Endurance Technologies: Navigating Growth and Transformation in Q2 FY26

Endurance Technologies, a prominent player in the automotive component manufacturing sector, has released its financial results for Q2 and H1 FY26, showcasing a period of robust growth alongside strategic investments and market adaptations. The company reported a consolidated total income of Rs. 3,604 crore for Q2 FY26, marking a significant 22.6% year-on-year growth. For the first half of the fiscal year (H1 FY26), the consolidated total income reached Rs. 6,958 crore, reflecting a 20.0% increase over the previous year. This strong top-line performance was complemented by a healthy rise in EBITDA, which grew by 21.9% to Rs. 498 crore in Q2 FY26 and by 19.7% to Rs. 977 crore in H1 FY26. The Profit After Tax (PAT) also saw an upward trend, with consolidated PAT increasing by 12.0% to Rs. 227 crore in Q2 FY26 and by 11.5% to Rs. 454 crore in H1 FY26.

The company's performance was influenced by a dynamic market environment. In India, total vehicle sales grew by 9.5% in Q2 FY26, with 2W sales up 10.3%. Endurance's standalone total income mirrored this trend with a 16.2% YoY growth. However, the scooter segment experienced a 4.4% decline for Endurance, despite industry growth, primarily due to degrowth from a key OEM. In Europe, new car registrations saw a 7.7% YoY rise in Q2 FY26. Endurance Europe's total income grew by 47.1% in INR terms (32.5% in EUR terms) with the consolidation of Stöferle, and 7.8% without it, aligning closely with the EU new car registration growth. The company also booked Rs. 37 crore in PSI incentives in Q2 FY26.

Financial Snapshot: Q2 & H1 FY26

Strategic Thrusts and Future Readiness

Endurance Technologies is actively pursuing several strategic initiatives to capitalize on emerging market trends and regulatory changes. A major focus is the expansion of its ABS capacity by 2.4 million units per annum, a five-fold increase, with the first line becoming operational in Q1 FY27. This proactive step anticipates the upcoming ABS mandate for lower two-wheelers. To support this, backward integration for steel-braided hoses, valves, and ECU assemblies is underway, with plans to in-source part of the ECU printed circuit board needs. The company is also establishing a new Chennai plant for disc brake systems, aiming for SOP in Q2 FY27, to better serve South Indian OEMs and free up space in its existing Chhatrapati Sambhajinagar plant for ABS expansion.

In the new energy segment, Endurance is setting up a lithium-ion battery pack plant in Pune, with SOP expected in January 2026, having already secured a Rs. 300 crore/annum business from a leading 2W OEM. This move positions the company to tap into the rapidly growing EV market, not just in automotive but also in sectors like inverters, telecom, and battery energy storage systems. The wholly-owned subsidiary Maxwell achieved a record turnover of Rs. 74 crore in H1 FY26, surpassing its full FY25 turnover of Rs. 70 crore, driven by new business wins of Rs. 21 crore for Battery Management Systems (BMS). The company's R&D efforts are robust, with 91 total patents and 79 design registrations, and new R&D centers for brakes and next-generation suspension are operational or being set up.

Segmental Performance and Outlook

The company's H1 FY26 consolidated total income by product highlights the dominance of Die Casting at 45.4%, followed by Suspension at 24.5%, and Disc Brakes at 11.4%. The Alloy Wheel segment contributed 7.0%, After Market 4.3%, Others 4.1%, and Transmission 3.3%. This diversified product mix underpins the company's resilience. The Alloy Wheel plant at AURIC Bidkin commenced production in October 2025, with its 3.6 Mn wheels/annum capacity fully booked, indicating strong demand. The acquisition of a 60% stake in Stöferle entities in Germany, with a line of sight to acquire the remaining 40% in five years, further strengthens its European footprint and simplifies the corporate structure. Stöferle has an annual turnover of approximately €80 million.

Consolidated Total Income by Product: H1 FY26

Endurance Technologies is demonstrating strategic clarity and disciplined execution in a transforming automotive landscape. The company's focus on capacity expansion, R&D, and new energy solutions positions it well for sustained growth, particularly in the evolving EV and safety component markets. While managing short-term margin pressures and market seasonality, the long-term outlook remains confident, driven by a strong order book and proactive adaptation to industry shifts.