Ladies and gentlemen, good day and welcome to the Endurance Technologies Q1 FY 2026 Earnings Conference Call hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this call is being recorded. With this, I now hand the conference over to Mr. Nishit Jalan. Thank you and over to you, sir.
Thank you so much. Good morning, everyone. Welcome to Q1 FY 2026 Post-event Conference Call of Endurance Technologies Limited. We are pleased to host the management team of Endurance today. We have with us Mr. Anurang Jain, Managing Director; Mr. Massimo Venuti, Director and CEO, Endurance Overseas; Mr. Rajendra Abhange, Director and COO; Mr. Rajagopal Sastry, Group CFO; and Mr. Rajamundra, Treasurer and Investor Relations. I'll now hand over the call to Mr. Anurang for his opening remarks, post which we can move to the Q&A. Over to you, Mr. Jain.
Thank you. Good morning to all. As we conclude quarter one of FY 2026, India's economic landscape reflects a steady foundation amid evolving global dynamics. As per the latest government estimates, the Indian economy achieved a GDP growth of 6.5% in FY 2025. CII and S&P have maintained a similar guidance in FY 2026. Businesses worldwide are facing uncertainties with regard to trade barriers, rare earth magnet supplies, inflation, and end-user demand. Very recently, challenges faced included the pandemic, wars, chip shortages, and energy price hikes. Individual businesses like ours cannot change the course of these events. We intend to focus on building strength and diversity in our own business. At present, we serve multiple OEMs across India and Europe. Our products go into ICE and electric vehicles.
In India, we are strong in two-wheeler and three-wheeler end-users and are focused on growing our presence in the four-wheeler segment, which is already our area of strength in Europe. We are also adding new products to our portfolio. In the automotive sector, as per SIAM, two-wheeler sales reached 5.81 million units in quarter one FY 2026, down 1.6% year-on-year, with motorcycles at 1.8% degrowth and scooters at 0.8% degrowth. Passenger vehicle sales increased by 0.8% to 1.22 million units, while three-wheeler sales rose 10.4% to 0.26 million units. Endurance, in its standalone financials for quarter one FY 2026, saw a year-on-year growth of 10.1%. In the European Union, new car sales saw a year-on-year drop of 1.8% in quarter one FY 2026, while our Endurance total income growth was significantly higher at 28.5%. If we also remove the impact of the Stöferle acquisition, our top line in Europe grew by 0.6%.
In quarter one FY 2026, industry volumes, there was a 15.9% share of battery electric vehicles, 9.2% for plug-in hybrids, and 34.2% for hybrids in Europe. On the strategic growth tracks, we are pleased to share key updates. As most of you are aware, the Ministry of Road Transport and Highways has proposed new safety requirements mandating 100% use of ABS for greater than 50 cc ICE two-wheelers, all two-wheeler EVs greater than 4 kW motor power. This, as of now, is made effective from January 2026. As you're aware, Endurance has embarked upon the ABS journey and had rolled out its first ABS in September 2021. By MNC players, we have an installed capacity of 640,000 units, both for single and dual-channel ABS.
Our single-channel ABS has been on the road since 2021, and our dual-channel ABS final samples have been sent to Royal Enfield and Bajaj, and we expect SOP to start in the next month. The new safety requirements are expected to increase the ABS requirement in India fivefold. Higher ABS use will also lead to higher disc brake penetration. Endurance is in touch with its OEM customers to meet the OEM's deadlines for a higher quantum of ABS requirements. This would involve expanding our ABS setup in Waluj, which process has already started and will complete by March 2026. We are planning the setup of a new plant for disc brake assembly, including for master cylinder, caliper, brake disc, and brake hoses in Chennai, where we already have a land bank.
This plant will cater to the South Indian OEM clients, including PBS, Royal Enfield, and Yamaha India, amongst other OEMs. I'm pleased to highlight significant progress also at our AURIC Shendra facility. We have successfully commenced shipments to a leading European OEM for pre-SOP builds, completing the journey from customer LOI to facility installation in a record time of four months. We have also supplied initial samples for the electric vehicle motor housings for Mahindra's 6E and 9E platform through Valeo within a record 10-week lead time, achieving first-time right parts to support the localization drive. The AURIC Shendra plant is a green building die casting facility and actively supports our ESG goals with sustainable manufacturing practices. Die casting press machines ranging from 1,100 tonnes - 2,500 tonnes are planned to align with market trends towards higher tonnage and light weighting in electric vehicles and advanced automotive components.
The SOP is now planned in quarter four of this financial year. I'm pleased to inform you that the SOP at our two-wheeler alloy plant in AURIC Bidkin will start in week four of this month. The plant has an installed capacity of 3.6 million wheels per annum, and the bulk of this capacity has been booked with orders from OEM clients. At a battery pack manufacturing facility near Pune, civil work and statutory consents are in place. Machinery has been ordered and will be installed in our plant in early next quarter. We can mention that we have received an LOI from a leading two-wheeler OEM for a peak business value of INR 300 crore per annum. 3D validation and simulations have been completed in quick time. Roadwars will be submitted in this quarter, which is in line with our planned SOP in January 2026.
In quarter one of FY 2026, we accelerated the purchase of the balanced 38.5% stake in Maxwell. We are now 100% owners of this business and have strong plans to make it the cornerstone of our electronics and energy business. With good acceptance of reconfigured models of electric two-wheelers for our key OEM clients, Maxwell has witnessed a healthy uptick in sale of battery management systems. With our R&D and innovation, we have been able to improve. We have been able to provide optimized products for each of their offerings. Apart from scooters, we also have orders for battery management system usage in motorcycles, three-wheelers, tractors, and have recently secured an order for airborne cargo handling electric buggies, where BMS supplies will begin in November 2025. The strategic transition also paves the way for future high-voltage platforms for four-wheelers and C-buses.
We have won cumulative orders to the extent of INR 156 crore per annum at Maxwell, which will reach peak in quarter one of FY 2027. Maxwell is also pursuing leads now of INR 150 crore per annum. With increased business both in BMS and for future ABS electronic control unit boards, we would need to add capacity at our surface-mounted technology lines in Chhatrapati Sambhajinagar . We have recently installed additional end-of-the-line testing lines, and in due course, two new high-speed surface-mounted technology lines will also be set up to cater to this increased demand. Our new generation suspension R&D center in Waluj for two, three, and four-wheeler applications is fully operational since July 2025, marking a significant milestone in our innovation journey. This state-of-the-art facility helps us to co-create advanced suspension solutions with OEMs, further solidifying our leadership in two-wheeler and three-wheeler suspensions.
Also, the new R&D center's four-wheeler testing and validation capabilities, along with our expanded R&D team and a four-wheeler suspension technical assistance agreement with a leading Korean entity, enable us to enter and grow in the four-wheeler suspension market. We are actively pursuing new business prospects with multiple OEMs. Endurance is by far the market leader for inverted front forks. Over the years, this business has grown with demand from various Bajaj and KTM models. In January, we have begun supplies to TVS for the inverted front fork requirement. We have orders from Hero MotoCorp and the leading Chinese OEM, which SOPs will start in this financial year. The KTM export offtake has been lower than the earlier years. Now, with Bajaj in full control over the global KTM operations, we expect demand to increase in the next quarters.
Our aluminium forging products are used as components, namely axle clamps for inverted front forks. They are also offered to third-party two-wheeler and four-wheeler OEM clients. Our supplies for Jaguar Land Rover are expected to begin in January 2026. We now have orders also from Royal Enfield and Hero MotoCorp, and multiple RFQs are being addressed from Indian and international OEMs. This is a huge focus area of growth for us. Increased demand will require the setting up of more aluminium forging presses. We have ordered our fifth press now, which we will install next year in our new aluminium forging plant at Waluj. Our existing aluminium forging setup will also be moved to this new plant where the civil work is on.
We have begun SOP in May 2025 for the first Hero MotoCorp clutch, which peak requirement will reach 100,000 clutch assemblies per month, which we hope to do in quarter four of this financial year. In September next month, we will begin SOP also for the first assist-and-slip APTC clutches to Royal Enfield and Bajaj Auto. This introduces our Italian company, Adler Technology, to the Indian market for the first time. We are also setting up a new R&D facility for ABS and two and four-wheeler brakes at our second brakes plant at Waluj. This will have advanced test rigs focusing on higher-end two-wheeler brakes, ABS testing, including electronic tests, as well as four-wheeler brake tests. We have also secured our first order for the four-wheeler drum brakes from Tata Motors.
This is the start of a journey where we would require and deploy technology for advanced four-wheeler braking systems. Our aluminium casting plant at Vallam has won the Best Supplier Award for Excellence in Delivery from Ather Energy for the first-time right products and quick ramp-up. This is another testimony to our unwavering commitment to high levels of achievement in QCDDM. I had mentioned to you about our first order in the four-wheeler passenger vehicle drive shaft. We have begun on-vehicle testing at our captive proving ground in Chhatrapati Sambhajinagar . Our testing facilities cater not only to our current needs but also act as a pathway to reach our aspirations in new product segments. As informed in the previous calls, we completed the acquisition of the 60% stake in the Stöferle entities in Germany in the beginning of quarter one. Stöferle has an annual turnover of approximately EUR 80 million.
From April 2025, Stöferle financials are consolidated into Endurance Group financials. We had announced that under the Maharashtra PSI 2019 scheme, we received an eligibility certificate of INR 606 crore for CapEx in third till September 2025. Under this 2019 scheme, we would apply now for additional eligibility for CapEx up to financial year 2026. Based on INR 606 crore, we've recorded a PSI incentive of INR 32.91 crore in quarter one of this financial year. You will recall that we have booked almost all amounts under the INR 446 crore under the PSI scheme of 2013 and have collected cash to the tune of INR 329 crore. Let me now give you a list of orders won during quarter one of FY 2026. Please note that the business value from new orders are without including orders from Bajaj Auto.
Overall order booking in quarter one FY 2026 in India business was INR 252 crore, of which INR 247 crore is new business. This is excluding the INR 300 crore per annum business, which we have ramped up battery packs. Key OEM customers in the list of quarter one FY 2026 orders are two-wheeler OEMs such as Royal Enfield, TVS, and Mahindra. Our first four-wheeler foundation brakes business run from Tata Motors, which opens the door to a new vertical. We have won a total of INR 3,225 crore worth of RFQs in hand. Cumulative India business orders for EV segment till date stand at INR 864 crore, and with Bajaj Auto, this figure is now at INR 1,017 crore per annum. Total orders won since FY 2021 is INR 4,950 crore, of which INR 3,986 crore is new business.
Out of the INR 3,986 crore new business, close to INR 1,400 crore for SOP in FY 2025. A further INR 1,150 crore is expected in this year FY 2026. The rest of the business would be realized in FY 2027 and FY 2028. In our Europe business, we have booked orders worth EUR 2 million during quarter one. These are electric vehicle component orders for our specialties plastics unit Endurance. In continuation of the strategic aftermarket plan started with a global consultancy firm, on-ground excavations have begun across the top 100 high-potential districts in India. We also began test marketing new product ranges with a focused go-to-market approach. For exports, detailed market studies were conducted to have a robust product and channel strategy for high-potential countries.
In addition, we have introduced front fork pipes in Indonesia and Brazil, catering to both Indian and non-Indian two-wheeler platforms to further expand our range in these key markets. Coming to our financial performance, the information has been uploaded at the stock exchanges last evening, along with our presentation explaining the numbers. I will, however, highlight some key numbers. During quarter one FY 2026, the company recorded a standalone total income of INR 2,351 crore, a year-on-year growth of 10.1%. This growth comes majorly from content addition as the industry volumes were tepid in this quarter. The major content addition comes in new business, especially in brake and suspension segments with OEMs such as TVS, Royal Enfield, Honda, which is HMSI, Suzuki, and Hero MotoCorp. A significant portion of the growth in the total income is also from price corrections to compensate increase in commodity prices.
Unfortunately, the commodity inflation-based total income increase had a negative impact on our percentage margins, which is evident in the 0.5% drop in the EBITDA margin. Further, this is the period where we are investing in our future. Along with the land, factories, and assets, we are also hiring the talent required to further our multi-pronged business growth plans. The people cost increase reflects our talent acquisition, which is a strong positive for us to consolidate our growth plans in the future. Further, quarter one FY 2026 had its own seasonal and mixed factors. Therefore, the standalone profit after tax is INR 166 crore or 7.1% against INR 163 crore or 7.6% in quarter one FY 2025, which is a three-crore increase in profit after tax. Europe's top line increase in euros is 28.5%.
With the car market in Europe being 20% below the pre-COVID size, we have achieved higher sales through the acquisition of Stöferle. Even without Stöferle, our European product sales had a year-on-year growth in spite of a decline in new car sales. The European profit after tax is at INR 62 crore, which grew 42% over quarter one FY 2021 profit after tax of INR 44 crore, with margins slightly improving. In quarter one FY 2026, our consolidated total income grew 17.3% over quarter one of last year from INR 2,859 crore to INR 3,355 crore. The EBITDA grew 17.5% from INR 408 crore to INR INR 480 crore, and the margins were maintained same at last year's level of 14.3%. The profit after tax grew 11% to INR 226 crore at 6.7%.
I would like to also mention specifically that our consolidated earnings per share have more than doubled from our IPO year FY 2017 - FY 2025, that is from INR 23.48 per share to INR 59.46 per share. A high-performing inclusive culture remains core to our success. We have deepened our focus on inclusion, capability building, and employee experience through sensitization programs, upgraded HR policies, and infrastructure enhancements. Flagship skill and capability programs like Saksham, for the white-collared people, and Unnati for the blue-collared employees are helping nurture talent across levels while also grooming high-potential employees for future leadership roles. On the sustainability front, we made significant progress this year onward towards our ambitious goals for FY 2030. We achieved a 45% carbon neutral percentage. We lowered specific electrical and thermal energy, as well as specific water consumption, while water recycling and hazardous waste recycling stands at 96% each.
We also enhanced our renewable power share from 23% in FY 2024 to 25% in FY 2025. We have now increased this share to 31% in quarter one FY 2026 through expanded rooftop solar and wind power agreements. We contributed 300,000 KL of water through water augmentation projects. CSR is a strategic priority for Endurance Technologies Limited, rooted in our belief that real impact comes from reducing inequity, which means one community, one child, one individual at a time. This will help in every community we transform, every child we inspire, and every individual we empower. I'm happy to inform you that our CSR Arms Savers Trust has transformed 55 schools with solar energy and hygiene-focused facilities, enhancing attendance and outcomes while training over 900 adolescent girls in health and skills. With sustainable agriculture training, our Farmers in Parman program has benefited over 4,000 people.
ECoVE, which is a vocational training center in Chhatrapati Sambhajinagar , has imparted training to over 2,000 youth, securing over 85% employment. Our health work has reached 42 villages, serving 17,000 people, and we have built 2,300 toilets to improve sanitation. Our wet van program too has been successful, providing treatment to 40,000 animals in 47 villages. I'm happy to tell you that in quarter one, three of our plants have received the National Award for Manufacturing Competitiveness and awards for integration from the International Research Institute for Manufacturing. With these opening remarks, I would now like to invite questions from all of you. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Aditya Jhawar from Invest ec. Please go ahead.
Hi. Thanks for the opportunity and congrats on a good set of numbers. My first question is on the PV brakes business. It's a very encouraging start. If you can just be able to let us know what could be the SOP and broadly the order size. One pertinent question here is that based on this breakthrough, do you think that we could get access to other OEMs, or do we still need a tech tie-up on this? That's the first question.
Yes. Of course, it's very heartening to note too because we need a first brake, you know, to start the business. Right now, the drum brake assembly business on a per annum basis, I think the value is a small value, is about INR 25 crore. This is per annum. This will start end of quarter four is the plan as of now.
As far as the collaboration is concerned, ultimately, our aim is to go into advanced, you know, systems of braking like the ESP, for example, which is required for four-wheelers. We have a collaboration with BeijingWest industries, as you know, for two-wheeler ABS. We are totally involved with them to try and introduce this. This will take some time because there's a long lead time for the four-wheeler, you know, advanced braking systems. We are totally focused to try and get and try and increase these orders in the four-wheeler space.
Thank you for that. The second question is on our ABS opportunity. Clearly, this regulation change has come, you know, in our favor. If you can help us understand what could be the opportunity size in ABS and plus the disc brake, and how is your discussion progressing with OEMs on this?
Do you think that there could be some postponement of the timeline? When you look at a slightly, you know, few quarters, or say by end of next year, do you think that India would have enough capacity to support the ABS requirement for the two-wheeler industry?
Yes, yes. See, we are today engaged with most OEMs because there are not many players. You have Bosch, Continental, Nissin, and it is us. We are the only Indian company doing ABS. As I mentioned, what we feel is that at least 16 million, and in case not more, at least 16 million two-wheelers will need, you know, ABS. As per the draft, this thing, which we have seen from the Ministry of Road Transport and Highways, they're talking about January. If I look at the plant experience, which has happened, normally the delay could be three to six months.
Of course, we don't know what will happen. We expect that we get some clarification by next month, is what I'm told. Let's hope that happens. Definitely, I think this is here to stay. It could be three to six months of delay is what we feel based on past experience when such drafts have come in the past. We'll have to wait and watch that. As far as Endurance is concerned, our capacity was 640,000. We are expecting a tenfold growth for sure. The commitments which we have already got from certain customers, we are immediately going ahead with the two lines, which will add another 2.4 million. The lines should be ready by March 2026. As we engage and as we get commitments, we will keep adding more lines. For us, this opportunity is definitely ten times.
I also expect the two-wheeler industry to grow up because as per figures, which they say FY 2030, even if we take a small growth, I think we should reach 29 million - 30 million vehicles by FY 2030. Today we are talking about a figure of 16 million on a 22 million sales, which we expect in both India as well as in exports. This industry will also grow. At present, we feel it's a tenfold opportunity for us to go to at least 6.4 million. Looking at our technology and pricing, we'll do our best to try and increase this in the future. This is a course for Endurance , not the real game changer.
That's very good to know. My final question is on CapEx. If you can help us understand that, how should we think about CapEx for FY 2026?
In the presentation, you have included for the quarterly CapEx, but for a full-year basis, how should we think about that number? Directionally, if you can give us a sense that what could be the CapEx in 2027 and 2028 as compared to the last couple of years?
Yes. The CapEx has been growing every year to see a past track record. We have been growing. We are seeing in turbulent times, which I mentioned in my opening remarks, we have been growing both in India as well as in Europe. Europe also with acquisitions. Also, these acquisitions make a lot of money for us. If you see quarter one in India, we have spent INR 286 crore. As you know, there are three projects which I already mentioned. The big ones are the AURIC Shendra , starting in quarter four. There's a slight postponement to that.
Then you have the AURIC Bidkin, which is starting in week four of this month. We have the battery pack plan, which is starting in January 2026. Of course, we have an existing business expansion, which is going on. I see, looking at the capacities which we need to sweat also, the CapEx crossing INR 8.00 billion in this year. In FY 2028, or I would say FY 2027, definitely this figure, of course, very, very difficult to say. The question is, we believe in sweating our assets. That's why you see operational efficiency is quite good since the beginning. We only spend when there is a requirement to spend. As we look at inorganic growth opportunities also, both in India and Europe, which is actively going on as we speak, I don't see this figure, to be honest, as of now going down in FY 2027.
Of course, we at Endurance Technologies Limited will take all opportunities. We have now aluminium castings, the AURIC Shendra , which is a very good margin export plant mainly starting with EVs to start with. It's a huge opportunity if you ask me. All these are the large sales business plant, aluminium forging, which is a new product segment which is coming up. We started on the backward integration. That is starting. Battery pack in the new energy space is a good opportunity for the future. I would say, like I've always mentioned, and I mentioned earlier in my opening remarks, we don't supply all our products to all the OEMs. I just mentioned suspension and brakes in quarter one. We have really increased business for brakes and suspension. In Suzuki, there were no scooter fronts for the last year.
Now we are doing 60,000 a month from April to June. As Hero Motor Corp is concerned, it was 5,000 brakes a month. Today we have gone to 30,000 - 35,000 brakes a month. TVS, we were doing 75,000 brakes a month, not 100,000 brakes a month. Royal Enfield brakes per month have increased from 50,000 -100,000. There's a lot happening. As we increase new customers to all our product segments, that will be the biggest growth driver. It's not just the industry volumes. We are very excited because of our strengths and process product technology, as well as our ability. The trust we have created with the OEM clients of two and three-wheelers is now starting on a new four-wheeler journey. As I also mentioned in my this thing, that today we have, as of last month, started solar suspension. It's called a solar tracking system.
We have a INR 200 crore order from a Spanish client. It's INR 200 crore per annum, which will be reached, we can reach peak next year. Now we are talking to somebody else. I mean, there's a huge business opportunity for proper growth in the non-auto also. We're looking at non-auto inorganic growth also. Of course, when you talk about CapEx, there would be CapEx, high CapEx now for the ABS. I've said more than INR 800 crore, but it could go higher. We'll see what really happens because ABS is also there, which is, plus with ABS, I forgot to tell you, there are new brake systems which are coming. Because ABS requires a brake system and not a drum brake, and it will cover 50 cc. All the drum brakes will convert to ABS. Now that requires a disc brake assembly system.
Whatever orders and business nominations we are getting since this announcement, even the brake system orders are increasing. That's why I mentioned that in Chennai, we are planning to put up a brakes plant, because we can't handle it in these existing two plants. I would say there's a lot happening on the growth front at Endurance , and we are really, really excited about that.
Just one clarification. If you have to summarize what you have just said, in terms of numbers, last year, overall we spent about a little over INR 1,000 crore, including Europe business in terms of CapEx. This year, we are talking about India CapEx of north of INR 800 crore. Europe CapEx, should we assume about a INR 550 crore number, or is there an update on that? What could be the total CapEx in terms of absolute number?
Massimo, this is the thing. Because there's a lot of money which has gone into Stöferle acquisition and which will go in the next five years, like we said. They're exploring new acquisitions there. I would request Massimo to answer this question. Massimo, could you answer this CapEx question?
Yes. In the first quarter of this financial year, we spent EUR 9 million in terms of CapEx for the new projects we just launched with Stellantis and Mercedes, basically, and also Volkswagen . For sure, in this financial year, the effort in terms of CapEx will be lower compared to the previous year where we spent EUR 51 million. Due to the fact that at this moment, the market is waiting for an official position from the European government for the incentives . Everybody is holding the investment. This is positive from our side, Endurance, because we can use this and the fresh profit of the company for extraordinary operation in inorganic growth that we are evaluating after the acquisition of Stöferle. The European market, as you know, is consolidating the business.
We are part of this consolidation from a point of view on the right side on the part of the customer. We will see. For sure, the impact of the CapEx for this financial year will be 50% compared to the previous year, a maximum of EUR 20 million.
Yeah. Thanks, Massimo. I'll call back in three. Thank you. All the best.
Thank you. The next question comes from the line of Pramod from InCred Capital. Please go ahead.
Hi. First, I wanted clarification on this Europe sales. If we are to look at the stock sale, can you give a similar breakup in terms of EBITDA where it stands now? We are given a breakup of sales addition. How much did they bring to EBITDA?
Absolutely, yes. We closed this quarter with EUR 103.2 million of turnover compared to EUR 80.3 million of the previous financial year. We grew 28.5%, of which Stöferle contributed EUR 22 million. As Mr. Jain told you before, also without the acquisition of Stöferle, the European company grew more or less 1%. EBITDA we closed with EUR 18 million, which means 17.4% compared to EUR 13.3 million of the previous financial year, 16.5%. We grew in terms of EBITDA EUR 4.7 million, 35.1% compared to the previous year. In terms of net result, we closed with EUR 6.4 million, which means 6.2% compared to EUR 4.9 million of the previous financial year, 6.1%. We increased in terms of net result by EUR 1.5 million, which means 31.3% compared to the previous year.
[Foreign language]
Sorry, there is some disturbance. Yeah, the second.
Please go ahead with your question.
Sorry. The second question is with regard to the ABS side. Wanted to know, based on your experience on R&D over the last four years, what's the ideal timeline you would require to do R&D for this 100 cc and come up with a product? One. Second, what cost efficiencies or the product improvements can be brought in? Because these guys will look for a more economical solution. Do you feel it can be a better position to give a much better solution than the MNC players? How?
See, I think cost is a very big strength for us because we have our own R&D. As I've always said, it's not the performance and durability we do on R&D. We do a lot of value engineering. I've been saying over the past, ABS, stainless steel brake hoses, which used to be imported, valves which were imported, are being done in-house today. The electronic control units, which I've been mentioning, will be started from next quarter in-house. These are all ways how you lower the cost. Plus, definitely when the volumes go up, your fixed costs are spread. That also brings down the cost. I can only say that we are very strong as far as the cost controls are concerned. That's why we feel very confident already based on the confirmations we have got. We've already started the work.
We are not waiting, to be honest, for the final because final, you know, this thing to come, the notes to come from the Ministry of Highways and Road Transport. We are going ahead because we want to be ready with the capacity, which I said should be by March 2026. That's the time it takes. There are some long lead machineries of that. We are going ahead, and we'll be very far from the CapEx. That's the time it takes to set it up because I don't think that capacity is there in India right now.
Right. You also supply CBS. Incrementally, it will be a CBS vanishing and ABS coming for you, right? If I understand right.
It is not only the ABS growth, it took us a day to realize that that is also a CBS growth because ABS needs CBS and not a drum brake. You know, because it's above 50 cc now. It's 50 cc and above. For example, if scooters had drum brakes, now they'll have an ABS with a disc brake.
Right. You will lose out on the CBS, right, sir, if I'm able to understand you, and then gain on the ABS front.
No, in fact, there are many vehicles, like I mentioned, scooters, which are largely, you know, it knows a drum brake in the front. Now when you have an ABS, ABS requires a disc brake assembly. It doesn't need a drum brake. That becomes the added volume. The reason for this new Chennai plant is those volumes are also going up.
Sure.
Based on that, we immediately have started this thing. We are just planning to start the work there.
Sure. Considering your experience with the higher cc, would you still be looking at giving a full system, or would you also be open for just supplying disc brakes and capture a value with the customer? How are you trying to approach this?
No, no. See, we are a complete solution provider to Endurance. We give the whole system. What happens is some customers have a step-by-step approach. Like I said, we first try to start with the brake disc, and then they get into the brake system. That is normally what also happens sometimes. That's been a journey of the last 20 years. Further, some are directly the system, some are brake disc, and then the system. You know.
Okay. If I had to look at the current market size and the market share, how it has just traveled for you, would you give some color? What's the size of the market in terms of value?
See, value, I will not give you, but the value I can see, okay. Leaving the value apart, I just mentioned that we are gauging the market to be 16 million out of 22 million. Maybe that's a conservative figure. I don't know. That is a volume. I've seen some analyst reports talking about INR 2,500, INR 2,750, you know, as the price. Now you can gauge what the price will be.
Okay. Sure. Where is your market share currently, sir? Where do you expect to be post this 100 cc?
Right now, because we were doing single- channel on a 640,000, we were at a run rate of 400,000, which I mentioned earlier. Now, with this happening, I've already said 640 + 2.4 is confirmed. That's where we are placing the orders. We are in talks. I'm again going next week to meet a major customer. All this is in process. The order is waiting. Finally, will it be January? Will it be April? Will it be July? It will be, you know, when? Some people don't want to wait. They've already started and given commitments. That's where it stands. We have gone the thing. We are going ahead.
Okay. Sir, is it fair to say you have a single-digit market share now, and which can be substantially moving up? Is that a fair understanding to have?
Right now, not single. It would be, I think it should be about, I mean, the market size, I thought it was 3 million. I've been saying we are doing 400,000. It should be about 30% - 15%, I think.
Okay. Sure.
No.
There you go.
No, this right now is 13 - 15%, but we should now, with this higher volume, our target is at least 25%.
Okay. Sure, sir. Thanks and all.
25% of the higher number.
Yeah, got it. You are ambitious to ramp up. How do you, the last one is with regard to R&D capability, even though you have been seeding this with the R&D capability in the ABS front, how is it prepared to handle this rush of customers? How are you better placed on R&D and test track versus the others? If you can quote them.
I see. I don't like to comment about others. I would like to talk about ourselves. We are fully ready. I can only say that.
Okay. Sure. How does it compare versus when you started in ABS? Is that substantial improvement in capability on R&D side?
Yes, absolutely. A lot of learnings. Because you learn a lot from customers, your experience, lowering costs, improving efficiencies. The main thing is on the software part, the calibration of software. Right now, we used to depend a lot on our collaborative basic industries. Now, with a test rider and our internal team, we are able to do it ourselves. That's it. That's, I would say, one of the biggest learnings, and also the speed and the cost comes down.
Okay. I hope that should also substantially reduce your development time.
Yes, absolutely.
Sure, thanks and all the best.
Thank you. The next question comes from the line of Arvind Sharma from Citig roup. Please go ahead.
Yeah, hi. Good morning, sir. Thank you for taking my question. Sir, first question would be on the ABS part. Just to confirm, your current capacity is 640,000, and on top of it, you plan to add another 2.4 million. Is that, I can understand that?
Yes, absolutely.
Great, sir. Any timeline for the 2.4 million, sir?
Yes, I said March 26 we'll be ready.
Okay. So.
March 2026 we'll be ready in March 2026.
Got it, sir. March 2026, you'll have a total capacity of almost 3 million units?
Yes, yes, yes.
Got it. Sir, this Chennai facility that you talked about, that is also for ABS, I believe?
No, no. That is for, like I clarified, my opening is disc brake assembly system, which is master cylinder, caliper, disc brake disc, and brake hose.
Got it, sir. I think there's one small clarification in the presentation. When you give the number for disc brake, that includes your ABS, I believe.
Which number did I give?
Sir, in the presentation, there's this 15.5% contribution, which is given by disc brake.
Yes, that is the amount that's uploaded in the postlist registration.
Yes, sir. That is total braking, right?
Yes, yes, yes. That is total braking. Includes ABS, the 100,000 per annum we are doing.
Sure, sir. Thank you so much for the.
The reason why we now got to 640 is because of the dual channel, which is now starting, like I mentioned, from next week. That is the reason that 240 is available.
Got it. Sir, second question would be on Europe. First of all, sorry, I did not get the exact Stöferle contribution this quarter, if you could repeat that, sir, in revenue and EBITDA.
Massimo, can you clarify that?
We closed with EUR 103 million of turnover, compared to EUR 80.3 million of the previous financial year. It means EUR 22.9 million of increase in terms of turnover, of which EUR 22 million is Stöferle. Seeing about EBITDA, EUR 18 million was the actual of this financial, this first quarter, compared to EUR 13.3 million of the previous financial year. It means EUR 4.7 million difference, of which EUR 4.5 million is Stöferle. It means that also without Stöferle, the profitability of the company and also the turnover grew compared to the previous financial year: 0.6% in terms of turnover and 0.2% in terms of percentage in EBITDA.
Got it. Thank you so much. Just one last question, if I may ask. In the European ramp-up schedule that you gave in the presentation, there's been a very slight slowdown, especially in FY 2026. Is that a reflection of the broader industry environment?
Absolutely, yes. I mean, this moment is very difficult to predict the next 18 months, as you can imagine. I can tell you one more thing. In the first quarter of this financial year, the European market reached 25% of share in the electric vehicle, better and also for game. This is an important signal. We are waiting for the official position of the government for the incentive. Have you seen that Spain is the only market that is growing double-digit compared to the previous year? Only because there are incentives in the automotive. Everybody in Germany, France, and Italy are waiting for these incentives. This could be a boost for the future growth the next 18 months.
Got it. Got it. Just one final clarification. I know I'm slightly overstepping the time given, but the current revenue and EBITDA by Stöferle is only for the 60% stake. The remaining 40% is yet to come.
No, no, 100%. No, no, we are consolidating 100% of it. We are consolidating also for the Indian GAAP, the residual payment of 40% in our financial debt. These are the reasons. We are computing also the potential EUR 27 million that we will pay in the next five years due to the multiplicator of the EBITDA for the future five years. In our figures, you will see 100% of the results and also 100% of the debt due to the acquisition.
Oh, got it. Thanks for the clarification. That's all from my side. Thank you so much.
Pleasure.
Thank you. Thank you. The next question comes from the line of Shagun Behria from Anand Rathi. Please go ahead.
Hello.
Yes, ma'am. Please go ahead with your question. Your order is.
Yes. I wanted to check. Since the acquisition for Stöferle is 60%, there will be some minority interest. I want to check which line item it is reported in in the consolidated financials. That's my first question. Next, what is the opportunity size for disc brakes and pads with the new norms? What are the plans to expand market share with the new customers in ABS? Also, the CapEx in terms of disc brakes and pads and the market penetration for disc brakes currently.
Okay. For the first answer, I repeat, there are no minority interests in the acquisition of Stöferle. We are consolidating 100% of the results and also 100% of the asking and the relative debt.
Okay, got it.
Okay, your question was that on the ABS, right?
Right.
Okay. Now I'll put it like this. At present, in two-wheelers, Endurance has 43% market share in the braking system. It's mainly master cylinder and caliper. When you come to only brake disc, I think it's over 60%. Now, what is happening is ABS right now, our capacity is 640,000. As we are only doing single channel, it's 400,000 is what we are doing per annum. 240,000, we'll realize mainly from the next quarter when we start the dual channel ABS. We'll try and use up our 640,000 there. I also mentioned that the total market on 22 million should be at least 16 million on a conservative basis for the use of ABS. That is talks about above 50 cc, all brakes, including scooters.
In the 16 million, as you know, Endurance, we have started with right now another 2.4 million, which we want to reach by March 2026. Of course, I mean, our target, I said, as the 16 million is there and as it grows, we start with a 25% SOB is where we want to reach first. That is what I said. We'll go step by step from there.
Okay, thank you.
So, please.
Yeah.
Okay. Thanks.
Thank you. The next follow-up question comes from the line of Aditya Jhawar from Invest ech. Please go ahead.
Yeah, hi. Thanks for the follow-up. You know, one of the comments you mentioned about the Chinese OEM, is it included in the INR 300 crore order that we talked about in the presentation?
No, no, no.
That Chinese, we.
Sorry. Yeah, please continue.
The question.
Yeah. The INR 300 crore per annum is for the battery pack, which is for an Indian two-wheeler OEM, which I mentioned in my opening remark. That is for battery pack. What I've talked about, the leading Chinese OEM, is for supply of inverted front forks and rear monoshocks, which will start in this financial year, most probably quarter three or quarter four. We'll see how that goes. That was more of our growth other than Bajaj and KTM, you know, to get into. Like I said, TVS, we have started. Hero MotoCorp, we are starting. We're talking to almost everybody. We have got this order from the Chinese. I mean, it's the leader in, it is one of the top companies for making bikes. That rear only inverted front and rear monoshocks. The Chinese, okay.
Okay. I was referring to this order of INR 300 crore for E4 wheeler application. If I remember, that was a good clarification. You would be supplying in which market, Anurang, the Chinese OEM?
No, this will be exported to China.
China. Okay. Perfect. That's what helpful.
Are you talking about the Shendra plants to global OEMs?
There are two separate questions. One is this, AURIC Shendra , that's about the INR 300 crore order for E4 wheeler application.
Okay. I mean, it's a coincidence that.
Okay.
That INR 300 crore is for two global OEMs in the U.S. and Europe. Okay?
Okay, fair enough.
Okay. As far as the, which was the second question?
I think that's quite helpful. This is a separate INR 300 crore order in this Chinese order. If you can give some order size of this Chinese customer.
Okay. As of now, I don't have it, but it is quite a decent value. I can get back to you on this.
Sure.
The Chinese order.
Yeah.
Yeah, it will be more peak in FY 2027 as we are starting only in next quarter ending.
Perfect. All the best. Thank you.
Thank you.
Thank you. The next question comes from the line of Mr. Nishit Jalan from Axis Capital Limited. Please go ahead, sir.
Yeah, hi. My question is, you are talking about that, please, the size of ABS would be 15 million units. Now, if ABS is getting mandatory on every product higher than 50 cc, will it not be applicable in entire 22 million units? Is it something we are missing here?
I mean, there is hope so, but I've just taken mopeds that are also there in that figure.
We have taken a conservative figure of 16, to be honest.
Okay.
I mean, I wasn't sure, right? It should be in all. We are just looking at 16 right now.
See, till we get the final draft, exports might not have it.
In fact, one important point, which is just trust me. See, a lot of these two-wheeler OEMs are exporting to Africa, South America. Their ABS may not be mandatory. You know, will it just strike me that that will be rejected?
No, but the specific market size, domestic market size itself will be like 20 million+ units , excluding the exports.
See, the exports, yeah, you're right. Exports would be at least 3 million. I have to get the numbers. Would be at least 3 million.
Okay.
Your figure in 2022 could be 19. I'm saying, see, we are saying 16.
Okay.
It's a 3 million difference. We'll see how that goes. Exports may not have it. Major exports are South America, Africa, Southeast Asia, and they don't have these ABS routes.
Correct, correct. Correct. One last question on Europe, right? The stockholder acquisition that we have done, this company seems to be very, very profitable, right? EUR 4.5 million on a EUR 22 million top line. Just wanted to understand what actually happened when they were getting only 7-8%. It was not strange, right? Why were they looking to sell and what broke this M&A? What was the total amount they paid to acquire a 60% stake in this company?
Okay. The first answer is that we spent EUR 37.7 million to buy 60% of shares. Thinking about the second, the first statement regarding the profitability of the company, for sure, I guarantee that the profitability of the company is very high. For us, it was a strategic acquisition basically for the consolidation of one customer, which is Mercedes. Just to consider that this is a company that is only machining. As you can imagine, the data is you can compare the data of a company only machining with a company that's also foundry components. The profitability of the company is 20%, 18.7%, which continues to grow from my point of view in the next few years, due to the fact that now we are doing an important synergy between Endurance Overseas and Stöferle.
Due to the fact that Stöferle bought in the past 100% of the ropes to the market, now we can produce these ropes for them. Certainly, we can add in our added value, in our data, also the added value of the foundry process. This was the strategy of the acquisition of the company. From my point of view, only to give you an idea, as you know, two years ago, we acquired an important business with BMW for EUR 5 million of turnover for a new transmission 100% electric. Stöferle, we produce the machining of this component because we understood that they are the production capacity available, and we can move from Endurance GmbH , to Stöferle with this project. This means that we can save in our balance sheet more or less EUR 3.5 million of this adaptive.
These are the economies of scale that we are trying to do and that we did in the part in the acquisition when you are obliged to grow in terms of inorganic growth in a market that is not growing in terms of volume. This is the only possibility to save and to survive and to increase and maintain our profitability.
Okay, thank you so much.
I would also like to add, Massimo, as I said, even there's a machine building capability which we have acquired by acquiring Stöferle.
Sure, sure.
As you know, Stöferle produces the machine. In terms of saving for the future CapEx, it will be an important asset for Endurance because usually we are obliged to reinvest from a greenfield when we start with a new business with our customer, which definitely we can also learn and we can make experience of reusing the existing production capacity to the market. You can imagine what it means to move to transform the existing production capacity of the internal combustion engine for the future project of electric. If we'll be able to do this, we can save an important amount in our future outcome.
Okay, thank you so much. That's it from my side.
Thank you.
Thank you.
Thank you.
Welcome.
Ladies and gentlemen, we take that as the last question. I now hand the conference over to the management for the closing comments.
I would just like to close this by saying that we are really focused on profit growth. There are a lot of opportunities now. Our focus will be how we can give high-technology products at affordable prices so that we can increase the range and the volumes of our products, which were earlier meant for 250 cc, 400 cc and bring them down to a 125 cc. That will be our focus, how to gain business by even value engineering and giving more and more features to our customers, which we have done for the last 25 years. That's what I would like to say. Thank you.
Thank you, members of the management team. Ladies and gentlemen, on behalf of Axis Capital Limited, that concludes this conference call. We thank you for joining us. You may now disconnect your line.