Any idea what would be competitive moat for endurance and how sustainable it is?
In my opinion it’s relation with Bajaj Auto can be considered as a MOAT which few other companies can boast of.
It has also started supplying other competitors while maintaining the relationship with Bajaj.
While it majorly focuses on 2W vehicles they have increased the share of 4W supplies over the years.
We may also over time get to know if the Maxwell acquisition (engaged in EV battery management systems) is value accretive.
Disc - Holding
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Endurance Maxwell increased stake 61.5% now
Remaining 38.5% equity stake in Maxwell shall be purchased from ION in a phased manner in annual tranches, spread over the next three financial years.
Plan of merger of wholly-owned step down subsidiaries of the Company in Italy.
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Company should benefit greatly from new rule mandating ABS for ALL two wheelers
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1. India Business – Strong Growth Expected
Key Triggers for Q1 FY26:
- New SOPs starting or ramping from:
- TVS inverted front forks – SOP began in April 2025
- Royal Enfield, Hero, Honda shock absorber orders
- KTM supplies restarting June 2025
- Strong Ather Energy volumes → casting demand doubling in Q2
- Narsapura plant targets 80% YoY growth this year – initial impact likely visible in Q1
- ₹34B RFQs under evaluation – includes 4W EVs
India Revenue Outlook:
- Q4 FY25 standalone revenue growth: +8.4% YoY
- Q1 FY26 should match or exceed this, likely +10–12% YoY, backed by SOPs, order momentum, and seasonal pickup
2. Europe Business – Resilient but Cautious
Key Factors:
- EU car market down 1.9% YoY in Q4, expected to decline ~2% in CY25 (S&P)
- Stöferle acquisition now consolidated → boosts base
- €40.2M orders won in FY25 (BMW, VW, JLR, etc.) to support volumes
- Minimal direct US exposure, but €20–30M at risk if Trump tariffs escalate
Europe Revenue Outlook:
- Q4 FY25 Europe growth: +17% YoY
- Q1 FY26 may soften slightly to ~10–12% YoY, but still above industry trend due to new order wins and Stöferle inclusion
3. EV Segment – Acceleration Phase Begins
- ₹300 crore battery pack order (SOP Jan 2026) – groundwork and setup in progress in Q1
- EV casting exports to 2 global OEMs – trial lots already started in Q1
- Maxwell’s IoT and motor controller businesses see SOPs later, but R&D, hiring, and pilot builds happening now…
From January 1, 2026, the Indian government will make ABS (Anti-lock Braking System) mandatory for all new two - wheelers, including those below 125ccc , to improve road safety ..!!! - No BUY or SELL Recommendation!!!
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Endurance Technologies -
Q2 FY 26 results and concall highlights -
Q2 outcomes -
Revenues - 3604 vs 2939 cr, up 22 pc
EBITDA - 498 vs 409 cr, up 22 pc
PAT - 227 vs 203 cr, up 12 pc
Segmental results -
India business - 2692 vs 2317 cr, up 16 pc. EBITDA @ 336 vs 316 cr, up 6 pc. PAT @ 188 vs 185 cr, up 2 pc
Europe - 908 vs 617 cr, up 47 pc, EBITDA @ 161 vs 100 pc, up 61 pc. PAT @ 41 vs 27 cr, up 42 pc
Maxwell - 44 vs 19 cr, up 130 pc, EBITDA @ 1.9 vs (-) 1.7 pc. PAT @ (-) 1 vs (-) 4 cr
In H1, Indian Scooters, Motorcycles, 3Ws, 4Ws Industry grew by 6 pc, 4 pc, 16 pc and 2 pc respectively. As the new GST rates cuts take effect - These growth rates should see a meaningful uptick in Q3 ( already seeing strong growth in Oct - Nov 25 )
New car registrations in EU grew by 2.5 pc in H1 ( still down 13 pc vs the base of FY 19 )
H1 outcomes -
Revenues - 6958 vs 5799 cr, up 20 pc
EBITDA - 977 vs 616 cr, up 20 pc
PAT - 454 vs 407 cr, up 12 pc
Region wise breakup of H1 sales -
India - 77 pc
EU - 22 pc
Maxwell - 1 pc
Product wise breakup of H1 sales -
Suspension systems - 25 pc
Die Casting products - 45 pc
Disc Brakes - 12 pc
Alloy Wheels - 6 pc
Transmission systems - 3 pc
After mkt sales - 4 pc
Category wise breakup of H1 sales -
Motorcycles - 52 pc
Scooters - 9 pc
3Ws - 8 pc
4Ws - 30 pc
Others - 1 pc
H1 Capex @ 460 cr for India business + 223 cr for EU business
India capex includes - New Die Casting, brake assembly, alloy wheels, Aluminium castings and machining, Battery packs, Dual channel ABS
EU capex includes - capacities to cater to new orders from Stellantis, Daimler, Porsche and Audi
Company’s dual channel ABS facility is under customer validation. Setting up additional facilities in view of new draft regulations making ABS mandatory for 2 Ws over a period of time
Planning to expand ABS capacity to 5 X of current capacities
Plan to increase the 4W mix to 45 pc of consolidated revenues ( over medium term ) - contribution should come from both EU + India - making mkt share gains in braking systems, drive shafts, suspension systems
In H2 LY, company acquired 60 pc stake in Stroferle Ltd Germany with a plan to acquire the rest of 40 pc over next 5 yrs. It specialises in machined Aluminum die-casting for auto parts. Stroferle’s LY revenues were aprox 750 cr
Ex of contribution from Stroferle in Q2 ( as it wasn’t a part of the company in Q2 LY ), company’s topline growth would have been 7 pc vs the reported 22 pc growth
Capacity to make 1.2 million units of ABS are to be installed by Q1 FY 27. Another round of capacity expansion by 1.2 million units / yr shall happen when actual guidelines come out. ABS were already mandatory for 2W with engine capacity > 125 cc
Company has started civil work for setting up a new Chennai plant for disc brake systems, which includes the master cylinder, caliper, brake disc and brake hoses. Here they produce 3 million disc brake assembly systems + 4 million disc brakes / yr. Plan to take this capacity up to 7.6 million disc brake assemblies + 8.6 million disc brakes
Company’s new alloy wheel plant shall have a capacity of 3.6 million wheels / yr - should generate a revenue of 600 cr / yr. The new facility is already fully booked. Their existing alloy wheels plant produces 5.5 million alloy wheels
Company continues to position their new AURIC Shendra facility as a key point for critical machined castings for 4W and non-auto applications. They are therefore equipping this plant with highly sophisticated machining and finishing equipments. In the past, they mentioned about orders from marquee U.S. and UK-based OEMs and also orders from Valeo for electric platforms of Mahindra. And now they have added Yazaki as a customer taking the total sales close to Rs388 crores per annum at peak. SOP for both the U.S. and UK OEMs will start in Quarter 1 of FY 27 and they will reach peak sales in FY 28. The SOP for the AURIC Shendra plant is going to be in January 2026
Company’s subsidiary - Maxwell Ltd achieved a turnover of 74 cr in H1. They supply battery management systems for 2Ws, 3Ws, tractors and construction equipment
Company’s new battery pack manufacturing facility has already won business worth 300 cr / yr from a 2W OEM
The new alloy wheel facility of 3.6 million wheels / yr should reach full ramp up by Q2 next FY
Company is a leading manufacturer of inverted front forks for 2W OEMs. Company supplies these to 4 Indian OEMs and one International OEM ( KTM ). One Chinese OEM will start sourcing these from the company wef next FY. Should be able to sell 6.5 lakh inverted front forks in FY 26
Company has also started selling Solar Dampers. Have won business worth 200 cr from a Spanish OEM for their Solar Dampers. This business ca potentially grow multi fold going forward
Margin compression in Q2 in India business is on account of higher RM prices ( mainly Aluminium ) + higher investments made in their after mkt business
Share of power sourcing from renewable sources stands @ 28 pc
Current capacity that the company has to make ABS stands @ 0.65 million pieces / yr
Four wheeler suspensions is a very tough business to get into. Undergoing trials with one of the OEM. Company has a tech tie up with a South Korean technology partner. The system being developed by them is suited for small cars. Company is expecting a major breakthrough in near future. Company is already a leader in suspension systems of 2Ws
Company’s mkt share in front forks ( 2Ws ) is @ 43 pc. In the inverted front forks, their mkt share is even higher. In shock absorbers ( 2Ws ) , their mkt share is @ 45 pc
Company solar dampers business has a huge mkt potential and can also grow @ rapid rates. In talks with 2 more OEMs ( beyond the Spanish OEM mentioned above ). This can be a huge growth opportunity going forward
Similarly, battery packs is another high growth area which also has a long growth runway
Capex for H2 planned @ 400 cr for India + 200 cr for EU business
Disc: initiated a tracking position, not a buy/sell recommendation, biased, posted only for educational purposes
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