Endurance Technologies: Navigating Growth in India, Adapting to European Shifts in Q3 FY26

Endurance Technologies Limited, a prominent player in the automotive component sector, showcased a robust performance in the third quarter of fiscal year 2026, primarily driven by strong demand in the Indian market. The company reported a consolidated total income of 3,646 crore for Q3 FY26, marking a significant 26.5% year-on-year growth. This impressive top-line expansion was complemented by a healthy 30.4% increase in EBITDA, reaching 514.5 crore, with margins at 14.1%. However, consolidated Profit After Tax (PAT) grew by 20.2% to 221.6 crore, influenced by an exceptional cost of 20.6 crore related to the assessed impact of new labour codes, which reduced PAT by 15 crore. Despite this, the company's strategic focus on high-growth segments and operational efficiencies continues to yield positive results.

The Indian operations were a key growth engine, with standalone total income rising 22.2% year-on-year to 2,678 crore. This growth outpaced the industry's 2W sales growth of 18.2%, indicating market share gains and a strong product portfolio. The company successfully booked 42 crore in incentives during Q3 FY26. In Europe, the total income grew 39.5% year-on-year in INR terms and 21% in EUR terms, against a modest EU new car registration growth of 4.6%. This growth was significantly aided by revenues from the Stöferle acquisition, offsetting lower tooling sales. Maxwell, the wholly-owned subsidiary, also recorded healthy volumes, contributing to the consolidated performance. The company's 9MFY26 consolidated total income stood at 10,604 crore.

Strategic Thrusts and Expansion Initiatives

Endurance Technologies is actively pursuing several strategic initiatives to bolster its market position and diversify its revenue streams. A significant focus is on the electric vehicle (EV) segment and non-automotive applications. The company is setting up an AURIC Shendra project in Chh. Sambhajinagar, dedicated to machined castings for 4W and non-automotive sectors, with an SOP expected in Q2 FY27. This plant is projected to achieve a peak annual business value of 388 crore. Furthermore, a lithium-ion Battery Pack plant in Pune is nearing completion, with SOP expected in Q4 FY26, targeting a large OEM's e-2W model with peak annual sales of 300 crore.

In the solar energy sector, new infrastructure is being established at the Sanand plant in Gujarat to cater to substantial orders for Solar Dampers and Actuators, with an SOP anticipated in Q1 FY27. The total business won for solar dampers and actuators from two global clients amounts to 250 crore. The company also commenced production at its Alloy Wheel plant at AURIC Bidkin in October 2025, with its 3.6 Mn wheels/annum capacity already fully booked. A new plant for Aluminium Forging production is under construction, with an SOP expected in Q2 FY27, to meet growing demand.

Endurance is also expanding its braking systems portfolio. Dual channel ABS is currently under customer validation, with additional capacities being set up for both ABS and Disc Brakes in Waluj and Chennai. The in-house SOP for the electronic control unit (ECU) for single channel ABS is expected to begin in Q1 FY27, followed by the dual channel ECU later in the same financial year, aiming to enhance profit margins. The Chennai plant for disc brake systems is planned for SOP in Q2 FY27, with a capacity of 3 million disc brake assembly systems and 4 million brake discs per annum. The company's Adler technology Assist and Slip APTC Clutch also commenced commercial production in Q2 FY26.

Market Dynamics and Financial Prudence

The Indian automotive market continues to be a strong performer. As per SIAM data, total vehicle sales in Q3 FY26 increased by 18.9% to 9.23 million units. This growth was broad-based, with 2W sales up 18.2%, Motorcycles up 14.7%, Scooters up 26.6%, 3W up 29.9%, and 4W up 19.5%. The GST rate rationalization implemented in September 2025 has further supported consumption and affordability, contributing to strong industry sales. The India-EU Free Trade Agreement is also expected to boost growth.

In Europe, the market faces significant challenges including semiconductor shortages, energy crises, geopolitical tensions, and increased competition. New car registrations in the EU grew by 4.6% in Q3 FY26, but the transition to EV/Hybrid vehicles is impacting traditional ICE orders. Despite these headwinds, Endurance's European business won orders worth €15 million in 9M FY26, including machined casting orders from Volkswagen and Porsche. The acquisition of a 60% stake in Stöferle entities in Germany in April 2025 has further strengthened its European footprint.

Financially, the company maintains a strong position, remaining net debt-free despite substantial capital expenditure and the Stöferle acquisition. The Maharashtra Package Scheme of Incentives 2019 has increased the eligibility certificate to 858 crore for investments up to March 31, 2025, providing significant support through State GST refund and Electricity Duty Exemption over a 7-year period. The company is focused on improving profit margins in India by insourcing high-cost components, negotiating price increases with OEMs, and prioritizing new business with better margins. Endurance Technologies is committed to sustainable growth, demonstrated by achieving 49.6% carbon neutrality and improving ESG ratings.

Endurance Technologies continues to demonstrate strategic clarity and disciplined execution. The company is effectively leveraging the robust growth in the Indian automotive market, particularly in the EV and premium segments, while prudently navigating the complexities of the European landscape. With significant investments in new capacities, a strong order book, and a focus on operational efficiencies, Endurance is well-positioned for sustained growth and value creation in the coming years.