Endurance Technologies Q1 FY27: Growth accelerates, margins feel input-cost heat

Endurance Technologies opened FY27 with a sharp jump in scale. Consolidated total income for Q1 FY27 rose to Rs 4,348 crore from Rs 3,355 crore in Q1 FY26, while consolidated EBITDA increased to Rs 569 crore from Rs 480 crore. Profit after tax (PAT) also improved, but at a slower pace, with consolidated PAT at Rs 245 crore versus Rs 226 crore a year ago.

The quarter combined strong domestic volumes with meaningful execution across multiple capacity and product initiatives. At the same time, management highlighted a clear headwind: higher commodity and conversion costs compressed standalone margins, and Europe profitability was impacted by accelerated depreciation linked to ICE programs being phased out.

Q1 FY27 performance: scale improved, margins lagged

On a standalone basis, Endurance reported total income of Rs 3,194 crore compared with Rs 2,351 crore in Q1 FY26. Standalone EBITDA increased to Rs 358 crore from Rs 306 crore, but EBITDA margin fell to 11.2% from 13.0%. Management attributed the margin decline primarily to higher input costs in the quarter.

Consolidated performance reflected growth in India, steady operations in Europe, and a stronger quarter for Maxwell. Consolidated EBITDA margin was 13.1% in Q1 FY27 versus 14.3% in Q1 FY26.

Europe grew modestly in euros and improved EBITDA margin to 18.2%, but PAT declined to Rs 48 crore from Rs 62 crore because of accelerated depreciation of assets tied to OEM programs expected to phase out over the next 18 months. Management described this as a deliberate move to fully depreciate the residual fixed assets of those projects.

Maxwell recorded total income of Rs 57 crore in Q1 FY27 compared with Rs 31 crore in Q1 FY26 and management stated it delivered its first PAT positive quarter, reporting PAT of Rs 1 crore.

Revenue mix: castings lead, motorcycles remain dominant

The consolidated product mix in Q1 FY27 continued to be led by die casting at 44.5% of revenue, followed by suspension at 24.2% and disc brakes at 11.0%. Alloy wheels rose to 8.5% from 6.6% a year ago, indicating higher contribution from that product line.

By vehicle category, motorcycles accounted for 51.4% of consolidated revenue in Q1 FY27, while four-wheelers contributed 27.0%. In the standalone business, motorcycles were even more dominant at 68.4% of revenue, with scooters at 14.3%, three-wheelers at 10.0%, and four-wheelers at 5.8%.

The quarter also reflected a slight shift in consolidated entity mix toward India. India accounted for 72.4% of consolidated total income in Q1 FY27 versus 69.2% in Q1 FY26, while Europe’s share reduced to 26.3% from 29.9%.

Execution and capacity build-out: FY27 is packed with SOPs

Management’s commentary and the investor presentation were heavy on timelines. Across brakes, castings, electronics, and new energy, the company laid out a dense schedule of start-of-production milestones.

AURIC Shendra is a major near-term trigger in 4W machined castings and non-automotive applications. The presentation states SOP is expected in Q2 FY27, while management clarified SOP will start in September 2026 and expects a significant pickup by Q4 FY27. Management also cited cumulative Shendra order wins of about Rs 513 crore per annum, with peak expected only in early FY29 due to long lead times and certification requirements.

Battery packs are the most visible new vertical in India. Management stated SOP for Hero MotoCorp began in June 2026 at the plant near Pune, and the plant is in a ramp-up phase to reach peak volumes by Q3 FY27. It also stated the assembly line has capacity of about 17,000 to 18,000 battery packs per month and would be fully utilised by October 2026. Endurance has announced expansion into 4W battery packs from the same plant with capex of Rs 62 crore and expects SOP by Q4 FY27.

On the brakes side, Endurance is expanding both ABS and disc brake capacity. Management said ABS and CBS hydraulic brake expansion SOP is expected in September or early October 2026. Dual channel ABS SOP for Bajaj Auto with 120,000 units per annum is scheduled in Q2 FY27, with a second 120,000 units program expected in Q3 FY27. It also described enhancements like ride modes and traction control. To support in-house ABS ECU and higher BMS volumes, a second SMT line for electronics is being added with SOP expected in Q2 FY27.

A new Chennai disc brake assembly plant is in final stages of civil construction. Management said SOP for Royal Enfield is expected next month, with other OEMs following in Q3. The plant is designed for 3 million disc brake assemblies per annum and 4 million discs per annum, forming part of a broader plan to reach 9 million disc brake assemblies and 9.6 million brake discs per annum by Q1 FY28.

The non-auto business has a clear commercial anchor through solar applications. Management said the Sanand solar damper plant is ready and SOP for a Spanish client started earlier in August 2026. SOP for a US client is expected in the second half of FY27, and solar actuator SOP is expected in Q4 FY27. It cited business won of Rs 118 crore for solar dampers and Rs 227 crore for solar actuators, totalling Rs 345 crore.

Orders and visibility: strong India wins, Europe remains selective

In India, the investor presentation reported business won in Q1 FY27 of Rs 405 crore (including Rs 13 crore in Maxwell), while management on the call stated India business order wins were Rs 391.6 crore, largely replacement orders. The company also cited RFQs under discussion of Rs 4,526 crore, which could further boost the order book if converted.

The presentation also showed cumulative standalone order wins over the last five years of Rs 5,270 crore (excluding Bajaj Auto), with FY26 at Rs 1,540 crore and Q1 FY27 at Rs 392 crore. For EVs, the presentation showed cumulative non-Bajaj EV orders of Rs 1,496 crore, and Rs 1,806 crore including Bajaj.

In Europe, the company booked orders worth Euro 13.9 million in Q1 FY27. Management described a large order from Mercedes for a hybrid transmission component, where a competitor’s bankruptcy led to a shift of the full volume to Endurance, with SOP expected in January 2027.

At the same time, Europe remains a market where Endurance expects ICE-linked business to taper. The presentation stated that ICE end-use, currently at about 30% of Endurance Europe revenues, is expected to reduce to 25% in FY28. Management also pointed to rising market share of Chinese OEMs and the current trend of imported powertrains, suggesting competitive pressure in the near term.

Capital allocation and corporate actions: capex steady, Europe stake increased

The investor presentation highlighted FY27 capex of Rs 196 crore in the standalone segment and Euro 3.6 million in Europe, primarily for expansions tied to new orders. It also noted that Europe invested Euro 6.24 million in Q1 FY27 to acquire an additional 8% stake in Stöferle entities.

On the call, management stated India capex in FY26 was about Rs 800 crore and expected FY27 capex to remain similar at about Rs 800 crore, with a key focus on automation to improve quality and operating efficiency.

Corporate actions included increasing the stake in Stöferle entities in Germany to 68%, with acquisition of the remaining stake over the next four years, and divesting 100% shareholding in Veicoli Srl, Italy.

Takeaways: a high-activity year with margin recovery to watch

Q1 FY27 sets up Endurance for an execution-heavy year. Multiple SOPs are scheduled across AURIC Shendra, battery packs, ABS, electronics SMT capacity, and brake expansions, while the company continues to build its EV and non-auto content.

The key issue to track after a strong revenue quarter is margin recovery in India. Management attributed Q1 margin pressure to commodity and conversion cost inflation and indicated that customer settlements and raw material adjustments should start flowing through in subsequent quarters. Europe remains profitable at the EBITDA level but faces structural pressure from ICE run-off and intensifying competition.

Overall, Endurance is positioning itself around three visible themes: proprietary safety and braking systems, higher content in 4W castings and forgings, and expansion into electronics and new energy products. The quarter delivered strong growth and a clear operational roadmap. The sustainability of margins as new lines ramp up is likely to be the next decisive variable.