Endurance Technologies Ltd — Engineering Tomorrow’s MobilityInsights

Endurance Technologies Ltd – Expanding Horizons

Incorporated in 1985 and headquartered in Aurangabad, Endurance Technologies Ltd. is a leading automotive component supplier, offering a diverse range of technology-driven products across its operations in India and Europe (Italy and Germany). The company serves key automotive verticals such as die-casting, suspension, braking, transmission, embedded electronics and aluminium forging, followed by a significant presence in aftermarket business. The company has also expanded into the electric mobility sector through its wholly owned subsidiary, Maxwell Energy Systems Pvt. Ltd., specializing in advanced Battery Management Systems (BMS) for electric vehicles and energy storage applications. The company’s clientele comprises of leading brands such as Volkswagen, Stellantis, Bajaj Auto, HeroMotocorp, Ather, TVS, Valeo, Yazaki etc. As of 31 March 2025, it has 19 manufacturing plants in India and 14 in Europe.

Products and Services

The company provides a wide range of products and services as follows:

• Aluminium die casting – Integrated face cover, swing arm, crank cases, alloy wheels, EV mission case etc.
• Suspension system – Shock absorbers, front forks, etc.
• Transmission – Clutch assemblies, driveshafts, etc.
• Braking system – Disc and drum brake assemblies, ABS modulators, etc.
• Aftermarkets – Replacement components for suspension, transmission, braking systems.

Subsidiaries: As of FY25, the company has 10 subsidiaries and no other associate companies/joint ventures.

Investment Rationale

• Capacity expansion and new business initiatives – The company is making a strategic foray into the fast-growing energy storage segment with the establishment of a new lithium-ion battery pack manufacturing facility in Pune, with production expected to commence by January 2026. This initiative is aimed at tapping into opportunities across the electric mobility ecosystem – including 2W, 3W, and 4W segments – as well as non-automotive sectors such as telecom, inverters, and stationary energy storage systems. It has already secured order worth Rs.3 billion from a leading 2W OEM. The company is aiming to leverage its in-house battery technology alongside the BMS expertise of its subsidiary, Maxwell, to deliver integrated, high-performance solutions. Additionally, it is setting up a 4W casting plant at AURIC Shendra, with operations set to commence in H2FY26. The plant has already built a robust order pipeline, with an annual order book of Rs.2.75 billion from major global OEMs. These products are expected to yield high margins. A 2W alloy wheel manufacturing plant is also being developed at AURIC Bidkin with an annual capacity of 3.6 million wheels, and production is expected to start in H2FY26.

• Strategic acquisitions and partnerships – The company has strengthened its European footprint through the acquisition of a 60% stake in Germany-based Stöferle GmbH and Stöferle Automotive GmbH. These entities bring advanced capabilities in automated machining of complex aluminium die-cast components and in-house CNC machine production, enabling strong vertical integration and operational efficiency. The acquisition is expected to be earnings accretive, supported by the entities’ consistent top-line and bottom-line growth. The company has also entered a strategic technical partnership with a leading Korean suspension manufacturer, which has delivered over 10 crore shock absorbers globally. This collaboration marks the company’s entry into the underpenetrated four-wheeler suspension segment in India, a space with limited competition but growing OEM interest. To capture this opportunity, the company is setting up a dedicated greenfield manufacturing facility, with three key programs under active development and estimated timelines of 8–12 months. This initiative is further supported by a new suspension R&D center in Waluj, focused on 2W, 3W, 4W, and non-automotive applications, positioning the company for long-term growth in a high-potential vertical.

• Q4FY25 – During the quarter, the company generated revenue of Rs.2,998 crore, an increase of 11% compared to the Rs.2,711 crore of Q4FY24. Operating profit increased from Rs.416 crore of Q4FY24 to Rs.457 crore of Q4FY25, a growth of 10%. The company reported net profit of Rs.245 crore, an increase by 17% YoY compared to Rs.210 crore of the corresponding period of the previous year.

• FY25 – During the FY, the company generated revenue of Rs.11,678 crore, an increase of 13% compared to the FY24 revenue. Operating profit is at Rs.1,668 crore, up by 18% YoY. The company reported net profit of Rs.836 crore, an increase of 23% YoY.
• Financial Performance – The 3-year revenue and net profit CAGR stands at 15% and 19% between FY23 – 25. Average 3-year ROE and ROCE is around 13% and 16% for FY23-25 period. Debt to equity ratio is at 0.17.

Industry

India’s auto component industry is witnessing strong growth, driven by a rising working population, expanding middle class, and shifting global supply chains. With efforts to reduce import dependence and boost local manufacturing, domestic players are set to benefit. India is becoming a global sourcing hub, aided by its proximity to key markets like ASEAN, Europe, Japan, and Korea. Rising incomes, infrastructure spending, and government incentives, including support for EVs, are accelerating industry expansion. As the global shift towards electric and hybrid vehicles gains momentum, new opportunities are emerging for Indian component manufacturers. India, the world’s third-largest automotive market, also leads in 3W production and ranks among the top two for 2W.

Growth Drivers

• 100% FDI is allowed under the automatic route for auto components sector.
• The reduction in the tax burden in the 2025-26 Union Budget is expected to boost spending among the expanding middle class population.
• Allocation of ~Rs.7,400 crore (74% increase YoY) for the EV sector in the Union Budget 2025-26.

Peer Analysis

Competitors: Bharat Forge Ltd, Jamna Auto Industries Ltd, etc.

Compared to its peers, Endurance Technologies demonstrates consistent sales growth, reflecting stronger market penetration, while delivering stable returns on invested capital – highlighting its robust operational efficiency.

Outlook

The company witnessed strong order momentum in FY25, securing Rs.11.99 billion in orders for its India business, with 37% linked to the EV segment and 34% to four-wheelers. Key customers include Honda, Royal Enfield, Hero MotoCorp, Ather Energy, Tata Motors, Valeo, and Yazaki. It is actively pursuing Request for Quotations (RFQ) worth Rs.34 billion across various product categories, including from electric 4W OEMs. The company is targeting accelerated growth in the 4W segment through new product launches, portfolio diversification, and strategic partnerships. In the non-automotive segment, a solar damper order from a major Spanish firm marks a key win, with commercial production scheduled to begin at one of its plants in Q2FY26.

Valuation

We believe Endurance Technologies’ strong order book, diversified product portfolio, and strategic focus on EV components position it well for sustainable long-term growth and value creation. We recommend a BUY rating in the stock with the target price (TP) of Rs.3,066, 42x FY27E EPS.

SWOT Analysis

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