Endurance Technologies (ENDURANCE) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw robust growth in both India and Europe, with consolidated total income rising 26.5% year-over-year, driven by strong demand in the Indian automotive sector and resilient European performance despite market headwinds; industry 2W sales rose 18.2% and EU new car registrations increased 4.6%.

• Strategic investments in new plants, R&D, and product innovation are expected to drive future growth, especially in EV and premium product segments.

• The company is focused on profitable growth, margin improvement, and expanding its product mix across automotive and non-automotive sectors.

• Financials reflect recent acquisitions and corporate restructuring, including full ownership of Maxwell Energy Systems and new German subsidiaries.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31st December 2025, with limited review by statutory auditors.

Financial highlights

• Q3 FY 2026 consolidated total income rose 26.5% year-over-year to INR 3,645.6 crore; standalone income was INR 2,678.3 crore, up 22.2% year-over-year.

• EBITDA grew 30.4% to INR 514.5 crore, with a margin of 14.1%; PAT increased 48% to INR 221.6 crore, with a 6.1% PAT margin, despite a one-time INR 20.6 crore labor code cost.

• 9MFY26 consolidated income was INR 10,604 crore, EBITDA INR 1,492 crore (14.1% margin), and PAT INR 675 crore.

• Standalone revenue for Q3 FY26 was INR 2,669.38 crore, up from INR 2,177.26 crore in Q3 FY25; nine-month revenue was INR 7,682.16 crore, up from INR 6,597.15 crore year-over-year.

• Exceptional item of INR 20.64 crore (standalone) and INR 20.95 crore (consolidated) recognized due to new Indian Labour Codes, impacting gratuity and leave encashment expenses.

Outlook and guidance

• Full impact of new greenfield plants and product launches expected in H2 FY 2027.

• CapEx intensity in India to remain below INR 800 crore, with focus on automation and profitable growth; Europe CapEx to stabilize at EUR 25-30 million.

• Order book expected to grow with INR 4,200 crore of RFQs under discussion; targeting over INR 1,500 crore in new business wins in the next 12-18 months.

• SOP for new lithium-ion battery pack plant in Pune expected in Q4 FY26; several new plants and capacity expansions underway for future growth.

• Transition to EV/Hybrid in Europe expected to reduce ICE revenue share to 25% by FY28.