Ladies and gentlemen, good day and Welcome to Endurance Technologies Limited Q4 and FY2025 Earnings Conference Call, hosted by Axis Capital. 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 the conference call, please signal an operator by pressing Star, then Zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Jalan from Axis Capital. Thank you, and over to you, sir.
Thank you, Manav. Good morning, everyone. Welcome to Q4 FY2025 post-results conference call of Endurance Technologies. We are pleased to host the management team. We have with us today Mr. Anurang Jain, Managing Director, Mr. Massimo Venuti, Director and CEO, Endurance Overseas, Mr. Rajendra Abhange, Director and COO, Mr. Rajagopal Sastri, Group CFO, and Mr. Raj Mundra, Treasurer and Investor Relations. I'll hand over the call to Mr. Anurang for his opening remarks, post which we will have the Q&A. Over to you, Mr. Anurang.
Yeah, thanks a lot. Good morning to everyone. I would like to say that India's economic landscape remains strong in spite of tariff wars threatening global trade and the recent situation in the subcontinent. As we observe the broader economic environment, GDP growth for FY2025 is estimated at 6.5%, lower than the 9.2% recorded in the previous fiscal. The index of industrial production grew at an estimated 4.1%. In FY2025, average inflation stood at 4.6%. Moderating inflation, coupled with higher capital expenditure proposals in the union budget this year, is expected to spur consumption and investment. As for the recent Economic Times article dated 5th May 2025, two-wheeler OEMs expect sales this year to test the pre-COVID peak, hoping that lower EMIs due to cut-in interest rates, higher disposable income due to income tax reforms will encourage the middle class to spend on two-wheelers.
Also, as for the CM report, forecasts of a favorable monsoon helping rural areas, strong replacement demand, and government support for purchase of electric vehicles would be factors for growth of two-wheelers in this financial year. The passenger vehicle sales from India during quarter four 2025 grew by 4.1% year-on-year, and commercial vehicles witnessed a 4.6% growth, while three-wheelers grew 9.1% as compared to quarter four of the previous year. Two-wheeler sales reached 5.7 million units in quarter four 2025, up 5.3% year-on-year, driven by scooters at 10.9% and motorcycles at 3.3% growth. In standalone financials for the quarter, Endurance has seen a total income quarter four 2025 year-on-year growth of 8.4%. In the European Union, new car sales saw a year-on-year drop of 1.9% in quarter four 2025, while Endurance Europe total income growth was significantly higher at 17%.
In the quarter four FY2025 industry volumes, there was a 15.2% share for battery electric vehicles, 7.6% for plug-in hybrids, and 35.5% for hybrids. While our India business is fairly insulated from U.S. markets, certain components made by our European plants do find their way into the U.S., particularly components for the higher segment cars. We await clarity on the U.S. duty structure, and it also remains to be seen if duty changes would drive consumer preference away from niche European models. Having spoken about the macros, I would now tell you about certain steps which we have taken at Endurance Technologies. We are setting up a state-of-the-art lithium-ion battery pack manufacturing plant near Pune to address the rapidly growing market demand for electric vehicles and renewables energy storage systems.
The new facility will leverage our in-house developed battery technology and also Maxwell's expertise in battery management system to make superior quality battery packs. Happy to inform you that in April 2025, we have won an order of INR 3 billion per annum from a large OEM for the e-scooter. Our offering has the advantage of better thermal stability, improved lifespan, and safety, and caters to requirements for Indian climate and road conditions. We are beginning with a small investment. Our unit is modular and automated, thereby leading to an ease of capacity addition and better cost management. We are focused on not only two-wheeler, three-wheeler, and four-wheeler programs, but also for supplies of battery packs to high-potential non-automotive sectors such as telecom, battery energy storage systems, and inverters. The SOP is planned in January 2026.
Our 2022 agreement for the acquisition of Maxwell Energies had an upfront payment of 51% shares with a plan to buy balance 49% based on a consideration linked to the financial performance of Maxwell. As of 31 March 2025, the company had purchased a total of 61.5% of the shares in Maxwell. Based on the minority shareholders' request for an accelerated sale of the balance 38.5% stake, the company considered the strategic advantages of early total control and agreed to buy the same for a consideration of INR 75 million. As a result of this agreement, the company had to reverse the liability recorded in the books against the estimated price for the balance shares to the extent of INR 913 million in quarter four FY2025.
Further, the independent Big Four valuer retained by us to evaluate the goodwill pertaining to Maxwell advises a scenario where margins in new age automotive products may normalize in the long run, which the company accepted, applying conservative accounting principles. This led to lowering the value of goodwill pertaining to Maxwell by INR 582 million. I would like to mention that our outlook on Maxwell's business and the overall electric and electronic business comprising battery packs, anti-lock braking systems, electronically controlled suspension systems, and other assemblies on our surface-mounted technology lines is stronger than ever, offering well for the profitable growth of the company. I informed you last quarter about the acquisition of Staffele entities in Germany. We required statutory approvals. We have completed the acquisition of the 60% stake and will acquire the remaining 40% over five years as per the share purchase agreement.
The addition of these two Staffele plants in Germany enhances our manufacturing capabilities and takes our total number of plants in Europe to 14. We have already begun to add new orders in this business. As mentioned earlier, from April 25 of this year, Staffele financials will be consolidated in the Endurance financials. You may have noted our recent announcement of receiving the eligibility certificate for incentives totaling INR 6.06 billion under the Maharashtra PSI 2019 scheme. In earlier calls, we had mentioned that our eligibility amount would be significantly higher than under the 2013 scheme, where we had an eligibility of INR 4.46 billion. Under the 2013 scheme, INR 4.37 billion income has been accounted till FY2025, and INR 2.9 billion cash has been received.
Our G45 Baluja R&D facility for two-, three-, and four-wheeler suspensions will be fully operational in a month, marking a significant milestone in our innovation journey. The state-of-the-art facility helps us to co-create advanced suspension solutions with OEMs, further solidifying our leadership, two-wheeler, three-wheeler technology, and supporting our growth in the four-wheeler segment. You will recall that we have a technical assistance agreement with a leading Korean player, which will help us access four-wheeler suspensions business. We have established promising contacts with leading Indian and global passenger car OEMs for this business. Faster growth in the four-wheeler segment is our key focus. Through our internal process and product technology strengths, technical collaborations, and merger and acquisitions, we aim to grow our presence in the four-wheeler aluminum casting and aluminum forgings, four-wheeler suspensions, four-wheeler brakes, four-wheeler alloy wheels, four-wheeler drive shafts, as well as embedded electronics for the four-wheelers.
It gives us great pleasure to also see the developments taking place at Chhatrapati Sambhaji Nagar, where our journey began. This includes the setting up of Auric Bidkin and Auric Shendra 10,000-acre industrial parks, the upcoming ring road, which will connect Auric Shendra to Auric Bidkin areas, where each of our new plants is being set up in quarter two of this financial year. Auric expansion by acquisition of a further 8,000 acres of industrial park land is testimony to the excellent industrial progress prospects of the region. Chhatrapati Sambhaji Nagar is becoming an EV capital with investments from large companies, including Toyota, GSW, and Aether, amongst others. At Auric Shendra four-wheeler casting plant, the SOP is from September 2025. I mentioned to you about having one business from Valeo, where our products will be part of assemblies going into Mahindra EV platforms.
Further, we have secured export business from two global U.S. and European OEMs, which I cannot name now. I would like to clarify that these are new OEMs not served by our European plants. These parts are for premium cars for EVs. Both these businesses will start in this financial year. The total order book for the Auric Shaindra plant stands at INR 2.75 billion per annum. The new alloy wheel, the new two-wheeler alloy wheel plant at Auric Bitkin, is gearing up for SOP in quarter two of this financial year 2026. This plant will have a capacity of 3.6 million wheels per annum. We have firm requirements from multiple OEMs for the same. Let me now give you a list of orders, one during FY2025. Please note that the business value from these new orders is without including orders from Bajaj Auto.
The overall orders won in FY2025 in India business was INR 11.99 billion, of which INR 10.82 billion is new business, and the remaining is replacement business. Key customers in this list of FY2025 orders are two-wheeler OEMs such as Honda, Royal Enfield, Hero MotoCorp, and Aether Energy. Among key four-wheeler orders are Valeo, Yazaki, Tata Motors, and the two large U.S. and European OEM orders which we have got at Auric Shendra. 34% of this FY2025 order booking, or INR 4.11 billion of orders, are for four-wheeler end use, and 37% of this FY2025 orders, or INR 4.39 billion, is for the electric vehicle segment. The cumulative India business orders for the electric vehicle segment since financial year 2022 onwards stands at INR 8.35 billion, and if I have to include Bajaj Auto orders, this figure crosses INR 10 billion per annum.
Out of the total orders worth INR 46.92 billion since FY2021, INR 37.34 billion is new business, and INR 9.58 billion is replacement business. Of this INR 37.34 billion new business, close to INR 14 billion has seen SOP last year in financial year 2025, and a further INR 10 billion is expected in this year. The rest of the business will be realized in financial years FY2027 and FY2028. In the standalone business, we are actively quoting and pursuing the request from quotation for an annual sale of INR 34 billion from various OEM clients other than Bajaj and across all our product segments. This also includes a significant % of electric four-wheeler OEM customers. In our Europe business, we have booked orders worth EUR 40.2 million during the year. This includes a machining order of EUR 5.2 million from BMW in our Staffele plants.
Other large orders during the year are from Volkswagen and indirect business for Rolls-Royce and Jaguar Land Rover. Also, we have one non-auto business in the pumps and electronic component space. In our subsidiary Maxwell Energies, we have one order to the extent of INR 2.5 billion. This value is after removing business from those customers who have seen headwinds, such as a sharp fall in market share. Maxwell is pursuing leads at present of INR 2.6 billion. Now, I will speak to you on our existing product segments in India. Regarding the suspension, I just spoke about the new G45 suspension R&D and our four-wheeler focus. Talks with leading OEMs are underway regarding shock absorber requirements, and one leading OEM for LCBs and MCBs, and we hope to conclude this order soon. In FY2025, we have one suspension order to the tune of INR
2,351 million per annum of peak annual sales. These are from various OEMs and for their various platforms. While some of the orders will require capacity being added or debottlenecking, we are also seeing order intake which would improve existing use of capacity and drive our goal of asset sweating. At our Nasarapura plant in Karnataka, we have planned 80% year-on-year increase in sales in this year, with new business getting started with Honda, TVS, Aether, and Ampere. New orders won in quarter four include Royal Enfield, Hero MotoCorp, and Honda. The HMCL, the Hero MotoCorp order is for inverted front forks for the Harley-Davidson bikes, with SOP planned this year in quarter three FY2026, and the SOP for the TVS inverted front forks has already started this year in April.
We have also won new orders for inverted front forks and monoshocks from a leading China-based two-wheeler company, with phased SOP planned in quarter one of this financial year. These parts have special features, including tension and rebound adjustments. Post the court-monitored restructuring scheme, the KTM Austria entities have again given their firm order schedules to us. We expect to start supplies of inverted front forks and rear monoshocks in a small way from June of this year, which is next month. In the non-auto suspension space, we are in the final stages of developing solar dampers, also for a Spanish client. In the braking segment, we have done INR 2,366 million per annum of new orders in FY2025 from multiple OEMs. In the previous quarter, I mentioned our brakes range is from 100 cc to 800 cc two-wheeler platforms.
We have now started development of brakes for a 990 cc motorcycle for a key OEM client. We have also won the much-awaited twin-channel ABS orders from two OEMs, trial lots are being supplied, with SOP planned for quarter two of this financial year. We are assembling the electronic control units in-house at our ABS plant at Chakan. Further backward integration is possible, and we wish to manufacture the printed circuit boards for the electronic control units also on our surface-mounted technology line at Chakan. We are already the leader in two-wheeler disc brake market share and plan to further expand, for which a new building at our E71 second brakes plant is close to completion. Braking too is an area where we wish to serve four-wheeler OEMs, and we hope to conclude this business soon with a leading four-wheeler OEM.
Coming to transmission, in the previous quarter, I spoke of new clutch orders from Hero MotoCorp and Royal Enfield that have enabled us to increase the annual sales of one million more clutch assemblies and increase sales value by more than INR 1,000 million per annum. These orders will see SOP in May and July, respectively, and will peak in quarter four of this financial year. For this, an assembly line expansion has already been completed. In drive shafts, we have won business from three three-wheeler OEMs and now from a leading four-wheeler OEM. We are working with these OEMs as well as others for more business across passenger and goods segments. With current capacities and increased volumes, we would invest this year in augmenting our capacity to produce higher volumes of drive shafts for both three-wheelers and four-wheelers.
In our aluminum castings business, we have won orders in FY2025 to the tune of INR 6.1 billion during the year. These orders are across two-wheeler, four-wheeler, and non-automotive business, and also for ICE as well as electric vehicle business. I've already spoken earlier about the INR 2.75 billion Auric Chhatrapati Sambhaji Nagar orders, which we have won. Non-auto orders include also the generator end use. Also, casting volumes from Aether Energy from our Waluj plant are expected to double in quarter two FY2026, and new machining assets are being installed for this purpose. For large four-wheeler castings, our new investments, both in Chhatrapati Sambhaji Nagar and Chakan, include high level of automation. At Chakan, we have a fully automated machining line with no human intervention from start to end. Also, we have upgraded four die casting cells with full automation.
At Auric Shaindra, we have used the services of our new European subsidiary Engineer, which we had acquired last year, to assist on the automation. Coming to our aluminum forging business, we have added another forging press in quarter four FY2025, taking the total to four numbers. Because of increased volume and demand, more presses will be added next year. Therefore, we are in the process to move our existing aluminum forging plant to a more spacious location at Balegaon and start. Start of production in this new plant by quarter four of this financial year. The work has already started. In the new plant, we have aluminum forging orders from Royal Enfield and Hero MotoCorp. This is in addition to our own captive requirement for inverted front forks and also for our four-wheeler export order from Jaguar Land Rover.
At our subsidiary Maxwell, we have redesigned the battery management system for Hero MotoCorp, helping us improve our product profitability and offer a cost advantage to the OEM. These steps demonstrate our prowess in embedded electronics. Apart from the battery management system, we have booked business for motor controller units and in the Internet of Things segment. The SOP is in October 2025 and January 2026, respectively. Further, there are other products at an advanced stage of development. Our focus is to keep increasing our profitable sales at Maxwell. In the Indian aftermarket business, we continue to progress on execution of our domestic strategy, which would lead us to a strong growth.
As informed in the previous call, we have begun to implement a two-year strategy with a global consultancy firm where we have revamped our distributive policy, introduced new value-add products, and enhanced our focus on expanding regional market share. During the year FY2025, we have achieved a 29% growth in the aftermarket exports. We have launched a new plan targeting additional markets with products yet not supplied to the Indian market. Our value-add products portfolio now contributes over 14% to our aftermarket sales. Coming to our financial performance, the information has already been uploaded at the stock exchanges last evening, along with a presentation explaining the numbers. I will, however, highlight some key numbers. During FY2025, the company recorded standalone total income of INR 89.1 billion, a growth of 12.5% over FY2024. Consolidated total income was INR 116.8 billion, which is a growth of 13.1%.
The company recorded a profit after tax of INR 6.79 billion and INR 8.36 billion in the standalone and consolidated books. It is important to note that our European companies have defied many odds to post an impressive year-on-year growth of 15.4% in FY2025 and a growth of 20.9% in financial year 2025 EBITDA. During quarter four FY2025, the company turned in a total income of INR 22.7 billion for the standalone company and INR 29.98 billion for the consolidated company. This translates to a year-on-year growth of 8.4% and 10.6%, respectively. The company earned a profit after tax of INR 1.74 billion and INR 2.45 billion for the standalone and consolidated company. In quarter four, our European business recorded a top-line growth of 17% and an EBITDA growth of 21.2%.
I would also like to mention specifically that our consolidated earnings per share has more than doubled from our IPO year, which was FY 2017, to FY 2025 from INR 23.48 to INR 59.46. At Endurance, our people remain central to our growth. We continue to drive strategic workforce planning, with women now comprising 8% of our hiring, reflecting ongoing commitment to diversity with a target to take female population to 10% and 15% for our blue and white-collared employees by 2030. We have undertaken specific projects with a focus on enhancing employee experience and care and well-being of them at ETL, focusing on an inclusive work culture, focusing on best-in-class HR policies and building up talent by helping upgrading, focusing on skills and capabilities and leadership potential of our people. On the sustainability front, we continue to advance our commitment to sustainability and community impact.
This year, we made significant progress towards our ambitious sustainability goals for financial year 2030. We achieved a 45% carbon-neutral percentage. We lowered specific electrical, thermal energy, as well as specific water consumption, while water recycling and hazardous waste recycling stand at 96% each. We also enhanced our renewable power share from 23% in FY 2024 to 25.2% in FY 2025 through expanded rooftop solar and wind power agreements. We contributed 300,000 kiloliters of water through water augmentation projects. Six of our plants completed zero waste-to-landfill assessments with platinum ratings in third-party assessment. Education, health and sanitation, environment and livelihoods continue to be at the core of our CSR focus. Through our Save a Trust, which is our CSR arm, we have transformed 54 schools with solar energy and hygiene-focused facilities, thereby enhancing attendance and outcomes while training over 900 adolescent girls in health and skills.
With sustainable agriculture training, our farmer empowerment program has helped over 4,000 people, and our ECOV vocational training center in Chhatrapati Sambhaji Nagar has imparted vocational training to 1,900 youths, securing over 75% employment. Our health work has reached 42 villages, serving 17,000 people, and we have built 2,300 toilets to improve sanitation. Our wet-wan program too has been successful in providing treatment to 40,000 animals in 47 villages. This year, we have started with one village by creating a green energy village by providing rooftop solar energy units to 100% of households, promoting sustainable energy access. Endurance continues to earn accolades from its OEM customers as well as industry forums.
Some of the key awards and recognitions in this financial year were making it to the 2024 DET Hurun India Manufacturing 400 list compiled by the Dubai Department of Economy and Tourism in partnership with Hurun India, winning the Innovation Award at the Mahindra Vendor Meet, ranking 32nd amongst Fortune India's future-ready workplaces, getting the Ford quarter one certification for our casting and machining plant at Chakan, winning platinum and gold awards for our two brake plants at Baluj at the Bajaj Auto Vendor Meet, the CII Intellectual IP Award 2024, and the ASSOCHAM IP Excellence Award. With these opening remarks now, I would like to invite questions from all of you. Thank you.
Thank you very much, sir. 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 withdraw 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 opens. I repeat, if anyone wishes to ask a question, you may press star and one. We have a first question from the line of Aditya Jhawar from Investec. Please go ahead.
Yeah, good morning. Thank you for the opportunity and congrats on a good set of numbers. My first question is on our lithium-ion battery pack assembly. Can you throw some more light on it in terms of any commitment from any OEMs? Did you mention about a INR 3 billion order win for e-scooter pack?
Yes, yes.
Okay, okay. Can you just throw some light on the margin profile of this business as compared to the main business? Do you expect that the ramp-up in Maxwell could accelerate because we are providing more value-added service? Can you throw some more light on it?
Yes. I will not be able to talk about the margin as this is sensitive information, but yes, we have won a INR 3 billion order from a leading two-wheeler EV OEM. This was in April. This is going to be a huge growth opportunity not only for two-, three-, and four-wheelers but for other industries like telecom, inverters, battery energy storage systems. We are very excited. This will help us to, this will help also to, it is a forward integration from Maxwell because, as you know, the battery management system is the heart of our battery pack, and we have done forward integration with our own technology. I would also request Mr. Pranit Parekar, who's from our senior management team and a key person for our battery pack plant, to explain further on this. Pranit, are you there? You can throw light on what we are doing at the battery pack plant.
Yeah, please.
Yeah, so we are right now setting up a plant one with two different lines which are fully automated. One line will be used for cylindrical type of cell, which will be starting from 18650 to it can accommodate up to 46120 or even 46133. The second line will be making packs on the prismatic cells, which will be starting from 50H prismatic cells to 675H prismatic cells. It is also designed for making packs for two-wheeler, three-wheeler, four-wheeler, as well as battery energy storage systems, UPS, and telecom battery packs. The line is already getting installed with AGVs, and it is capable of handling low voltage as well as high voltage battery packs. The technology, yeah, the technology that is being used, yeah, it's basically an IP-led technology. A battery is designed, developed by completely Endurance in-house.
Okay, that's quite helpful. My second question is that you mentioned, Anurang, about a INR 3.00 billion order win on e-four-wheeler application from international customers. So Valyu and Yazaki, you called out specifically. Can you talk a little bit about what are the products that we are doing for all four of them and which market we plan to supply? And a little bit more color on the new U.S. and EU OEM, whatever you can share.
See, three of the customers, which are Valyu and the two other OEMs, which I cannot name, but they are leading global OEMs, I mean, in the world, I would say. These are products mainly for EVs. And these are castings like your end caps, and there are, okay, I mean, I cannot mention all these names. These are castings required for EVs. Very critical parts. Very key parts, very, and I think when the plant is ready to start in September, you all can come and see the plant in Aurikshendra at Chhatrapati Sambhaji Nagar. You can say that most of these orders are for EV platform. The two global OEMs in United States and Europe and Valyu. Valyu, I mean, I mentioned it is for Mahindra. Functionally extremely critical. And functionally extremely important. Extremely important.
Which two are you going to be supplying?
Let me just tell you, the margins here, I will say, are much higher. Much higher. I want to just put this on record.
Sure. These would be exported to the U.S. and Europe, right?
Some would be for India, like I said, Mahindra, but the other two will be exported.
Okay.
These are not, and these customers are not those customers which our European operations are supplying to.
Okay. Okay. Fair enough. If you can give us a little bit of an update on the four-wheeler suspension technical type that we have done, how has the customer engagement been? Any timeline of commercialization? Any indication on what kind of customers we are talking to? Any further update on it?
Yes. I mean, I'll start and I'll ask Mr. Rajendra Bhange, our Director CEO, to speak further. These are all the leading OEMs in India. Also, I would just say that for the time being. Very closely engaged with them. Already, as we speak, their all-in-one plant audits happened. We are at a very advanced stage, but I'll request Mr. Bhange to speak on this. This is only suspension right now, two-wheeler suspension.
Yeah. Yeah. Okay. Thanks for the question. The suspension, as you know, is one of the most critical parts for vehicle dynamics and also for the safety of a passenger vehicle. Our tie-up with this company, which is already explained, is one of the leading players of suspension manufacturing who has delivered over 10 crore shock absorbers all over the world and a highly experienced company. We joined hands with them sometime January this year.
When we approached the OEMs, all of them are completely excited about our association with this company, looking into their profile and looking into their product lines. This space in India is a little bit empty. There are not too many players because these products are not easy to handle by the tier-one companies. Therefore, there is a huge traction from most of the OEMs. Wherever we have gone, they have welcomed us, and they have actually told us to speed up the development process of these products. As you know, this suspension development takes a long time. It has to undergo a lot of vehicle tests. It has to undergo a lot of durability tests. Currently, we have three programs in discussion, and most of them are going to be very serious projects.
The development time, as you asked the question, could be anywhere between eight months to twelve months. During this time, we'll also decide the location of the plant. It will require a greenfield facility. All those things will be decided in the next three to six months' time.
Yeah, that's quite helpful. Thank you a lot, sir, for that. Final question is from Massimo. A fantastic delivery in FY 2025 considering the backdrop of Europe. If you can give us some sense, then how should we expect overall industry in FY 2026? What are the big order wins that might come for execution, and what is the growth expected of Endurance European business in FY 2026?
Massimo, are you there? Because he had landed in Munich in the morning.
Can you hear me now?
Yes, you can hear you. Okay.
Regarding the situation in Europe with the restriction for the next financial year, Aditya sir, have you seen the last quarter? Even if all our car makers, all our customers, our portfolio reduced the registration for companies that we see are in the Endurance Overseas may be able to grow. 35% is the last 60% which was driving growth due to the new business acquiring while we started the production capacity in the last two years. Frankly speaking, I'm hoping it's also for the next quarter that we'll be able to grow without considering the acquisition of Staffele. My continuous success is strategic because thanks to this acquisition, we will raise more or less 25% of the customer portfolios with Mercedes and Stellantis is 25% of total business. 25% is wow. In this moment, the situation for. It's a month to month-to-year is 23.4% compared to the previous year and also the company. We deal in an important way thanks to Adidas. We closed the previous quarter with 18.4%. If I compare with the same level of aluminum, the Adidas should have been 18.8%. Despite an increase of energy costs compared to the previous quarter, the quarter of the last financial year that affected our Adidas 1%. From the point of view, we came back in the normal in the historical profitability of Endurance Overseas with more or less 20%. The net result was 5.9% in the quarter, and we reached the total Adidas in the financial year of 17%. From the point of view, this is not so bad considering the situation in the European market. I continue to be optimistic for the future quarter because, I repeat, there is an important acquisition of business that we have done in the past, and also the EUR 40 million we are acquiring this financial year can support us to perform better compared to the market.
Sure. I think thank you. That's it from my side. I'll fall back in queue.
Yeah. Thank you, Aditya sir.
Thank you.
Thank you. We have a next question from the line of Mumuksh Mandlesha from Anand Rathee Institutional Equities. Please go ahead. Yeah.
Thanks for the opportunity and congrats on a good set of numbers. Firstly, on the suspension side, you mentioned about the first order for solar damper assembly. I just want to understand the size of the order, the opportunity, the space, and what is driving the opportunity in this space, sir?
Yeah. This is the Spanish client. The order for solar dampers.
Yeah.
What is the opportunity and what is driving this?
Okay. A good question. Thank you very much. As you know, we always aspire to divest our business out of two-wheeler. One of the areas is four-wheeler, definitely, which we already spoke about. We also are exploring areas which are non-auto. One of the success stories is that we are getting into the racking system for the solar panels, which is a very high-tech kind of a system that requires to maneuver the solar panels during the course of the day, and it has to work according to the direction of the sun. This entire racking system we are going to produce, the technology that we applied is from our knowledge of automotive engineering. It is an extension of what we already know. It is not very difficult for us. No collaboration, nothing is needed. The company that approached us is a Spanish company who is the world's third-largest solar panel system supplier. It is a global company, and all the audits and everything has happened, and we are expecting the commercial production to start in the next quarter from one of our plants for supplying to India, Saudi Arabia, and the United States. These three areas will be supplying. The question about the technology, when you speak about what is different than the automotive, is that these products are, from the size perspective, very big. They are very long ones.
They're more than the height of the human. It has to operate in the field for nearly 25 years without any substantial maintenance. We have validated our products in our lab with all kinds of tests according to the customer specifications. All the machinery is getting into place, and the commercial supplies will start now within the next two to three months' time. The first supplies, I think the order has already come. If you ask about the potential, the potential is enormous. We are going to start in a small way. I would say in a range of anywhere between INR 250 million-INR 500 million this year. The goal is to get to over INR 5 billion-INR 10 billion business in the next two to three years' time.
That would be a huge number, sir. That kind of a big scale for the non-auto business, sir.
Yes.
Got it, sir. Sir, on the Aurik plant, I just want to understand how will this ramp-up of INR 2.75 billion order would happen, sir, with the second half of the plant is starting, sir? Over the next two years, what kind of revenue can we expect, sir?
See, the peak of this INR 2.75 billion will reach in FY 2027 is what our target is. As we speak, we are also in touch with other customers to take more orders. The customers are also in a real hurry to get these supplies started. In fact, one of the customers was there last evening at Aurikshendra, actually, two days. They have done the audit and are quite happy. In fact, the trial lots already have started. I just want to let you know. It is only that mass production is in September. Already, we are supplying smaller lots.
As you know, this has a special process also, which is, I think, first time in India. It is a surface treatment process. The potential is enormous. We are going to go step by step. We are very excited about this, actually. Maybe after September 2025, we can invite all of you to come and see the plant.
Yes, that would be great, sir. Thirdly, on the alloy wheel business, this space is seeing very strong growth led by input substitution. Also, we are seeing an increasing number of players who enter in this space. I just want to understand how this business margins or the ROC stands versus how the company currently does, sir.
No. The way I would put it is our focus is to see that the margins are in line with the company. That is our target. We have made a lot of efforts based on the product mix and the operational efficiency to see that we are able to do it. We have gone in for more automation, which requires less, I would say, dependence on people, which you will see once the plant will start. We are making our full efforts. We have learned from the past, our experience, and seeing that the margins are in line with what we make in the company. As far as the space is concerned, we are aware of the competition. When we take new orders for these alloy wheels, we are definitely in, we have full clarity from customers who is the competition and what is the share of business. There is no doubt about that. There may be a number of players. I am in agreement with you.
As far as we are concerned, we have a clear-cut sight of our share of business and volumes, what we will get, subject to, of course, the customers doing those volumes. If they do more, we get a higher volume. If they do lower, lower. It is very clear, the share of business.
Got it. Got it, sir.
We are not concerned about that, this thing at all.
No major margin pressure, it would be fair to say, sir? Got it. Yeah.
See, I have always said in the past also, price, of course, is very important. It is dictated by the competition. It is also important about your operational strategy to make that money. Whether it is your raw material purchases, whether it is your operational efficiencies in the plant, your manpower cost. Look at means on, so it is up to you. What is the kind of model which you run? And that's what Endurance has done for the last 30 years. The price, of course, is very important, but it's just not the price. It is a strategy which we have followed both in Europe and India, which makes us a bit different, I mean, without sounding this thing, but a bit different from others, from most others.
Got it, sir. Finally, on the state incentive, sir, the annual number should be around INR 870 million. I just want to check, this INR 380 million for this quarter, did it include any earlier quarter number as the scheme started from second half, sir? Will that INR 870 million annual number, going ahead, be uniformly spread across the quarters, or would it be bunched up in a few quarters, sir?
Are you understanding? Yeah. We will have Rajagopal Sastri, our Group CFO, answer this.
So we did book a total of INR 380 million in quarter four. And this is because the scheme, we got the eligibility certificate effective 1st of October. The number is slightly more than the average. We are expecting, based on, so the total eligibility certificate received by us is for INR 6.06 billion. And we are expecting that in the year, it should be anywhere in the range of INR 650 million-INR 700 million, we should be able to book, maybe INR 750 million also. Generally, this is a function of the quantum of state GST which we are paying. Given the current rate of how we are paying the state GST, we do expect that in the first two quarters and a little bit in the third quarter, we should be booking that in the year.
Got it, sir. Thank you so much for this. That's all from my side.
Thank you. We have our next question from the line of Pramod Amthe from InCred Equities. Please go ahead.
Yeah. Hi. Thanks for taking my question. This is with regard to the battery pack. Just wanted to understand what is the value-add proportion you are planning in terms of the sales value and what are these items? One. Second, what is it you are bringing onto the table in terms of designing battery pack as compared to established players in the system?
Okay. I will request Mr. Praneeth Parekar to answer this. Praneeth, can you answer this?
Yes. Yes. Yes. There are a lot of technologies that we are bringing on the table from Endurance side. The uniqueness of a temperature monitoring system which we, so there are multiple patents which are going to be filed or even some of them are getting applied also. Basically, CCS, which actually does the cell-to-cell contact system, is a very unique technology which allows the connections to happen more proper with the resistive mapping algorithm and also allows a very high rate of thermal discharge from the cell to get it from the cell to the enclosure. Believe me, these battery packs are very uniquely designed and a specific technology which makes it a wire-free battery pack. We do not use wires to connect the cells or even voltage sensing lines or temperature sensing lines. Everything is wireless, done through a very unique IP-led technology. The enclosure design is also unique in such a way that it allows the thermal propagation or the thermal transfer at more than 5 watt per meter Kelvin. I know the industry has more players, like bigger players in the battery industry, but this lithium-ion technology is very, so the large unmet need of high-quality, robustly engineered battery systems is basically encouraging Endurance to bring in-house developed IP-led battery design. That's what I can say, that there is a huge demand for high-quality, robustly designed battery packs. These batteries which Endurance is making, we are making it so that these batteries will work for more than 10 years without having a maintenance to it and keeping the R&D on a continuous path for making it ready for making next-generation battery packs.
Okay. Thanks for that explanation. Can you give some color in terms of what's the value-add as a proportion of the sales value? Because there's a lot of bottled in terms of sales and all, right?
Value-add, we cannot tell you, but we can give you what is generally the price range which is there, which can go for, I think, from INR 25,000-INR 45,000 for, I think let Praneeth answer that. What is the normal range for two-wheeler battery packs?
Yeah. For two-wheeler battery packs,
Correct.
For two-wheeler battery packs, it starts from, let's say, INR 15,000 a kilowatt, and it goes up to INR 45,000-INR 50,000 for packs which are like 4, 5, 6 kW worth. For 3 kW, the major Indian market is on 5 kilowatt to 15 kilowatt, which starts from INR 30,000 to INR 100,000 per battery pack. If you ask me about the value-add, it is basically the quality and supply chain, a strategically developed supply chain with good partners for cell supplies, as well as keeping it on a very high-level negotiations on the cell values and proposition for OEMs so that the volumes which are increasing in India will be supported by Endurance.
Sure. These cells, you will procure them, or the OEM will approve it, and you will be just procuring from those sources? How does it work?
No. Endurance believes that we will be designing the pack. There are two ways to do the battery pack. One is basically build-to-print, and second is basically build-to-specs. The orders which we are right now getting is build-to-specs so that the design and the cell selection, as well as our proprietary BMS, is basically selected by Endurance only. We have very strategical tie-ups with cell manufacturers throughout from China, South Korea, Japan, as well as we are also talking to the companies which will be making cells in India. We are actually very aggressive in having the supply chain managed such a way that we should give a very big advantage in terms of costing to our OEM partners.
Sure. Thanks. The second question is with regard to KTM supplies. Considering that KTM itself is going through a restructuring, do you have any direct exposure there, and how do you look? Do you have to make a provision there per se or not expected?
We have already made a provision of INR 5.30 crore in quarter four FY2025. The provision was already made of INR 5.30 crore, which was made in quarter four of FY2025. Going forward, we are not worried because, see, as far as the assets are concerned, if something goes wrong, they are very flexible. They can be used for other, this thing, OEMs. We are not worried. Inventories also, it is not such a figure that we are, this thing, alarmed about. Having received this first set of firm orders, we are quite confident that some good things will happen. I think we will be knowing this after 23rd of May when the last court hearing is there.
Sure. Sir, the last one is with regard to the EV castings. As you disclosed the name of Valeo, which seems to be in the e-axles or transmissions of the EVs. Are the two clients, so you are making more inroads into EV axles? Is that the fair understanding on castings?
It is not only axles. It is also other casting products. Because for the other two customers, it is other castings. It is not for e-axles. It is others. I mean, there is a huge range, and this is really a very, very, I can only say, very, very exciting opportunity. It is a new world we are entering. Castings, we are very strong on castings, as you know. Engineering our own tool room, we are very strong there.
It is not just the drive tent products. It is also the other parts of the vehicle because in EV, aluminum content is very high. It is a lightweighting material that already I have spoken in the past.
Okay. Sure. And sir, last question if I can ask. When I look at your key customer profile for FY2025, the big gem seems to be the VW Group per se, moving to almost like to emerge as the second largest for you. What has gone right for you to win there, and what's the headroom you expect there? Because it's a big entity to approach, and there's a lot of headroom for you to grow there. How are you looking at it as an opportunity?
Okay. This question can be better answered by Massimo. Massimo, are you there? Okay. He may not.
Hello?
Yes, we can hear you.
Yes, we can hear you.
Okay. Now, when we speak about Volkswagen Group, it doesn't mean only the brand Volkswagen, as you can imagine, because you have to consider that more or less, even 25% of our total turnover, we have 5% of Audi, 9% of Porsche, and the difference is Volkswagen Group. Because as you know, we produce internal combustion engine, transmission components, and electric components for all the brands of Volkswagen, including Skoda, SEAT. We are not worried about the situation for the future also because we are speaking about a brand very strong in the European market. For sure, in this moment, we are suffering, some brands are suffering for China situation as Porsche, Audi, and also for the U.S. in the United States. Despite the reduction, I repeat, despite the reduction of registration compared to the previous year, we grew with Volkswagen Group 60% due to the new start of production of the business in electric field that we acquired in the last three years. We started in March, September, and December of the previous financial year with this new business. The total amount is EUR 70 million. Our expectation is to grow, to continue to grow also in the next financial year.
Sure. Thanks and all the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Arvind Sharma from Citigroup. Please go ahead.
Yeah. Hi. Good morning, sir. Thank you so much for taking my question. The first question would be on the India business. What are your CapEx plans for FY 2026? Also, given that there is so much CapEx Endurance is doing on four-wheelers and non-autos, what would be the broad direction impact on returns and margins? That is the first question, sir.
Okay. I will request Raja Shastri to answer this.
If you see what we have uploaded in our presentation, we have invested close to INR 6.11 billion in FY 2025. Quite a few of them are the growth and strategic projects which are still in their gestation period. There will be investments in FY 2026 also to complete those projects, which is our Auric Chandra, Auric Bitkin, and also certain investments for the battery pack which we have announced. I will not be able to give you the exact number, but it is going to be a significant number of CapEx even in FY 2026. As the Managing Director mentioned, quite a few of these projects are starting their start of production in the second half and also the third, fourth quarter of this year. That would mean better revenues as we go forward. Also, given that quite a few order wins of about INR 35 billion of the past have seen the SOPs in FY 2025, and another 30% are seeing the start of production in FY 2026, all these augur well for our revenues and also the bottom lines in the coming year. All the investments we are making in the past will see some effect in FY 2026, but definitely much bigger effect in FY 2027 and going forward.
I will just say that the product mix is improving. The product mix is improving.
Sure, sir. Thank you so much for this. Sir, second question would be on Europe. Sorry, I might have missed it. But if you could just share the revenue and EBITDA in EUR terms, as well as the broad outlook for the European markets, including the Staffele acquisition.
Okay. It is a margin issue there?
Sure. Yes. We closed the previous quarter with EUR 80 million turnover in Europe, compared to EUR 68.3 million of the previous financial year, with an increase of EUR 11.7 million, which means 17.1% of the increase in terms of turnover. We closed the EBITDA with EUR 14.7 million, which means 18.4%, compared to EUR 12.2 million of the previous financial year, with an increase of 21.1%. In terms of net results, we closed with EUR 4.8 million, 5.9%, with an increase of 19.5% compared to the previous year. Speaking about the total financial year, the company closed for the first time with EUR 304 million, with an increase of 15.5% compared to the previous year. The EBITDA was EUR 51.1 %, which means 16.8% total financial year, more than 20% compared to the previous year. The net result was EUR 16.3 million, which means 5.4%, with an increase of 16.3% compared to the previous financial year. This quarter was, from my point of view, the best of the history of Endurance Overseas in terms of turnover and also in terms of profitability. Because as I told you before, if I do a statement of the energy costs and also the increase of material costs, the EBITDA should have been more or less 19.5%-20%. It is a very good performance, and the expectation for the future months is to try to maintain this performance in the total year, also with the improvement we arrived from Staffele with about EUR 80 million turnover and with a leverage of EBITDA of 16%-16.5%. We are optimistic that we can maintain the profitability we had in the previous financial year and for sure improve the situation.
Got it. Thank you so much. Thank you for sharing that. That is all from my side.
Thank you.
Thank you. We have our next question from the line of Aniruddha Matej from Standard Chartered Bank. Please go ahead.
Hello.
Hello.
Yeah. Thank you so much for the opportunity, and congratulations on a good set of numbers. I had just one question to understand. Basically, at a consolidated level, what sort of revenues would be driven from the U.S. markets which might get affected because of possible tariff implications?
In India, we do not see anything. In Europe, I can request Mr. Massimo Venuti to speak because, like I mentioned in my opening remarks, there could be some of our products going into premium class which may be exported to the U.S. I think he is a better person to answer that.
Yes. We are not speaking about a big issue for Endurance because the total turnover could be something like EUR 25 million because, as you know, we produce a lot of components for small engines that are not so appealing in the European market. Please consider also that our customers, as Mercedes and BMW, are producing specific models, the G3 and also the series M of Mercedes and the series X of BMW in the United States. This is absolutely positive because it means that they produce in the United States and they export in Europe. We can try to compensate the impact of the duty for these EUR 20 million. I repeat, we are thinking about Phoenix. The only customer that can be affected for sure in the United States and also for the situation in China, unfortunately, is Porsche. As you have seen, they lost 30% of the market share in the previous financial year. It is including these EUR 25 million that I told you. \
Okay. Thank you. We have our next question from the line of Niril Parekh from Awriga Capital Advisors. Please go ahead.
Hi, sir. It's a fantastic set of results. I have two questions, both on the Europe geography. The first one is with respect to the acquisition liquidated of Sofirin. It has 60% of its revenue where he is a sole supplier. For the last three years, based on my rough calculations, we were growing Europe geography sales at around 8%-10%. With this acquisition and cross-sell opportunity for the next three to five years of the combined business, do you foresee a better type of mid-teen level of growth?
Massimo?
Yes, I understand very well, but I'll try to answer. The acquisition of Staffele, as I told you, is more or less EUR 80 million. The expectation is we close this financial year with EUR 300 million. Our target for the next financial year is to try to reach more than EUR 400 million. In this moment, it's very difficult due to the situation of the market. I can tell you that the first month, April, and also the forecast for the future month, we are thinking about May, June, and July, are absolutely positive compared to the previous financial year, in terms of turnover and also in terms of profitability, considering 16.8% that was the leverage of the previous financial year in terms of the business.
Got it. Got it. Another question which I had was, within the European geography, are we in active talks with any of the Chinese OEMs, and have we received any SOPs?
I'm sorry.
Anything from Chinese OEM? He was asking, have we received anything from Chinese OEM?
Have you got any orders from a Chinese OEM?
Oh, sir, his line is dropped. Just give me a moment. I'll connect him back.
Hello.
Yes, Massimo, sir. Sorry.
Could you repeat the question, please?
Sure. I was asking you about progress with Chinese OEMs.
Progress with Chinese?
Yeah. Any progress with Chinese OEMs?
Sorry, Massimo sir, disconnected again.
So Niril, right now, we do not have orders from Chinese OEMs, but yes, there are some Chinese OEMs with whom we are in discussions.
Okay. Fair enough. Thanks a lot. That's from my side.
Okay.
Thank you. Thank you. As there are no further questions, I now hand the conference over to the management for closing comments. Over to you, sir.
No, no. Thank you. I just want to, I've said everything in the opening remarks, but as Endurance, we are very, very optimistic about the future, and the opportunities are there. We are really excited about this thing. I'll just leave it at that. Thank you, everybody, for your time and coming for this call. Thank you.
Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.