Endurance Technologies Ltd Q4 FY26 Earnings Analysis

- India 2W sales grew 18.2% YoY in Q3 FY26, indicating robust domestic demand. - EV sales in India grew 65.6% in 9 months FY26 with a 4-year CAGR of 71%, outpacing industry CAGR of 21%. - New order wins in India stand strong at ₹1,282.8 crores per annum in 9 months FY26, indicating a healthy pipeline. - Increased product premiumization and shift to higher cc vehicles present growth in premium offerings. - Orders worth ₹530 crores in 4W and non-automotive segments reflect diversified growth. - European operations face short-term challenges but remain optimistic with 4.2% volume growth (excluding Stöferle) and a 27.2% consolidated growth YTD including acquisitions. - New plants and product lines planned (Sanand solar dampers, Aluminium forging expansion) signal capacity expansion. - Long-term M&A focus in higher-margin non-automotive and auto segments expected to drive growth. - Outlook remains positive with emphasis on innovative, premium and EV product segments.

- Endurance Technologies expects positive growth in Europe, despite current market difficulties and regulatory uncertainties, emphasizing a solution-oriented approach to challenges. - The European business, including the recent Stöferle acquisition, shows profitability and secured volumes until 2030-2032, supporting stable earnings growth. - In India, growth is driven by premiumization in two-wheelers, solar damper exports, and expansion in aluminum forging business with new plants coming online by FY27, contributing to profitable growth. - CAPEX focus is on profitable growth products, automation, and quality improvement with controlled spending, aiming to improve ROCE and margins. - ABS regulation clarity expected by end of current quarter could substantially increase brake system business and margins. - Overall Q3 FY26 consolidated PAT grew 20.2% YoY; optimism remains for sustained earnings growth driven by new business wins, improved product mix, and operational efficiencies.

- Sanand expansion and Aluminium Forging at AURIC, Bidkin planned, with CAPEX below ₹50 crores each, commissioning in Q1 and Q2 FY27. - FY26 CAPEX in India expected slightly less than ₹800 crores, focus on automation, environmental compliance, quality improvement, and profitable growth. - Europe CAPEX: €38 million spent on Stöferle acquisition; additional €38 million on ongoing business and new investments; expected stabilization at €25-30 million in next financial year. - New Aluminum forging press at Waluj plant to meet demand, with the new plant operational by Q2 FY27. - Solar dampers plant in Sanand nearing completion; SOP expected April 2026. - Chennai plant for disc brake systems under construction; SOP planned for Q2 FY27 with capacity of 3 million disc brake systems and 4 million brake discs annually. - CAPEX focused on high-margin, profitable growth products and expanding manufacturing capabilities both in India and Europe.

- No specific mention of any current or future fundraising through debt or equity in the provided transcript. - The company continues to make acquisitions, such as the 60% stake acquisition in Stöferle for €38 million, funded while remaining net debt-free. - Capex plans are being managed carefully, with investments mainly below ₹50 crores for expansions like Sanand and Aluminium Forging plants. - Management emphasized controlling CAPEX especially in India and focusing on profitable growth rather than aggressive financing. - The company increased investments through internal accruals and maintained a strong net cash position despite acquisitions and capex. - No announcement or discussion about raising new funds via debt or equity in the near term.

- The total business won per annum is ₹388 crores, with the peak value expected in FY29. - Currently, new orders continue to come in from this quarter onwards, to be reported in the next meeting. - Total orders won till now in products excluding energy and electronics since FY22 stand at ₹5,021 crores, with ₹4,291 crores being new business. - There is ₹4,200 crores worth of requests for quotes pending. - The company expects to win more than ₹1,500 crores of business in the next 12 to 18 months. - In Europe, order inflow is slower, with €15 million booked in the first 9 months of FY26. - The Sanand expansion and Aluminum Forging at AURIC, Bidkin, are incoming CAPEX projects commissioning soon, expected to generate additional business.