Endurance Technologies Limited delivered robust Q2 FY26 results marked by 22.6% consolidated revenue growth to Rs 3,603.79 crore, alongside impressive 21.9% EBITDA growth to Rs 498 crore, demonstrating strong operational performance despite margin pressures.
The company’s PAT increased 12% to Rs 227.27 crore, outpacing industry growth rates in both domestic and European operations, while strategically positioning itself as a key beneficiary of the automotive industry’s transition toward electric vehicles and four-wheeler segments.
With a diverse revenue base spanning India’s two and three-wheeler market, expanding European operations post-Stöferle acquisition, and a growing EV-focused order book representing 30% of total orders, Endurance Technologies exhibits compelling fundamentals for investors seeking exposure to India’s automotive component sector transformation.s3.amazonaws
Endurance Technologies Q2 FY26 Financial Performance: 22.6% Revenue Growth and Diversified Segment Contribution
Company Overview and Market Position
Endurance Technologies Limited, established in 1985 and headquartered in Aurangabad, Maharashtra, stands as a leading automotive component supplier serving original equipment manufacturers across India, Europe, Latin America, and other international markets. The company operates through a diversified product portfolio encompassing aluminium die castings, suspension systems, braking systems, transmission products, and engine components, positioning itself as the number one aluminium die-casting company and among the top five automotive component manufacturers in India.
The company’s market presence extends across multiple vehicle segments including two-wheelers, three-wheelers, four-wheelers, and increasingly, electric vehicles. As of March 31, 2025, Endurance Technologies operates 19 manufacturing plants in India and 14 in Europe, providing strategic geographic diversification and proximity to key customer bases.
Major clientele includes globally recognized OEMs such as Bajaj Auto, Hero MotoCorp, Tata Motors, Volkswagen, Stellantis, and emerging EV manufacturers like Ather Energy. The company’s market capitalization stood at approximately Rs 40,779 crore as of November 11, 2025, reflecting significant investor confidence in its growth trajectory.
Q2 FY26 Financial Performance Analysis
Revenue and Top-Line Growth
Consolidated total income for Q2 FY26 reached Rs 3,603.79 crore, representing a substantial 22.6% year-over-year increase from Rs 2,939.18 crore in Q2 FY25. This growth significantly outpaced the broader automotive component industry, which posted approximately 9.6% growth in FY25. The company’s performance reflects multiple growth drivers: standalone business revenue grew 16.2% compared to industry two-wheeler growth of 10.3%, indicating superior market penetration and customer acquisition.
European operations contributed substantially to this growth trajectory, with consolidated revenues expanding 47.1% in INR terms and 32.5% in EUR terms. Excluding the Stöferle acquisition completed in April 2025 and tooling sales, European operations still demonstrated 7.7% growth, aligning with new car registration trends in mature markets. The Maxwell Energy Systems segment, despite its smaller contribution of Rs 44 crore in Q2 FY26, showcased profitability improvement with EBITDA of Rs 1.9 crore compared to a loss of Rs 1.7 crore in the prior year quarter.
Profitability Metrics and Margin Analysis
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased 21.9% to Rs 498 crore from Rs 409 crore year-over-year, though the EBITDA margin contracted marginally to 13.8% from 13.9%. This margin compression, despite strong volume growth, reflects strategic investments in manufacturing capacity expansion and the inclusion of newly acquired operations with different margin profiles. Breaking down profitability by segment, the standalone business reported EBITDA margin of 12.5% (Rs 336 crore), Europe achieved 17.8% margin (Rs 161 crore), while Maxwell recorded a turnaround to profitability.
Profit After Tax (PAT) grew 12% to Rs 227.27 crore from Rs 202.98 crore in the corresponding quarter, with the PAT margin declining to 6.3% from 6.9%, primarily due to tax variations and financing costs associated with European operations. The earnings per share (EPS) registered 14.4 on a standalone basis for Q2 FY26, reflecting the company’s enhanced shareholder value creation despite margin pressures.
Operating leverage benefits and cost optimization initiatives have partially offset the impact of input cost inflation and competitive pricing pressures. Management commentary highlighted backward integration efforts and manufacturing efficiency programs aimed at maintaining margin resilience while supporting long-term competitive positioning.
Operational Segments Performance
Standalone Operations
The standalone business, representing approximately 74.7% of consolidated revenue with Rs 2,692 crore in Q2 FY26, demonstrated the company’s core strength in the Indian domestic market. This segment benefited from robust two-wheeler and three-wheeler demand, with Endurance’s growth of 16.2% significantly exceeding the industry’s 10.3% two-wheeler volume growth. This outperformance reflects improved customer diversification, as the company’s historic dependency on Bajaj Auto has reduced through systematic business development across new customers including Honda, Royal Enfield, Hero MotoCorp, and Ather Energy.
Within the standalone operations, the company witnessed sharp year-over-year revenue growth of 6.3% in the European-linked brakes segment, driven by healthy volumes from key customers. The transmission business recorded significant momentum with new clutch orders from Hero MotoCorp and Royal Enfield, generating additional annual sales of Rs 1,000 million, with these new products scheduled to commence operations in May and July respectively.
European Operations and Stöferle Integration
European business revenues reached Rs 908 crore (25.2% of consolidated revenue) in Q2 FY26, reflecting the strategic value of the Stöferle acquisition completed in April 2025. The acquisition of a 60% stake in Stöferle Automotive GmbH and Stöferle GmbH in Germany expanded Endurance’s manufacturing footprint in Europe’s automotive heartland, providing direct access to premium OEM customers and advanced manufacturing capabilities.
Post-acquisition consolidation contributed approximately Rs 291 crore in incremental revenue, while European operations grew 47.1% in rupee terms despite challenges in certain markets. France and Italy experienced new car registration de-growth, yet Endurance’s European business continued to expand, demonstrating superior market positioning and customer stickiness. The region achieved 17.8% EBITDA margin, substantially above the consolidated average, reflecting premium product positioning and pricing power in the European automotive supply chain.
Maxwell Energy Systems – EV Battery Management
Maxwell Energy Systems, the company’s wholly-owned subsidiary acquired in May 2025, contributed Rs 44 crore to Q2 FY26 consolidated revenue. The segment achieved a critical profitability milestone, recording EBITDA of Rs 1.9 crore versus prior-year loss of Rs 1.7 crore, demonstrating the trajectory toward sustainable profitability as EV adoption accelerates. This segment positions Endurance at the forefront of the rapidly expanding Battery Management Systems (BMS) market for electric vehicles and energy storage applications, a critical component missing from the traditional automotive supply chain.
Electric Vehicle Opportunity and Order Book
EV Orders and Strategic Positioning
A standout feature of Endurance Technologies’ fundamental profile is its proactive positioning in the electric vehicle segment. In the first half of FY26, EV-related orders accounted for 30% of total orders received (excluding Bajaj Auto and battery-pack orders), indicating structural shift in customer demand. Cumulatively, the company’s India business has secured Rs 8.35 billion in EV orders since FY22, with an additional Rs 10 billion when including major customer Bajaj Auto.
The company’s order capture in new EV platforms and segments demonstrates competitive strength. Key wins include Rs 4.39 billion in FY25 orders for electric vehicle applications, comprising 37% of total new order bookings. Major EV customers include Ather Energy, Tata Motors, Mahindra Electric (through Valeo collaborations), and two undisclosed global OEMs for which the company has secured premium components for high-end EV platforms. These new EV-focused businesses are scheduled to commence in FY26, with revenue realization expected in FY27-FY28.
New Capacity and Platform Ramp-ups
Management’s strategic capital allocation reflects confidence in sustained growth. The company commissioned a new alloy wheel plant at AURIC Bidkin for two-wheeler applications, scheduled to commence production in Q2 FY26 with annual capacity of 3.6 million wheels per annum. Multiple two-wheeler OEMs have confirmed firm requirements for this capacity. Additionally, the AURIC Shendra plant’s order book stands at Rs 2.75 billion annually, driven by new EV-focused business from global and Indian OEMs.
The company’s active pursuit of new business reflects demand strength, with the standalone business actively quoting Rs 34 billion in annual sales from various OEM clients across all product segments, with significant representation from four-wheeler EV customers.
Financial Position and Balance Sheet Strength
Liquidity and Debt Profile
Endurance Technologies maintains exceptionally strong financial health with zero debt as of March 31, 2025. The company’s debt-to-equity ratio stands at just 0.16x (March 2025), indicating a fortress balance sheet with substantial financial flexibility. This exceptional balance sheet strength contrasts favorably with many capital-intensive peers, providing significant capacity for organic investments and strategic acquisitions.
The company maintained cash and investments of approximately Rs 1,807 crore as of March 2025, supported by healthy undrawn bank lines exceeding Rs 200 crore. Operating cash flow dynamics remain robust, with the company generating strong working capital returns. The current ratio of approximately 2.02x indicates comfortable liquidity to meet short-term obligations.
Return Metrics and Capital Efficiency
Return on Equity (ROE) stands at 16.65% while Return on Invested Capital (ROCE) reaches 22.34%, both metrics significantly above the cost of capital, indicating efficient capital deployment. The company’s operating profit margin stands at 9.76% with steady improvements in asset utilization. These returns demonstrate that management effectively deploys capital to generate shareholder value, critical for assessing investment quality.
Asset Base and Growth Investments
Total assets grew to Rs 5,395.90 crore as of March 31, 2025, up from Rs 4,685.30 crore a year earlier, reflecting ongoing capital investments. The company’s net block (tangible assets) reached Rs 1,964.46 crore, with capital work-in-progress totaling Rs 206.97 crore, indicating active capacity expansion across both India and European operations. The company’s strategy includes geographically diversified manufacturing facility placement to serve customers efficiently while managing logistics costs.
Valuation and Investment Metrics
Valuation Ratios and Market Assessment
As of November 11, 2025, Endurance Technologies traded at Rs 2,802.60 on the NSE, translating to a P/E ratio of 47.92 on a trailing twelve-month (TTM) basis. The stock posted a 52-week trading range of Rs 1,675 to Rs 3,079.90, reflecting significant volatility and investor interest swings. The P/B ratio stands at 7.61, suggesting the market prices in substantial growth expectations relative to book value, while the EV/EBITDA multiple of 16.43x indicates mid-range valuation discipline.
The stock has demonstrated strong performance, with 1-year returns of +18.17%, 3-year annualized returns of +24.68%, and 5-year annualized returns of +20.67%, significantly outpacing broader automotive indices and reflecting the market’s appreciation for the company’s execution and growth trajectory.
Market Sentiment and Analyst Expectations
Market expectations for Q2 FY26 (pre-earnings) indicated consensus analyst estimates of net profit around Rs 250 billion (23% YoY growth) and revenue of approximately Rs 3,463 billion (19% YoY growth). The actual results of Rs 227.27 crore PAT and Rs 3,603.79 crore revenue fell slightly short on PAT but exceeded revenue expectations, reflecting strong topline execution despite margin pressures. EBITDA margin expectations of approximately 14% with 90 basis points expansion were not fully realized due to consolidation of lower-margin segments.
Industry Context and Growth Catalysts
Automotive Industry Tailwinds
The Indian automotive components industry demonstrates robust secular growth drivers. Industry turnover reached Rs 6.73 lakh crore in FY25 with 9.6% growth, nearly doubling in size over the past five years with a 14% compound annual growth rate (CAGR). The industry is projected to grow at 8-10% in FY26, supported by OEM demand growth of 8-10% and replacement demand growth of 7-9%. This structural growth, coupled with Endurance’s superior performance relative to industry benchmarks, validates the company’s competitive positioning.
Two and Three-Wheeler Segment Dynamics
The two-wheeler segment continues to be a significant revenue contributor for Endurance. Two-wheeler sales grew 7.4% in Q2 FY26 with volumes of 5.56 million units, while three-wheelers posted 9.8% growth with 2.29 lakh units, the highest-ever Q2 volumes. These segments represent approximately 50% of Endurance’s consolidated revenue, making segment growth instrumental to overall performance. Industry estimates suggest two-wheeler volumes will grow 6-9% in FY26 supported by GST rate reductions, steady replacement demand, and healthy rural incomes.
Four-Wheeler and EV Transition
Endurance’s strategic initiative to increase four-wheeler contribution from current 26% to 45% by FY30 aligns with structural industry transformation. The company is capturing emerging EV demand, with India’s EV two-wheeler penetration estimated at 6-7% and growing, representing significant whitespace for established component suppliers. The Indian auto component industry expects to invest Rs 250-350 billion in FY26 toward EV capabilities, localization, and technology development, with only 30-40% of EV supply chain currently localized.
Risk Factors and Monitoring Points
Currency and Commodity Exposure
The company’s European operations introduce foreign exchange exposure to EUR volatility, which can impact consolidated results. Additionally, the automotive components industry remains vulnerable to unfavorable movements in commodity prices and raw material inflation, which could pressure margins despite volume growth.
Competitive Intensity and Customer Concentration
While diversification has improved, Bajaj Auto remained a significant customer historically, creating customer concentration risk. The industry faces intense competition from both domestic players like Bharat Forge and Minda Industries, and international competitors like ZF Friedrichshafen AG and Schaeffler AG, which continue to invest heavily in R&D and advanced technologies.
Technology and EV Transition Execution
Successfully executing the EV strategy and new platform ramp-ups is critical for sustaining growth momentum. The company’s ability to scale new capacity at AURIC Shendra and AURIC Bidkin facilities on schedule will determine medium-term profitability. Additionally, intense R&D requirements for EV-specific components and BMS technology necessitate sustained investment while managing margin pressures.
Conclusion
Endurance Technologies Limited presents a compelling fundamental investment case supported by strong Q2 FY26 results demonstrating 22.6% revenue growth and 21.9% EBITDA expansion, diversified revenue streams across Indian domestic, European, and EV segments, and a fortress balance sheet with zero debt and strong returns on capital. The company is strategically positioned to benefit from India’s automotive industry transformation toward four-wheelers and electric vehicles, as evidenced by 30% EV order concentration and growing orders from premium global OEMs. With the Stöferle acquisition expanding European manufacturing capabilities, the Maxwell Energy Systems acquisition providing EV battery management exposure, and new capacity rollouts at AURIC facilities, management is executing a credible medium-term growth strategy aligned with industry secular trends.
However, investors should monitor margin pressures from competitive pricing, currency fluctuations affecting European operations, and execution risks on new platform ramp-ups. The P/E ratio of 47.92x reflects elevated valuation expectations that require consistent execution and sustainable margin expansion to justify. For investors seeking thematic exposure to India’s automotive electrification and component supply chain consolidation, Endurance Technologies offers compelling fundamentals, though valuation discipline and continued monitoring of competitive dynamics remain essential.
