Endurance Technologies Limited lifts FY27 capex to Rs 1,100 crore

Endurance Technologies Limited plans about Rs 1,100 crore of India capital expenditure in FY27, Rs 300 crore above FY26, to fund electric mobility, four-wheeler and non-automotive programmes while reporting consolidated net cash of Rs 436 crore on September 30, 2026.

Why is Endurance increasing India capex in FY27?

Endurance is increasing India capital expenditure to add capacity in electric vehicles, four-wheelers and non-automotive applications. Management said India capex was approximately Rs 800 crore in FY26, compared with Rs 611 crore in FY25, and expects about Rs 1,100 crore in FY27; consolidated capex is expected to be Rs 1,250 crore.

The FY27 India plan is Rs 300 crore higher than FY26 and Rs 489 crore above FY25. Management attributed the increase to investments in new growth areas, rather than identifying one plant or customer programme as the sole use of the spending.

The investment programme follows H1 FY27 business wins of Rs 748 crore, largely from HMSI, Tata Motors, Hero MotoCorp, TVS, Ather and a US electric-vehicle original equipment manufacturer, or OEM. Management said business-win figures exclude Bajaj orders, while the cumulative order-win book since FY22 stood at Rs 6,372 crore at H1 FY27.

What does Endurance's FY27 capex programme fund?

Endurance's FY27 investment supports plants and product lines entering production between FY27 and FY29. The AURIC Shendra aluminium-casting plant started production on September 25, 2026, serving four-wheeler OEMs in India, the UK and the US, with supplies to a US electric-vehicle customer already begun.

The company is expanding braking and safety-system capacity. Its Chennai disc-brake assembly plant is scheduled to begin production in March 2027, while anti-lock braking system, or ABS, capacity is expected to reach 1.54 million single- and dual-channel units annually by Q4 FY27. Management said 70% of this ABS capacity is already booked by Bajaj Auto and Royal Enfield.

Endurance has also added 1 million units of brake capacity at Waluj for Hero MotoCorp and TVS programmes, with production starting in Q2 FY27. A fifth aluminium-forging press is due to start production in Q4 FY27, while premium upside-down fork capacity is targeted to reach 100,000 units a month across seven OEM customers, including exports, by the same quarter.

In battery packs, Endurance has started production for a leading two-wheeler OEM and expects full ramp-up in Q3 FY27. It has also received nominations from two passenger-vehicle OEMs for four-wheeler battery packs, with production scheduled for Q1 and Q2 of the next financial year, respectively.

How are greenfield plants affecting Endurance's current profitability?

Endurance's four greenfield facilities reduced profitability by a combined negative profit-before-tax, or PBT, margin impact of about 0.5% in Q2 FY27. Management said cumulative capex at those facilities was about Rs 1,100 crore and that profitability should improve progressively as commercial production increases.

The facilities are being ramped up during a period of higher raw-material costs in the India standalone business. Raw-material cost, or RMC, rose to 70% of sales in Q2 FY27 from 66% in Q2 FY26, while standalone earnings before interest, tax, depreciation and amortisation, or EBITDA, margin declined by 2 percentage points to 10.5%.

Despite the margin movement, standalone EBITDA rose 18% year on year to Rs 395 crore in Q2 FY27, compared with Rs 358 crore in Q1 FY27. Management said price increases agreed by some customers from October 1, 2026 could add about 0.5% to gross margin, while a more favourable commodity basket could add another 0.5% to 0.6%, subject to commodity movements and customer discussions.

Management expects the four greenfield facilities to make a positive contribution in the next financial year, without giving a specific profitability target. The planned improvement depends on the facilities moving from initial commercial production to higher utilisation, rather than on a disclosed reduction in their Rs 1,100 crore cumulative capex.

What supports Endurance's funding capacity and incentives?

Endurance reported consolidated net cash of Rs 436 crore as of September 30, 2026, providing the disclosed balance-sheet position alongside the higher investment programme. Aditya Jhawar said the company had generated free cash flow consistently despite rising capex and investments, although management did not provide a free-cash-flow figure on the call.

A Maharashtra incentive entitlement is also expected to support reported income during the expansion. Under the Maharashtra Package Scheme of Incentives 2019, an addendum increased Endurance's entitlement to Rs 858 crore from Rs 600 crore, with incentives to be received broadly through state Goods and Services Tax, or GST, refunds over seven years.

Endurance booked Rs 75 crore of income from the incentive in H1 FY27 and expects to book another Rs 50 crore in H2 FY27. The company said several plants in Chhatrapati Sambhajinagar serve OEM customers within Maharashtra, placing it to avail further incentives, but it did not quantify any additional entitlement.

Which programmes are expected to use Endurance's new capacity?

Endurance is investing against Rs 3,798 crore of its Rs 6,372 crore cumulative order-win book that remained to be realised at H1 FY27. The mix has moved toward the targeted categories: electric vehicles represented 24% of the order-win book at H1 FY27, compared with 11% in FY22, while India four-wheeler business represented 23.5%, compared with 16% in FY22.

Management expects cumulative start-of-production, or SOP, value for four-wheeler suspension, brakes and driveshafts to increase from Rs 100 crore in FY28 to Rs 800 crore in FY31. One four-wheeler suspension customer is expected to start production in H1 FY28, a second in H2 FY29, and a third customer's timeline is expected to be finalised in Q4 FY27.

For non-automotive products, including solar, railway and industrial applications, management expects cumulative SOP value of Rs 250 crore in FY28 and Rs 650 crore by FY31. The Sanand solar-damper plant started supplies to a European customer in Q2 FY27, while production for a US solar customer is expected in the second half of FY27 and solar-actuator production is expected in Q4 FY27.

The aftermarket business is another area of expansion, growing 36% year on year in Q2 FY27 and accounting for 4% of consolidated income. Management described aftermarket as a strategic priority through 2030, alongside its wider effort to add electronics and software capabilities to component and systems manufacturing.

Conclusion

The higher FY27 spending plan combines capacity additions in casting, brakes, ABS, battery packs, suspension and non-automotive applications with a business-win mix that has become more weighted toward electric vehicles and India four-wheelers. Its near-term financial effect includes a 0.5% negative PBT-margin impact from four greenfield plants and a rise in RMC to 70% of standalone sales in Q2 FY27, while net cash and the Maharashtra GST-linked incentive entitlement provide disclosed financial support.

The next operating milestones are the Chennai brake-assembly start of production in March 2027, the 1.54 million-unit ABS capacity target in Q4 FY27 and the fifth aluminium-forging press start in Q4 FY27. Management's expectation that greenfield facilities will contribute positively in the next financial year, and the conversion of Rs 3,798 crore of unrealised order-book value into scheduled programmes, are the main items to watch.