Endurance Technologies (ENDURANCE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated total income rose 34% YoY to INR 4,811 crore; EBITDA increased 17% to INR 584 crore and PAT grew 21% to INR 274.29 crore.

• Growth initiatives advanced across four-wheelers, EVs and non-automotive markets through production starts, capacity additions, acquisitions and H1 order wins.

Financial highlights

• Consolidated Q2 revenue was INR 4,786.18 crore versus INR 3,582.82 crore YoY; H1 revenue was INR 9,101.07 crore and PAT was INR 518.81 crore.

• Standalone Q2 total income rose 40% YoY to INR 3,761 crore; EBITDA increased 18% to INR 395 crore and PAT grew 14% to INR 213 crore, including an INR 40 crore incentive.

• Consolidated H1 total income increased 32% to INR 9,159 crore, EBITDA rose 18% to INR 1,153 crore and PAT grew 14% to INR 519 crore.

• Standalone H1 total income rose 38% to INR 6,955 crore; EBITDA increased 17% to INR 752 crore and PAT grew 16% to INR 408 crore, including an INR 75 crore incentive.

Outlook and guidance

• Q3 customer price increases are expected to add 0.5% to gross margin, with favorable commodities expected to add a further 0.5%-0.6%.

• FY27 CapEx guidance is INR 1,100 crore in India and INR 1,250 crore consolidated; four greenfield facilities had a ~0.5% EBIT margin impact in Q2, expected to ease and turn positive next FY.

• Proprietary four-wheeler product revenues are expected to exceed INR 1,500 crore by FY31; drive shafts began in Q2, brakes are scheduled for H1 next FY, and battery-pack programs for March/April and Q2 next FY.

• Maxwell is targeting double-digit margins next FY; solar and railway/non-auto business is expected to reach INR 250 crore next FY and INR 650 crore by FY31.

• 2W battery-pack dispatches began in Q1FY27, with full ramp-up expected in Q3FY27; new 4W battery-pack production is expected in H1FY28.