Endurance Tech. Q1 FY27 Earnings Call — Analysis (NSE: ENDURANCE)
Endurance Technologies posted 29.6% consolidated revenue growth in Q1FY27 led by domestic 2W/PV volume traction, while raw material headwinds compressed standalone EBITDA margin to 11.2%.
Result quality: watch — Margin pressure. Management sentiment: optimistic.
The take
Q1FY27 Consolidated Total Income ₹4,348.28 Cr ( +29.6% YoY ) . New guidance — FY27 3w driveshaft revenue ₹ 100 Cr . New story: EV Component and Electronics Transition .
Results
Consolidated Total Income ₹4,348.28 Cr +29.6% YoY; consolidated EBITDA ₹569.21 Cr +18.7% YoY (margin 13.1%); consolidated PAT ₹244.52 Cr +8.0% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Total Income | ₹4,348.28 Cr | +29.6% | yoy · Q1FY27 |
| Consolidated EBITDA | ₹569.21 Cr | +18.7% | yoy · Q1FY27 |
| Consolidated EBITDA Margin | 13.1% | -120bps | yoy · Q1FY27 |
| Consolidated PAT | ₹244.52 Cr | +8.0% | yoy · Q1FY27 |
| Standalone Total Income | ₹3,194.15 Cr | +35.9% | yoy · Q1FY27 |
| Standalone EBITDA | ₹357.78 Cr | +17.1% | yoy · Q1FY27 |
| Standalone EBITDA Margin | 11.2% | -180bps | yoy · Q1FY27 |
| Standalone PAT | ₹194.62 Cr | +17.4% | yoy · Q1FY27 |
| Maxwell Total Income | ₹56.52 Cr | +85.0% | yoy · Q1FY27 |
| Consolidated EV & Plug-in Hybrid Sales | ₹931.9 Cr | +20.9% | yoy · Q1FY27 |
| Standalone Net Cash | ₹415.7 Cr | point_in_time · Q1FY27 · Jun-26 |
Guidance
FY27 India capex expected at ~₹800 Cr, matching FY26 levels, with margin recovery expected in Q2/Q3 as commodity pass-through settlements and price resets take effect.
What management committed to
- [Endurance Technologies] will commence SOP for the dual channel ABS program of 120,000 units per annum for Bajaj Auto in [Q2FY27]. — 120,000 units, Q2FY27
- [Endurance Technologies] will commence SOP for a second dual channel ABS programme of 120,000 units per annum in [Q3FY27]. — 120,000 units, Q3FY27
- [Endurance Technologies] will reach a total planned capacity of 9 million disc brake assemblies and 9.6 million brake discs per annum by [Q1FY28]. — 9 million disc brake assemblies and 9.6 million brake discs, Q1FY28
- [Endurance Technologies] expects capital expenditure in [FY27] to remain similar to the FY26 capex of approximately [₹800 Cr]. — ₹ 800 crores, FY27
- [Endurance Technologies] will commence SOP for 4W battery packs from its Mindewadi plant with a capex of ₹62 crores by [Q4FY27]. — ₹ 62 crores, Q4FY27
- [Endurance Overseas] will start 100% supply of the Mercedes hybrid transmission component SOP in [January 2027]. — 100% of the volume, Q4FY27
- [Endurance Technologies] will scale inverted front fork assembly capacity to 100,000 units per month by end of [FY27]. — 100,000 units by end of FY 27, FY27
- [Endurance Technologies] expects 3W driveshaft business across Bajaj, Mahindra, and TVS to generate [₹100 Cr] in [FY27]. — ₹ 100 crores, FY27
Key themes
Capacity expansion and EV diversification
How the narrative shifted
- Commodity Inflation and Margin Reset Lag: Management highlights that Q1 margins absorbed over ₹300 Cr in upfront commodity hikes with a quarter lag, but expects price pass-throughs and softening aluminium to drive sequential margin recovery.
- EV Component and Electronics Transition: Aggressive ramp-up in EV-specific components including battery packs, BMS via Maxwell, and proprietary electronics to drive content-per-vehicle expansion.
- Expansion into 4W and Non-Auto Castings: Pivoting die-casting exposure toward 4W PV/EV platforms and solar dampers/actuators to secure higher value-add and margin accretion over commoditized 2W castings.
- European Restructuring and Market Share Capture: Despite European macro headwinds and Chinese OEM influx, Endurance is capturing market share from distressed competitors and consolidating high-margin hybrid powertrain business.
Operational commentary
- Order Wins: Booked ₹391.6 Cr of India orders in Q1FY27 (₹26.1 Cr new, ₹365.4 Cr replacement); RFQ pipeline in hand stands at ₹4,526 Cr.
- Brakes Expansion: Chennai disc brake assembly plant civil construction near completion, planned for 3M disc brake assemblies and 4M discs p.a.; SOP for Royal Enfield by Sep-2026.
- ABS Expansion: Expanding ABS capacity by 9 lakh units p.a.; SOP for Bajaj Auto dual-channel ABS (120k units p.a.) scheduled in Q2FY27 and a second programme in Q3FY27.
- 4W Die-Casting: AURIC Shendra facility order book reached ₹513 Cr peak annual potential (including US EV OEM, JLR, Valeo) with SOP starting Sep-2026 and major ramp-up in Q4FY27.
- Battery Packs & BMS: Mindewadi battery pack plant commenced SOP for Hero MotoCorp in Jun-2026; expanding into 4W battery packs with ₹62 Cr capex. Subsidiary Maxwell turned PAT-positive in Q1FY27.
- Europe Operations: Won 100% share of business for Mercedes hybrid transmission component (previously 60% share) following a competitor's bankruptcy, with SOP in Jan-2027.
Analyst Q&A
Q. Margin headwinds and pass-through quantum in Q2/Q3
Confirmed all raw material cost increases will be recovered from OEMs in Q2 with settled Q1 rates, and aluminium spot prices have softened ₹12-17/kg, but declined to quantify the exact margin percentage improvement due to multiple moving variables.
Q. Integration and synergy timeline for Stöferle in Europe
Commercial and managerial integration is complete; company is negotiating additional market casting capacity by Jan-2027 to achieve backward integration, with full P&L impact expected from Sep-2027 (FY28).
Q. Capex expansion headroom vs OEM capacity expansion announcements
Explained that stated ~₹800 Cr capex is complemented by Tier-2 supplier capital deployment and existing available capacities, noting capex can be raised dynamically if large order wins materialize.
Q. Profitability profile and target margins for 2W/4W battery pack business
Target is to achieve company average margin levels over time via BOM optimisation and captive BMS/die-casting integration, but deferred providing specific margin numbers until the Q2 call.
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