Endurance Technologies Ltd Q1 FY27 Earnings Call: Guides Margin Recovery from Q2, Order Book Reaches Rs. 5,720 Cr

Endurance Technologies Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Strong Top-Line Growth in Q1 FY2026-2027

• Consolidated total income grew 29.6% YoY to Rs.4,348.28 Cr in Q1 FY2026-2027; consolidated EBITDA was Rs.569.21 Cr (margin 13.1%), and consolidated PAT was Rs.244.52 Cr (margin 5.6%).
• Standalone total income rose 35.9% YoY to Rs.3,194.15 Cr; standalone EBITDA was Rs.357.78 Cr (margin 11.2%), and standalone PAT was Rs.194.62 Cr (margin 6.1%).
• Organic growth stood at ~23.5-24% after stripping out the 12.9% raw material content increase from the reported 35.9% standalone growth, per management.
• Pro-forma EBITDA margin (excluding non-value-add commodity pass-through) was ~13.33% in Q1 FY2026-2027, versus the reported 11.2%.
• RMC as% of income rose to 68.4% (vs 64.8% in Q1 FY2025-2026) due to a ~Rs.318 Cr upfront commodity payment with a one-quarter lag; management expects settlements in Q2 FY2026-2027.
• Indian two-wheeler industry sales grew 23.5% YoY to 7.18 million units in Q1 FY2026-2027, as reported by SIAM — the company cited this as supportive demand context.
• RBI held the repo rate at 5.25% (neutral stance) and lowered the FY2026-2027 inflation forecast to 5%, the company noted as a macro reference.

Strong Order Wins Across Segments

• New order wins in India totaled Rs.391.6 Cr in Q1 FY2026-2027, including Rs.336 Cr from HMSI (primarily suspension, better margins).
• Cumulative orders won (excluding Bajaj Auto) since FY2022-2023 reached Rs.5,720 Cr, of which Rs.4,241 Cr is new business.
• EV-specific cumulative wins stood at Rs.1,496 Cr (ex-Bajaj) or Rs.1,806 Cr (including Bajaj).
• Mercedes hybrid transmission component order worth ~€40M was won after the original supplier (a competitor) went bankrupt; SOP is scheduled for January 2027, with Endurance holding 100% share of business.
• Four-wheeler castings order book at the Oragadam (Shendra) facility reached Rs.513 Cr/annum, including orders from a large US EV OEM, JLR, and Valeo (for Mahindra/Tata EV platforms); SOP from September 2026.
• Solar dampers & actuators at the Sanand plant represent total business value of Rs.345 Cr (Rs.118 Cr dampers + Rs.227 Cr actuators), with SOP for a Spanish client in August 2026 and a US client in H2 FY2026-2027.
• Maxwell cumulative orders reached Rs.238 Cr/annum; the subsidiary posted Q1 total income of Rs.56.5 Cr (up 21% QoQ) and achieved its first PAT-positive quarter, supplying >1 lakh BMS units across segments.

Battery Packs and EV-Agnostic Strategy Drive Growth

• Standalone EV sales surged 87.4% YoY to Rs.129.7 Cr in Q1 FY2026-2027; overseas EV/plug-in hybrid sales rose 14.4% to Rs.802.2 Cr; consolidated EV/plug-in hybrid sales increased 20.9% to Rs.931.9 Cr.
• Battery pack assembly near Pune commenced SOP for Hero MotoCorp in June 2026, with ramp-up to peak volumes by Q3 FY2026-2027; capacity of 17,000-18,000 units/month expected to be fully utilized by October 2026.
• Four-wheeler battery pack entry approved with Rs.62 Cr capex, SOP targeted for Q4 FY2026-2027.
• Battery pack margins are currently unguided; management targets reaching the company average margin over time, noting the existing two-wheeler pack uses the company’s own BMS and aluminum die-cast components, adding separate margins.
• EV product strategy — management does not plan to immediately add many new EV-specific products beyond battery packs, as all major products (except clutch assembly, now 3.5% of India sales) are EV-agnostic; the primary focus is on gaining EV scooter and three-wheeler business for existing products.
• Maxwell already produces motor controller units (non-EV) and DCDC chargers (EV); management also sees potential in the BMS opportunity.

Near-Term Margin Recovery Guided for Q2 and Q3 FY2026-2027

• Management guided that Q2 FY2026-2027 and Q3 FY2026-2027 margins will be “better than Q1 FY2027” due to: (a) full pass-through of Q1 raw material cost increases from all OEMs in Q2, (b) aluminum alloy prices softening to Rs.12-17 per kg in Q2, and (c) partial recovery of conversion cost increases this quarter and the next.
• Aluminum alloy softening — management sees prices declining to Rs.12-17/kg starting Q2 FY2026-2027, which should relieve margin pressure after the Q1 commodity spike.
• Commodity pass-through lag — the ~Rs.318 Cr upfront commodity payment in Q1 will be settled in Q2 FY2026-2027, restoring normal margin dynamics.
• India capex of ~Rs.800 Cr is planned for FY2026-2027, similar to FY2025-2026, driven by automation and growth investments; management clarified this does not include CAPEX by strong tier-2 suppliers and the company “is not lagging behind in CAPEX.”
• Maharashtra PSI 2019 scheme addendum increased the total government incentive from Rs.600 Cr to Rs.858 Cr, “to be availed via SGST refund over ~7 years,” the company reported as a long-term benefit.
• CRISIL ESG score improved to 68 in FY2025-2026, up from 59 in the prior year, the company noted.

Mixed Performance Amid Market Restructuring

• European revenue was €104.3 million in Q1 FY2026-2027, up 1.1% YoY; EBITDA was €18.9 million (18.2% margin, +80 bps YoY).
• Net profit declined 41% to €4.4 million due to a €11.6 million accelerated depreciation charge (vs €8.5 million in Q1 FY2025-2026) on internal combustion engine assets being phased out over the next 18 months.
• Market registration grew 7.4% YoY, but production fell 5% due to dealer destocking; Chinese OEMs (SAIC +167%, Chery +272%, Leapmotor +500%, Geely +7%) drove registration growth.
• Demand outlook remains uncertain as Mercedes and Volkswagen have announced restructuring plans, but Endurance has not yet seen material volume reductions and expects to continue growing YoY.
• European order book for FY2027-2028 and FY2028-2029 is declining, which management attributed to Chinese OEMs importing powertrains from China and weak German OEMs exposed to China.
• M&A in both automotive and non-automotive fields will be a key growth driver for Europe, with more clarity expected on the “next investor call”; the 100% SOB from Mercedes starting January 2027 was cited as a recent win.
• Booked orders worth €13.9 million in Q1 FY2026-2027 included a large order from Mercedes (hybrid program) and Stellantis (ICE program).

Expanding Footprint in Core Categories

• Two-wheeler market share in Q1 FY2026-2027 stood at 43.8% for front forks, 37% for shock absorbers, and 34.5% for brake systems.
• ABS capacity expansion — adding 9 lakh units/annum (revised from 12 lakh due to brake assembly demand); dual-channel ABS SOP for Bajaj Auto (1.2 lakh units/annum) in Q2 FY2026-2027, with a second program in Q3 FY2026-2027.
• Disc brake capacity — new Chennai plant (phase 1 shifting from Waluj) to start SOP for Royal Enfield in Q2 FY2026-2027; total planned capacity by Q1 FY2027-2028 is 9 million disc brake assemblies and 9.6 million discs per annum.
• Alloy wheels — combined capacity across Chakan and Shendra plants is 48 lakh wheel sets (9.6 million wheels) per annum; Chakan (3 million sets/annum) is fully utilized, while Shendra (1.8 million sets/annum) is at 60% capacity and expected to reach full utilization by end-FY2026-2027.
• Inverted front forks capacity on track to reach 100,000 units/month by end-FY2026-2027; new orders from Bajaj (Pantnagar plant) and SOP for Hero MotoCorp and Suzuki in Q3 FY2026-2027.
• Scooters now represent 14.3% of the business (from sub-10% three years ago), and management stated this share is growing to offset the “scooterization” trend in two-wheelers.
• Stopel integration is 100% complete; management expects full positive synergies by September 2027 (FY2027-2028) and is looking for idle die-casting capacity in the market for raw material integration.