driven by **content gains** with key OEMs including TVS, Royal Enfield, and Hero MotoCorp. * **Acquisition-Led Scale-Up:** Stöferle contributed **€22 Mn** of revenue in Q1, accounting for most of the consolidated increase and lifting group turnover meaningfully. ## C. Margin Trends * **Margin Pressure from Inflation:** EBITDA margins declined **5%** on a standalone basis due to lagged pass-through of commodity cost increases, despite price corrections. * **Underlying Profitability Improvement:** Excluding Stöferle, core business delivered **6% turnover growth** and a **200 bps expansion in EBITDA margin**, highlighting operational leverage and cost discipline. * **Stöferle Margin Profile:** Acquired entity shows **high profitability with EBITDA margins of 7–20%**, expected to improve further with capacity optimization. ## D. Profitability & Cash Flow * **EPS Trajectory:** Consolidated EPS has more than doubled since FY17, reflecting sustained earnings power despite margin volatility. * **Capital Efficiency Gain:** BMW electric transmission project leveraged Stöferle’s idle capacity, enabling **€5 Mn saving in fixed asset investment** and enhancing ROIC. --- # 2. Order Book & Demand ## A. Key Figures * **New Orders (FY22–FY28):** **₹4,329 Cr** total won (₹3,612 Cr new business) * **SOP Phasing:** **₹1,400 Cr** in FY25 · **₹1,150 Cr** in FY26 · Balance in FY27–FY28 * **RFQ Pipeline:** **₹3,225 Cr** total · **₹864 Cr** EV segment (India) · **₹1,017 Cr** with Bajaj inclusion * **Q1 FY26 Bookings:** **₹252 Cr** India (₹247 Cr new) · **EUR 2 Mn** Europe (plastics unit) * **Peak Business Value (LOI):** **₹300 Cr/year** (2W OEM) · **₹200 Cr** (Spanish solar client) ## B. New Orders * **Major OEM Momentum:** Secured orders from Royal Enfield, Hero MotoCorp, and TVS for aluminium forgings; strong traction in 2W segment with **first 4W foundation business** won from Tata Motors. * **High-Value LOI Progressing:** ₹300 Cr/year LOI from leading 2W OEM advancing with completed 3D validation and **prototype submission this quarter**, on track for SOP in January 2026. * **Non-Auto Diversification Accelerating:** Solar tracking system order from Spanish client signals **breakout potential in renewables**, with production underway and peak volume expected next year. * **Growth Backlog Visibility:** Over **₹3,600 Cr in new business** secured since FY22 provides multi-year revenue visibility, with over **₹2,500 Cr to ramp in FY26–FY28**. ## C. RFQ Pipeline * **EV Segment Gaining Scale:** Cumulative EV-related RFQs now at **₹1,017 Cr/year** with Bajaj inclusion, reflecting accelerating electrification adoption in Indian 2W market. * **Long-Term Market Expansion:** 2W market projected to reach **29–30 crore units by FY30**, underpinning structural growth in ABS and disc brake systems beyond current regulatory scope. * **Conservative ABS Market View:** Estimated **6 crore-unit ABS market** excludes mopeds and exports; actual domestic addressable market may approach **9 crore units**, with further upside in **South America, Africa, and Southeast Asia**. ## D. Customer Bookings * **Strong Q1 Traction:** India order bookings reflect **robust new business momentum**, with nearly all of ₹252 Cr representing fresh wins, excluding a separate ₹300 Cr/year battery pack order. * **European Niche Penetration:** Specialty plastics unit in Turin secured **EUR 2 Mn in Q1 EV component orders**, validating cross-geography capability in high-tech auto segments. --- # 3. Capacity & Production ## A. Key Figures * **ABS Capacity:** **640,000 units** (current) · **+2.4 million units** planned by Mar-26 * CAPEX: **north of ₹800 Cr** projected for India in FY25 · **€9 Mn** spent in Q1 for European projects * **SOP Timelines:** **Week 4 of current month** (2W alloy wheels) · **Next month** (dual-channel ABS) * **Utilization:** **400,000 units** used for single-channel ABS · **240,000 units** to ramp with dual-channel ## B. Plant Expansion * **Regulatory-Led Growth:** Expansion in ABS and disc brake systems driven by India’s new safety norms mandating disc brakes above 50cc and projected **fivefold increase in ABS demand**, prompting capacity buildout across Waluj, Chennai, and AURIC Shendra. * **Strategic Geographic Footprint:** New **Chennai disc brake plant** to serve key South Indian OEMs (TVS, Royal Enfield, Yamaha), while **Waluj ABS and forging expansions** address capacity constraints and rising electronic content in braking systems. * **EV & Lightweighting Push:** **AURIC Shendra die-casting facility** (1,100T–2,500T presses) supports EV demand for lightweight components; **Pune battery pack plant** nearing machinery installation, with **SMT line expansion** for BMS and ECU boards underway. * **Vertical Integration & Sustainability:** **Green-certified AURIC plant** underscores ESG focus; **in-house R&D center in Waluj** to accelerate innovation in 2W/4W brakes and ABS; **repurposing ICE capacity for EVs** reduces future capex intensity. ## C. SOP Timeline * **Near-Term Commercialization:** **Dual-channel ABS SOP imminent** with Royal Enfield and Bajaj following final sample delivery, marking a key milestone in product升级 and market expansion. * **Rapid Execution:** **Pre-SOP shipments** already underway at AURIC Shendra for a major European OEM—achieved in **record 4 months**—demonstrating agile project execution. * **New Product Validation:** **On-vehicle testing** initiated for first 4W passenger vehicle driveshaft at captive proving ground, laying foundation for entry into new vehicle segments. ## D. Utilization Rate * **Capacity Ramping:** Current ABS utilization at **400,000 units** (single-channel); remaining **240,000 units** set for utilization next quarter with dual-channel rollout, indicating strong order visibility and demand conversion. --- # 4. Product & Segment Performance ## A. Key Figures * **ABS Production Capacity:** **640,000 units** (single & dual-channel) * **Market Share:** **43%** in 2W Braking Systems (Master Cylinder & Caliper) · **>60%** in Brake Discs * Current ABS Penetration: 400,000 units (~11.4% of 3.5M-unit market) * **Target ABS Market Share:** **≥25%** * **Maxwell BMS Orders:** **₹156 Cr/year** (cumulative) · **₹150 Cr/year** in pipeline * **Battery Pack Order:** **₹300 Cr/year** (Indian 2W OEM) * Stöferle Acquisition: €37.7 Mn for 60% stake ## B. ABS & Braking Systems * **Pioneering Domestic ABS Capability:** Only Indian auto-ancillary player in ABS, leveraging in-house R&D and software development to reduce dependency on global partners and accelerate time-to-market. * **Strategic OEM Expansion:** SOPs initiated or scheduled with Hero MotoCorp, Royal Enfield, Bajaj, and Tata Motors, marking entry into 4W braking and advanced clutch systems using Adler’s technology. * **Volume Growth & Backward Integration:** Significant supply ramp-ups across Suzuki, Hero, TVS, and Royal Enfield; enhanced cost control via in-house production of ABS components, including upcoming ECU manufacturing. * **R&D Infrastructure Scaling:** Fully operational Waluj 4W R&D center enables co-creation of advanced suspensions and validates Endurance’s technical readiness for complex 4W applications. ## C. EV Components * **Maxwell as EV Electronics Hub:** 100% ownership solidifies position in BMS and energy systems, with diversified order book across 2W, 3W, tractors, and niche electric vehicles, enabling future high-voltage platform expansion. * **Localisation & Speed-to-Market:** Record 10-week delivery of Mahindra 6E/9E motor housings via Valeo underscores agile manufacturing and supports India’s EV component localization push. * **Battery Pack Commercialization:** Secured ₹300 Cr/year order from Indian 2W OEM, establishing foothold in battery packs as a new high-growth, high-margin revenue stream. ## D. Forging & Casting * **Quality Recognition & Export Momentum:** Vallam casting plant awarded by Ather Energy for delivery excellence, reinforcing reputation for first-time-right quality in high-specification EV components. * **Global Forging Expansion:** Chinese OEM contract for inverted forks and monoshocks begins next quarter, with Stöferle acquisition securing Mercedes relationship and expanding machining capabilities in Europe. --- # 5. Geographic Mix ## A. Key Figures * India 2W Sales: 5.81 Mn units (−1.6% YoY), Motorcycles: −1.8% · Scooters: −0.8% * **India PV & 3W Sales:** **PV:** 1.22 Mn (+0.8%) · **3W:** 0.26 Mn (+10.4%) * EU Car Sales: −1.8% YoY (Q1 FY26) · Endurance Europe Income: +28.5% YoY * Europe Revenue Growth: +28.5% in EUR, outperforming market 20% below pre-Covid levels * **European PAT:** ₹62 Cr (Q1 FY26) vs. ₹44 Cr (Q1 FY21) (+42%) · **Margin:** slight improvement * **Stöferle Acquisition:** 60% stake acquired, ~€80 Mn annual turnover, €22 Mn contribution in Q1 * European EV Mix: 25% total (BEV: 15.9%, PHEV: 9.2%) ## B. India Operations * **Divergent Demand Trends:** Weakness in 2W segment with **mid-single-digit decline in scooters and motorcycles**, offset by strong double-digit growth in passenger vehicles and modest expansion in 3W. * **Strategic Expansion:** Company leveraging European 4W strength to scale in domestic 4W market, despite softness in core 2W end-market. ## C. Europe Segment * **Outperformance via Acquisition & Resilience:** Europe delivered revenue and profit growth despite an **8% contraction in new car sales**, driven by Stöferle consolidation and **strong organic execution**. * **EV Momentum with Policy Risk:** EV penetration reached **25% market share**, led by BEVs; **Spain stands out with double-digit EV growth**, while major markets await policy clarity. * **Margin & Scale Progress:** Profit growth significantly outpaced revenue, indicating **operational leverage and slight margin expansion** despite challenging industry conditions. ## D. Export Markets * **Global Forging Reach:** Secured **₹300 Cr order from two global OEMs (US & Europe)** for e-4W applications at AURIC Shendra, highlighting international manufacturing credibility. * **Aftermarket Expansion:** Launched **front fork pipes in Indonesia and Brazil**, targeting both Indian and non-Indian 2W platforms to broaden export footprint. * **JLR Supply Start:** **Aluminium forging supplies to Jaguar Land Rover** scheduled to commence **January 2026**, marking entry into premium 4W OEM chain. --- # 6. Risks & Regulatory Exposure ## A. Key Figures * **Stöferle Minority Liability:** **€27 million** (for 40% stake over 5 years) * **Carbon Neutrality Progress:** **45%** reduction in key environmental metrics * **Renewable Power Share:** **23% FY24 → 25% FY25 → 31% Q1FY26** (driven by solar/wind) * ABS Market Opportunity: 16 million+ annual 2-wheeler units to require ABS ## B. Policy Delays * **Imminent ABS Mandate:** 100% ABS required for ICE two-wheelers >50cc and EVs >4kW from January 2026, though **3–6 month delay likely** with final clarity expected imminently. * **Proactive Readiness:** Company has advanced R&D and capacity expansion for ABS systems ahead of final rules, targeting full readiness by **March 2026**. * **Stöferle Consolidation Model:** Full consolidation of Stöferle under Indian GAAP despite 60% ownership, with **no minority interest reported** and a forward liability for non-controlling stake. ## C. Market Volatility * **Export Headwinds & Outlook:** KTM export offtake weakened recently, but recovery expected as **Bajaj assumes full control of global KTM operations**. * **Sustainability Momentum:** Significant gains in environmental efficiency, including **96% water and hazardous waste recycling**, underpinning ESG resilience. * **Macro Challenges Persist:** Global operations face ongoing volatility from trade barriers, rare earth supply constraints, inflation, and demand fluctuations. --- # 7. Guidance & Outlook ## A. Key Figures * **PSI Incentive:** **₹32.91 Cr** recorded in Q1 FY26 · **₹606 Cr** eligibility certified under Maharashtra PSI 2019 (up to Sep 2025) * **Cash Realized:** **₹329 Cr** collected under PSI 2013 scheme (nearly full payout) * Europe CAPEX: €51 Mn in previous year · €20–25 Mn expected this financial year (~50% reduction) ## B. CAPEX Plan * **Sustained High Investment:** Aggressive CAPEX trajectory continues in FY26, driven by multi-site capacity expansion in India and strategic execution in Europe. * **Growth-Funded Expansion:** Capital spending supported by organic growth and profitable acquisitions, with **no decline expected in FY27 and beyond** as inorganic opportunities remain active. * **Strategic Asset Utilization:** Acquisition of Stöferle enables **machine-building capabilities**, reducing future **CAPEX intensity** through reuse and repurposing of production equipment. * **Incentive Leverage:** Ongoing monetization of state incentives under Maharashtra schemes enhances project economics and cash flow visibility.