ENDURANCE - Endurance Tech.

📊 NSE: ENDURANCE 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 21:52

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 13% YoY to INR 11,561 Cr in FY2025. Domestic operations grew 12.5% YoY, while overseas operations grew 16.7% YoY. In H1 FY2026, revenue grew 20% YoY to INR 6,902 Cr, primarily driven by the Stoferle acquisition which added 39% growth to European operations in Q1 FY2026.

Geographic Revenue Split

Domestic (India) operations contribute approximately 62% of revenue, while European operations contribute approximately 38%. European revenue reached EUR 88.7 million in Q2 FY2026, a 32.7% increase YoY.

Profitability Margins

Operating Profit Margin (OPM) improved from 13.0% in FY2024 to 13.4% in FY2025 and Q1 FY2026. Net profit margin in Europe stood at 4.4% (EUR 3.9 million) in Q2 FY2026 compared to 4.3% in the previous year.

EBITDA Margin

Consolidated EBITDA margin was 13.4% in FY2025, a 40 bps improvement from 13.0% in FY2024. European EBITDA margin for Q2 FY2026 was 17.8% (EUR 15.8 million), up from 16% YoY.

Capital Expenditure

Planned annual capital expenditure is estimated between INR 1,000 Cr and INR 1,200 Cr for FY2026 and FY2027 to support capacity expansion and new product lines like ABS and 4W suspensions.

Credit Rating & Borrowing

Maintains a strong credit profile with a negative net debt position. Gearing is low at 0.18x as of March 2025. Total debt to OPBDITA ratio is comfortable at 0.6 times.

⚙️ Operational Drivers

Raw Materials

Aluminum (accounting for 40% of recent price increase impacts), steel, and specialized components for electronic systems like BMS.

Import Sources

Sourced from domestic Indian suppliers and European markets for overseas operations; specific countries not disclosed beyond regional operations.

Capacity Expansion

Expanding ABS manufacturing capacity to target a 25% market share following government mandates; also expanding into 4W suspension with a Korean technology partner.

Raw Material Costs

Raw material costs were impacted by a 40-50% increase in commodity prices (primarily aluminum) in recent quarters, which the company manages through pass-through mechanisms with OEMs.

Manufacturing Efficiency

Maintains healthy asset utilization and a strong track record in quality control to reduce rejections and save costs; RoCE has been sustained at over 15% for the last five years.

📈 Strategic Growth

Expected Growth Rate

12-14%

Growth Strategy

Growth will be driven by the integration of Stoferle (acquired April 2025), a robust domestic order book of INR 4,692 Cr, and the Ministry of Road Transport's mandate for ABS on 2-wheelers. The company is also pivoting to the 4W segment, aiming to increase its 4W revenue mix from 25% to 45%.

Products & Services

Aluminium die-cast components, suspension systems (front forks, shock absorbers), braking systems (disc brakes, ABS), transmission products (clutch assemblies), alloy wheels, and Battery Management Systems (BMS).

Brand Portfolio

Endurance, Maxwell Energy Systems (BMS), Stoferle (Machined castings).

New Products/Services

Anti-lock Braking Systems (ABS) for 2W, 4W suspensions for small cars, aluminum forgings, and driveshafts.

Market Expansion

Targeting the Indian passenger vehicle (PV) market through a Korean partnership and expanding European presence in machined aluminum die casting via Stoferle.

Market Share & Ranking

Market leader in 2W suspension systems in India; targeting 25% market share in the upcoming 2W ABS market.

Strategic Alliances

Partnership with a Korean company for 4-wheeler suspension technology; acquisition of Stoferle GmbH and Stoferle Automotive GmbH in April 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward electrification and safety regulations. Endurance is positioning itself by offering BMS for EVs and preparing for the 2025 ABS mandate for all 2-wheelers.

Competitive Landscape

Faces high competitive intensity in the 4W suspension segment from established players; competes with global auto-component manufacturers in the European die-casting market.

Competitive Moat

Moat is built on low-cost manufacturing ('frugal technology'), long-standing OEM relationships, and market leadership in suspension and die-casting. This is sustained through high R&D focus and a negative working capital cycle.

Macro Economic Sensitivity

Highly sensitive to automotive industry cyclicality and domestic consumer demand for 2W and 3W vehicles.

Consumer Behavior

Increasing consumer preference for safety features (ABS) and a gradual shift toward hybrid and electric vehicles in both India and Europe.

Geopolitical Risks

Exposure to European market demand slowdowns and regulatory shifts toward Battery Electric Vehicles (BEVs), which represented 17.4% of the EU market in Q2 FY2026.

⚖️ Regulatory & Governance

Industry Regulations

Ministry of Road Transport and Highways (MoRTH) draft guidelines mandate ABS for all 2-wheelers sold after 2025, which significantly expands the addressable market.

Environmental Compliance

Aligning product portfolio with EV environment through BMS offerings to meet global decarbonization trends.

⚠️ Risk Analysis

Key Uncertainties

Potential for large debt-funded acquisitions impacting the financial profile (gearing limit of 0.8x) and the inherent cyclicality of global automotive registrations.