Endurance spent Rs 401 crore expanding H1FY27 capacity base

Endurance spent Rs 401 crore on standalone capital expenditure in the first half of financial year 2027 (H1FY27), with more than 80% allocated to expansion projects and dies for brakes, alloy wheels, aluminium casting and machining. The spending accompanied plant launches and planned start-ups for electric vehicles, solar equipment and aluminium forgings.

What did Endurance spend its H1FY27 capex on?

Endurance reported standalone capital expenditure of Rs 401 crore in H1FY27, and said expansion capex and dies represented more than 80% of that total. The disclosed spending includes additional land bank and capacity additions in brake assemblies, alloy wheels, aluminium casting and machining, rather than only maintenance of existing production lines.

The allocation sits within a rising capex-intensity trend reported by Endurance: capex and investments in subsidiaries equalled 6% of sales in FY21, 9% in FY23, 8% in FY24, 9% in FY25 and 11% in FY26. The presentation does not provide a comparable standalone H1 capex figure for FY26, so the Rs 401 crore outlay cannot be measured year on year from the supplied data.

Which Endurance plants and lines are being added?

Endurance commenced production at its AURIC Shendra facility in Chh. Sambhajinagar in September 2026 to serve four-wheeler electric-vehicle original equipment manufacturers (OEMs) and exports. It is also expanding four-wheeler machined aluminium-casting capacity at Chennai, Vallam and Chakan, with the facilities intended to increase penetration with Indian and Korean OEMs.

In battery systems, Endurance started production at its Pune battery-pack plant in the first quarter of FY27 (Q1FY27) and expects the two-wheeler business to reach full ramp-up in the third quarter of FY27 (Q3 FY27). Management also disclosed nominations from two OEMs for four-wheeler battery packs, with start of production (SOP) expected in H1FY28. These battery projects follow Rs 300 crore of battery-pack orders received in FY26, measured at expected peak annual value.

How is Endurance expanding brakes, electronics and non-auto capacity?

Endurance began supplying dual-channel anti-lock braking systems (ABS) in October 2026 and is setting up additional ABS capacity. It expects the additional disc-brake capacity in Chennai to begin production in the fourth quarter of FY27 (Q4 FY27), while a second surface-mount technology (SMT) electronics line has been installed to support in-house ABS electronic control units (ECUs) and higher battery-management-system (BMS) volumes.

Outside vehicle production, Endurance established infrastructure at Sanand, Gujarat, for large-volume solar dampers and actuators. Solar-damper SOP occurred in the second quarter of FY27 (Q2 FY27), while actuator SOP is expected in Q4 FY27. A new aluminium-forging plant is also under construction, with SOP expected in Q4 FY27, extending the expansion programme beyond its H1FY27 standalone product mix of 33% suspension, 30% die casting and 15% disc brakes by total income.

What order wins support Endurance's capacity additions?

Endurance recorded Rs 748 crore of standalone order wins in H1FY27, excluding Bajaj Auto, while total India business won was Rs 801 crore including Rs 53 crore at Maxwell. The standalone figure is presented as expected peak annual business, and Endurance says it has Rs 3,650 crore of requests for quotation under discussion with customers, which are opportunities rather than booked orders.

The order composition indicates why capacity is being added across several lines. Endurance won Rs 532 crore of business from HMSI in H1FY27, brake business from TVS that took annual brake business to more than Rs 250 crore, and Rs 30 crore of suspension orders from Ather and Ultraviolette. It also identified annual Shendra business potential of Rs 223 crore from a leading US OEM, while cumulative non-Bajaj electric-vehicle orders from FY22 through H1FY27 totalled Rs 1,530 crore.

How do revenue growth and product mix relate to the investment?

Endurance's standalone total income rose 38% year on year to Rs 6,955 crore in H1FY27 from Rs 5,043 crore in H1FY26, while earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 17% to Rs 752 crore. EBITDA margin declined to 10.8% from 12.7%; Endurance said the margin would have been 120 basis points higher if metal prices had remained at the prior-year level.

The growth was accompanied by a change in the vehicle mix of standalone income. Motorcycles accounted for 67% in H1FY27, down from 70% a year earlier, while scooters increased to 15% from 11%; four-wheelers remained 6%. At the consolidated level, die casting remained the largest product at 44% of H1FY27 income, down from 46% in H1FY26, whereas alloy wheels increased to 9% from 7%, consistent with Endurance's disclosed alloy-wheel capacity additions.

How does the European investment compare with standalone capex?

Endurance reported European H1FY27 capex of Euro 9 million for production-capacity expansion tied to new customer orders, including programmes for Stellantis, Daimler and the VW group, including Porsche and Audi. This is separate from the Rs 401 crore standalone capex figure and is reported in euros, so the presentation does not provide an exchange-rate basis for combining the two amounts.

The European business additionally invested Euro 24.24 million in H1FY27 to acquire the remaining stake in Stöferle. European total income rose 14% to Rs 2,175 crore in H1FY27, or 3% in euro terms, while EBITDA increased to Rs 391 crore from Rs 336 crore. The figures distinguish production-capacity spending from the Stöferle ownership transaction.

Conclusion

Endurance's Rs 401 crore standalone H1FY27 capex was directed chiefly to expansion and dies, supporting a broader build-out across EV battery packs, braking systems, electronics, machined aluminium components, solar equipment and aluminium forgings. The programme is linked to Rs 748 crore of standalone H1FY27 order wins and 38% growth in standalone income, although the presentation does not quantify the incremental output from each project.

The next milestones are the expected Q3 FY27 full ramp-up of Pune two-wheeler battery packs, Q4 FY27 SOPs for Chennai disc brakes, Sanand actuators and aluminium forgings, and H1FY28 SOP for nominated four-wheeler battery-pack programmes. Management's Rs 3,650 crore of requests for quotation under discussion also remains an unresolved pipeline rather than confirmed business.