Endurance Technologies Ltd — Q3 FY26

Endurance Technologies Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=dMQft8ZMVJc Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Endurance Technologies Q3 FY26 results call. As a reminder, all 0:10 10 seconds participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:19 19 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on a 0:26 26 seconds touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit from 0:33 33 seconds Access Capital Limited. Thank you and over to you sir. Thank you so much. Uh good morning everyone. Uh welcome to Q3 0:41 41 seconds FI26 post results conference call of endurance technologies. Uh we are pleased to host the time management team of cinematic of endurance. Uh today uh 0:51 51 seconds we have with us Mr. Anurang Jan managing director, Mr. Masimo Venuti director and CEO Endurance Overseas Mr. Rajendra 1:00 1 minute Abhangi director and COO Mr. Raja Gopal Saki group CFO and Mr. Raj Mundra treasurer and investor relations I'll 1:09 1 minute, 9 seconds now hand over the call to Anurang for his opening remarks uh post which we can move to the Q&A over to you Mr. Jan. 1:16 1 minute, 16 seconds Thanks a lot. So so good morning everyone. 1:21 1 minute, 21 seconds As we close quarter 3 of FI26, India's economic backdrop remains strong in a complex global environment. The 1:29 1 minute, 29 seconds government's first advanced estimates project real GDP growth at 7.4% for FI26, supported by sustained private 1:38 1 minute, 38 seconds consumption, steady investment activity, and improving services and manufacturing output. The World Bank has also raised 1:46 1 minute, 46 seconds its FI26 growth forecast to 7.2% 2% and retained its FI27 forecast at 6.5%. 1:56 1 minute, 56 seconds Inflation has remained within comfortable limits and monetary conditions have been broadly stable through the quarter. The RBI had lowered 2:04 2 minutes, 4 seconds the repo rate in the last quarter by 25 basis points to 5.25% thereby lowering borrowing cost and supporting consumption and investment. 2:15 2 minutes, 15 seconds In the full year 2025, the repo rate was lowered by 125 basis points. In the 2:21 2 minutes, 21 seconds bimonthly meeting held in February 2026, the repo rate was kept unchanged and RBI has cited that the trade deals are expected to boost growth. 2:32 2 minutes, 32 seconds On the domestic policy front, the GSC rate rationalization implemented in September 2025 has continued to support 2:40 2 minutes, 40 seconds consumption. The simplified slab structure and lower rates across most of automotive sector including auto components have improved affordability 2:49 2 minutes, 49 seconds and lowered the cost of ownership contributing to strong industry sales numbers well beyond the festive season. 2:57 2 minutes, 57 seconds India's growth will be supported not only by strong domestic demand but also international trade where key trade agreements are taking shape. India and 3:06 3 minutes, 6 seconds the European Union announced a free trade agreement last month which is being acclaimed as extremely important 3:13 3 minutes, 13 seconds for both. Last week, India and the USA announced an interim agreement framework on reciprocal and mutual beneficial 3:22 3 minutes, 22 seconds trade and this is expected to progress into a more comprehensive agreement offering greater market access, new 3:29 3 minutes, 29 seconds opportunities and lower uncertainty for business. 3:34 3 minutes, 34 seconds Global growth in 2026 is expected to be more moderate due to softer demand in advanced economies and slower trade 3:41 3 minutes, 41 seconds expansion amid ongoing geopolitical and trade uncertainties. 3:48 3 minutes, 48 seconds In the Indian automotive sector, as per CM, two-wheer sales reached 7.1 million units in quarter 3 FI26, up 18.2% 2% 3:58 3 minutes, 58 seconds year-on-year with motorcycles at 14.7% growth and scooters at 26.6% growth. 4:05 4 minutes, 5 seconds Passenger vehicle sales increased by 19.2% to 1.5 million units while three-wheeler sales rose 29.9% 4:15 4 minutes, 15 seconds to 34 million units. Clearly, the GSC cut impact has continued beyond the festive months. 4:24 4 minutes, 24 seconds In the European Union, new car sales saw a year-on-year rise of 4.6% in quarter 3 FI26 with Germany and Spain recording 4:32 4 minutes, 32 seconds high single percentage growth. Italy was flattish while France recorded a degrowth. In quarter 3 FI26 new car 4:41 4 minutes, 41 seconds volumes in Europe, there was a 21% share of battery battery electric vehicles, 4:47 4 minutes, 47 seconds 10.6% share for plug-in hybrids and 34% share for hybrids. So, so roughly two 4:54 4 minutes, 54 seconds out of every three vehicles sold in the European Union are either electric or hybrid. 5:02 5 minutes, 2 seconds On the strategic growth front, we are pleased to share key updates. As you are aware, the government had issued a draft 5:08 5 minutes, 8 seconds guideline in June 2025 mandating ABS for greater than 50 cc two wheelers and all 5:15 5 minutes, 15 seconds EVs greater than 4 kW motor power. We are awaiting the final guidelines for the same which we hope should be clarified by end of this quarter. 5:26 5 minutes, 26 seconds Since ABS is already mandatory for more than 125 cc two wheelers, we expect the incremental demand to come largely from 5:34 5 minutes, 34 seconds the 125cc and below segments with single channel ABS where we have over four years of strong execution experience. 5:43 5 minutes, 43 seconds for the dual channel ABS program. SOP is now expected to start next month as we await the final clearance from a key OEM 5:50 5 minutes, 50 seconds customer to help increase a profit margin on ABS. 5:56 5 minutes, 56 seconds the the the uh the the electronic control unit or the ECU. 6:03 6 minutes, 3 seconds The in-house SOP for this single channel ABS is expected to begin in quarter 1 of FI27 on a surface mounted technology L 6:11 6 minutes, 11 seconds line at Valut Sajini Nagar. The dual channel ECU will follow later in the same financial year. We are installing a 6:19 6 minutes, 19 seconds new SMT line or a surface mounted technology line as we expect volumes to substantially increase with this new 6:27 6 minutes, 27 seconds line in in half one of the next financial year. 6:32 6 minutes, 32 seconds Civil construction for the Chennai plant for disc brake systems is at an advanced stage. Key machinery will be installed 6:39 6 minutes, 39 seconds from quarter 1 FI27 onwards and the SOP's planned for quarter 2 FI27. The plant will have a capacity of 3 million 6:47 6 minutes, 47 seconds disc brake assembly systems peranom and 4 million brake discs perom as as part of the total 7.6 million disc brake 6:55 6 minutes, 55 seconds systems and 8.6 million brake discs planned at endurance. The location will help us better serve our OEM customers 7:03 7 minutes, 3 seconds in South India while creating space at our Chhatrapi Sambaji Nagar plant for the new ABS expansion and the four-wheeler brakes business. 7:14 7 minutes, 14 seconds A new integrated R&D facility for brakes was commissioned in January 2026 at Vadut Samaji Naga and we will be 7:22 7 minutes, 22 seconds fully operation operational in this quarter. This facility is double the size of the existing one and integrates 7:29 7 minutes, 29 seconds two-heer brakes and ABS R&D with space provision for testing of four-wheeler brake assemblies. Apart from 7:36 7 minutes, 36 seconds transferring several key equipments from the existing R&D facility, we have added key lab and testing machines for ABS 7:43 7 minutes, 43 seconds validation. We also installed an assembly line for four-wheeler passenger vehicle drum brakes for Tata Motors, which SOP is expected in quarter 1 of FI27. 7:53 7 minutes, 53 seconds In addition, we are increasing our three-wheer brake volumes from 6 million to.12 million units per hour. 8:03 8 minutes, 3 seconds A new Oric Shendra plant at Samji Nagar is a strategic investment for key machine castings for global and Indian 8:10 8 minutes, 10 seconds four-wheeler electric vehicle and ICE OEMs as well as as well as for non-auto applications. We are therefore equipping 8:19 8 minutes, 19 seconds we are therefore equipping this plant with highly sophisticated aluminium casting machining and finishing process 8:27 8 minutes, 27 seconds equipments and and in the past we have as as mentioned in the past we have already got orders 8:36 8 minutes, 36 seconds from mari US and UK based OEMs along with Yazaki and value for electric 8:42 8 minutes, 42 seconds platforms of Mahindra with peak annual business value of rups 388 crores per panum for this plant where the SOP for 8:51 8 minutes, 51 seconds both UK and the US OEMs will start by quarter 2 of the next financial year with peak sales expected in the 8:58 8 minutes, 58 seconds financial year 29 at a chaken die casting plant we are growing our business for machined aluminium castings for existing and new 9:08 9 minutes, 8 seconds programs of Tata Motors and Mahindra the business won in this financial year for these programs stand at rupees 128 crores peranom 9:16 9 minutes, 16 seconds We are proactively also ensuring better use of our four-wheeler casting and machining capacities across our char and Shindra 9:26 9 minutes, 26 seconds plants to balance these volumes, ensure flexibility and improve the overall sales volume growth. 9:33 9 minutes, 33 seconds At a two-heer alloy wheel plant in Oric Bitkin, we have already booked 100% of capacity earlier to the SOP which 9:41 9 minutes, 41 seconds started in October 2025 starting for Bajage auto alloy wheels. Supplies to Roy Enfield will start in quarter 2 of 9:48 9 minutes, 48 seconds FI27 and supplies to Suzuki and AA are expected to begin by quarter 3 of FI27 9:56 9 minutes, 56 seconds reaching peak order wins sales in quarter 3 FI27. 10:02 10 minutes, 2 seconds During quarter 3, a battery pack manufacturing plant near Pune made significant progress with successful completion of assembly line factory 10:11 10 minutes, 11 seconds acceptance test and installation of key imported equipments. Assembly line installation and trials were taken during this quarter. 10:19 10 minutes, 19 seconds Comprehensive battery pack validation and electric vehicle safety compliance testing will be concluding concluded 10:26 10 minutes, 26 seconds during this quarter. Post our OEM and the regulatory approvals, commercial ramp up activities will be started to 10:34 10 minutes, 34 seconds support the SOP from end of March 2026 or early April 2026. 10:40 10 minutes, 40 seconds We will also pursue additional opportunities across two-wheeler, three-wheeler and other high potential segments. 10:49 10 minutes, 49 seconds So all the above four green feed plants which I have mentioned will be fully operational over the next few quarters 10:56 10 minutes, 56 seconds and you can feel the and we will feel the full impact in the second half of financial year 2027. 11:04 11 minutes, 4 seconds In the first 9 months of FI26 a wholly owned subsidiary Maxwell achieved a record turnover of rupees 114 crores as 11:12 11 minutes, 12 seconds against rupees 70 crores in the full year of FI25. 11:16 11 minutes, 16 seconds We are now supplying the battery manage system for scooters, three-wheelers, tractors, ebikes, construction equipment 11:24 11 minutes, 24 seconds for a European company as well as for telematics. Beyond this, we are also focusing on range of high voltage 11:32 11 minutes, 32 seconds battery management system for four-wheelers, commercial E trucks and E buses. At present, one in every 12 11:40 11 minutes, 40 seconds electric two-wheelers rolling out of Indian factories run with our Maxwell BMS. 11:46 11 minutes, 46 seconds A strong R&D and innovation sale at Maxwell has made significant progress to introduce new product technologies 11:54 11 minutes, 54 seconds beyond the battery management system catering to both the EV and internal combustion engine electronic subsystems. 12:02 12 minutes, 2 seconds We already supplied the motor control units and we have also won our first order for a DCDC converter. 12:10 12 minutes, 10 seconds In the first 9 months of FI26 at Maxwell, we have won rupees 45 crores of new business which has taken the total 12:18 12 minutes, 18 seconds cumulative orders one to rupees 232 crores panom which will peak in quarter 4 of the next financial year. The FI26 12:27 12 minutes, 27 seconds orders one for BMS are for two wheelers, for e- rick shores, for ebikes and for 12:33 12 minutes, 33 seconds electrical bug buggies and our major OEMs are yatri electric, caros, ultraviolet and motion automotive. 12:42 12 minutes, 42 seconds Further we have a strong pipeline of requests for ports of rupees 197 crores. 12:49 12 minutes, 49 seconds We maintain a leader leadership position in inverted front forks with steady growth driven by wider OEM adoption. 12:58 12 minutes, 58 seconds This year we commence supplies of inverted front forks along with the monoshocks to PBS where the front fork has been upgraded with adjustable 13:06 13 minutes, 6 seconds features and with both side cartridge systems. The SOP for Hero Motor Cop started in January 2026 13:13 13 minutes, 13 seconds while validation is ongoing for a leading Chinese OEM with SOP expected in quarter 3 of FI27. 13:22 13 minutes, 22 seconds This takes a total number of our OEM customers using our inverted front pores to six. 13:29 13 minutes, 29 seconds Shedules from our overseas customer KTM have increased. Our total sales of inverted front porks are expected to 13:36 13 minutes, 36 seconds reach more than 650,000 units in this financial year and and we expect to substantially increase in further years 13:45 13 minutes, 45 seconds these orders starting from next financial year. 13:50 13 minutes, 50 seconds Over the past few years, we are seeing customer preference shifting towards higher CC premium vehicles, helping in 13:57 13 minutes, 57 seconds faster adoption of our premium offerings offerings like inverted fronts, APC or assisted slip clutches and our hydraulic 14:05 14 minutes, 5 seconds brake systems. In the period FI19 to FI25, the share of the 7500cc vehicles dropped 14:13 14 minutes, 13 seconds by 19% while the 110 to 125cc two-wheeler category recorded a growth of 14.5%. 14:22 14 minutes, 22 seconds This club with OEMs offering premium features in lower CC segment has opened huge opportunities for a high-end products. 14:32 14 minutes, 32 seconds Our aluminium forging business which started as a backward integration for supplying Aluminium forge axle clamps for our inverted front forks is growing 14:41 14 minutes, 41 seconds consistently. We are adding one more alum aluminium forging press to meet the increasing captive and third party 14:47 14 minutes, 47 seconds demands. This new press along with our four existing presses will be housed in a new plant at Waluti Nagar. This new plant will come up in quarter 2 of FI27. 15:00 15 minutes As mentioned in the previous call, we have won aggregate orders of rupees 44 kores for our aluminium forging business from a German OEM, Jaguar Land Rover and 15:08 15 minutes, 8 seconds Royal Enfield. These OEM orders coupled with our captive requirements is expected to yield an annual business of around rupees 44 kores. 15:19 15 minutes, 19 seconds As discussed in the last call, we have one solar damper business from a Spanish client. Till quarter three, we have already exported solar dampers worth 15:28 15 minutes, 28 seconds rupees 24 kores from our panagar plant to our clients for our Spanish client with requirements 15:35 15 minutes, 35 seconds in USA and Saudi Arabia and the value is expected to double by the end of this financial year. As mentioned in previous calls, we are building a new 15:43 15 minutes, 43 seconds infrastructure at our southern plant in Gujarat to cater to the large volume of orders. The building work is nearly complete and we expect to start SOP of solar dampers by April 2026. 15:56 15 minutes, 56 seconds Apart from this business from a Spanish client, we also want business from a US-based client where execution will begin in the middle of the next 16:04 16 minutes, 4 seconds financial year. The total business one till date for solar dampers and actuators across both the two co two clients stands at rupees 250 crores. 16:18 16 minutes, 18 seconds In quarter two, we started supplies for our assistant slip clutches to Royal Enfield and Kawasaki. Introducing our 16:25 16 minutes, 25 seconds subsidiary Atlas Technology to the Indian market. The SOP for Bajage Auto is expected in quarter 2 of Fi 27. 16:34 16 minutes, 34 seconds I just spoke to you regarding the vehicle premiumization which should lead to increased orders for our assistance lift clutches. 16:43 16 minutes, 43 seconds The assembly line installation and vehicle level validation for our four wheeler drive shafts has been completed. 16:49 16 minutes, 49 seconds The customer pap is planned towards the end of this month with SOP expected by March 2026 which is next month. 16:56 16 minutes, 56 seconds Under the Maharasht scheme of incentives 2019 scheme, we have an eligibility certificate of 17:04 17 minutes, 4 seconds rupees 600 crores for a capital expenditure incurred till August 2024 at our Baluchj Sambaji Nagar units. In 17:13 17 minutes, 13 seconds January 2026, we got a addendum to this existing certificate and with this our packet scheme of incentives have 17:21 17 minutes, 21 seconds increased from rupees 606 crores to rupees 858 crores for investments up to 31st March 2025. 17:31 17 minutes, 31 seconds These incentives will be availed through the industrial promotion subsidy by way of state GSC refund and electricity duty exemption broadly over a 7-year period. 17:43 17 minutes, 43 seconds Let me now give you a list of orders won during the first nine months of this financial year. Please note that the business value from new orders are 17:51 17 minutes, 51 seconds without including new orders from Bajage Auto. 17:55 17 minutes, 55 seconds The overall order win in the first 9 months of FI26 in India business was rupees 1282.8 Kes peranom of which 18:03 18 minutes, 3 seconds rupees 1265.5 kores is new business. This includes a new business will of rupees 300 kores 18:11 18 minutes, 11 seconds for a battery packs at a Tala Pune plant and rupes 45 crores perom new order for battery management systems at maximum. 18:22 18 minutes, 22 seconds A four-wheeler and non-automotive business win in the first 9 months of this financial year stands at rupees 530 18:30 18 minutes, 30 seconds kores. These wins include orders from Tata Motors, a large USA EV, OEM, Hyundai, Kia, Isuzu, which is a new 18:38 18 minutes, 38 seconds customer, Mahindra and the two clients in the solar space. 18:43 18 minutes, 43 seconds You can see our volume product mix is improving. During quarter 3 alone, we won rupees 354 kores of new business of 18:51 18 minutes, 51 seconds which of which rupees 163 kores was in the four-wheeler and non-automotive space. These customers included 19:00 19 minutes Tata Motors, Mahindra, Kia and and Isuzu for four-wheeler castings, Hero Moto Kota, Hero Moto Cop for two 19:10 19 minutes, 10 seconds wheeler suspension and the US solar OEM. 19:15 19 minutes, 15 seconds We aim to supply all our product offerings to all major two-heer OEMs. In the case of Suzuki, we're a significant 19:23 19 minutes, 23 seconds supplier of suspensions and during the quarter, we further strengthened our business with them by securing a new order for all wheels with an annual 19:31 19 minutes, 31 seconds revenue of rupees 57 crores for our OR Bitkin plant. 19:36 19 minutes, 36 seconds Similarly, with Heromoto, we be we have been a prominent supplier of suspension and castings with brakes added early 19:43 19 minutes, 43 seconds last year. During quarter 3, we added five new brake platforms from HMCL totaling rupees 58 crores, taking the 19:51 19 minutes, 51 seconds overall Hero Motor brakes business to rupees 200 Ks peranom. With this, we are now supplying a full bouquet of products 19:59 19 minutes, 59 seconds to Heromo cop including the battery management system aluminium forgives. 20:04 20 minutes, 4 seconds With this increased business, we have a line of sight to double our sales to Heromo Cop over the next two years. 20:11 20 minutes, 11 seconds The cumulative India business orders for electric vehicles in the conventional product areas stand at rupees 1,58.7 20:19 20 minutes, 19 seconds KES without Bajage auto. This reaches rupees 1241.5 K perom of orders if we 20:26 20 minutes, 26 seconds include Bajage Auto and the total electric vehicle business win is rupes 1636.5 20:33 20 minutes, 33 seconds crores if we add Maxwell and the battery pack products business. 20:40 20 minutes, 40 seconds Our sales for electric vehicle 2, three and four wheelers in the first 9 months of FI26 grew 65.6% to rupees 287 crores 20:48 20 minutes, 48 seconds as compared to rupees 174 crores till quarter 3 of FI25. 20:53 20 minutes, 53 seconds Our CAGR growth in last four years has been 71% as compared to EV two-heer 20:59 20 minutes, 59 seconds industry growth CAGR growth of 21% as per the Habahan data. This growth in our 21:07 21 minutes, 7 seconds sales is across all our product segments of suspension, casting, braking and alloy wheels. The overall total orders 21:15 21 minutes, 15 seconds won now in products other than energy and electronic areas which is your Maxwell as well as the battery pack 21:23 21 minutes, 23 seconds since FI22 stands at 5,021 crores out of which rups 4,291 crores is new business. 21:32 21 minutes, 32 seconds We have a total of rupes 4200 cr worth of requests for course also in hand. We expect to win more than rupes 1,500 21:39 21 minutes, 39 seconds crores of business in the next 12 to 18 months. 21:43 21 minutes, 43 seconds In Europe, the industry continues to operate in a challenging environment shaped by semiconductor shortages, the 21:49 21 minutes, 49 seconds energy crisis, geopolitical tensions, inflation, high interest rates, duties imposed by USA, increased competition 21:58 21 minutes, 58 seconds from Chinese OEMs and muted automotive market growth. In spite of this backdrop, our European operations have 22:06 22 minutes, 6 seconds continued to sustain profit growth through both the existing business as well as through M&A. Our acquisition of 22:13 22 minutes, 13 seconds Stefille was complete in April 2025, adding around 80 million euro of profital sales to our top line. 22:21 22 minutes, 21 seconds In a Europe business, we have booked orders 15 million euro during the first 9 months of FI26. It includes large machine casting orders from Volkswagen 22:29 22 minutes, 29 seconds and Porsche and certain plastic injection molding parts for EVs. 22:37 22 minutes, 37 seconds Our aftermarket business in India is a strategic priority for us. We have set ambitious growth goals till 2030. We 22:45 22 minutes, 45 seconds have made a comprehensive long-term capability focus blueprint incorporating the voice of our team and channel 22:52 22 minutes, 52 seconds partners, retailers and mechanics. We are focusing on building long-term partnership with distributors who have 23:00 23 minutes the right mindset and are aligned to endurance's vision. In addition, we are driving secondary demand generation with 23:07 23 minutes, 7 seconds retailers as well as mechanics for the domestic business. 23:12 23 minutes, 12 seconds We have launched a mechanic loyalty program, conducting trainings with certifications on BS4 to BS6, electric 23:21 23 minutes, 21 seconds vehicles and product fitment, organizing health camps and also providing scholarships to children of our top mechanics. 23:29 23 minutes, 29 seconds We are the first in the industry to deploy a AI or artificial intelligence enabled tech platform to drive the secondary order booking. 23:40 23 minutes, 40 seconds We have understood the voice of our stakeholders in each country. We are present in and have created a unique value proposition for them. Our 23:49 23 minutes, 49 seconds customized offerings provide us a competitive edge in each geography. 23:54 23 minutes, 54 seconds We're also driving a holistic program to build capability of our sales team and to empower them with the right tools and 24:01 24 minutes, 1 second skills to bring strong business to lead us. 24:07 24 minutes, 7 seconds Coming to our financial performance, the information has been uploaded by the stock exchanges last evening along with our presentation explaining the numbers. 24:18 24 minutes, 18 seconds I will however highlight some key numbers. During quarter 2 FI26, the company recorded a standalone total 24:25 24 minutes, 25 seconds income of rupees 2,678.3 kores. A year on year growth of 22.2% of 24:33 24 minutes, 33 seconds rups 2,191.6 kores in the previous year. The IITA 24:39 24 minutes, 39 seconds grew 18% from rupees 80 287.3 crores to rupees 339.1 crores with a margin at 12.7%. 24:50 24 minutes, 50 seconds The pad grew 8.8% from rupees 156.9 crores to rupees 170.7 crores. During 24:58 24 minutes, 58 seconds quarter 3 of fi26 we booked an exceptional cost of rups 20.6 6 crores towards assessed impact of the new labor 25:06 25 minutes, 6 seconds codes and this impacted our pack by rupees 15 crores. 25:12 25 minutes, 12 seconds The VA margin drop of 4% on total income is largely contributed by raw middle cost increases led by aluminum alloy 25:20 25 minutes, 20 seconds which swarms 55% of our total raw material purchases. 25:25 25 minutes, 25 seconds In quarter 3 of I26, a consolidated total income grew 26.5% over quarter 3 25:31 25 minutes, 31 seconds of last year from rups 2,81.1 kores to rupees 3,645.6 25:39 25 minutes, 39 seconds kores. The IITA grew 30.4% from rups 394.5 crores to rupes 514.5 crores. A margin was at 14.1%. 25:51 25 minutes, 51 seconds A consolidated pact after the impact of the new labor codes on the Indian operations grew 20.2% from rupees 184.4 25:59 25 minutes, 59 seconds crores to rupees 221.6 crores at 6.1% margin 26:08 26 minutes, 8 seconds in India. We are extremely focused on improving our profit margin percentage by focusing on manufacturing in-house 26:17 26 minutes, 17 seconds versus outsourcing to our vendor partners where we cost to be higher with our vendor partners. 26:23 26 minutes, 23 seconds Price increases to OEMs where costs have increased mainly due to power and manpower costs and thirdly 26:32 26 minutes, 32 seconds largely new business with better profit margins thereby improving the product mix. We are highly focused on this. Now, 26:41 26 minutes, 41 seconds as the company diversifies and scales, our people agenda remains integral to execution. We continue to strengthen 26:50 26 minutes, 50 seconds workforce planning and talent depth, particularly at the mid-management level. and a senior lead leadership team 26:58 26 minutes, 58 seconds reviews the key capability and performance priorities through structured pro forums. Dig digitization 27:07 27 minutes, 7 seconds and artificial intelligence tools in HR processes are improving our efficiency and ease of business. We are also 27:15 27 minutes, 15 seconds investing in future ready skills through programs such as legs which is a customized learn and earn platform to 27:22 27 minutes, 22 seconds upskill our bluecollar workforce and create a structured growth pattern along with multiple leadership and talent 27:31 27 minutes, 31 seconds platforms across levels. Inclusion remains an important focus area with tangible progress in gender 27:40 27 minutes, 40 seconds representation and engagement with diverse talent. 27:45 27 minutes, 45 seconds On the sustainability front, we made significant progress pro progress this year towards our ambitious goals for 27:52 27 minutes, 52 seconds FI30. We achieved a 49.6% carbon neutral percentage. We lowered specific electric 27:59 27 minutes, 59 seconds and thermal energy as well as specific water consumption. 28:04 28 minutes, 4 seconds Water and hazardous waste recycling both stand at 98% each. While 14 of our sites have been certified as zero waste to landfill. 28:14 28 minutes, 14 seconds Our renewable power share has increased from 25% in FI25 to 28%. Now we've also 28:21 28 minutes, 21 seconds contributed around 400,000 kl or kilo lit of water through water augmentation projects. 28:28 28 minutes, 28 seconds Our ESG ratings have also seen improvement. 28:32 28 minutes, 32 seconds Gristle has revised our ESG score to 59 for FI25 which is up from 56 in FI24 28:41 28 minutes, 41 seconds while another agency SCES has increased our rating to 74 which is up from 68 in the previous year. 28:50 28 minutes, 50 seconds Our K120 Walu samaji suspension plant has been awarded the prestigious CI green core gold a rating this year at 29:00 29 minutes endurance. We approach our CSR with the objective of strengthening communities and improving individual life outcomes. 29:08 29 minutes, 8 seconds Our focus is in bringing down disparities in education, livelihoods, and health while enabling access, 29:16 29 minutes, 16 seconds dignity, and opportunity. The aim is to create sustainable improvements that continue to benefit communities over 29:23 29 minutes, 23 seconds time rather than short term. Our CSR in initiatives continued across education, livelihoods, environment and healthcare. 29:33 29 minutes, 33 seconds We launched a new course in the hospital in the hospitality trade at at Eco which is a vocational training center in 29:41 29 minutes, 41 seconds Chhatrapati Samaji Naga to improve employment opportunities for youth. We we initiated a dense forest project over 29:48 29 minutes, 48 seconds 10 acres in the Kadana village at Sambaji Naga. We supported farmers with highquality seeds and ver 29:58 29 minutes, 58 seconds beds to strengthen rural education infrastructure. We are refurbishing schools with toilets, libraries and our plants. 30:09 30 minutes, 9 seconds In sanitation and water management, 75 household toilets and 119 soak pits were constructed across three villages. 30:17 30 minutes, 17 seconds Through the WOW bus program, 108 students were trained in basic computer skills. A mobile veterinary van treated 30:26 30 minutes, 26 seconds 1173 cattle and a mobile medical program treated 1350 patients including specialized eye and gynecology camps. 30:38 30 minutes, 38 seconds I'm happy to inform you that we have won the quality excellence award from Tata Motors at the annual supply conference in September 2025. I'm also happy to 30:46 30 minutes, 46 seconds inform you that in October this year, our endurance overseas plant supplying to Stellantis Group was recognized as a top supplier in the global supply awards 30:55 30 minutes, 55 seconds 2025. In January 2026, our K120 suspension plant at Samagar won the 31:02 31 minutes, 2 seconds platinum certificate of merit at the Frost and Sullivan India manufacturing excellence awards 2025 and a drive line 31:09 31 minutes, 9 seconds plant also at Samjinagar won the gold certificate of merit at the same platform. 31:15 31 minutes, 15 seconds Now with these opening remarks, I would now like to invite questions from all of you. Thank you. 31:22 31 minutes, 22 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 31:29 31 minutes, 29 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 31:37 31 minutes, 37 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 31:57 31 minutes, 57 seconds The first question is from the line of Adita from Invest. Please go ahead. 32:04 32 minutes, 4 seconds Yeah. Uh thanks for the opportunity and congrats on good set of numbers especially your delivery on margins. Uh 32:11 32 minutes, 11 seconds first question is on ABS. Uh so you know did I hear it correctly that you mentioned that you expect to have some 32:17 32 minutes, 17 seconds clarity by end of this quarter. Um that is okay. Uh okay. Uh second you know uh 32:24 32 minutes, 24 seconds just you know a little bit if you can explain that if you know ABS comes through clearly the path is very clear. 32:31 32 minutes, 31 seconds However, if there is a situation where we move to you know electronic CBS, um what is you know uh the opportunity for endurance in that situation? 32:43 32 minutes, 43 seconds Yes. So um so here what is happening is that uh if ABS comes like I mentioned it will be for 120cc and below up to 50 cc 32:52 32 minutes, 52 seconds vehicles. I believe there is a testing ongoing at which I which I get from sources. I'm not 100% sure. 33:00 33 minutes But I'm definitely told uh by by by by a customer that we hope to get some 33:07 33 minutes, 7 seconds clarity on the final guideline by end of March. So let's hope that happens. Now in case they go for a CBS which is not 33:16 33 minutes, 16 seconds electronica it is a mechanical CBS. What happens is all the vehicles who are on drum brakes 33:23 33 minutes, 23 seconds will graduate to our hydraulic braking system which consists of a mass cylinder caliper and a brake disc. Now if this 33:31 33 minutes, 31 seconds happens also it's a huge increase in business because the value of a brake assembly of these three parts is even in value is even higher than the ABS price. 33:43 33 minutes, 43 seconds So we gain both ways but of course if the ABS does come in the gain is much higher because the value goes higher. 33:52 33 minutes, 52 seconds Okay. Okay. Uh that's that's good to know. Um uh second question is that you know if you can you know break up the 34:01 34 minutes, 1 second growth um you know in Europe between and endurance you talked about 80 million on annualized basis but in this 34:10 34 minutes, 10 seconds quarter what has been the growth of our you know European operation excluding Stole? 34:16 34 minutes, 16 seconds Yes. So so I will request uh Mr. Masimo Benui, director and CEO for Europe to to answer this. 34:25 34 minutes, 25 seconds Okay. So, Endurance overseas in Europe closed the quarter with 93 million of euro turnover compared 76.8 of the 34:33 34 minutes, 33 seconds previous financial year with an increase of 21% of which suffer was 20 million of euros. 34:39 34 minutes, 39 seconds A bida 16.8 million of euro it means 18% compared 12.4 of the previous financial 34:47 34 minutes, 47 seconds year 16.2%. 2% with an increase of 4.3 million it means 34.9% compared to the previous year. In terms of net result 34:55 34 minutes, 55 seconds that we closed with 4.9 million of euro it means 5.3% compared 3.8 million of euro of the 35:03 35 minutes, 3 seconds previous financial year 5%. With an increase in terms of net profit of 1.1 million of euro 28.5%. 35:11 35 minutes, 11 seconds If I don't consider Stepher, we have had a reduction of turnover of 2% but due to 35:19 35 minutes, 19 seconds a reduction of tooling because if I compare the production compared to the previous financial year also without surfer the European operation grew 5.1% 35:29 35 minutes, 29 seconds compared to the previous year with or more or less all the customers cantis Mercedes and bulvagen group. 35:38 35 minutes, 38 seconds So uh that's helpful masimos. So ex you know because so excluding stop the growth would be about 6 to 7% and stop 35:45 35 minutes, 45 seconds declined 2% because of tooling right yeah yes this is that we grew 5.1% if I 35:52 35 minutes, 52 seconds consider the quarter and if you want I can give you also the an idea about the nine months in terms of uh year to date 36:01 36 minutes, 1 second the company grew 27.2% if I consider only part three 33.6% 6% and without suffer 5.1%. 36:14 36 minutes, 14 seconds Sure. Sure. Um you know the next question is on capeex. Uh so last you know couple of years we have seen that 36:22 36 minutes, 22 seconds there has been a modest increase in capeex from about 800 crores to about 1,000 cr. So you know this year if you 36:29 36 minutes, 29 seconds can give a sense that what is the capeex that we will end up considering you know four to five big plants are coming on 36:36 36 minutes, 36 seconds stream and directionally how should we think about capeex for the next couple of years. 36:42 36 minutes, 42 seconds So if you see FI26 I mean we we have been investing last three years average capeex of 400 crores 36:51 36 minutes, 51 seconds of course the previous year was about 600 crores in FI25 where the new plants uh already the capeex had started we had bought two 37:00 37 minutes lands one in Oric Bitkin Shendra and in Chennai where the break where our braking system plant is coming in this year we'll be slightly less than 800 37:08 37 minutes, 8 seconds crores largely because of these four new facilities plus expansion which we are doing in uh you know in breaks uh you 37:16 37 minutes, 16 seconds know this thing also. So going forward now what our plan is very clear our 37:23 37 minutes, 23 seconds investments will be on profitable growth products mainly to retain business if I have to do 37:31 37 minutes, 31 seconds products which are at existing margins I may do it but going forward and that's why I specifically mentioned in my 37:38 37 minutes, 38 seconds opening remarks that 530 crores of that 930 crores more than 2/3 business is on four-wheeler castings and on solar 37:47 37 minutes, 47 seconds dampers which are which are much higher margin businesses know and this is the way we are going. So the capeex will be 37:54 37 minutes, 54 seconds mainly on such businesses. uh we are making a plan for this uh towards in the next week we'll be more clear on that 38:00 38 minutes capex plan for next year and uh and uh and uh of course uh uh our focus will be 38:08 38 minutes, 8 seconds more on automation now for better consistency and quality and lowering contract labor you know which is there 38:15 38 minutes, 15 seconds we will also be also um I mean I mean so on capex I would say it'll be more on more on automation on environment health 38:23 38 minutes, 23 seconds and safety or some statutory compliances on improvement of some quality or or it will be on profit growth expansions or new plants. 38:34 38 minutes, 34 seconds Yeah. So just you know to uh you know repeat my question now the capeex when you look at it u you know India and 38:41 38 minutes, 41 seconds Europe separately uh is it fair to assume that the capeex in India would be in the tune of about 800 cr and roughly 38:48 38 minutes, 48 seconds about say 700 cr in Europe for 26 uh because of acquisition and total about 38:55 38 minutes, 55 seconds 1,500 cr for 26 and as we progress into 27 you know if if the you know you know can you confirm that the capex intensity 39:04 39 minutes, 4 seconds of about 800 cr you know would continue in India for the next couple of years or it would increase. No, according to me, 39:11 39 minutes, 11 seconds we are going to sweat our assets. We are going to make sure because see if if you see the impact on ROC because in India 39:20 39 minutes, 20 seconds the customers don't give you any takeaway contracts. There are high risk on volumes and high risk risk on 39:26 39 minutes, 26 seconds uncertainties. So though we are going to in-house some of the high cost outsourced components but definitely 39:35 39 minutes, 35 seconds there are certain components where we may use a balance about outsourcing and doing it in-house and controlling capex 39:42 39 minutes, 42 seconds okay unless there is a uh I mean I mean I mean a M&A uh which which we are already in in I mean in in in process 39:51 39 minutes, 51 seconds with but I but according to me in India the capex will be controlled much below 39:57 39 minutes, 57 seconds for this figure of 800 crores. Okay. And this is our focus and uh and I cannot 40:04 40 minutes, 4 seconds speak from FI28 onwards. I can say FI27 is what we are seeing right now in India. As far as Europe is concerned, I think let Masimo give you the answer. 40:16 40 minutes, 16 seconds Okay. Speaking about Europe, for sure we spent 38 million of euro to buy 60% share of safer and for the ongoing 40:24 40 minutes, 24 seconds business and investment we spend more or less 36 million of euro. The expectation for next financial year is to stabilize 40:31 40 minutes, 31 seconds the total investment with more or less 2530 billion euro. This is the expectation for this financial year. 40:39 40 minutes, 39 seconds But I want to underline that despite the acquisition of Stefer in the 1st of April 2025 40:47 40 minutes, 47 seconds uh we continues to be cash free and so it means that we closed the previous financial year with more or less 20 million of euro and at the end of December we reached 30 million of euro 40:56 40 minutes, 56 seconds despite the acquisition of sephil and also the um the the normal investment and so it means that the cash profit is 41:03 41 minutes, 3 seconds growing 3 4% compared to the previous financial year reach at 17% in this financial Yeah. 41:10 41 minutes, 10 seconds Okay. Um that's quite helpful. So that's it from my side. All the best. I'll join back in queue. Thank you. Thank you so much. 41:19 41 minutes, 19 seconds Thank you. The next question is from the line of Mandela from Anandrati Institutional Equities. 41:26 41 minutes, 26 seconds Please go ahead. 41:28 41 minutes, 28 seconds Yeah. Uh thank you sir for the opportunity and congrats on a good results. uh since just first thing just want to clarify the previous participant 41:35 41 minutes, 35 seconds question on the ABS part. So you mentioned in case the ABS doesn't come uh what could be the alternate option sir? 41:43 41 minutes, 43 seconds So what happens is that electronic ABS has to have a hydraulic brake system. 41:50 41 minutes, 50 seconds I have not seen it working with a mechanical brake system or a drum brake system. So the opportunity which is there for us that even if a combined 41:59 41 minutes, 59 seconds braking system comes instead of a drum brake system they will need to use a master cylinder caliper and a disc brake system rather than a drum brake system. 42:10 42 minutes, 10 seconds But that and this is what is our major brakes business apart from ABS. So this definitely will be an opportunity for us 42:19 42 minutes, 19 seconds to expand further which will be in the bracket of 125 cc vehicles and below. 42:26 42 minutes, 26 seconds Got it. Any any abroad what kind of contain would be that for this one hydraulic please? Sorry. Contain contain value sir. 42:35 42 minutes, 35 seconds See I can only say it'll be higher than ABS because I cannot give you numbers but let me tell you that is higher than ABS. 42:42 42 minutes, 42 seconds Got it. Got it sir. Thank you for this. 42:45 42 minutes, 45 seconds Uh so on the four-wheeler suspension just want to understand any update how how the how things are working with the Korean OEMs and Korean partners. 42:57 42 minutes, 57 seconds Sorry no I didn't hear that question sorry. 42:59 42 minutes, 59 seconds Yeah on the on the yeah on the four wheeler suspension area just want to know what are the updates there sir how are seeing the traction with the kin OM 43:08 43 minutes, 8 seconds uh concerning the relationship with the core partner there. 43:12 43 minutes, 12 seconds Yeah I will request Mr. Rajendra Banga, director and co for India to reply to this. 43:17 43 minutes, 17 seconds Yes. So thank you for the question. Uh as you know it's been a while that we have joined hands with this Korean party 43:24 43 minutes, 24 seconds to supply us the technology uh to cater to our customers in India and uh from the time we have moved on to uh work on 43:33 43 minutes, 33 seconds three proof of concept projects with different customers in India. So one project is has almost come to a 43:41 43 minutes, 41 seconds situation where customer will have to give us his opinion on the uh superiority of the technology that we are offering. This should happen in this 43:49 43 minutes, 49 seconds quarter. The job is already done and there are two projects in the pipeline which are still going on of which one we are doing by and the second one we are 43:58 43 minutes, 58 seconds going to do with again with this Korean party. So the things are advancing well uh it's a high technology uh uh product 44:06 44 minutes, 6 seconds line. So customers should be very careful and we have to meet the requirements better than what the current suppliers are doing. So that's 44:14 44 minutes, 14 seconds the current state but the uh the good part is the progress is very good. 44:20 44 minutes, 20 seconds Got it. And sir it will be isn't it will be a passive area or will be something like passive plus or semi-active area sir? All passive. 44:28 44 minutes, 28 seconds All passive. Got it sir. Thank you for the answer. Uh sir wanted to come on the oric uh uh oric plant order book sir. Um 44:36 44 minutes, 36 seconds I just want to understand any reason for change in SOP date sir. 44:40 44 minutes, 40 seconds Yes. So I think there has been a delay mainly from the UK based this thing OEM 44:48 44 minutes, 48 seconds that was a SOP which was to start in this quarter actually and uh there has been a delay of this OEM and now they 44:56 44 minutes, 56 seconds will be starting in the second quarter only. We in fact we have the schedules and the US-based OEM should start by the 45:03 45 minutes, 3 seconds end of quarter 1. Uh so that is the line of sight we have but in the meantime we are also going to start orders for other 45:11 45 minutes, 11 seconds customers like uh value for example and uh so the I think the plant will start 45:18 45 minutes, 18 seconds uh from from from from April but uh but these two large OEM customers will come in end of quarter 1 and quarter two. 45:28 45 minutes, 28 seconds So so the US base was was was so so the US base was always end of quarter 1. It was this UK based OEM where there's a 45:36 45 minutes, 36 seconds delay of two quarters and and the order book remains similar in terms of what earlier mentioned 45:44 45 minutes, 44 seconds around uh 230 right sir you're talking about total business one yeah total yeah business one order book 45:53 45 minutes, 53 seconds sir so so it is 388 crores per 38 with the peak value I said was fi 29 line. 46:04 46 minutes, 4 seconds But but but as we speak we are also getting uh you know new business from from this quarter onwards also. So which we will report in the May uh this time meeting. 46:15 46 minutes, 15 seconds Understood. Understood. Thank you for this. And finally sir I just want to understand on the we have this others in a segment of breakup which has been 46:23 46 minutes, 23 seconds growing about two more than two weeks in last uh last 9 months. Just want to understand what are key products that are driving the growth sir. 46:32 46 minutes, 32 seconds uh there is so all the other products which are not uh included in our scrap two wheel in a two wheeler three 46:41 46 minutes, 41 seconds wheelers four-wheelers uh which is not included there we are right now grouping them in others and as they become bigger we'll start grouping separately for 46:49 46 minutes, 49 seconds instance even of the solar suspension panels and all the other uh businesses which are getting we group it within that 46:58 46 minutes, 58 seconds got it sir uh thank you so much for the opportunity Thank you ladies and gentlemen. To 47:07 47 minutes, 7 seconds ensure management can answer all questions from the participants, please limit your questions to two per participant. 47:14 47 minutes, 14 seconds The next question is from the line of Jishnu from LFC Securities. Please go ahead. 47:22 47 minutes, 22 seconds Hello. Can you hear me? Yes. Yes. 47:27 47 minutes, 27 seconds Yes, we can hear you. So, so I wanted to ask a specific question related to the Europe India deal. So, what is the 47:35 47 minutes, 35 seconds specific uh advantage that we'll be getting that that was not in our site just before the deal was signed and now since the deal has been signed? What are 47:43 47 minutes, 43 seconds the new advantages specific that specifically endurance would be getting since it has a huge exposure to the Europe business and specifically it 47:51 47 minutes, 51 seconds would have in terms of Indian auto combo u auto companies we have the largest exposure. So what are the advantages that we'll get specifically from this 47:59 47 minutes, 59 seconds deal which was not expected before the deal? 48:03 48 minutes, 3 seconds So so I I think what I would like to say is we at a stage where we are still you know trying to gather more information 48:10 48 minutes, 10 seconds and uh you know earlier for us taking a call on what is the strategy we have to adopt for the future. uh this is but we 48:18 48 minutes, 18 seconds are not we I mean though we have the the guidelines and rules but we are to go into the specifics because I believe this agreement will be only effective 48:26 48 minutes, 26 seconds within the next 9 months to a year though it has been signed. So I think uh uh as this has just happened in fact 48:34 48 minutes, 34 seconds both the sides are European and our team are planning to meet and we will uh so maybe we can throw some more light in the next quarter call in case we are 48:43 48 minutes, 43 seconds ready. Okay. So that was it. But are we having any advantage uh right now since our plants are located in Europe? So are 48:51 48 minutes, 51 seconds we having any specific advantages right now in Europe like we would already have zero duty access before the deal right since our plants there in the Europe? 49:01 49 minutes, 1 second I think it was how much was it two and a half% how no even see because we were producing local for local in Europe and also in 49:08 49 minutes, 8 seconds India there was no crossber transactions as of now but we are studying the overall deal to see what we can do going forward 49:16 49 minutes, 16 seconds okay that's thank you thank you very much 49:24 49 minutes, 24 seconds the next question is from the line of promote a from capital please go ahead Yeah, hi thanks for taking my question. 49:32 49 minutes, 32 seconds So if I had to look at your slide nine uh with regard to Europe order inflow uh it seems to be dwindling down for last 49:41 49 minutes, 41 seconds couple of uh years and I think in spite of German acquisition it's pretty low for the 9month period. What is really 49:48 49 minutes, 48 seconds happening there? Uh is it the end market situation or you are evaluating your own strategies to get new orders? 49:55 49 minutes, 55 seconds Yeah. So, so we are evaluating our own strategy especially on the M&A front but I think let let let let let's let let Masimo answer that Masimo. 50:06 50 minutes, 6 seconds So yes in the the previous quart in 9 months of this financial year we acquired only 50 million of euro business. This is true compared 40 million euro the previous financial year 50:14 50 minutes, 14 seconds but please consider that in this moment the market is is in a very bad situation. As probably you know in December 2025th the European Commission 50:23 50 minutes, 23 seconds proposed to review the 2035 rules not yet finalized suggesting a potential 50:30 50 minutes, 30 seconds shift from 100% to 90% of emission reduction target allowing some residual emission to be offset through measure 50:38 50 minutes, 38 seconds like green steel production or bofuel and the market as you can imagine the reaction was not so positive now 50:46 50 minutes, 46 seconds apparently in the second week of March there will be the official position of the European government and we will see 50:53 50 minutes, 53 seconds but in this moment everybody stopped in important way the investment in the internal commission engine and also in in the electric this is the reason why 51:01 51 minutes, 1 second in this moment we are not acquiring business but let me say this is a stanation of the the market unfortunately on top of this please 51:08 51 minutes, 8 seconds consider that even if you see the registration that is are growing compared to the previous year the previous quarter we close with uh 4% of 51:16 51 minutes, 16 seconds increase comparing the previous year in Europe and the year to date is more or less 3%. You have to consider also that 51:24 51 minutes, 24 seconds the mix of these registration are completely different compared to the past because only to give you an idea in the calendar year 20125th we have had an 51:33 51 minutes, 33 seconds increase of import from uh China and from the rest of the world of 200,000 car and we lost 200,000 car production 51:42 51 minutes, 42 seconds in terms of export and so it means 4% of reduction if I consider more or less 10 million vehicle per year the situation 51:49 51 minutes, 49 seconds in Europe is very difficult difficulty in this moment but despite this situation we have been able to close 4.2% 2% without consider the acquisition 51:58 51 minutes, 58 seconds of sepher and the trend for the future of mouth is more or less align compared to the the previous quarter and so we are optimistic even if the situation is very tough. 52:08 52 minutes, 8 seconds Sure, thanks for the detailed answer and uh related to the same again uh looking at that uh the M&As which you have done 52:16 52 minutes, 16 seconds and turnaround in Maxwell and also the German equation going smooth how are you approaching are you more confident now 52:23 52 minutes, 23 seconds to do larger size deals or how is your M&A strategy going to plan out for next 3 four years 52:31 52 minutes, 31 seconds see the the the firstly is that the M&A strategy will be mainly in in areas 52:41 52 minutes, 41 seconds for example our existing areas going into like we have done for example uh you know uh solar business for example 52:49 52 minutes, 49 seconds it is suspension but going into solar so non-auto applications uh it could be castings in other than automotive 52:58 52 minutes, 58 seconds uh so basically it will be our strategy will be in those segments where the margins are much higher you know uh and 53:06 53 minutes, 6 seconds also which has a good target market. It was very important we we enter in a new areas where there is a target market you 53:13 53 minutes, 13 seconds know so uh question is we are already working on a deal right now and uh and we'll see 53:22 53 minutes, 22 seconds how how that goes and u so we are always looking for an for a for for the M&A opportunities but of course we will be 53:31 53 minutes, 31 seconds you know aggressively going ahead with it but we'll only do it if it makes sense to our business but I I just give you these examples 53:39 53 minutes, 39 seconds that definitely high on our minds is not only automotive but also non-automotive applications which could partly in our products like 53:48 53 minutes, 48 seconds suspension or castings or it could be something else you know. Sure. Thanks and all the best. Thanks. 53:57 53 minutes, 57 seconds Thank you. The next question is on the line of Rajit Akaral from Niluri Investment Managers. Please go ahead. 54:06 54 minutes, 6 seconds the mantra just a quick clarification on the capex plans. There are two uh new uh 54:14 54 minutes, 14 seconds capex which have been mentioned in the slide. One is the sum expansion and uh there's another one of uh aluminium for 54:23 54 minutes, 23 seconds atric bitkin. So and both they're going to be commissioned in Q1 and Q2. So what is the total capex on these two expansions? 54:35 54 minutes, 35 seconds He's talking he's asking the capex for the aluminium for solar dampers and actuators and and dampers. I don't have the 54:43 54 minutes, 43 seconds figures often right about 25 crores or because these are existing PL uh about 25 crores each but I don't know 54:52 54 minutes, 52 seconds the figure but uh I mean treasury head 45 okay to be honest it's not correct to 55:01 55 minutes, 1 second give you any wrong figures we don't have the figures right now you know and we don't want to give you a is lower or higher but the but these are not very high 55:09 55 minutes, 9 seconds capex these will be both below 50 cr range Correct. Right. Right. All right. 55:18 55 minutes, 18 seconds Understood. And just following up from a previous participant's question on the order in Europe and congratulations for 55:27 55 minutes, 27 seconds uh being able to sustain the growth uh despite the the the environment being so high. But going forward let's say one 55:35 55 minutes, 35 seconds year or two years if if there is no inorganic expansion I mean do you see the growth rate coming down or do you see a chance of a degrowth in Europe 55:44 55 minutes, 44 seconds business see we don't like to think on those lines you know we only think of the growth so we of 55:52 55 minutes, 52 seconds course we have to see the downside but there have been many downsides since 2008 also as you know the global financial crisis we have faced it we 56:01 56 minutes, 1 second have grown so we will find our solutions because because we believe in endurance to find solutions being positive and going this thing ahead you know because 56:10 56 minutes, 10 seconds if you think in those lines then you won't ever grow you know what I'm saying so right so our thinking is a very because we we have really been we have faced some very 56:18 56 minutes, 18 seconds tough times it's 2008 so so when we reach there we will face it and we'll do something about it right I appreciate that thank you thank 56:27 56 minutes, 27 seconds you thank you thank you the next question is on the line Mihir from a quirus please go ahead. 56:36 56 minutes, 36 seconds Uh yeah thank you for taking my question. So sir just one thing on the previous question. 56:43 56 minutes, 43 seconds So you don't mention the stoal business wins prior to FI26. 56:48 56 minutes, 48 seconds So what would be that quantum would it be something which would be good in terms of numbers or that is something which is maybe 56:56 56 minutes, 56 seconds voice is a big actually we could understand the first part of the question because your voice is not very clear. 57:03 57 minutes, 3 seconds Yeah sorry is it clear? Uh now yes yes now it's better. 57:10 57 minutes, 10 seconds Yeah. So for my question basically on the total business wins prior to FY26 which we are not mentioning into our 57:18 57 minutes, 18 seconds order book status. So what would be that quantum and or is it something which is negligible? 57:25 57 minutes, 25 seconds No. So Stepha was not included in FI25 because we only did the the we only 57:33 57 minutes, 33 seconds acquired the company and we consolidated into books only from April 25. That's why was only showing up in FI26. We did not have fillet earlier to April 25. 57:45 57 minutes, 45 seconds Yeah sir. But uh what would be the order book there as well? There would be some order book, right? Uh which would be you're saying order book of scale you're saying? 57:54 57 minutes, 54 seconds Yeah. Yeah. So masimo masimo can you ask? 57:58 57 minutes, 58 seconds I can answer. Yes. in starting from four considering that more or less the total turnover of Stepher is 75 80 million of 58:07 58 minutes, 7 seconds euro total financial year in this financial year we acquire 5 million of euro with the final customer BMW pass through Magna and please consider that 58:16 58 minutes, 16 seconds in this moment suffer as the stability of volume more or less till 2030 2032 and so in this moment I don't see any 58:24 58 minutes, 24 seconds kind of issue and the company is uh really profitable and demonstrate uh now we can say that we integrate 100% of the 58:32 58 minutes, 32 seconds company in our organization and we are trying to do a lot of economy of scale because as you know suffer is buying raw 58:39 58 minutes, 39 seconds part from the market but we have the opportunity also to produce roar for them in our foundry and this is the second step of the the integration that will start in the next financial year. 58:52 58 minutes, 52 seconds Okay. Okay. And the second question on the Europe there are many Chinese now are putting up plans in Europe now. So 58:59 58 minutes, 59 seconds how are we engaging with those customers there and some kind of thoughts on you know approaching the Chinese OEMs now? 59:08 59 minutes, 8 seconds Yes, this is true. We are discussing with them with some of this OEM but I repeat in my opinion we need to wait a 59:16 59 minutes, 16 seconds clear position about the strategy from the European government because these guy are coming here they are opening new 59:23 59 minutes, 23 seconds plant but they want to assembly the car and so we need to understand if they will import the component the powertrain 59:32 59 minutes, 32 seconds component and also the batteries case component and we'll assemble here or in order to avoid to reduce the tariff they 59:40 59 minutes, 40 seconds will be obliged to produce here in this moment. As you know, we are discussing as I told you in the previous call conference with BYD, he will start in at 59:49 59 minutes, 49 seconds the end of this financial year in Hungary and in the next financial year in Turkey but only assembling the car. 59:56 59 minutes, 56 seconds So for our product range in this moment there are no benefit even if for sure we are quoting uh different scenario because if they will be obliged to 1:00:04 1 hour, 4 seconds produce this part here in Europe could be an opportunity for us but I want to say one thing also regarding the previous uh question regarding that the agreement between India and uh Europe. 1:00:17 1 hour, 17 seconds This could be from my point of view an a big opportunity for us for endurance group because as you can imagine this moment we are receiving a lot of attack 1:00:25 1 hour, 25 seconds from the Chinese supplier because they are coming in Europe also in the supply chain and uh the possibility to buy and 1:00:34 1 hour, 34 seconds to move production capacity and to acquire new business with a level of competitiveness that our competitor have it here in 1:00:43 1 hour, 43 seconds Europe using our production capacity in Europe for me is a positive um and is an opportunity in front of our customers. 1:00:52 1 hour, 52 seconds Our footprint, our industrial footprint in India is a big opportunity not for sure for the continuous growth for wheeler in India but also for Europe. 1:01:02 1 hour, 1 minute, 2 seconds I'm pretty sure about this. Right. Okay. Okay. Thank you. 1:01:08 1 hour, 1 minute, 8 seconds I I just wanted to clear one point to I mean everybody on the call. uh when I talked about ABS and the brake systems 1:01:17 1 hour, 1 minute, 17 seconds uh pricing uh I had considered some other items and I took uh mainly for bikes of higher cc. So I think the 1:01:26 1 hour, 1 minute, 26 seconds pricing would be quite similar because there would be no stainless steel braid hoses and some some other items which are there in the higherend bikes. So I 1:01:34 1 hour, 1 minute, 34 seconds would say the prices of the brake system would be uh similar in some cases or even slightly lower. So I just want to 1:01:43 1 hour, 1 minute, 43 seconds clear my statement where I said earlier they would be higher than ABS the master cylinder caliper and the brake. So 1:01:50 1 hour, 1 minute, 50 seconds please make a note note of that it'll it may be same a bit lower. 1:02:04 1 hour, 2 minutes, 4 seconds Thank you very much. 1:02:06 1 hour, 2 minutes, 6 seconds As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 1:02:16 1 hour, 2 minutes, 16 seconds Yes. So in fact, I've already I think mentioned my points in my opening remarks and in the question and answer. 1:02:22 1 hour, 2 minutes, 22 seconds I will just say that we at endurance both in India and Europe are fully focused on profit growth and trying to 1:02:29 1 hour, 2 minutes, 29 seconds improve both sales growth as well as our margins. So we'll continue to focus on that uh in spite of challenging you know 1:02:37 1 hour, 2 minutes, 37 seconds conditions I would say uh in in Europe mainly but we'll try and take whatever I mean I mean I mean opportunities we get 1:02:45 1 hour, 2 minutes, 45 seconds and make the best best out of them. So thank you for all your support and see you in the next call. Meet you in the next call. 1:02:53 1 hour, 2 minutes, 53 seconds Thank you very much sir. On behalf of Access Capital Limited that concludes this conference. Thank you for joining us. You may now disconnect your lines.