# 1. Financial Performance ## A. Key Figures * Total Income: ₹2,678.3 Cr stand-alone (+22.2%) · ₹3,645.6 Cr consolidated (+26.5%) * EBITDA: ₹339.1 Cr stand-alone (+18%) · ₹514.5 Cr consolidated (+30.4%) * PAT: ₹170.7 Cr stand-alone (+8.8%) · ₹221.6 Cr consolidated (+20.2%) * Overseas EBITDA: €16.8 Mn (18% margin) (+34.9% YoY) ## B. Revenue Growth * **Resilient Organic Expansion:** Company delivered positive organic growth of 2% despite macro headwinds, excluding contributions from the Stöferle acquisition and tooling sales. * **Cautious Outlook:** Management maintains cautious optimism for future performance amid ongoing market challenges. ## C. Profit Margins * **Margin Pressure from Input Costs:** Standalone EBITDA margin declined 400 bps year-on-year, driven by elevated raw material costs, particularly **aluminium alloy (55% of total raw material spend)**. * **One-Time Labour Code Impact:** Standalone PAT reduced by ₹15 Cr due to exceptional costs linked to the implementation of new labour codes. * **Overseas Profitability Surge:** Overseas operations delivered strong margin expansion to 18%, reflecting significant operational improvement versus prior-year low base. --- # 2. Order Book & Demand ## A. Key Figures * **New Business Wins:** **₹354 Cr** in Q3 FY26 · **₹1,282.8 Cr** in 9M FY26 (excl. Bajaj Auto) * **Annual Order Value:** **₹388 Cr** peak from Mahindra electric platforms (SOP FY27, peak FY29) · **₹128 Cr** machined castings (Tata, Mahindra) · **₹300 Cr** Battery Packs (Talegaon) · **₹45 Cr** BMS (Maxwell) * **Cumulative Orders:** **₹5,021 Cr** total non-energy/electronics wins since FY22 (₹4,291 Cr new biz) · **₹232 Cr** cumulative Maxwell annual orders * **Pipeline & Outlook:** **₹197 Cr** RFQ pipeline at Maxwell · **₹1,500 Cr+** expected new wins in next 12–18 months ## B. New Business Wins * **Strategic EV Platform Wins:** Secured marquee design wins with **Yazaki** and **Valeo** for Mahindra’s electric platforms, signaling strong OEM validation and long-term revenue visibility into FY29. * **Diversified 4W & Non-Auto Momentum:** Q3 wins of **₹163 Cr** in 4W and non-automotive segments reflect successful expansion into castings (Tata, Kia, Isuzu), suspension (Hero MotoCorp), and solar (U.S. OEM). * **Battery Systems Scaling:** Annual order book now includes **₹300 Cr** for Battery Packs and **₹45 Cr** for BMS, reinforcing leadership in EV component ecosystems. * **Hero MotoCorp Deepening Ties:** Added **5 new brake platforms** worth **₹58 Cr** annually, expanding total brakes business to **₹200 Cr**, while already supplying suspensions, castings, and brakes. ## C. Customer Diversification * **Premiumization Trend Accelerating:** Shift toward higher cc vehicles (110–125 cc up 5% since FY19) is driving demand for advanced components like **inverted forks, APTC clutches, and hydraulic brakes**, enhancing content per vehicle. ## D. Segment Order Value * **Improving Product Mix:** 4W and non-automotive wins reached **₹530 Cr** in 9M FY26, including new clients like Isuzu and U.S. solar OEMs, indicating successful diversification beyond traditional 2W exposure. * **EV Ecosystem Building:** Cumulative India EV-related orders (excl. Bajaj) at **₹1,500 Cr**, rising to **₹1,700 Cr** with Bajaj, Maxwell, and Battery Pack wins, highlighting scalable traction in electrification. --- # 3. Manufacturing & Capacity ## A. Key Figures * Disc Brake System Capacity: 7.6 million units annual capacity post-Chennai plant ramp-up ## B. Plant Ramp-Ups * **Imminent SOPs Across Portfolio:** Start of production imminent for dual-channel ABS, 4-wheeler driveshafts, and solar dampers, with validation and customer PPAPs on track. * **In-House ECU Push to Boost Margins:** ECU localization for single- and dual-channel ABS to begin in **Q1 and later in FY27**, supported by a new SMT line, enhancing control and profitability. * **Chennai Disc Brake Plant Nears Launch:** Civil work complete; machinery installation begins **Q1 FY27**, with SOP targeted for **Q2 FY27**, adding significant scale. * **Four-Wheeler & Alloy Wheel Momentum:** Chakan/Shendra plants optimized for volume flexibility; AURIC Bidkin alloy wheel plant operational since **Oct 2025**, with **100% pre-booked capacity** and sequential customer ramp-up through **FY27**. * **Greenfield Rollout on Track:** All four new plants expected fully operational in the next few quarters, with full impact anticipated in **H2 FY27** despite a two-quarter delay for UK OEM SOP. ## C. Production SOPs * **Expanded R&D Infrastructure:** New integrated R&D center in Waluj commissioned in **Jan 2026**, doubling prior capacity and enabling advanced ABS and 4-wheeler brake testing. ## D. Capacity Expansion * **Aluminum Forging Expansion Underway:** New forging press to be added in **Q2 FY27** at Waluj to meet rising captive and third-party demand, expanding backward integration. * **Sustained Elevated Investment:** CAPEX remains high due to **four new facilities** and brake business expansions, with recent years averaging **₹400 Cr** annually and spikes tied to land and plant development. --- # 4. Product & Segment Performance ## A. Key Figures * India 2W Sales: 7.1 Mn units Q3 FY26 (+18.2% YoY), motorcycles +14.7%, scooters +26.6% * **Maxwell Turnover:** ₹114 Cr 9M FY26 (vs. ₹70 Cr full-year FY25) * **EV Segment Revenue:** ₹287 Cr 9M FY26 (+6% QoQ, +65% YoY) · ₹174 Cr 9M FY25 · **71% 4-year CAGR** * **India 4W Sales:** 1.5 Mn units Q3 FY26 (+19.2% YoY) · **3W Sales:** 0.34 Mn units (+29.9%) * 3W Brake Capacity: Expanding from 0.6M to 1.2M units/year ## B. BMS & Battery Systems * **Maxwell Momentum:** Record turnover and **1 in 12 EV two-wheelers** in India now uses Maxwell’s BMS, reflecting strong adoption and market penetration. * **Product Expansion:** R&D diversifying into **Motor Control Units** and secured first **DC-DC converter order**, signaling technology breadth beyond BMS. * **Clutch Commercialization:** Adler’s assist and slip clutches now supplied to **Royal Enfield and Kawasaki**, with **Bajaj Auto SOP in FY27**, validating premiumization-driven traction. * **Hero MotoCorp Deepening:** Full product suite supply including BMS and forgings, with **clear path to double sales within 2 years**. ## C. Braking & Suspension * **4W Drum Brake Scale-Up:** New assembly line for **Tata Motors** with **SOP in Q1 FY27**, expanding footprint in passenger vehicle braking. * **Hydraulic Brake Opportunity:** Mechanical CBS shift would drive adoption of **higher-value hydraulic systems** (master cylinder, caliper, disc), creating upside even without ABS. * **Disc Brake Expansion Potential:** Electronic CBS mandates hydraulic brakes, enabling **disc brake and master cylinder growth in sub-125cc vehicles** regardless of ABS rollout. * **Premium Fork Adoption:** Leadership in **inverted front forks** growing via TVS and others, with advanced features like adjustability and cartridge systems. ## D. Four-Wheeler & Non-Auto * **EV Outperformance:** EV-related revenue across 2W/3W/4W grew at **71% 4-year CAGR**, significantly exceeding industry benchmarks, driven by multi-segment execution. * **Global 4W Production Growth:** Excluding Stöferle, volumes rose **2% YoY** with key wins at **Stellantis, Mercedes, and Volkswagen Group**. * **AURIC Shendra Strategic Role:** Facility serves global and domestic **4W EV/ICE and non-auto markets** with integrated aluminum casting and machining capabilities. * **Aftermarket Transformation:** AI-enabled platform deployed for order booking; **mechanic loyalty program** with training, health camps, and scholarships launched. * **Suspension Tech Partnerships:** Collaborating with **Korean tech provider** on 3 PoCs for Indian 4W market; one awaiting customer validation, all focused on **passive systems**. * **M&A Focus Refined:** Targeting high-margin adjacencies in **solar, non-auto suspension, and industrial castings**, with **active deal under evaluation** aligned to strategic priorities. --- # 5. Geographies & Exports ## A. Key Figures * EU Car Sales Mix: 21% BEV · 10.6% PHEV · 34% Hybrid (≈2/3 electric/hybrid) * **Overseas Turnover:** **€93 Mn** (ex-Stöferle, +21% YoY) · **€20 Mn** from Stöferle * Net Profit (Overseas): **€4.9 Mn** (5.3% margin) vs. €3.8 Mn (5% margin) prior * Stöferle Acquisition: €80 Mn annual sales · No purchase price mentioned * **Order Inflow (Europe):** **€15 Mn** (9M FY26) vs. €40 Mn prior year ## B. India Sales Trends * **Strategic Trade Momentum:** India advances on global stage with landmark **Free Trade Agreement with the EU** and interim deal with the USA, enhancing long-term export potential. * **Deal Implementation Timeline:** Full impact of Europe-India agreement under assessment; strategic clarity expected within **9–12 months**, with details to be shared next quarter. ## C. Europe Operations * **Profitable Growth Amid Headwinds:** European operations delivered **robust financial performance** despite macroeconomic pressures, supported by M&A and resilient core business. * **Acquisition Integration Success:** Stöferle acquisition adds **meaningful scale and profitability**, with post-deal wins including **€5 Mn from BMW** and volume commitments through 2032. * **Local Production Model Limits Near-Term Benefits:** Current **local-for-local manufacturing** in Europe results in **no cross-border transactions**, delaying duty advantages from new trade deals. * **OEM Assembly Shifts Create Future Opportunity:** While current European assembly by **BYD in Hungary and Turkey** is final-stage only, potential for **local component sourcing** could benefit Endurance in coming years. ## D. Global OEM Orders * **Strong Export Momentum:** Solar damper exports from Pantnagar reached **₹24 Cr by Q3**, with **value projected to double** by year-end, serving USA and Saudi markets. * **KTM Fork Demand Surge:** Inverted front fork shipments to KTM on track to exceed **650,000 units** this fiscal, reflecting rising international demand. --- # 6. Risks & Regulatory ## A. EU Emission Rules * **Regulatory Uncertainty Weighs on Investment:** Revised EU 2035 proposal to mandate **90% emissions reduction** (vs. 100%)—allowing offsets via green steel or biofuels—triggers negative market reaction and dampens OEM investment in both ICE and EV powertrains. * **Localization Dependency:** Economic opportunity for Endurance hinges on EU rules requiring **local production of powertrain and battery case components**, underscoring need for regulatory clarity before strategic commitment. ## B. ABS Regulation Delay * **Near-Term Regulatory Clarity Expected:** Final ABS mandate for two-wheelers ≥50 cc and EVs >4 kW anticipated by end-March, with testing underway at ARAI; potential expansion to cover **120 cc and below down to 50 cc**. * **Targeted Growth in Low-cc Segment:** Company poised to capture incremental demand in ≤125 cc segment, leveraging **over 4 years of single-channel ABS execution experience** where it already holds proven capability. * **Customer Recognition Signals Quality Edge:** Awarded **'Quality Excellence Award'** by **Tata Motors** at September 2025 Annual Supply Conference, reinforcing supplier credibility. ## C. China Import Impact * **Chinese OEM Expansion Monitored:** Acknowledges presence of Chinese OEMs setting up plants in Europe but provides no detail on engagement strategy or commercial outreach, leaving upside potential unquantified. --- # 7. Guidance & Outlook ## A. Key Figures * **Incentive Eligibility:** **₹600 Cr** (Waluj units, up to Aug 2024) · **₹858 Cr** total post-addendum (up to Mar 2025) * **CAPEX Allocation:** **₹530 Cr** of **₹930 Cr** total allocated to higher-margin four-wheeler castings and solar dampers * Future CAPEX Cap: **much below ₹800 Cr** in India for FY27 · **€25–30 Mn** projected for Europe in next FY ## B. CAPEX Forecast * **High but Controlled Investment:** Future CAPEX will remain elevated to support expansion, with a strategic focus on **profitable growth segments** and automation, though India outlay will be capped below ₹800 Cr in FY27 due to volume risks. * **Margin-Driven Priorities:** Over half of planned CAPEX directed toward **higher-margin businesses**, including four-wheeler castings and solar dampers, reinforcing focus on quality and sustainability. * **Funding Flexibility:** CAPEX strategy includes **in-sourcing high-cost components** while maintaining outsourcing balance, subject to potential M&A influence. ## C. Margin Improvement * **Proactive Margin Defense:** Margin enhancement efforts in India center on **in-house manufacturing**, **OEM price increases** to offset rising power and labor costs, and shifting toward **higher-margin product mix**. * **Profit-Growth Mindset:** Leadership reaffirmed commitment to **expand both sales and margins** despite European headwinds, emphasizing resilience built through past crises. ## D. Sales Growth View * **Cautious Global Outlook:** Global growth expected to moderate in 2026 amid weak demand in advanced economies and ongoing geopolitical tensions affecting trade. * **EV Commercialization Timeline:** Battery pack validation and safety testing to conclude this quarter, with **SOP targeted for end-March to early April 2026**, pending approvals; expansion into 2W, 3W segments underway. * **Resilience Narrative:** Management maintains a **positive growth stance**, citing historical ability to navigate downturns like 2008, and remains focused on opportunity capture.