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Margin compression from aluminum cost pass-through
View Risks →Endurance Technologies Limited — Q2 FY26
Endurance Technologies reported a strong Q2 FY26 with consolidated revenue of ₹3,603.8 crore (+22.6% YoY) and EBITDA of ₹497.8 crore (+21.9% YoY), though margins contracted slightly to 13.8% due to raw material cost pressures and strategic investments.
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Endurance Technologies reported a strong Q2 FY26 with consolidated revenue of ₹3,603.8 crore (+22.6% YoY) and EBITDA of ₹497.8 crore (+21.9% YoY), though margins contracted slightly to 13.8% due to raw material cost pressures and strategic investments. Standalone revenue grew 16.2% YoY to ₹2,692.2 crore, but EBITDA margin fell 116bps to 12.5% on aluminum cost pass-through, R&D spending, and consulting projects. The company won ₹999 crore in new orders in H1, including a ₹300 crore battery pack deal, and expects ₹3,500 crore of past orders to peak by FY28. ABS capacity expansion to 2.4 million units is underway, with first line operational by Q1 FY27. The new Aurangabad alloy wheel plant has started supplies, targeting ₹600 crore annualized sales by Q2 FY27. Europe business grew 32.5% in euro terms, driven by Stepha consolidation. Key risk: margin recovery may be delayed if aluminum prices remain elevated or if ABS regulation timelines slip.
एंड्योरेंस टेक्नोलॉजीज ने Q2 FY26 में मजबूत प्रदर्शन किया। कंपनी की कुल कमाई ₹3,603.8 करोड़ रही, जो पिछले साल से 22.6% ज्यादा है। मुनाफा (EBITDA) ₹497.8 करोड़ (+21.9%) रहा, लेकिन मार्जिन थोड़ा घटकर 13.8% हो गया, क्योंकि कच्चे माल की लागत बढ़ी और निवेश बढ़ाया गया। स्टैंडअलोन कमाई ₹2,692.2 करोड़ (+16.2%) रही, लेकिन मार्जिन 12.5% पर आ गया, जो एल्युमीनियम की लागत, R&D और सलाहकार परियोजनाओं के कारण हुआ। कंपनी ने H1 में ₹999 करोड़ के नए ऑर्डर जीते, जिसमें ₹300 करोड़ का बैटरी पैक डील शामिल है। पुराने ऑर्डर ₹3,500 करोड़ FY28 तक पीक पर पहुंचेंगे। ABS क्षमता 2.4 मिलियन यूनिट तक बढ़ रही है, पहली लाइन Q1 FY27 में चालू होगी। औरंगाबाद में नया अलॉय व्हील प्लांट शुरू हो गया, Q2 FY27 तक ₹600 करोड़ सालाना बिक्री का लक्ष्य। यूरोप में कारोबार 32.5% बढ़ा। जोखिम: अगर एल्युमीनियम के दाम ऊंचे रहे या ABS नियमों में देरी हुई तो मार्जिन सुधार में देर हो सकती है।
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Read Transcript →Quarter Snapshot
New orders won in H1 FY26 (India)
₹999 Cr
+61% of total business win this year
Includes ₹300 Cr battery pack order and ₹21 Cr BMS order at Maxwell.
ABS capacity expansion
2.4M units
+5x current capacity
First line of 1.2M units operational in Q1 FY27; second line linked to final guidelines.
Alloy wheel plant annualized sales run-rate
₹600 Cr
Target by Q2 FY27
Aurangabad plant with 3.6M units capacity fully booked; Chakan plant at full capacity of 5.5M units.
Inverted front fork sales
650,000 units
Expected to cross in FY26
New OEMs added including Hero MotoCorp and a Chinese OEM; KTM increasing schedules.
What Changed vs Last Quarter
NEW
ABS capacity of 2.4M units to be installed in two phases
First line of 1.2M units will be operational in Q1 FY27; second line timing depends on final ABS guidelines expected this month.
NEW
New disc brake plant SOP in Q2 FY27
New plant for disc brake systems (master cylinder, caliper, disc, hoses) will produce 3M assemblies and 4M discs per annum.
NEW
Alloy wheel plant to achieve ₹600 Cr annualized sales by Q2 FY27
Aurangabad plant with 3.6M units capacity fully booked; SOP for Bajaj started, Royal Enfield next month, Suzuki by end of FY27.
NEW
Battery pack SOP in January 2026 for a leading two-wheeler OEM
Key imported machinery to be installed by next month; cylindrical line will support additional programs.
DROPPED
ABS capacity expansion to 3 million units by March 2026
Adding 2.4 million units of ABS capacity (two lines) by March 2026, on top of current 640,000 units, to meet expected 10-fold demand from mandatory ABS regulation.
DROPPED
India capex to exceed ₹800 crore in FY26
Capex driven by Oric Shendra die-casting plant, alloy wheel plant, battery pack plant, and ABS expansion. Could go higher if ABS orders accelerate.
DROPPED
Europe capex to be €20-25 million in FY26
Lower than prior year's €50 million due to market uncertainty; focus on inorganic growth opportunities.
DROPPED
Target 25% market share in ABS
From current ~13-15% share, aiming for 25% of the estimated 16 million unit ABS market as regulation kicks in.
NEW RISK
Margin compression from aluminum cost pass-through
Standalone EBITDA margin fell 116bps YoY partly due to aluminum alloy price increase, which forms 55% of raw material purchases.
NEW RISK
ABS regulation timeline uncertainty
Second 1.2M ABS line investment is contingent on final government guidelines expected this month; any delay could impact capacity utilization.
NEW RISK
European production slowdown despite registration growth
European market growth is driven by destocking with discounts; actual production continues to decline, posing risk to future orders.
NEW RISK
Four-wheeler suspension business profitability
Entry into four-wheeler suspension faces established competition with aggressive pricing; management admits it's a 'tough business' but confident in technology partnership.
RISK GONE
Delay in ABS regulation implementation
Management expects 3-6 month delay based on past experience; final notification awaited. Could push back revenue ramp.
RISK GONE
European auto market uncertainty
New car sales down 1.8% YoY; market waiting for government incentives (Green Deal). Europe capex being reduced due to uncertainty.
RISK GONE
Commodity inflation impact on margins
Price corrections to compensate commodity inflation negatively impacted standalone EBITDA margins by 50bps. Further inflation could pressure margins.
RISK GONE
KTM export demand recovery uncertain
KTM export uptake lower than earlier years; management expects improvement with Bajaj control but no specific timeline.
Fast read
Guidance and risk preview
First line of 1.2M units will be operational in Q1 FY27; second line timing depends on final ABS guidelines expected this month.
Standalone EBITDA margin fell 116bps YoY partly due to aluminum alloy price increase, which forms 55% of raw material purchases.
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