Synopsis:
Shares gained after approval of fresh capacity expansion in ABS, disc brake systems, and brake discs, backed by regulatory-driven demand. Strong revenue and profit growth, healthy order inflows, European expansion, and planned capex highlight sustained momentum and long-term growth prospects.
The shares of the prominent auto component manufacturers gained up to 2 percent in today’s trading session after the company approved capacity addition in its ABS, disc brake systems, and brake disc segments.
With a market capitalization of Rs 40,716.27 crore, the shares of Endurance Technologies Ltd were trading at Rs 2,894.60 per share, increasing around 0.44 percent as compared to the previous closing price of Rs 2,881.95 apiece.
Capacity Expansion
The company has announced a major capacity expansion across ABS, Disc Brake Systems, and Brake Discs, with planned additions of 200,000, 100,000, and 100,000 units per month, respectively. This expansion, requiring an investment of about Rs 135.6 crore, will be funded through internal accruals and is expected to be completed by Q4 FY26.
The move is driven by rising demand for safety features, supported by draft regulatory norms mandating ABS for all two-wheelers above 50cc from January 2026. With its strong positioning as one of the few ABS manufacturers in India, the company aims to capture growing market opportunities while boosting capacity utilization and market share.
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Financial & Operational Highlights
Looking forward to the company’s financial performance, revenue increased by 17 percent from Rs 2,826 crore in Q1FY25 to Rs 3,319 crore in Q1FY26. Further, during the same time frame, net profit increased by 11 percent from Rs 204 crore to Rs 226 crore.
The company has secured Rs 4,329 crore in orders over the last five years, with Rs 3,612 crore from new orders and Rs 717 crore from replacements. Strong growth momentum continues, supported by regulatory-driven ABS and disc brake demand, alloy wheel expansion, and proprietary PV brake orders. With Rs 3,225 crore RFQs under discussion, the order book looks promising.
The European business secured €231 million in orders over the past five years, including €196 million from new contracts and €35 million from replacements. Despite a modest Q1FY26, order ramp-up is expected to touch €142 million by FY29. However, the ongoing EV/Hybrid transition in Europe could gradually reduce revenues from ICE-related contracts, requiring strategic adaptation.
For FY26, the company has earmarked Rs 286 crore in standalone capex and €9 million in Europe, with over 80% focused on expansion and dies. Investments cover brake assemblies, alloy wheels, and machining, alongside European capacity ramp-up for Stellantis, Daimler, and VW orders. Additionally, €38 million was deployed for acquiring a 60% stake in Stoferle.
Endurance Technologies Limited has operations in India and Europe (Italy and Germany). In India, the Company predominantly caters to two and three-wheeler original equipment manufacturers (OEMs), and its products include aluminum castings, suspensions, transmissions, braking, and battery management systems. In Europe, it supplies aluminum castings to four-wheeler vehicles.
Written by Abhishek Singh
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