Growth strong, profits lag—the commodity discount looms
Revenue jumped 30%, but profit rose only 8%, with EBITDA margin compressed 120 basis points. The gap reveals where this quarter really stands: strong orders, weak profits, margin recovery betting entirely on uncertain OEM cost-sharing settlements.
₹4,315 Cr
+30% YoY
₹244.5 Cr
+8% YoY
120 bps
EBITDA: 13.1% vs. 14.3% prior year
−11.6%
Sequential decline signals ramp-up drag
On its face, Endurance delivered a strong quarter: consolidated revenue of ₹4,315 Cr is up 30% year-over-year, and the company landed its result target. But look at the profit growth—8% PAT expansion on 30% revenue growth—and the story inverts. Margin compression of 120 basis points (EBITDA 13.1% vs. 14.3% prior year) and a sequential PAT decline of 11.6% quarter-on-quarter expose a company running hard just to stay in place. The quarter reveals a widening gap between what the order book promises and what the P&L delivers.
Where the margin went
Management attributes the profit shortfall to commodity headwinds. Raw materials and consumables as a percentage of revenue jumped to 68.4% from 64.8% in the prior year—a 360 basis point surge. This spike, management claims, was driven by West Asia conflict, aluminium and steel cost surges, and fuel inflation, resulting in ₹300 Cr paid upfront by Endurance in the quarter due to quarter-lag accounting (OEM customers slow to reimburse). If this claim holds, the adjusted EBITDA margin would be 13.33%, not the reported 11.2% standalone—a 213 basis point difference. The problem: the ₹300 Cr figure is plausible but unverified, and the recovery—promised for Q2 and Q3 via OEM cost-sharing settlements—remains unquantified. Management explicitly refused to project the benefit magnitude, citing 'too many variables.' That caution is candid but alarming: it signals management itself is uncertain whether OEM partners will fully absorb their share of the commodity lag.
Consolidated PAT grew 8%; EBITDA margin improved to 13.1%
PAT +8% YoY ✓; but EBITDA margin compressed 120 bps from 14.3% (not improved)
Overstated on margin
Revenue grew 35.9% standalone, 29.6% consolidated
Consolidated ₹4,315 Cr (+30% YoY); aligned with stated guidance
Supported
₹300 Cr commodity paid upfront; adjusted EBITDA would be 13.33%
RMC % jumped 360 bps (64.8% → 68.4%). Calculation plausible; OEM pass-through timing unconfirmed
Plausible but unverified
Maxwell achieved PAT positive for first time with 85% income growth
Maxwell income ₹56.5 Cr (Q1 FY27) vs. ₹30.5 Cr (Q1 FY26) = 85% YoY ✓
Supported
EV sales India grew 87.6% to ₹129.7 Cr
From ₹69.2 Cr (Q1 FY26) to ₹129.7 Cr (Q1 FY27) = 87.4% ✓
Supported
What changed on this call
4W segment expanded into new geographies and OEMs. Prior calls aspired to 10% of revenue; Q1 achieved ₹180 Cr (6% of standalone revenue). New wins: Hyundai/Kia ₹80 Cr per annum, Shendra facility ₹513 Cr per annum (peak by FY29), Isuzu hybrid, Tata/Mahindra Chakan growth. Path to double-digit 4W revenue now credible.
Battery packs entered as a new forward-integrated segment. Prior calls detailed Battery Management Systems (Maxwell) only. Q1 added 2W battery pack manufacturing for Hero MotoCorp (ramping to 18K units/month) and 4W pack capex (₹62 Cr for Q4 FY27 SOP). This is incremental revenue not previously modeled.
Capex guidance held steady despite customer capex upgrades. Bajaj, Royal Enfield, TVS upgraded capex in Q1, but Endurance reiterated ₹800 Cr (same as FY26). Rationale: already have capacity; outsource to strong Tier-2 vendors. Dynamic situation (can increase if large wins emerge). No guidance shift.
Europe order book declining; Chinese OEM competition cited. Prior calls showed stable European order wins. Q1 revealed Chinese OEMs (SAIC +32%, BYD +167%, Chery +272%, Leapmotor +500% YoY) taking share via imports. Endurance won Mercedes 100% of hybrid transmission (previously 60%), offsetting some volume risk. Net: opportunity within challenge.
The bull-bear ledger
Order book is massive and diverse. ₹4,526 Cr of RFQ in hand (not committed, but serious pipeline), ₹513 Cr Shendra casting orders (long lead, peak by FY29), ₹238 Cr Maxwell BMS cumulative orders. Multiple customer wins (Hyundai, Kia, Tata, Mahindra, global OEMs) breaking HMSI concentration.
Multiple high-value SOPs on schedule (Q2–Q4). ABS dual-channel Bajaj (Q2, 120K units/annum), Tata 4W brakes (Q2), Shendra casting (Sept 2026), battery pack 4W (Q4). Execution track record strong (brake business CAGR 30% over 4 years).
EV exposure growing fast. EV revenue India +87.6% to ₹129.7 Cr; consolidated EV+PHEV +20.9% to ₹931.9 Cr (21% of total revenue). Structural tailwind as scooter penetration rises (+32.7% YoY) and 2W electrification accelerates.
Market share expansion across core segments. Brakes 34.5% (assembly), 42% (disc), front forks 44%, shock absorbers 37%. New segments (4W castings, battery packs, solar dampers) entering high-value niches.
Profit growth lagged revenue by 22 percentage points. 30% revenue growth vs. 8% PAT growth is a red flag for leverage. Sequential PAT fell 11.6% (implied ₹28 Cr drop), unaddressed by management. Signals ramp-up drag and commodity accounting lag are real, not transient.
Margin recovery is unquantified and contingent. Management refused to forecast Q2–Q3 cost pass-through benefit, citing 'too many variables.' This is honest but risky: if OEM settlement talks stall or result in partial recovery, profitability momentum stalls with them.
Customer concentration remains acute. HMSI represents 85% of Q1 order wins (₹336 Cr of ₹391.6 Cr). While diversification into TVS, Bajaj, Tata, Mahindra is underway, HMSI growth hiccup = revenue hiccup for Endurance. Risk acknowledged but not yet mitigated.
New plants operating far below peak efficiency. Bidkin alloy wheel plant at 60% utilisation (1.8M sets capacity), battery pack plant scaling. These dilute consolidated profitability until full ramp (guided for Q3–Q4 FY27). If ramps slip, profitability recovery pushes to Q1 FY28 or beyond.
Europe order book stalling. Revenue €104.3M (+1.1% YoY only), EBITDA margin 18.2%, but PAT down 31% due to ICE asset depreciation. Chinese OEM production in Europe up 32–500% YoY; traditional German OEM volumes under pressure. Endurance winning selectively (Mercedes), but market TAM at risk.
How the market is treating this
The price action speaks. On day 1 after the result announcement, the stock fell 2.88% (delivery 97.5%, indicating strong institutional selling pressure). It recovered 1.12% by day 3, then only 0.56% by day 5. The full recovery has not held, suggesting the market remains skeptical of near-term margin recovery. Current price of ₹3,029.5 sits −1.38% from its all-time high of ₹3,072, with RSI at 71.1 (overbought territory). Foreign institutional investors trimmed by 0.44 percentage points in Q1 (FII holdings 12.70% vs. 13.14% in Q4), a subtle but meaningful signal: smart foreign money is taking profits on momentum rather than buying dips. The stock has rallied 41.38% from its 52-week low (₹2,142.8), and at current valuations (RSI 71), the market is pricing in SOP execution perfection and full commodity pass-through recovery. The day-1 selloff and FII trim suggest that's not yet priced fairly.
Ranked risks—what should concern a holder
OEM cost-sharing settlements slip or arrive only partial
HIGH₹300 Cr of Q1 profit was sacrificed in the quarter on the promise of recovery in Q2–Q3. If OEM negotiations drag or result in 50–70% recovery instead of 100%, profit growth stays flat and margin recovery is delayed by 1–2 quarters. Management's explicit refusal to quantify the benefit signals internal uncertainty.
Multiple SOP execution delays (Q2–Q4 programme slip)
MEDIUMShendra Sept 2026, ABS Q2, battery packs Q4, etc. are the ramp drivers for profitability growth in H2 FY27. Any slip of >1 quarter delays both revenue and margin accretion. Company has a track record of on-time execution (brake CAGR 30%), but new-to-company battery and casting platforms add execution risk.
European market headwind accelerates; Chinese OEM competition bites
MEDIUMEurope revenue is already flat (+1.1% YoY). If Chinese OEM localization in Europe accelerates (already +32–500% growth) and German OEMs (Mercedes, VW) close ICE platforms faster than expected, Endurance's Europe TAM shrinks. Mercedes 100% win is a one-off offset; it doesn't reverse the trend.
HMSI concentration materializes as volume risk
MEDIUMHMSI = 85% of Q1 order wins. HMSI's growth slows (motorcycles market growth 19.3% YoY, decelerating) or OEM decides to in-house or switch suppliers = significant revenue/margin hit for Endurance. Diversification into Tata/Mahindra/Bajaj ongoing but not yet proportionate.
Ramp-up margin drag persists longer than Q3–Q4
MEDIUMBidkin (60% utilised) and battery pack plants (scaling) are diluting consolidated profitability. If customer ramps slip, these facilities stay underutilised into Q1 FY28, extending the PAT growth drag. Consolidated PAT growth (8% YoY) is already lagging standalone (17.4%) due to this.
Commodity price volatility reverses (i.e., costs fall faster than OEMs pass back)
LOWIf aluminium, steel, fuel prices fall sharply in Q2–Q3, OEM customers may demand retroactive price cuts on products already sold, offsetting the settlement gains Endurance is counting on. Lower severity because commodity spikes (not drops) are the historical norm, but tail risk to watch.
The debate
What to watch next
1 · Q2 OEM cost-sharing settlements—the wildcard
Management guided margin recovery 'Q2 and Q3 for sure' but refused to quantify. Watch the Q2 result for signs of RMC % improving, EBITDA margin expanding, and management commentary on settlement success rate (full vs. partial). If Q2 RMC % remains >68% and management pushes recovery to Q3, the thesis breaks. If RMC % improves to <65% and margin expands 100+ bps, the bull case re-engages.
2 · SOP execution and ramp profitability
Shendra facility should ship its first customer orders in Sept 2026. Monitor Q3 FY27 results for Shendra revenue contribution and gross margin (should be accretive given it's a greenfield, high-value casting facility). ABS SOP for Bajaj should be live in Q2; battery pack 2W for Hero should ramp to 18K units/month by October. Any slip here delays both revenue and profitability accretion by 1–2 quarters.
3 · Bidkin alloy wheel and battery pack utilisation trajectory
These plants are currently at 60% and scaling, respectively. Watch for Q2/Q3 commentary on utilisation rates moving toward 80%+. If Bidkin and battery plants reach full capacity (end of Q3 or Q4), consolidated margin will jump because ramp-up drag ends. This is the margin lever management is betting on.
The number to track
Not revenue. Revenue is steady—30% growth is credible given the order book. Track consolidated EBITDA margin in Q2. If it expands back to ≥14% (or approaches it), cost pass-through is working and the bull case re-engages. If it stays <12.5%, OEM settlements are slipping or partial, and profitability recovery is at risk. That single metric—margin expansion—is everything from here.
Endurance has assembled a strong multi-year order book and is diversifying into high-value EV segments—battery packs, 4W castings, advanced braking systems. The structural story is sound. But this quarter exposed a gap between growth and profitability that can't be ignored. Revenue growth and profit growth have decoupled, and management is betting it's temporary—a commodity lag that OEMs will absorb in Q2 and Q3. That's plausible. It's also unquantified, unconfirmed, and contingent on OEM negotiation success. The market's day-1 selloff (−2.88%) and FII trim suggest smart money is skeptical. At an RSI of 71 near all-time highs, the stock is priced for SOP execution perfection and full cost pass-through recovery. Until Q2 results prove that recovery is materializing, this is a Hold. The single number that flips the verdict: consolidated EBITDA margin recovery to ≥14% in Q2. Watch for it.
Battery ramp into earnings: scaling the EV pivot
Endurance Tech reports Q1 FY27 with a new production facility live and order momentum building across electric powertrains. Street expects steady growth; execution on the new battery plant will be the print's headline.
What to Expect
~₹350–365 Cr
On-plan for 18–22% YoY growth vs Q1 FY26 ~₹300 Cr; driven by core auto + battery production ramp
~₹65–75 Cr
On-plan for mid-teen growth; margin support from capacity absorption, offset by battery production scale-in
Early ramp
Mindewadi facility (26,000 units/month capacity) commenced production June 17; Q1 orders/utilization to watch
₹156 Cr/annum
Peaking in Q1 FY27 per disclosure; tracking to guidance of ₹150 Cr leads
A strong Q1 would show battery plant ramp-up with meaningful dispatch volumes and order traction (BMS leads converting), core auto revenue tracking guidance, and PAT on-plan. A weak Q1 would flag slower battery adoption, core auto headwinds, or margin pressure from capacity absorption lag—any signal that the EV ramp is slower than anticipated.
On Track?
Endurance is executing its EV pivot on schedule. FY26 delivered 26.1% revenue growth and 13.8% PAT growth (₹952 Cr PAT), well ahead of prior years, and the lithium-ion battery facility is now live. Street consensus (15–20% PAT growth for FY27) assumes steady progression from this base. Q1 FY27 is the first full quarter to test battery plant absorption and Maxwell BMS order momentum; the print will clarify whether the margin-accretive ramp is tracking or whether execution risk exists.
What the Street Says
Since Last Quarter
1 · Battery facility live
Lithium-ion battery pack production commenced June 17, 2026 at Mindewadi, Pune. Initial capacity 26,000 units/month, expandable to 35,000. ₹47.3 crore invested; further ₹62 crore expansion planned for 4-wheeler segment. This is the inflection point for the EV transition—watch Q1 dispatch and order booking.
2 · Veicoli Srl divestment closed
Sale of Italian subsidiary (fleet management software, 0.22% of revenue) completed Aug 3, 2026. Proceeds will flow into Q1 results; minor P&L impact but reflects portfolio tightening around core auto/EV.
3 · Stoeferle stake increase
Subsidiary Endurance Overseas acquired additional 8% stake in Stoeferle GmbH/Stoeferle Automotive (Germany) on July 1, 2026. Stoeferle is a key OEM customer for battery management; consolidating the relationship.
4 · Board & management transitions
Indrajit Banerjee appointed Chairman (effective June 10, replacing Soumendra Basu). Preety Raj elevated to President cadre (April 1, 2026). Routine transitions; no governance red flags.
5 · AGM & dividend
27th AGM scheduled Aug 13, 2026 (same day as result board meeting). Final dividend of ₹11.50 per share (115% payout) proposed for FY26, record date July 31, 2026. Dividend already paid out.
6 · Regulatory—routine tax items
GST demand (FY 2021-22) reduced to ₹32.49 lakh (May 15, 2026) and prior ST appeal allowed, ₹98.28 lakh demand set aside (May 15, 2026). Minor noise, no material contingency flagged.
The Setup
Endurance Technologies is at an inflection: after years of core auto component strength (FY26: +26% revenue, +14% PAT), the lithium-ion battery business is now live and BMS orders are peaking. Q1 FY27 is the first print to test whether the EV ramp is real or overstated. Stock is fairly valued at ₹2,877.7 (within ₹2,800–₹3,000 analyst band) ahead of the print; upside likely contingent on guidance lift or beat. The Street is cautiously positive but watching for execution—battery plant absorption, order velocity, and margin trajectory are the gateways.
Three things to watch on result day (Aug 13):
1. Battery dispatch & order booking. How many units did Mindewadi plant ship in Q1? Any new 4-wheeler orders signed? This is the headline—it will determine Street confidence in the ₹3,500 Cr order target by FY28.
2. Maxwell BMS trajectory. Q1 marks the peak of ₹156 Cr annualized orders. Guidance on FY27 run-rate and new lead conversion (₹150 Cr pipeline) will reset FY27 earnings assumptions.
3. Margin depth. At what capacity utilization does the battery plant turn accretive to blended margin? If Q1 PAT is materially below Street expectation despite revenue beat, the story shifts from growth to execution risk. Management guidance on margin progression for FY27 will be pivotal.
Endurance Q1 FY27: consolidated PAT +8% YoY lags 30% revenue growth as margins compress
PAT +8.03% YoY · revenue +30.01% · margins compressing
₹4,314.89 Cr
+30.01% YoY
₹244.52 Cr
+8.03% YoY
5.62%
-1.1pp YoY
₹17.38
Endurance Technologies' consolidated Q1 FY27 revenue came in at ₹4,314.89 Cr, up 30.0% YoY and 5.6% QoQ, but consolidated PAT of ₹244.52 Cr grew just 8.0% YoY and fell 11.6% QoQ — profit growth trailing revenue by a wide margin is the story of this quarter, not the topline. EPS was ₹17.38 against ₹16.09 a year ago and ₹19.65 last quarter. The standalone (India) business was materially stronger: revenue ₹3,182.71 Cr (+36.4% YoY) and PAT ₹194.62 Cr (+17.4% YoY) — a basis divergence of roughly 9 percentage points in PAT growth that readers comparing standalone and consolidated numbers should note explicitly.
Q1 FY-2027 vs prior quarters
The gap traces to margins and the overseas book. Consolidated OPM (EBITDA margin) compressed to 12.42% from 13.37% a year ago and 13.90% last quarter; NPM fell to 5.67% from 6.75% YoY and 6.72% QoQ. Cost of materials consumed rose to 61.1% of revenue from 58.7% a year earlier, and employee benefit expense grew 18.5% YoY, both outpacing revenue growth. The nine subsidiaries outside India — mainly the Italian and German operations — contributed ₹1,126.17 Cr of revenue but only ₹48.01 Cr of PAT this quarter (a ~4.3% net margin) per the auditors' review note, dragging the consolidated blend well below standalone profitability.
The stock went into the print at ₹2,993.3, up 9% over the past month of trading.
For context: revenue is at a 6-quarter high.
Management provided strong guidance for continued growth, with expectations for significant traction in the 4W segment to reach 10% of revenue in the coming years. The company anticipates exceeding industry growth rates through new product introductions, increased share of business with existing OEMs, and a focus on te
— This quarter: met
No standalone press release or management commentary was included in this filing. Management's prior (Q4 FY26) concall guidance had flagged short-term raw-material and energy cost volatility with an expectation of "better normalized margins from Q2 FY27 onwards" — this quarter's compression is consistent with that caution, so the print tracks rather than misses what was signalled, though it leaves Q2 as the real test. Street consensus for this specific quarter could not be independently confirmed via web search, so vsStreet is left unknown rather than guessed. Two corporate actions fell inside or just after the quarter: Endurance Overseas raised its stake in Stöferle GmbH/Stöferle Automotive GmbH from 60% to 68% for €6.24 million on 29 June 2026, and the company completed the sale of Italian subsidiary Veicoli Srl on 3 August 2026 — after the 30 June quarter-end, so it postdates these numbers but is directly relevant to the low-margin European drag described above.
W1
Whether consolidated OPM recovers toward management's promised 'better normalized margins from Q2 FY27 onwards' after this quarter's compression to 12.42%
W2
Whether the Veicoli Srl divestment (completed 3 Aug 2026) narrows the gap between standalone (+17.4% YoY PAT) and consolidated (+8.0% YoY PAT) growth from Q2 FY27
W3
Raw material cost ratio, at 61.1% of revenue this quarter versus 58.7% a year ago — management said cost pass-through to customers was expected; watch for normalization
Strong orders, weak profits; margin recovery dependent on cost pass-through
The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.
Hold
confidence 7/10
Grade B
Met revenue guidance materially (30% delivered vs 35.9% standalone claim, broadly aligned). No prior numeric targets lowered or withdrawn. Acknowledged commodity headwinds and ramp-up phase transparently. However, profit growth lagged revenue significantly; timing of cost recovery unconfirmed.
Cautiously Optimistic
next 1–2 quarters
Optimistic
multi-year
Endurance is executing on a strong multi-year order book (₹4.5K Cr RFQ, ₹513 Cr Shendra committed) and entering high-value segments (battery packs, 4W castings). However, Q1 reveals a gap: revenue grew 30% YoY but PAT only 8%, with QoQ PAT down 11.6%, signalling near-term margin compression. Management attributes this to commodity headwinds (₹300 Cr paid upfront) and ramp-up drag from new plants (Bidkin alloy wheels 60% utilised, battery pack scaling). Profit recovery depends on OEM cost-sharing settlements in Q2-Q3, which remain uncertain and unquantified. The business has strong structural tailwinds (EV growth, order wins, new segments), but near-term profitability is at risk if cost pass-through slips.
₹4314.9 Cr
Revenue · +30% YoY₹244.5 Cr
Reported PAT · +8% YoYCompressing
Margins · vs guidance: MixedDid the claims hold up?
Consolidated PAT grew 8%, EBITDA margin improved to 13.1%
OVERSTATEDDelivered PAT 8% YoY ✓; consolidated EBITDA margin 13.1% vs 14.3% prior year — margin actually compressed 120 bps
Revenue grew 35.9% standalone, 29.6% consolidated
METConsolidated ₹4,348 Cr (29.6%) aligns with delivered ₹4,314.9 Cr (30% YoY)
Commodity increase paid upfront was ₹300+ Cr, adjusted EBITDA would be 13.33%
UnverifiedRMC % jumped from 64.8% (Q1 FY26) to 68.4% (Q1 FY27); management claims ₹300 Cr paid upfront by Endurance as lag effect. Calculation plausible but unverified.
Maxwell achieved PAT positive for first time with 85% income growth
METMaxwell income ₹56.5 Cr (Q1 FY27) vs ₹46.6 Cr (Q4 FY26) = 21% QoQ growth; not 85%. The 85% is YoY (₹56.5 Cr vs ₹30.53 Cr in Q1 FY26). Statement ambiguous but supported by year-over-year.
EV sales India grew 87.6% to ₹129.7 Cr
METFrom ₹69.2 Cr (Q1 FY26) to ₹129.7 Cr (Q1 FY27) = 87.4% growth. Matches claim.
Earnings quality
What changed since the last call
4W segment expanded with new geographies and OEMs
UpgradePrior call aspired to 10% of revenue. Q1 achieved ₹180 Cr (6% of ₹3.2K Cr standalone revenue). New wins: Hyundai/Kia ₹80 Cr, Shendra ₹513 Cr, Isuzu hybrid, Tata/Mahindra Chakan growth. Cumulative 4W momentum now material.
Battery pack entered as forward-integrated segment
NewPrior calls mentioned Battery Management Systems (Maxwell) only. Q1 added 2W battery pack manufacturing (Hero MotoCorp, ramping to 18K units/month), plus 4W battery pack capex ₹62 Cr for Q4 FY27 SOP. This is a new revenue stream not previously detailed.
Capex guidance held steady despite customer capex upgrades
MaintainedCustomers (Bajaj, RE, TVS) upgraded capex in Q1. Endurance reiterated ₹800 Cr (same as FY26). Justification: already have capacity; outsource to Tier-2 vendors; dynamic situation (can increase if large wins occur). No numeric change.
Commodity headwinds acknowledged; margin recovery not quantified
NeutralPrior calls did not flag commodity pass-through risk explicitly. Q1 exposed ₹300 Cr upfront cost due to quarter-lag accounting. Management expects recovery in Q2-Q3 via OEM settlements, but refused to quantify the benefit ('too many variables'). This is a neutral disclosure (transparent but cautious).
Europe order book declining; Chinese OEM competition cited
DowngradePrior calls showed stable Europe order wins. Q1 noted Chinese OEMs (SAIC +32%, BYD +167%, Chery +272%, Leapmotor +500% YoY) taking share, importing components. However, Endurance won Mercedes 100% of hybrid transmission (was 60%), mitigating. Net: margin opportunity offset by volume risk.
The Q&A
Analysts pressed on three fronts: (1) margin recovery timing—management refused quantification but confirmed Q2-Q3 targeting ('will be better than Q1'); (2) capex rationale given customer upgrades—management cited existing capacity and outsourcing mix, deflecting a capex expansion call; (3) Europe order book decline—management reframed as Chinese competition opportunity, highlighting Mercedes win. Overall, management held firm on guidance but offered limited precision on recovery magnitude. Tone was confident but cautious.
Europe order quality — Aditya Jhawar, Investec
AnsweredMercedes hybrid transmission (€-value not disclosed, but described as 'very important'); acquired 100% of 60% prior volume from competitor in bankruptcy. SOP January 2027. Also Stellantis ICE order. These are marquee customers but orders in strategic vehicles (hybrid ICE phase-out prone).
Stöferle integration — Aditya Jhawar, Investec
PartialManagerial/commercial integration 100% complete. Casting capacity backward integration target: January 2027 agreement. Full impact expected September 2027. Positive tone but delayed execution timeline.
Europe demand outlook — Arvind Sharma, Citigroup
Answered€104.3M revenue (+1.1% YoY); €18.9M EBITDA (+5.5%); €4.4M PAT (-31% due to depreciation of ICE assets). Market up 7.4% but Chinese OEM production exceptional; if normalized, market flat. Endurance still growing YoY. Tone: market difficult but company holding share.
Margin recovery quantification — Aditya Jhawar, Investec
PartialWe'll get all Q1 FY26 raw material rates in Q2 (improvement). Aluminium alloy rates softening 12-17 ₹/kg vs Q4 base (gain to us). Steel, rubber, plastics settlements underway. Conversion cost negotiations ongoing. 'Too many variables to give a figure, but definitely better than Q1.' Specific: aluminium alloy softening quantified; overall benefit refused.
4W die-casting progress — Aditya Jhawar, Investec
AnsweredQ1 4W business ~₹180 Cr (6% of revenue). Shendra orders ₹513 Cr per annum (peak FY29, long lead programmes). OEMs: USA EV OEM (large, export SOP Sept 2026), Jaguar Land Rover, Valeo electric platforms. Also Hyundai/Kia ₹80 Cr (already started). Tata/Mahindra in Chakan showing strong traction. Direct, detailed with names.
Battery pack profitability & BMS supply — Aditya Jhawar, Investec
PartialVery high-value business; 'I'll be better positioned to clarify margins next call.' Assembly line 17K-18K packs/month will be fully used by October. 2W order has Endurance BMS + aluminium casting (incremental margin). 4W battery pack (₹62 Cr capex, SOP Q4) both products should be ours, almost finalised. Hedging on margin clarity but confirmed vertical integration strategy.
Capex guidance rationale — Ravi Gupta, InCred
PartialNo gap; already have capacities. Outsource to strong Tier-2 vendors. If Tier-2 capex included, total would be higher. Dynamic situation; large opportunities may increase it. Not lagging, growing 35.9% (net of 12.9% raw material impact, growth is 23.5-24%). Deflected capex expansion; framed as 'sufficient' strategy but acknowledged potential for increases.
Scooter market shift (scooterisation) — Ravi Gupta, InCred
AnsweredScooter share grew from <10% to 14.3% in Endurance; content increasing especially EV scooters. Motorcycles +19.3%, scooters +32.7% in India; Endurance growing both. 'Not losing; growing share.' Direct rebuttal with share metrics.
Europe order book decline — Ravi Gupta, InCred
AnsweredChinese OEMs growing (SAIC +32%, BYD +167%, Chery +272%, Leapmotor +500% YoY), importing powertrains. Endurance in touch; opportunity when they localize in Europe. Also Korean brands (Kia) imports. German OEMs restructuring. But Endurance still winning Mercedes 100% (was 60%), which is a 'clear positive.' Frame: opportunity within challenge; Endurance positioned to win.
2W market share by product — Nishit Jalan, Axis Capital
AnsweredBrake systems 34.5%, front fork 44%, shock absorbers 37%. EV-specific: except clutch assembly (3.5% of India sales), all products needed for EVs. New: battery packs (high-value), BMS (Maxwell, huge potential), DC-DC charger (EV), motor controller. Traditional business EV-agnostic. 'Going step-by-step.' Quantified share metrics; acknowledged EV shift.
Alloy wheel capacity utilisation — Nishit Jalan, Axis Capital
Answered4.8M wheel sets per annum (9.6M wheels). Chakan ~3M sets (fully used up). Bidkin balance 1.8M sets, currently 60% utilised. Royal Enfield, Ather, Suzuki, Piaggio ramping Q2-Q4. 'Full capacity by end of FY27.' Direct capacity/utilisation data.
Battery pack ownership (standalone vs Maxwell) — Nishit Jalan, Axis Capital
AnsweredStandalone Endurance, produced at Mindewadi plant near Chakan. Not Maxwell. Short, clear.
Guidance
No explicit FY27 revenue target. Growth anchored on order book momentum.
MediumQ1 FY27 reached ₹4,315 Cr (30% YoY growth). ₹4,526 Cr RFQ in hand suggests >30% sustainable. Multiple SOPs Q2-Q4 expected to accelerate 4W, battery, non-auto segments. Management confident but refrained from stating a number.
EBITDA margin recovery expected Q2-Q3 via cost pass-through; no target stated.
MediumQ1 margin 13.1% (consolidated). Management cited ₹300 Cr upfront commodity cost and expects settlement with OEMs in Q2-Q3 (aluminium alloy rates softening 12-17 ₹/kg, steel/rubber/fuel negotiations ongoing). Benefit unquantified. Management stated 'better Q2 and Q3 for sure' but explicitly refused to forecast magnitude.
FY27 capex guided at ₹800 Cr, same as FY26.
MediumKey areas: automation (quality, efficiency), ABS/brake expansion, battery pack entry (₹62 Cr for 4W), solar damper plant (Sanand), new SMT line for electronics. Management acknowledged capex is 'dynamic' and could increase if large opportunities emerge. Tier-2 vendor capex not included in ₹800 Cr figure.
Risks the call surfaced
Commodity Price Volatility
MediumQ1 RMC % jumped 360 bps (64.8% → 68.4%). West Asia conflict keeping energy/freight elevated. ₹300 Cr paid upfront by Endurance in Q1; cost recovery dependent on Q2-Q3 OEM settlement negotiations. If settlements slip or partial, margin pressure persists.
SOP Execution Risk
MediumManagement guided ~15+ new SOPs: ABS (Bajaj dual-channel Q2, second programme Q3), brake systems (Tata, KTM, multiple OEMs Q2-Q3), 4W castings (Shendra SOP Sept 2026, Hyundai/Kia SOP Aug 2026, Isuzu Q4), battery packs (2W Q2, 4W Q4), solar dampers/actuators (H2 FY27), aluminium forgings (Q2, Q3 JLR, German OEM Q2 FY28). Any slip delays revenue ramp and margin accretion.
European Market Headwind
MediumChinese OEMs (SAIC +32%, BYD +167%, Chery +272%, Leapmotor +500% YoY in Europe) and Korean imports (Kia) are gaining market share. German OEMs (Mercedes, VW) restructuring and closing ICE platforms. Endurance Europe revenue flat YoY (€104.3M, +1.1% only). While company won Mercedes 100% hybrid transmission (high-value offset), order book visibility declining. Long-term risk if German OEM volumes erode.
Customer Concentration
MediumHMSI suspension facelift alone ₹219.6 Cr (better margins noted). While Endurance has diversified into TVS (₹250+ Cr total brakes business, +₹35 Cr in Q1), Bajaj, Tata, Mahindra, and exports, HMSI dominance in new orders creates volume and pricing risk if HMSI's growth slows or OEM transitions to in-house or competing suppliers.
Ramp-Up Margin Dilution
LowBidkin alloy wheel plant (AURIC) at 60% capacity utilisation (1.8M sets installed, ramping Royal Enfield, Ather, Suzuki, Piaggio in Q2-Q4 to full capacity by FY27 end). Battery pack plant (Mindewadi) in ramp-up phase. These are lower-margin initially; accretive once scaled. Consolidated PAT growth (8% YoY) reflects ramp-up drag vs standalone growth (17.4%). If ramps slip to Q4 or beyond, profitability delayed.
Management
Score 7/10. Clear on facts (revenue, order wins, SOPs) and transparent on challenges (commodity headwinds, ramp-up phases, European competition). However, vague on margin recovery quantification ('too many variables') and battery pack profitability ('will clarify next call'). Candid on customer concentration (HMSI 85% of wins) and Europe headwinds. Strong track record on core business (brake business CAGR 30% over 4 years, market share expansion in suspension/castings, multiple OEM wins). New segments (battery packs, 4W castings, solar dampers) on track but in early ramp. SOP timeline confidence high, but dependent on execution.
1 · Q2-Q3 FY27
OEM cost-sharing settlements (aluminium, steel, fuel, labour); margin recovery expected
2 · Q2 FY27
ABS dual-channel SOP for Bajaj (120K units/annum); Tata 4W foundation brakes SOP
3 · Q3 FY27
Second ABS programme (120K units) SOP; Bidkin alloy wheels ramp to full capacity; suspension SOP Hero/Suzuki (₹120 Cr per annum)
The business has strong structural tailwinds (EV growth, order wins, new segments), but near-term profitability is at risk if cost pass-through slips.