Ladies and gentlemen, good day, and welcome to Endurance Technologies' Q3 FY 2026 Results Call. 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 then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit from Axis Capital Limited. Thank you, and over to you, sir.
Thank you so much. Good morning, everyone. Welcome to Q3 FY 2026 post-results conference call of Endurance Technologies. We are pleased to host the top management team of senior management 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. Raja Gopal Sastry, Group CFO, and Mr. Raj Mundra, Treasurer and Investor Relations. I'll now hand over the call to Anurang for his opening remarks, post which we can move to the Q&A. Over to you, Mr. Jain.
Thanks a lot. So, so good morning, everyone. As we close quarter three of FY 2026, India's economic backdrop remains strong in a complex global environment. The government's first advanced estimates project real GDP growth at 7.4% for FY 2026, supported by sustained private consumption, steady investment activity, and improving services and manufacturing output. The World Bank has also raised its FY 2026 growth forecast to 7.2% and retained its FY 2027 forecast at 6.5%. Inflation has remained within comfortable limits, and monetary conditions have been broadly stable through the quarter. The RBI had lowered the repo rate in the last quarter by 25 basis points to 5.25%, thereby lowering borrowing cost and supporting consumption and investment. In the full year, 2025, the repo rate was lowered by 125 basis points.
In the bi-monthly meeting held in February 2026, the repo rate was kept unchanged, and RBI has cited that the trade deals are expected to boost growth. On the domestic policy front, the GST rate rationalization, implemented in September 2025, has continued to support consumption. The simplified slab structure and lower rates across most of automotive sector, including auto components, have improved affordability and lowered the cost of ownership, contributing to strong industry sales numbers well beyond the festive season. India's growth will be supported not only by strong domestic demand, but also international trade, where key trade agreements are taking shape. India and the European Union announced a free trade agreement last month, which is being acclaimed as extremely important for both.
Last week, India and the USA announced an interim agreement framework on reciprocal and mutual beneficial trade, and this is expected to progress into a more comprehensive agreement, offering greater market access, new opportunities, and lower uncertainty for business. Global growth in 2026 is expected to be more moderate due to softer demand in advanced economies and slower trade expansion amid ongoing geopolitical and trade uncertainties. In the Indian automotive sector, as per SIAM, two-wheeler sales reached 7.1 million units in quarter three FY 2026, up 18.2% year-on-year, with motorcycles at 14.7% growth and scooters at 26.6% growth. Passenger vehicle sales increased by 19.2% to 1.5 million units, while three-wheeler sales rose 29.9% to 0.34 million units.
Clearly, the GST cut impact has continued beyond the festive months. In the European Union, new car sales saw a year-on-year rise of 4.6% in quarter three of FY 2026, with Germany and Spain recording high single-percentage growth. Italy was flattish, while France recorded a degrowth. In quarter three of FY 2026, new car volumes in Europe, there was a 21% share of battery electric vehicles, 10.6% share for plug-in hybrids, and 34% share for hybrids. So, roughly two out of every three vehicles sold in the European Union are either electric or hybrid. On the strategic growth front, we are pleased to share key updates. As you are aware, the government had issued a draft guideline in June 2025, mandating ABS for greater than 50 cc two-wheelers and all EVs greater than 4 kW motor power.
We are awaiting the final guidelines for the same, which we hope should be clarified by end of this quarter. Since ABS is already mandatory for more than 125 cc two-wheelers, we expect the incremental demand to come largely from the 125 cc and below segments, with single channel ABS, where we have over four years of strong execution experience. For the dual channel ABS program, SOP is now expected to start next month, as we await the final clearance from a key OEM customer. To help increase our profit margin on ABS, the electronic control unit or the ECU. The in-house SOP for the single channel ABS is expected to begin in quarter one of FY 2027 on a surface-mounted technology line at Waluj Sambhaji nagar. The dual channel ECU will follow later in the same financial year.
We are installing a new SMT line, or a surface-mounted technology line, as we expect volumes to substantially increase with this new line in H1 of the next financial year. Civil construction for the Chennai plant for disc brake systems is at an advanced stage. Key machinery will be installed from Q1, FY 2027 onwards, and the SOP is planned for Q2, FY 2027. The plant will have a capacity of 3 million disc brake assembly systems per annum, and 4 million brake discs per annum, as part of the total 7.6 billion disc brake systems and 8.6 billion brake discs planned at Endurance. The location will help us better serve our OEM customers in South India, while creating space at our Chhatrapati Sambhajinagar plant for the new ABS expansion and the four-wheeler brakes business.
Our new integrated R&D facility for brakes was commissioned in January 2026 at Waluj, Chhatrapati Sambhajinagar, and we will be fully operational in this quarter. This facility is double the size of the existing one and integrates two-wheeler brakes and ABS R&D, with space provision for testing of four-wheeler brake assemblies. Apart from transferring several key equipment from the existing R&D facility, we have added key lab and testing machines for ABS validation. We also installed an assembly line for four-wheeler passenger vehicle drum brakes for Tata Motors, which SOP is expected in quarter one of FY 2027. In addition, we are increasing our three-wheeler brake volumes from 0.6 million to 1.2 million units per annum.
Our new Auric Shendra plant at Chhatrapati Sambhajinagar is a strategic investment for key machine castings for global and Indian four-wheeler electric vehicle and ICE OEMs, as well as for non-auto applications. We are therefore equipping this plant with highly sophisticated aluminum casting, machining, and finishing process equipments. In the past, as mentioned in the past, we have already got orders from marquee U.S. and U.K.-based OEMs, along with Yazaki and Valeo for electric platforms of Mahindra. With peak annual business value of INR 388 crore per annum for this plant, where the SOP for both U.K. and the U.S. OEMs will start by quarter two of the next financial year, with peak sales expected in the financial year 2029.
At our Chakan die casting plant, we are growing our business for machined aluminum castings for existing and new programs of Tata Motors and Mahindra. The business won in this financial year for these programs stand at INR 128 crore per annum. We are proactively also ensuring better use of our four-wheeler casting and machining capacities across our Chakan and [Shirwal] plants to balance these volumes, ensure flexibility, and improve the overall sales volume growth. At our two-wheeler alloy wheel plant in Auric Bidkin, we have already booked 100% of capacity earlier to the SOP, which started in October 2025, starting for Bajaj Auto alloy wheels. Supplies to Royal Enfield will start in quarter 2 of FY 2027, and supplies to Suzuki and Ather are expected to begin by quarter 3 of FY 2027, reaching peak order wins sales in quarter three, FY 2027.
During quarter three, our battery pack manufacturing plant near Pune made significant progress with successful completion of assembly line factory acceptance test and installation of key imported equipments. Assembly line installation and trials were taken during this quarter. Comprehensive battery pack validation and electric vehicle safety compliance testing will be concluded during this quarter. Post our OEM and the regulatory approvals, commercial ramp-up activities will be started to support the SOP from end of March 2026 or early April 2026. We will also pursue additional opportunities across two-wheeler, three-wheeler, and other high potential segments. So all the above four greenfield plants, which I mentioned, will be fully operational over the next few quarters, and you can feel and we will feel the full impact in the second half of financial year 2027.
In the first nine months of FY 2026, our wholly owned subsidiary, Maxwell, achieved a record turnover of INR 114 crores, as against INR 70 crores in the full year of FY 2025. We are now supplying the battery management system for scooters, three-wheelers, tractors, e-bikes, construction equipment for a European company, as well as for telematics. Beyond this, we are also focusing on range of high voltage battery management system for four-wheelers, commercial e-trucks, and e-buses. At present, one in every 12 electric two-wheelers rolling out of Indian factories run with our Maxwell BMS. Our strong R&D and innovation style at Maxwell has made significant progress to introduce new product technologies beyond the battery management system, catering to both the EV and internal combustion engine electronic subsystems.
We already supply the motor control units, and we have also won our first order for a DC-DC converter. In the first nine months of FY 2026, at Maxwell, we have won INR 45 crores of new business, which has taken the total cumulative orders won to INR 232 crores per annum, which will peak in quarter four of the next financial year. The FY 2026 orders won for BMS are for two-wheelers, for e-rickshaws, for e-bikes, and for electrical buggies. Our major OEMs are Yatri Electric, Qargos, Ultraviolette, and Motion Automotive. Further, we have a strong pipeline of requests for quotes of INR 197 crores. We maintain our leadership position in inverted front forks, with steady growth driven by wider OEM adoption.
This year, we commenced supplies of Inverted Front Forks, along with the Monoshocks to TVS, where the front fork has been upgraded with adjustable features and with both side cartridge systems. The SOP for Hero MotoCorp started in January 2026, while validation is ongoing for a leading Chinese OEM, with SOP expected in quarter three of FY 2027. This takes the total number of our OEM customers using our Inverted Front Forks to six. Schedules from our overseas customer, KTM, have increased. Our total sales of Inverted Front Forks are expected to reach more than 650,000 units in this financial year, and we expect to substantially increase in further years these orders, starting from next financial year.
Over the past few years, we are seeing customer preference shifting towards higher cc premium vehicles, helping in faster adoption of our premium offerings like Inverted Front Forks, APTC or assistant slip clutches, and our hydraulic brake systems. In the period FY 2019 - FY 2025, the share of the 7,500 CC vehicles dropped by 19%, while the 110-125 cc two-wheeler category recorded a growth of 14.5%. This, clubbed with OEMs offering premium features in lower cc segment, has opened huge opportunities for our high-end products. Our aluminum forging business, which started as a backward integration for supplying aluminum forge axle clamps for our inverted front forks, is growing consistently. We are adding one more aluminum forging press to meet the increasing captive and third-party demands.
This new press, along with our four existing presses, will be housed in a new plant at Waluj, Chhatrapati Sambhajinagar. This new plant will come up in quarter two of FY 2027. As mentioned in the previous call, we have won aggregate orders of INR 44 crores for our aluminum forging business from a German OEM, Jaguar Land Rover and Royal Enfield. These OEM orders, coupled with our captive requirements, is expected to yield an annual business of around INR 44 crores. As discussed in the last call, we have won solar damper business from a Spanish client. Till quarter three, we have already exported solar dampers worth INR 24 crores from our Pantnagar plant to our clients, for our Spanish client, with requirements in USA and Saudi Arabia, and the value is expected to double by the end of this financial year.
As mentioned in previous calls, we are building a new infrastructure at our Sanand plant in Gujarat to cater to the large volume of orders. The building work is nearly complete, and we expect to start SOP of solar dampers by April 2026. Apart from this business from a Spanish client, we have also won business from a U.S.-based client, where execution will begin in the middle of the next financial year. The total business won till date for solar dampers and actuators across both the two clients stands at INR 250 crore. In quarter two, we started supplies for our assist and slipper clutches to Royal Enfield and Kawasaki, introducing our subsidiary, Atlas Technology, to the Indian market. The SOP for Bajaj Auto is expected in quarter two of FY 2027.
I just spoke to you regarding the vehicle premiumization, which should lead to increased orders for our assist and slipper clutches. The assembly line installation and vehicle level validation for our four-wheeler drive shafts has been completed. The customer PPAP is planned towards the end of this month, with SOP expected by March 2026, which is next month. Under the Maharashtra Package Scheme of Incentives 2019 scheme, we have an eligibility certificate of INR 600 crore for a capital expenditure incurred in August 2024 at our Waluj Chhatrapati Sambhajinagar units. In January 2026, we got an addendum to this existing certificate, and with this, our package scheme of incentives have increased from INR 606 crore to INR 858 crore for investments up to thirty-first March 2025.
These incentives will be availed through the industrial promotion subsidy by way of state GST refund and electricity duty exemption, broadly over a seven-year period. Let me now give you a gist of orders won during the first 9 months of this financial year. Please note that the business value from new orders are without including new orders from Bajaj Auto. The overall order win in the first nine months of FY 2026 in India business was INR 1,282.8 crores per annum, of which INR 1,265.5 crores is new business. This includes a new business win of INR 300 crores for our battery packs at our Talegaon, Pune plant and INR 45 crores per annum new order for battery management systems at Maxwell.
Our four-wheeler and non-automotive business win in the first nine months of this financial year stands at INR 530 crore. These wins include orders from Tata Motors, a large USA EV OEM, Hyundai, Kia, Isuzu, which is a new customer, Mahindra, and the two clients in the solar space. So you can see our volume product mix is improving. During quarter three alone, we won INR 354 crore of new business, of which INR 163 crores was in the four-wheeler and non-automotive space. These customers included Tata Motors, Mahindra, Kia, and Isuzu for four-wheeler castings, Hero MotoCorp for two-wheeler suspension, and the U.S. Solar OEM. We aim to supply all our product offerings to all major two-wheeler OEMs.
In the case of Suzuki, we're a significant supplier of suspensions, and during the quarter, we further strengthened our business with them by securing a new order for alloy wheels, with an annual revenue of INR 57 crores for our Auric Bidkin plant. Similarly, with Hero MotoCorp, we have been a prominent supplier of suspension and castings, with brakes added early last year. During quarter three, we added five new brake platforms from HMCL, totaling INR 58 crores, taking the overall Hero MotoCorp brakes business to INR 200 crores per annum. With this, we are now supplying a full bouquet of products to Hero MotoCorp, including the battery management system, aluminum forgings. With this increased business, we have a line of sight to double our sales to Hero MotoCorp over the next two years.
The cumulative India business orders for electric vehicles in the conventional product areas stand at INR 1,058.7 crores, without Bajaj Auto. This reaches INR 1,241.5 crores per annum of orders if we include Bajaj Auto. The total electric vehicle business win is INR 1,636.5 crores, if we add Maxwell and the battery pack products business. Our sales for electric vehicles, two, three, and four-wheelers in the first nine months of FY 2026 grew 65.6% to INR 287 crores, as compared to INR 174 crores till Q3 of FY 2025. Our CAGR growth in the last four years has been 71%, as compared to EV two-wheeler industry growth CAGR of 21%, as per the Vahan data.
This growth in our sales is across all our product segments of suspension, casting, braking, and alloy wheels. The overall total orders won now in products other than energy and electronic areas, which is your Maxwell as well, the battery pack, since FY 2022 stands at INR 5,021 crore, out of which INR 4,291 crore is new business. We have a total of INR 4,200 crore worth of requests for quotes also in hand. We expect to win more than INR 1,500 crore of business in the next 12- 18 months. In Europe, the industry continues to operate in a challenging environment, shaped by semiconductor shortages, the energy crisis, geopolitical tensions, inflation, high interest rates, duties imposed by USA, increased competition from Chinese OEMs, and muted automotive market growth.
In spite of this backdrop, our European operations have continued to sustain profitable growth through both the existing business as well as through M&A. Our acquisition of Stöferle was completed in April 2025, adding around EUR 80 million of profitable sales to our top line. In our Europe business, we have booked orders worth EUR 15 million during the first nine months of FY 2026. This includes large machine casting orders from Volkswagen and Porsche, and certain plastic injection molding parts for EVs. Our aftermarket business in India is a strategic priority for us. We have set ambitious growth goals till 2030. We have made a comprehensive long-term capability-focused blueprint, incorporating the voice of our team and channel partners, retailers, and mechanics. We are focusing on building long-term partnerships with distributors who have the right mindset and are aligned to Endurance's vision.
In addition, we are driving secondary demand generation with retailers as well as mechanics for the domestic business. We have launched a mechanic loyalty program, conducting trainings with certifications on BS4 to BS6, electric vehicles and product fitment, organizing health camps, and also providing scholarships to children of our top mechanics. We are the first in the industry to deploy AI or artificial intelligence-enabled tech platform to drive the secondary order booking. We have understood the voice of our stakeholders in each country we are present in and have created a unique value proposition for them. Our customized offerings provide us a competitive edge in each geography. We're also driving a holistic program to build capability of our sales team and to empower them with the right tools and skills to bring strong business leaders.
Coming to our financial performance, the information has been uploaded by the stock exchanges last evening, along with a presentation explaining the numbers. I will, however, highlight some key numbers. During quarter two, FY 2026, the company recorded a standalone total income of INR 2,678.3 crores, a year-on-year growth of 22.2% from INR 2,191.6 crores in the previous year. The EBITDA grew 18% from INR 287.3 crores to INR 339.1 crores, with a margin at 12.7%. The PAT grew 8.8% from INR 156.9 crores - INR 170.7 crores.
During quarter three of FY 2026, we booked an exceptional cost of INR 20.6 crore towards assessed impact of the new labor codes, and this impacted our PAT by INR 15 crore. The EBITDA margin drop of 0.4% on total income is largely contributed by raw material cost increases led by aluminum alloy, which forms 55% of our total raw material purchases. In quarter three of FY 2026, our consolidated total income grew 26.5% over quarter three of last year, from INR 2,881.1 crore to INR 3,645.6 crore. The EBITDA grew 30.4% from INR 394.5 crore- INR 514.5 crore. Our margin was at 14.1%.
The consolidated PAT, after the impact of the new labor codes on the Indian operations, grew 20.2% to INR 184.4 crores - INR 221.6 crores at 6.1% PAT margin. In India, we are extremely focused on improving our profit margin percentage by focusing on manufacturing in-house versus outsourcing to our vendor partners, where the cost to be higher with our vendor partners. Price increases to OEMs, where costs have increased mainly due to power and manpower costs. And thirdly, taking largely new business with better profit margins, thereby improving the product mix. We are highly focused on this now. As the company diversifies and scales, our people agenda remains integral to execution.
We continue to strengthen workforce planning and talent depth, particularly at the mid-management level, and our senior lead leadership team reviews the key capability and performance priorities through structured pro forums. Digitization and artificial intelligence tools in HR processes are improving our efficiency and ease of business. We are also investing in future-ready skills through programs such as LEGS, which is a customized learn and earn platform to upskill our blue-collar workforce and create a structured growth pathway, along with multiple leadership and talent platforms across levels. Inclusion remains an important focus area, with tangible progress in gender representation and engagement with diverse talent. On the sustainability front, we made significant progress this year towards our ambitious goals by FY 2030. We achieved a 49.6% carbon neutral percentage. We lowered specific electric and thermal energy, as well as specific water consumption.
Water and hazardous waste recycling both stand at 98% each, while 14 of our sites have been certified as zero waste to landfill. Our renewable power share has increased from 25% in FY 2025 to 28% now. We've also contributed around 400,000 KL, or kiloliters of water, through water augmentation projects. Our ESG ratings have also seen improvement. CRISIL has revised our ESG score to 59 for FY 2025, which is up from 56 in FY 2024, while another agency, SES, has increased our rating to 74, which is up from 68 in the previous year. Our K-120 Valusamaji Suspension plant has been awarded the prestigious CII GreenCO Gold Rating Award this year. At Endurance, we approach our CSR with the objective of strengthening communities and improving individual life outcomes.
Our focus is in bringing down disparities in education, livelihoods, and health, while enabling access, dignity, and opportunity. The aim is to create sustainable improvements that continue to benefit communities over time rather than short term. Our CSR initiatives continued across education, livelihoods, environment, and healthcare. We launched a new course in the hospitality trade at Eco, which is a vocational training center in Chhatrapati Sambhajinagar, to improve employment opportunities for youth. We initiated a dense forest project over 10 acres in the Gadana village at Sambhajinagar. We supported farmers with high-quality seeds and vermi composting beds. To strengthen rural education infrastructure, we are refurbishing schools with toilets, libraries, and RO plants. In sanitation and water management, 75 household toilets and 119 soak pits were constructed across three villages.
Through the WOW Bus program, 108 students were trained in basic computer skills. Our mobile veterinary van treated 1,173 cattle, and our mobile medical program treated 1,350 patients, including specialized eye and gynecology camps. I'm happy to inform you that we have won the Quality Excellence Award from Tata Motors at the Annual Supply Conference in September 2025. I'm also happy to inform you that in October this year, Endurance Overseas Plant supplying to Stellantis Group was recognized as a top supplier in the Global Supply Awards 2025.
In January 2026, our K-120 suspension plant at Sambhajinagar won the Platinum Certificate of Merit at the Frost & Sullivan India Manufacturing Excellence Awards 2025, and our Driveline plant, also at Sambhajinagar, won the Gold Certificate of Merit at the same platform. Now, 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 touch-tone 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 will wait for a moment while the question queue assembles. The first question is from the line of Aditya from Investec. Please go ahead.
Yeah, thanks for the opportunity, and congrats on good set of numbers, especially your delivery on margins. First question is on ABS. So, you know, did I hear it correctly, that you mentioned that you expect to have some clarity by end of this quarter?
Yes.
Okay. Second, you know, just, you know, a little bit, if you can explain that if, you know, ABS comes through, clearly the path is very clear. However, if there is a situation where we move to, you know, electronic CBS, what is, you know, the opportunity for Endurance in that situation?
Yes. So here, what is happening is that, if ABS comes, like I mentioned, it will be for 120 cc and below, up to 50 cc vehicles. I believe there is a testing ongoing at ARAI, which I get from sources. I'm not 100% sure. But I'm definitely told by a customer that we hope to get some clarity on the final guideline by end of March, so let's hope that happens. Now, in case they go for a CBS, which is not electronic, it is a mechanical CBS. What happens is, all the vehicles who are on drum brakes will graduate to our hydraulic braking system, which consists of a master cylinder, caliper, and a brake disc.
Now, if this happens also, it's a huge increase in business because the value of a brake assembly of these three parts is even, in value, value, is even higher than a ABS price. So we gain both ways, but of course, if the ABS does come in, the gain is much higher because the value goes higher.
Okay. Okay, that's, that's good to know. Second question is that, you know, if you can, you know, break up the growth, you know, in Europe between Stöferle and Endurance. You talked about EUR 80 million on an annualized basis, but in this quarter, what has been the growth of our, you know, European operation, excluding Stöferle?
Yes. So I will request Mr. Massimo Venuti, our Director and COO for Europe, to answer this.
Okay, so, Endurance Overseas in Europe closed the quarter with EUR 93 million turnover, compared 76.8 of the previous financial year, with an increase of 21%, of which Stöferle was EUR 20 million . EBITDA, EUR 16.8 million , it means 18%, compared EUR 12.4 million of the previous financial year, 16.2%, with an increase of EUR 4.3 million, it means 34.9% compared to the previous year. In terms of net result, we closed with EUR 4.9 million , it means 5.3%, compared EUR 3.8 million of the previous financial year, 5%, with an increase in terms of net profit of EUR 1.1 million , 28.5%.
If I don't consider Stöferle, we have had a reduction of turnover of 2%, but due to a reduction of tooling. Because if I compare the production compared to the previous financial year, also without Stöferle, the European operation grew 5.1% compared to the previous year, with more or less all the customers, Stellantis, Mercedes, and Volkswagen Group.
So, that's helpful, Massimo. So, you know, because, excluding Stöferle, the growth would be about 6%-7%, and Stöferle declined 2% because of tooling, right?
Yeah. Yes, this is that.
Okay.
We grew 5.1%, if I consider the quarter, and if you want, I can give you also the, an idea about the nine months. In terms of year to date, the company grew 27.2%. If I consider only part, 33.6%, and without Stöferle, 5.1%.
Sure. Sure. Yeah, you know, the next question is on CapEx. So last, you know, couple of years, we have seen that there has been a modest increase in CapEx from about INR 800 crore to over INR 1,000 crore. You know, this year, if you can give a sense. What are the CapEx that we will end up considering, you know, 4-5 big plants are coming on stream? And directionally, how should we think about CapEx for the next couple of years?
So if you see FY 2026, I mean, we, we have been investing last three years, average CapEx of INR 400 crore. Of course, the previous year was about INR 600 crore in FY 2025, where the new plants, already the CapEx had started. We had bought two lands, one in Auric Bidkin, Shendra, and in Chennai, where the braking system plant is coming in. This year, we'll be slightly less than INR 800 crore, largely because of these four new facilities, plus expansions, which we are doing in, you know, in the brakes, you know, this thing also. So going forward now, what our plan is very clear. Our investments will be on profitable growth products, mainly. To retain business, if I have to do products which are at existing margins, I may do it.
But going forward, and that's why I specifically mentioned in my opening remarks, that INR 530 crores, of that INR 930 crores, more than two-thirds business is on four-wheeler castings and on solar dampers, which are much higher margin businesses. This is the way we are going. The CapEx will be mainly on such businesses. We are making a plan for this, towards, in the next week, we'll be more clear on that CapEx plan for next year. Of course, our focus will be more on automation now for better consistency in quality and lowering contract labor, you know, which is there.
We will also be, I mean, so on CapEx, I would say it'll be more on, more on automation, on environment, health, and safety, on some statutory compliances, on improvement of some quality, or it will be on profitable growth, expansions or new plants.
Yeah. So just, you know, to, you know, repeat my question. Now, the CapEx, when you look at it, you know, India and Europe separately, is it fair to assume that the CapEx in India would be the tune of about INR 800 crore and roughly about, say, INR 700 crore in Europe for 2026, because of Stöferle acquisition, and total about INR 1,500 crore for 2026? And as we progress into 2027, you know, can you confirm that the CapEx intensity of about INR 800 crore, you know, would continue in India for the next couple of years, or it would increase?
No, according to me, we are going to sweat our assets. We are going to make sure... Because, see, if you see the impact on ROCE, because in India, the customers don't give you any take-or-pay contracts. There are high risk on volumes and high risk on uncertainties. So though we are going to in-house some of the high-cost outsourced components, but definitely there are certain components where we may use a balance about outsourcing and doing it in-house and controlling CapEx, okay? Unless there is I mean, an M&A, which we are already in process with. But according to me, in India, the CapEx will be controlled much below this figure of INR 800 crore, okay? And this is our focus.
I cannot speak from FY 2028 onwards. I can say FY 2027 is what we are seeing right now in India. As far as Europe is concerned, I think let Massimo give you the answer.
Okay, speaking about Europe, for sure, we spent EUR 38 million to buy 60% share of Stöferle. And for the ongoing business and new investment, we spend more or less EUR 36 million. The expectation for next financial year is to stabilize the total investment with more or less EUR 25-EUR30 million. This is the expectation for this financial year. But I want to underline that despite the acquisition of Stöferle on the first of April 2025, we continue to be cash free. And so it means that we close the previous financial year with more or less EUR 20 million, and at the end of December, we reached EUR 30 million, despite the acquisition of Stöferle and also the normal investment.
So it means that the cash profit is growing 3%-4% compared to our previous financial year, reached at 17% in this financial year.
Okay, that's quite helpful. So that's it from my side. All the best. I'll join back in queue.
Thank you.
Thank you so much.
Thank you. The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.
Yeah, thank you, sir, for the opportunity, and congrats on the good results. So just firstly, just want to clarify on the previous participant question on the ABS part. So you mentioned if, in case the ABS doesn't come, what could be the alternate option, sir?
So what happens is that, electronic ABS has to have a hydraulic brake system. I have not seen it working with a mechanical brake system or a drum brake system. So the opportunity which is there for us, that even if a combined braking system comes, instead of a drum brake system, they will need to use a master cylinder, caliper, and a disc brake system rather than a drum brake system. But that... And this is what is our major brakes business, apart from ABS. So this definitely will be an opportunity for us to expand further, which will be in the bracket of 125 cc vehicles and below.
Got it. Any, sir, abroad, what kind of a continent would be that for this one, hydraulic brakes? Contain value, sir?
See, I can only say it will be higher than ABS, because I cannot give you numbers, but let me tell you, that is higher than ABS.
Got it. Got it, sir. Thank you for this. So on the four-wheeler suspension response, understand any update how, how the, how things are working with the Korean OEMs and Korean partners, sir?
Sorry, I didn't hear that question. I'm sorry, repeat.
Yeah. On the four-wheeler suspension area, just want to know what are the updates there, sir? How are seeing the traction with the Korean OEMs concerning the relationship with the Korean partners there, sir?
Yeah. I will request Mr. Rajendra Abhange, Director and COO for India, to reply to this.
Yes. So thank you for the question. As you know, it's been a while that we have joined hands with this Korean party to supply us the technology, to cater to our customers in India. And, from the time we have moved on to, work on three proof of concept projects with different customers in India. So one project is, has almost come to a situation where customer will have to give us his opinion on the, superiority of the technology that we are offering. This should happen in this quarter. The job is already done, and there are two projects in the pipeline which are still going on, of which one we are doing by our own, and the second one we are going to do with, again, with this Korean party. So the things are advancing well.
It's a high technology product line, so our customers should be very careful, and we have to meet the requirements better than what the current suppliers are doing. So that's the current state. But the good part is, the progress is very good.
Got it. And, sir, it will be, is it going to be a passive area or will be something like passive plus or semi-active area, sir?
All passive.
All passive. Got it, sir. Thank you for the answer. So, wanted to come on the Auric plant order book there, sir. And just want to understand the reason for the change in the SOP date, sir.
Yes. So I think there has been a delay, mainly from the U.K.-based OEM. That was a SOP, which was to start in this quarter, actually. And there has been a delay of this OEM, and now they will be starting in the second quarter only. In fact, we have the schedules, and the U.S.-based OEM should start by the end of quarter one. So that is the line of sight we have. But in the meantime, we are also going to start orders for other customers, like Valeo, for example. And so I think the plant will start from April. But these two large OEM customers will come in end of quarter one and quarter two.
Got it.
So the U.S.-based one was always end of quarter one. It was this U.K.-based OEM, where there's a delay of two quarters.
Understood. The order book remains similar in terms of what earlier mentioned, around INR 230 crore, right, sir?
I mean, you're, you're talking about total business one?
Yeah, total, yeah, business one, order book, sir.
It is INR 388 crore per annum.
380, okay.
With the peak value value I'd said was FY 2029.
Got it.
But as we speak, we are also getting, you know, new business from this quarter onwards also, so which we will report in the May, this thing, meeting.
Understood, sir. Understood. Thank you for this. And finally, sir, just want to understand on the, we have this others in our segmental breakup, which has been growing about two, more than 2x in last 9 months. Just want to understand, what are key products that are driving the growth, sir?
There is-
So all the other products which are not included in our two-wheeler, three-wheelers, four-wheelers, which is not included there, we are right now grouping them in others. And as and when they become bigger, we'll start grouping separately. For instance, even if the solar suspension panels and all the other businesses which we are getting, we group it within that.
Got it, sir. Thank you so much for the opportunity.
Thank you. Ladies and gentlemen, to ensure management can answer all questions from the participants, please limit your questions to two per participant. The next question is on the line of Jishnu from LFC Securities. Please go ahead.
Hello? Can you hear me?
Yes, can, yes.
Hello.
Yes, we can hear you.
So, so I wanted to ask a specific question related to the Europe-India deal. So what is the specific advantage that we'll be getting that, that was not in our side just before the deal was signed? And now, since the deal has been signed, what are the new advantages specific, that specifically Endurance would be getting, since it has a huge exposure to the Europe business, and specifically it would have in terms of Indian auto component, auto ancillary companies, we have the largest exposure. So what are the advantages that we'll get specifically from this deal, which was not expected before the deal?
So, I think what I would like to say is we are at a stage where we are still, you know, trying to gather more information. And, you know, earlier for us, taking a call on what is the strategy we have to adopt for the future, this is. But we are not. We, I mean, though we have the guidelines and rules, but we are going to the specifics, because I believe this agreement will be only effective within the next nine months to a year, though it has been signed. So I think, as this has just happened, in fact, both the sides, our European and our team, are planning to meet and we will. So maybe we can throw some more light in the next quarter call, in case we are ready.
Okay, so that was it. But are we having any advantage right now since our plants are located in Europe? So are we having any specific advantages right now in Europe, like we would already have zero duty access before the deal, right? Since our plants are there in the Europe.
I think it was, how much was it? 2.5%. How, how-
No, even see, because we were producing local for local in Europe-
Yeah.
Also in India, there were no cross-border transactions as of now. But we are studying the overall deal to see what we can do going forward.
Okay, that's well. Thank you.
Thank you very much. The next question is from the line of Pramod Amthe from InCred Capital. Please go ahead.
Yeah, hi. Thanks for taking my question. So if I have to look at your slide nine, with regard to Europe order inflow, it seems to be dwindling down for last couple of years, and I think in spite of German acquisition, it's pretty low for the nine-month period. What is really happening there? Is it an end market situation or you are evaluating your own strategies to get new orders?
Yeah. So, we are evaluating our own strategy, especially on the M&A front. But I think let Massimo answer that. Massimo?
Sure. Yes, in the previous quarter, in the nine months of this financial year, we acquired only EUR 15 million business. This is true, compared EUR 40 million the previous financial year. But please consider that in this moment, the market is in a very bad situation. As probably you know, in December 2025, the European Commission proposed to review the 2035 rules, not yet finalized, suggesting a potential shift from 100% to 90% of the emission reduction target, allowing some residual emission to be offset through measures like green steel production or biofuel. And the market, as you can imagine, the reaction was not so positive. Now, apparently, in the second week of March, there will be the official position of the European government, and we will see.
But in this moment, everybody stopped the important way, the investment in the internal combustion engine and also in the electric. This is the reason why in this moment we are not acquiring business, but let me say, this is a stagnation of the market, unfortunately. On top of this, please consider that even if you see the registration that is grow, are growing compared to the previous year, the previous quarter, we closed with 4% increase compared to the previous year in Europe, and the year to date is more or less 3%. You have to consider also that the mix of these registration are completely different compared to the past.
Because only to give you an idea, in the calendar year 2025, we have had an increase of import from China and from the rest of the world of 200,000 cars, and we lost 200,000 cars of production in terms of export. And so it means 4% of reduction, if I consider more or less 10 million vehicles per year. The situation in Europe is very difficult in this moment, but despite the situation, we have been able to close 4.2% without considering the acquisition of Stöferle. And the trend for the future months is more or less aligned compared to the previous quarter. And so we are optimistic, even if the situation is very tough.
Sure. Thanks for the detailed answer. Related to the same, again, looking at that, the M&As which you have done and turnaround in Maxwell and also the German acquisition going smooth, how are you approaching? Are you more confident now to do larger size deals, or how is your M&A strategy going to plan out for next, three, four years?
See, firstly, the M&A strategy will be mainly in areas, for example, our existing areas going into, like we have done, for example, you know, solar business, for example. It is suspension, but going to solar, so non-auto applications. It could be castings in other than automotive. So basically, it will be our strategy will be in those segments where the margins are much higher, you know, and also which has a good target market. It is very important we enter on new areas where there is a target market, you know. So, question is, we are already working on a deal right now, and we'll see how that goes.
So we are always looking for the M&A opportunities, but of course, we will be, you know, aggressively going ahead with it, but we'll only do it if it makes sense to our business. But I just give you these examples that definitely high on our minds is not only automotive, but also non-automotive applications, which will be partly in our products, like suspension or casting, or it could be something else, you know?
Sure. Thanks, and all the best.
Thanks.
Thank you. The next question is from the line of Rajit Aggarwal from Nilgiri Investment Managers. Please go ahead.
Hi, sir. Just a quick clarification on the CapEx plans. There are two new CapEx which have been mentioned in the slide. One is the Sanand expansion, and there is another one of aluminum forging at Auric Bidkin.
Yes.
So, and both, they are going to be, commissioned in Q1 and Q2. So what is the total CapEx on these two expansions?
He's talking, he's asking the CapEx for the aluminum-
Sorry, for solar dampers and actuators.
And the dampers, I don't have the figures offhand right now.
... because these are existing
About INR 25 crores each, but I don't know the figure, but, I mean, our treasury head. Huh?
Chief 45.
Okay, to be honest, it's not correct to give you any wrong figures. We don't have the figures right now.
Yeah.
You know, and we don't want-
Right.
To give you a figure which is lower or higher. But these, but these are not very high CapEx. These will be both below INR 50 crore each.
Okay.
Right. Right. All right.
Both below INR 50 crore.
Understood. Just following up from a previous participant's question on the order wins in Europe.
Yes.
Congratulations for being able to sustain the growth despite the environment being so hard. Going forward, let's say one year or two years, if there is no inorganic expansion, I mean, do you see the growth rate coming down, or do you see a chance of a degrowth in your business?
See, we don't like to think on those lines, you know?
No.
We only think of positive growth. So we... Of course, we have to see the downside, but there have been many downsides since 2008 also, as you know, the global financial crisis.
Mm-hmm.
We have faced it, we have grown. So we will find our solutions.
Mm-hmm.
Because, because we believe in Endurance to find solutions, being positive, and going this thing ahead, you know? Because if you think in those lines, then you won't ever grow. You know what I'm saying? So-
Right.
So our thinking is a very... because we, we have really been, we have faced some very tough times in 2008.
Okay.
So when we reach there, we will face it, and we'll do something about it.
Right, sir. Appreciate that. Thank you. Thank you.
Thank you.
Thank you. The next question is on the line of Mihir from Equirus. Please go ahead.
Yeah, thank you for taking my question. So sir, just one thing on the previous participant question on order book of zero. So you don't mention the total business wins prior to FY 2026. So what would be that quantum? Would it be something which would be good in terms of numbers, or that is something which is negligible?
Your voice is a bit-
And actually, we could understand the first part of the question because your-
Yeah.
Voice is not very clear.
Yeah. Sorry, is it clear now? Am I audible now?
Yes. Yes, now it's better.
Yeah. So sir, my question was basically on the Stöferle business wins prior to FY 2026, which we are not mentioning into our order book status. So what would be that quantum, and/or is it something which is negligible?
No. So Stöferle was not included in FY 2025 because we only acquired the company, and we consolidated into our books only from April 2025. That was only showing up in FY 2026. We did not have Stöferle earlier to April 2025.
Yeah. Sir, but what would be the order book there, as well? There would be some order book, right? Which would be something-
You're saying order book of Stöferle, you're saying?
Yeah, yeah.
So, Massimo, Massimo, can you answer?
Yes, I can answer. Yes. Starting from considering that more or less the total turnover of Stöferle is EUR 75 million-80 million, total financial year. In this financial year, we acquired EUR 5 million with the final customer, BMW, pass through Magna. And please consider that in this moment, Stöferle has the stability of volume more or less in 2030, 2032. And so in this moment, I don't see any kind of issue, and the company is really profitable and demonstrate.
Now, we can say that we integrate 100% of the company in our organization, and we are trying to do a lot of economies of scale, because as you know, Stöferle is buying raw parts from the market, but we have the opportunity also to produce raw part for them in our foundry. And this is the second step of the integration that will start in the next financial year.
Okay. Okay. And the second question on the Europe front, is there are many Chinese OEMs now are putting up plants in Europe now. So how are we engaging with those customers there, and some kind of thoughts on, you know, approaching the Chinese OEMs now?
Yes, this is true. We are discussing with, with some of, these OEM, but, I repeat, in my opinion, we need to wait a clear position about the strategy from the European government. Because these guys are coming here, they are opening new plant, but they want to assemble the car. And so we need to understand if, they will import the component, the powertrain component and also the batteries case, case component, and will assemble here, or in order to avoid and to reduce the tariff, they will be obliged to produce it here. In this moment, as you know, we are discussing, as I told you in the previous call conference, with BYD, he will start in, at the end of this financial year in Hungary, and in the next financial year, in Turkey, but only assembling the car.
And so for our product range, in this moment, there are no benefit, even if for sure, we are quoting different scenario, because if they will be obliged to produce this part here in Europe, could be an opportunity for us. But I want to say one thing also regarding the previous question, regarding the agreement between India and Europe. This could be, from my point of view, a big opportunity for us, for Endurance Group. Because as you can imagine, this moment, we are receiving a lot of attack from the Chinese supplier because they are coming in Europe, also in the supply chain.
The possibility to buy and to move production capacity and to acquire new business with a level of competitiveness that our competitor haven't here in Europe, using our production capacity in Europe, for me, is a positive, and is an opportunity in front of our customer. Our footprint, our industrial footprint in India is a big opportunity, not only for the continuous growth for two-wheeler in India, but also for Europe. I'm pretty sure about this.
Right. Okay, okay, sir. Thank you.
I just wanted to clear one point to, I mean, everybody on the call. When I talked about ABS and the brake systems pricing, I had considered some other items, and I took mainly for bikes of higher cc. So I think the pricing would be quite similar because there would be no stainless steel braid hoses and some other items which are there in the higher-end bikes. So I would say the prices of the brake system would be similar in some cases or even slightly lower. So I just want to clear my statement where I said earlier that they would be higher than ABS, the master cylinder caliper and the brake. So please make a note of that. It may be same or bit lower.
Thank you very much. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Yes. So, in fact, I've already, I think, mentioned my points in my opening remarks and in the question and answer. I will just say that we at Endurance, both in India and Europe, are fully focused on profitable growth and trying to improve both sales growth as well as our margins. So we'll continue to focus on that. In spite of challenging, you know, conditions, I would say, in Europe mainly, but we'll try and take whatever, I mean, opportunities we get and make the best out of them. So thank you for all your support, and see you in the next call. I'll meet you in the next call.
Thank you very much, sir. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us. You may now disconnect your line.