Q1 2027 Endurance Technologies Ltd Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Q1 FY27 results conference call for Endurance Technologies. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to Q1 FY27 results conference call for Endurance Technologies. 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 Jalan from Axis Capital. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Nishad Jalan from Access Capital. Thank you, and over to you, sir.

Speaker #2: Thank you so much. Good morning, everyone. Welcome to the Q1 FY27 post-results conference call of Endurance Technologies. We are pleased to host the management team of Endurance today.

Nishit Jalan: Thank you so much. Good morning, everyone. Welcome to Q1 FY27 post-results conference call of Endurance Technologies. We are pleased to host the management team 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. R. S. Raja Gopal Sastry, Group CFO, and Mr. Raj Mundra, Treasurer and Investor Relations. I will now hand over the call to Mr. Anurang Jain for his opening remarks, post which we will have the Q&A. Over to you, Mr. Jain.

Speaker #2: We have with us Mr. Anurang Jain, Managing Director; Mr. Massimo Venuti, Director and CEO, Endurance Overseas; Mr. Rajendra Bhange, Director and COO; Mr. Rajagopal Sastri, Group CFO; and Mr. Rajmundra, Treasurer and Head of Investor Relations.

Speaker #2: I'll now hand over the call to Mr. Anurang Jain for his opening remarks, after which we will have the Q&A. Over to you, Mr. Jain.

Speaker #3: Thank you very much. Good morning, everyone. As we close Q1 of FY27, the business scenario presents a mixed picture, with a steady domestic economy set against a more challenging global environment.

Anurang Jain: Thank you very much. Good morning, everyone. As we close Q1 of FY27, the business scenario presents a mixed picture with a steady domestic economy set against a more challenging global environment. Domestic industrial activity held firm through the quarter. The index of industrial production grew 5.1% in May 2026, with manufacturing at 5.5%, indicating continued growth in the industrial sector. The global environment has become more difficult. The prolonged conflict in West Asia has kept energy prices raised and added to supply chain and freight costs. In August 2026, the RBI held the repo rate at 5.25% and retained a neutral stance. Earlier, RBI had raised its FY27 inflation forecast to 5.1%, citing energy prices, West Asia conflict, and monsoon uncertainty.

Speaker #3: Domestic industrial activity held firm through the quarter. The Index of Industrial Production grew 5.1% in May 2026, with manufacturing at 5.5%, indicating continued growth in the industrial sector.

Speaker #3: The global environment has become more difficult. The prolonged conflict in West Asia has kept energy prices elevated and added to supply chain and freight costs.

Speaker #3: In August 2026, the RBI held the repo rate at 5.25% and retained a neutral stance. Earlier, the RBI had raised its FY27 inflation forecast to 5.1%, citing energy prices, the West Asia conflict, and monsoon uncertainty.

Speaker #3: Now, RBI has lowered the inflation forecast to 5% as the Q1 actual number was below the earlier estimate. In the Indian automotive sector, as per CM, two-wheeler sales reached 7.18 million units in Q1 FY27, up 23.5% year-on-year, with motorcycles at 19.3% growth and scooters at 32.4% growth.

Anurang Jain: RBI has lowered the inflation forecast to 5%, as Q1 actual number was below the earlier estimate. In the Indian automotive sector, as per SIAM, two-wheeler sales reached 7.18 million units in Q1 FY27, up 23.5% year-on-year, with motorcycles at 19.3% growth and scooters at 32.4% growth. Passenger vehicle sales increased by 23% to 1.5 million units, while three-wheeler sales rose 39.8% to 0.36 million units. In the European Union, new car sales saw a year-on-year rise of 7.4% in Q1 FY27, with each country recording high single percentage sales growth and Italy leading with 9.9% growth.

Speaker #3: Passenger vehicle sales increased by 23% to 1.5 million units, while three-wheeler sales rose 39.8% to 0.36 million units. In the European Union, new car sales saw a year-on-year rise of 7.4% in Q1 FY27, with each country recording high single-digit percentage sales growth and Italy leading with 9.9% growth.

Speaker #3: In Q1 FY27, new car volumes in Europe showed a 21.9% share of battery electric vehicles, a 10.1% share of plug-in hybrids, and a 36.1% share of hybrids. So, roughly 2 out of every 3 vehicles being sold in the European Union are either electric or hybrid.

Anurang Jain: In Q1 FY27, new car volumes in Europe, there was a 21.9% share of battery electric vehicles, 10.1% share of plug-in hybrids, and 36.1% share of hybrids. Roughly two out of every three vehicles being sold in the European Union are either electric or hybrid. In Europe, the operating environment was perhaps even more challenging, with sharp increase in energy costs, uncertainty around policies regarding electrification and localization, and rising presence of Chinese OEMs. In our Indian operations, our focus is to look at our core capabilities, including manufacturing, technology, and innovation, and accordingly look at new products through greenfield projects or through M&A, which meet the criteria of being technology-intensive, having a strong scalability of growth based on our OEM customer requirements, and most importantly, helping us to increase our margin percentage as compared to now.

Speaker #3: In Europe, the operating environment was perhaps even more challenging, with a sharp increase in energy costs, uncertainty around policies regarding electrification and localization, and a rising presence of Chinese OEMs.

Speaker #3: In our Indian operations, the focus is to look at our core capabilities—including manufacturing, technology, and innovation—and accordingly look at new products, through greenfield projects or through M&A, which meet the criteria of being technology-intensive, having strong scalability or growth based on our OEM customer requirements, and most importantly, helping us to increase our margin percentage as compared to now.

Speaker #3: Our focus is on two-wheeler proprietary products, four-wheeler aluminum castings and forgings, and four-wheeler proprietary products including suspension, braking, and drive shafts. In non-auto products, our immediate focus is on solar suspension dampers and actuators, as well as on electronic products—including, for auto and non-auto, battery management systems, motor controller units, DC-DC converters, and our battery packs, which plant we have just started SOP in June 2026.

Anurang Jain: Our focus is on two-wheeler proprietary products, four-wheeler aluminum castings and forgings, and four-wheeler proprietary products, including suspension, braking, and drive shafts. In the non-auto products, our immediate focus is on solar suspension dampers and actuators, as well as on electronic products, including for auto and non-auto battery management systems, motor control units, DC-DC converters, and our battery packs, which plant we have just started SOP in June 2026. You will recall the draft guideline by the government in June 2025, extending ABS requirements to lower engine CC vehicles. We welcome the intent behind this move, which will meaningfully improve rider safety across the two-wheeler segment. In line with this, we are adding 9 lakh ABS units per annum. Earlier, we had announced a figure of 12 lakh units per annum to our existing ABS capacity of 6.4 lakh units per annum.

Speaker #3: You will recall the draft guideline by the government in June 2025, extending ABS requirements to lower engine CC vehicles. We welcome the intent behind this move, which will meaningfully improve rider safety across the two-wheeler segment.

Speaker #3: In line with this, we are adding 900,000 ABS units per annum; earlier we had announced a figure of 1,200,000 units per annum, to our existing ABS capacity of 640,000 units per annum.

Speaker #3: The reason for the decrease from 12 to 9 lakh units of ABS is due to the strong demand in the brake assembly system business; we had to shift certain machinery from the ABS lines to take care of the large increase in brake assembly orders from different OEMs.

Anurang Jain: The reason for the decrease from 12 to 9 lakh units of ABS is due to the strong demand in the brake assembly system business. We had to shift certain machineries from the ABS lines to take care of the large increase in the brake assembly orders from different OEMs. Our brake assembly share was 34.5%, and our brake disc share in India was 42% in FY26. I would like to mention that the brakes business in the last four years has grown with a CAGR of more than 30%. Though the government is yet to issue final guidelines, our ABS as well as our CBS hydraulic brake expansion is progressing as planned, with SOP expected in September or early October 2026. For the dual-channel ABS, SOP for Bajaj Auto with 120,000 units per annum is scheduled for this quarter.

Speaker #3: Our brake assembly share was 34.5%, and our brake disc share in India was 42% in FY26. I would like to mention that the brakes business in the last four years has grown with a CAGR of more than 30%.

Speaker #3: Though the government is yet to issue final guidelines, our ABS as well as our CBS hydraulic brake expansion is progressing as planned, with SOP expected in September or early October 2026.

Speaker #3: For the dual-channel ABS, SOP for Bajaj Auto with 120,000 units per annum is scheduled for this quarter. The SOP for a second program of 120,000 units is expected to start in Q3 of FY27.

Anurang Jain: The SOP for a second program of 120k units is expected to start in Q3 of FY27. We are enhancing our ABS product offering with new features. We have already started the ride modes, and now we are adding the traction controls for improved stability. This will help in our sales value and margin growth in our ABS business. In view of our plans to manufacture electronic control units for ABS, and with higher volumes of battery management systems needs indicated by our OEM customers, we had ordered a new surface-mounted technology line, which SOP is expected from next month. It may be noted that our civil infrastructure is in place not only for this new SMT line, but also for further potential expansion. At our new Chennai plant for disc brake assembly systems, civil construction is at its final stage.

Speaker #3: We are enhancing our ABS product offering with new features. We have already started the ride modes, and now we are adding traction controls for improved stability. This will help in our sales value and margin growth in our ABS business.

Speaker #3: In view of our plans to manufacture electric in view of our plans to manufacture electronic control units, for ABS, and with higher volumes of battery management systems needs indicated by our OEM customers, we had ordered a new surface-mounted technology line which is SOPs is expected from next month.

Speaker #3: It may be noted that our civil infrastructure is in place not only for this new SMT line, but also for further potential expansion. At our new Chennai plant for disc brake assembly systems, civil construction is at its final stage. This new plant is in close proximity to certain prominent OEMs, enabling us to serve them better while also lowering our freight cost.

Anurang Jain: This new plant is in close proximity to certain prominent OEMs, enabling us to serve them better while also lowering our freight cost. The phase 1 key machinery is being shifted from Vadodara, and the phase 2 will be completed in Q3 of this year. The SOP for Royal Enfield is expected by next month, with other OEMs following in Q3. This plant will have a capacity of 3 million disc brake assemblies per annum, and 4 million discs per annum as a part of our total Endurance capacities of 9 million disc brake assemblies and 9.6 million brake discs per annum that we have planned by Q1 of FY28. In the previous call, we spoke of setting up assembly lines for four-wheeler passenger vehicle foundation brakes for Tata Motors. We are on track, and SOP is expected next quarter.

Speaker #3: The Phase One key machinery is being shifted from Valuch, and Phase Two will be completed in Q3 of this year. The SOP for Royal Enfield is expected by next month, with other OEMs following in Q3.

Speaker #3: This plant will have a capacity of 3 million disc brake assemblies per annum and 4 million discs per annum, as part of our total Endurance capacities of 9 million disc brake assemblies and 9.6 million brake discs per annum that we have planned by Q1 of FY28.

Speaker #3: In the previous call, we spoke about setting up assembly lines for four-wheeler passenger vehicle foundation brakes for Tata Motors. We are on track, and SOP is expected next quarter.

Speaker #3: We have also increased our three-wheeler brake assembly volumes from 0.6 million to 0.85 million per annum, and are expected to increase the capacity to 1.5 million per annum by the end of this financial year.

Anurang Jain: We have also increased our three-wheeler brake assembly volumes from 0.6 million to 0.85 million per annum, and are expected to increase the capacity to 1.5 million per annum by end of this financial year. I am happy to inform you that with the new KTM brakes technology, we have started the SOP for the 390cc and the 790cc motorcycles of KTM in Q1 of this financial year. These include export orders served from our brakes plant in Vadodara. Also to meet increased demand from Hero MotoCorp and TVS, we are adding capacity at our Vadodara brakes plant, increasing our volumes by 1 million numbers per annum. The SOP is expected to be in this quarter.

Speaker #3: I'm happy to inform you that with the new KTM brake technology, we have started the SOP for the 390 cc and 790 cc motorcycles of KTM in Q1 of this financial year.

Speaker #3: These include export orders served from our brakes plant in Valuch. Also, to meet increased demand from Hero MotoCorp and TVS, we are adding capacity at our Valuch brakes plant, increasing our volumes by 1 million numbers per annum. This SOP is expected to be in this quarter.

Speaker #3: With our focus on increasing four-wheeler casting business at our Auric Shendra plant at Sambhaji Nagar, Auto Wheels have continued to build, taking cumulative bookings to a peak annual business potential of ₹513 crore per annum.

Anurang Jain: With our focus on increasing four-wheeler casting business at our AURIC Shendra plant at Chhatrapati Sambhaji Nagar, Auto Wheels have continued to build, taking cumulative bookings to a peak annual business potential of INR 513 crores per annum. These include orders from a large USA EV OEM for automotive and non-auto applications, from Jaguar Land Rover, as well as from Valeo for the electric platforms of Mahindra and Tata. SOP will start in September 2026, and we expect significant pickup in this business by Q4 FY27. Also, we are expanding our existing four-wheeler casting operations at our Chennai plant, where we have secured orders for hybrid models of Isuzu, and we expect SOP in Q4 of this financial year. We have won orders from Hyundai and Kia for new parts, with SOP already started in this month.

Speaker #3: These include orders from a large U.S. EV OEM, automotive and non-auto applications, from Jaguar Land Rover, as well as from Valeo for their electric platforms of Mahindra and Tata.

Speaker #3: SOP will start in September 2026, and we expect significant pickups in this business by Q4 FY27. Also, we are expanding our existing four-wheeler casting operations at our Chennai plant, where we have secured orders for hybrid models of Isuzu, and we expect SOP in Q4 of this financial year.

Speaker #3: We have won orders from Hyundai and Kia for new parts, with SOP already started this month. The business value is Rs. 80 crore per annum, and will reach peak sales in FY28.

Anurang Jain: The business value is INR 80 crores per annum, and will reach peak sales in FY28. The presence of multiple global OEMs based in the South India region enables deeper engagement, and we are in active dialogue with new OEM players for which the plant is undergoing audits. At our Chakan diecasting plant, we are also expanding our four-wheeler machined aluminum casting business for existing and new programs of Tata Motors and Mahindra, with demand from these OEMs seeing a strong traction. At our AURIC Bidkin alloy wheel plant, SOP for Bajaj began last year in October, and for Royal Enfield, it is expected to start by the end of this month, with peak volumes expected in Q3 of this financial year.

Speaker #3: The presence of multiple global OEMs based in the South India region enables deeper engagement, and we are in active dialogue with new OEM players, for which the plant is undergoing audits.

Speaker #3: At our Chakhand die casting plant, we are also expanding our four-wheeler machined aluminum casting business for existing and new programs of Tata Motors and Mahindra, with demand from these OEMs seeing strong traction.

Speaker #3: At our Auric Bitkin alloy wheel plant, SOP for Bajaj began last year in October, and for Royal Enfield, it is expected to start by the end of this month.

Speaker #3: With peak volumes expected in Q3 of this financial year, the total capacity across our Chakhan and Bitkin alloy wheel plants is 4.8 million wheel sets of front and rear wheels per annum, and we will be serving Bajaj, Royal Enfield, Yamaha, HMSI, Ather, Suzuki, and Piaggio from our alloy wheel plants in Chakhan and Auric Bitkin.

Anurang Jain: The total capacity across our Chakan and Bidkin alloy wheel plants is 48 lakh wheel sets of front and rear wheels per annum, and we will be serving Bajaj, Royal Enfield, Yamaha, HMSI, Ather, Suzuki, and Piaggio from our alloy wheel plants in Chakan and AURIC Bidkin. Our battery pack plant near Pune commenced SOP for Hero MotoCorp in June 2026. With this large order win, the plant is in a ramp-up phase to reach peak volumes by Q3 of this financial year. We have also announced our entry into four-wheeler battery packs from the same plant with a CapEx of INR 62 crores, and we expect SOP by Q4 of this financial year. We will continue to leverage this capability to pursue opportunities across two-wheelers, three-wheelers, and other high-potential segments.

Speaker #3: Our battery pack plant near Pune commenced SOP for Hero MotoCorp in June 2026. With this large order win, the plant is in a ramp-up phase to reach peak volumes by Q3 of this financial year.

Speaker #3: We have also announced our entry into four-wheeler battery packs from the same plant, with a capex of ₹62 crore, and we expect SOP by Q4 of this financial year.

Speaker #3: We will continue to leverage this capability to pursue opportunities across two-wheelers, three-wheelers, and other high-potential segments. The battery pack business will also help increase our battery management system and aluminum casting business, as both of these products are supplied from our plants.

Anurang Jain: The battery pack business will also help increase our battery management system and aluminum casting business as both these products are supplied from our plants. In Q1 FY27, our wholly-owned subsidiary, Maxwell, achieved a 21% quarter-on-quarter growth with a total income of INR 56.5 crores as against INR 46.3 crores in the previous quarter. We have supplied more than 1 lakh numbers of BMS for scooters, three-wheelers, tractors, e-bikes, and construction equipment this quarter. We are also in close engagement with a key electric two-wheeler OEM for a BMS opportunity. We have been asked to give the prototypes, and this program has a large annual business potential. At Maxwell, we have won INR 13 crores of new business in Q1, which has taken the total cumulative orders won to INR 238 crores per annum, which will peak in Q2 of the next financial year.

Speaker #3: In Q1 FY27, our wholly owned subsidiary Maxwell achieved a 21% quarter-on-quarter growth, with a total income of ₹56.5 crores as against ₹46.3 crores in the previous quarter.

Speaker #3: We have supplied more than 100,000 units of BMS for scooters, three-wheelers, tractors, e-bikes, and construction equipment this quarter. We are also in close engagement with a key electric two-wheeler opportunity; we have been asked to provide the prototypes, and this program has significant annual business potential.

Speaker #3: At Maxwell, we have won ₹13 crore of new business in Q1, which has taken the total cumulative orders to ₹238 crore per annum, which will peak in Q2 of the next financial year.

Speaker #3: Further, we have a strong pipeline of requests for quotes of more than ₹300 crore for trucks and for two-wheeler applications. Our suspension business continues to grow, led by inverted front forks and monoshock absorbers, with wider adoption across OEMs and a steadily growing OEM customer base.

Anurang Jain: Further, we have a strong pipeline of requests for quotes of more than INR 300 crores for trucks and for two-wheeler applications. Our suspension business continues to grow, led by inverted front forks and monoshock absorbers with wider adoption across OEMs and a steadily growing OEM customer base. With increasing off-take of inverted front forks by OEMs, we are adding assembly lines and are on track to reach a monthly 100,000 units by end of FY27, which is in this financial year. At our Pantnagar plant, we have won new suspension order wins, including the monoshock absorbers and inverted front forks for Bajaj Auto, and we are investing to be able to start SOP of 25,000 sets a month from Q4 of this financial year.

Speaker #3: With increasing offtake of inverted front forks by OEMs, we are adding assembly lines and are on track to reach a monthly 100,000 units by end of FY27.

Speaker #3: Which is in this financial year. At the Aparnagar plant, we have won new suspension orders, including the monoshock absorbers and inverted front forks for Bajaj Auto, and we are investing to be able to start SOP of 25,000 sets a month from Q4 of this financial year.

Speaker #3: We are also happy to mention, to tell you, that we will be starting SOP for our Suzuki in Q3 of this financial year. This total order value is approximately ₹120 crores per annum.

Anurang Jain: We are happy to tell you that we will be starting SOP for our suspensions for Hero MotoCorp and Suzuki in Q3 of this financial year. This total order value is approximately INR 120 crores per annum. The aluminum forgings has become an increasingly strategic part of our portfolio, serving both rising captive demand from our inverted front fork business and a growing external customer base. To meet this demand, as we have shared earlier, we are adding a fifth forging press, with SOP expected in the next quarter. Execution across our programs is on track, with supplies to Royal Enfield in Q2 and for Jaguar Land Rover in Q3 of this financial year, and SOP for a leading German OEM towards the second quarter of FY28. Together, these programs deepen our presence with global marquee customers and widen the base of our aluminum forging business.

Speaker #3: The aluminum forging has become an increasingly strategic part of our portfolio, serving both rising captive demand from our inverted front fork business and a growing external customer base. To meet this demand, and as we have shared earlier, we are adding a fifth forging press, with SOP expected in the next quarter. Execution across our programs is on track: the supplies to Royal Enfield in Q2, and for Jaguar Land Rover in Q3 of this financial year, and SOP for a leading German OEM towards the second quarter of FY28.

Speaker #3: Together, these programs deepen our presence with global marquee customers and widen the base of our aluminum forging business. In the non-automotive segment, our state-of-the-art solar damper plant at Sarnen is now ready, and our SOP for our Spanish client from this plant started earlier this month.

Anurang Jain: In the non-automotive segment, our state-of-the-art solar damper plant at Sanand is ready now, and our SOP for our Spanish client for this plant has started earlier this month. For the US client, our internal validations have been completed, and the validation at customer end are in progress. The SOP for the US client is expected in the second half of this financial year. We are also gearing up for the supply of solar actuators, and the SOP is expected in Q4 of this financial year. The total business won is INR 118 crores for the solar dampers and INR 227 crores for solar actuators, totaling INR 345 crores of business. In the transmission segment, we have introduced our new technology, the Assist and Slipper Clutch, from our Italian subsidiary, Adler, in the Indian market, with supplies to Royal Enfield and Kawasaki already started.

Speaker #3: For the US client, our internal validations have been completed and the validations at the customer end are in progress. The SOP for the US client is expected in the second half of this financial year. We are also gearing up for the supply of solar actuators, and the SOP is expected in Q4 of this financial year.

Speaker #3: The total business won is ₹118 crores for the solar dampers and ₹227 crores for solar actuators, totaling ₹345 crores of business.

Speaker #3: In the transmission segment, we had introduced our new technology—the assist and slip clutches—from our Italian subsidiary Adler in the Indian market, which supplies to Royal Enfield and Kawasaki already started. For Bajaj Auto, SOP is expected in the next quarter.

Anurang Jain: For Bajaj Auto, SOP is expected in the next quarter. In our four-wheeler drive shaft program, SOP for Tata Motors is expected also in the next quarter, and the peak business will be reached by October 2026 itself. For three-wheeler drive shafts, SOP has started for Bajaj, Mahindra & Mahindra, and TVS Motor Company, and we remain on track to close INR 100 crores of business for these three OEMs in this financial year. We also are seeing an uptick in our Bajaj EV drive shaft program, with volumes expected to grow, for which additional balancing equipment will be installed in September this year. A key focus area of our FY27 CapEx budget is automation. We are undertaking these targeted investments across existing plants to enhance quality, improve consistency, and drive operating efficiency.

Speaker #3: In our four-wheeler drive shaft program, SOP for Tata Motors is expected in the next quarter, and peak business will be reached by October 2026.

Speaker #3: Itself. For three-wheeler drive shafts, SOP has started for Bajaj, Mahindra, and TVS, and we remain on track to close ₹100 crore of business for these three OEMs in this financial year.

Speaker #3: We are also seeing an uptick in our Bajaj EV drive shaft program, with volumes expected to grow, for which additional balancing equipment will be installed in September this year.

Speaker #3: A key focus area of our FY27 capex budget is automation. We are undertaking these targeted investments across existing plants to enhance quality, improve consistency, and drive operating efficiency.

Speaker #3: Our India capex in FY26 was approximately ₹800 crores, compared to ₹611 crores in the previous year, driven by investments in new growth areas.

Anurang Jain: Our India CapEx in FY26 was approximately INR 800 crores, compared to INR 611 crores in the previous year, driven by investments in new growth areas. We expect capital expenditure in FY27 to remain similar to the FY26 CapEx, so INR 800 crores. Under the Maharashtra Package Scheme of Incentives 2019 scheme, we had received an addendum taking our incentive from INR 600 crores to INR 858 crores. These incentives will be availed through the industrial promotion subsidy by way of a state GST refund, broadly over a seven-year period. We are well-placed to avail more incentives with several of our plants located in Chhatrapati Sambhaji Nagar and serving OEM customers within the state of Maharashtra. Let me now give you a gist of orders won during this quarter. Please note that the business value for new orders is without including new orders of Bajaj Auto.

Speaker #3: We expect capital expenditure in FY27 to remain similar to the FY26 capex, at ₹800 crore. Under the Maharashtra Package Scheme of Incentives 2019, we received an addendum, taking our incentives from ₹600 crore to ₹858 crore.

Speaker #3: These incentives will be availed through the industrial promotion subsidy by way of a state GST refund, broadly over a seven-year period. We are well-placed to avail more incentives, with several of our plants located in Chhatrapati Sambhaji Nagar and serving OEM customers within the state of Maharashtra.

Speaker #3: Let me now give you a gist of orders won during this quarter. Please note that the business value for new orders is given without including new orders from Bajaj Auto.

Speaker #3: The overall order win in Q1 FY27 in the India business was ₹391.6 crore, of which ₹26.1 crore is new business and ₹365.4 crore is replacement business.

Anurang Jain: The overall auto win in Q1 FY27 in the India business was INR 391.6 crores, of which INR 26.1 crores is new business and INR 365.4 crores is the replacement business. The EV business won was INR 11.3 crores, and the remaining INR 380.3 crores was the internal combustion business. Similarly, INR 18.6 crores business wins were for four-wheelers, while the remaining INR 373 crores was almost fully for two-wheelers. We also have a total of INR 4,526 crores of requests for quotes in hand. In Q1 FY27, out of this INR 391.6 crores business won, INR 336 crores of business was from Honda Motorcycle and Scooter India in this quarter, and out of this, INR 219.6 crores was at Honda Motorcycle and Scooter India suspension facelift business, which has better margins. Also in Q1 FY27, INR 35 crores of TVS Brakes business was added, taking our total TVS Brakes business to INR 250-plus crores per annum.

Speaker #3: The EV business won was ₹11.3 crore, and the remaining ₹380.3 crore was the industrial combustion business. Similarly, ₹18.6 crore business wins were for four-wheelers, while the remaining ₹373 crore was almost fully for two-wheelers.

Speaker #3: We have also won a total of Rs 4,526 crores of requests for quotes in hand. In Q1 FY27, out of this Rs 391.6 crores business won, Rs 336 crores of business was from HMSI in this quarter, and out of this, Rs 219.6 crores was at HMSI suspension facelift business, which has better margins.

Anurang Jain: We also have a total of INR 4,526 crores of requests for quotes in hand. In Q1 FY27, out of this INR 391.6 crores business won, INR 336 crores of business was from Honda Motorcycle and Scooter India in this quarter, and out of this, INR 219.6 crores was at Honda Motorcycle and Scooter India suspension facelift business, which has better margins. Also in Q1 FY27, INR 35 crores of TVS Brakes business was added, taking our total TVS Brakes business to INR 250-plus crores per annum.

Speaker #3: Also, in Q1 FY27, ₹35 crore of TBS brakes business was added, taking the total TBS brakes business to over ₹250 crore per annum.

Speaker #3: Rupees 10.5 crore of business was won from a leading US EV OEM for our Shendra plant, taking the total business win to rupees 223 crore per annum.

Anurang Jain: INR 10.5 crores of business was won from a leading US EV OEM for our Chhindwara plant, taking their total business win to INR 223 crores per annum. The cumulative India business wins for electric vehicles in the conventional product areas now stands at INR 1,496 crores without Bajaj Auto. This reaches INR 1,806 crores per annum of orders if we include Bajaj Auto. The overall total orders won now in products other than Maxwell Energy Systems and battery packs since FY23 stands at INR 5,720 crores, out of which INR 4,241 crores is new business. In Europe, the industry continues, as mentioned earlier, to operate in a challenging environment shaped by the Middle East crisis, high energy costs and interest rates, duties imposed by USA, increased competition from Chinese OEMs, and muted automotive market growth.

Speaker #3: The cumulative India business wins for electric vehicles in the conventional product areas now stand at ₹1,496 crore. Without Bajaj Auto, this reaches ₹1,806 crore per annum of orders if we include Bajaj Auto.

Speaker #3: The overall total orders won now in products other than Maxwell and battery packs since FY23 stands at ₹5,720 crores, out of which ₹4,241 crores is new business.

Speaker #3: In Europe, the industry continues, as mentioned earlier, to operate in a challenging environment shaped by the Middle East crisis, high energy costs and interest rates, duties imposed by the USA, increased competition from Chinese OEMs, and muted automotive market growth.

Speaker #3: 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. In our Europe business, we have booked orders worth €13.9 million in Q1 FY27. This includes a large order from Mercedes for their hybrid program, and an order from Stellantis for their industrial combustion engine program.

Anurang Jain: 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. In our Europe business, we have booked orders worth EUR 13.9 million in Q1 FY27. This includes a large order from Mercedes-Benz for their hybrid program and an order from Stellantis for their internal combustion engine program. Our aftermarket in India remains a strategic priority for us, with ambitious growth goals set out till 2030, guided by a comprehensive capability focused blueprint built around the voice of our team, our channel partners, retailers, and mechanics. We are deepening our long-term partnership with distributors aligned to Endurance Technologies' vision while driving secondary demand generation with retailers and mechanics.

Speaker #3: Our aftermarket in India remains a strategic priority for us, with ambitious growth goals set out till 2030, guided by a comprehensive capability-focused blueprint built around the voice of our team, our channel partners, retailers, and mechanics.

Speaker #3: We are deepening our long-term partnership with distributors aligned to Endurance's vision, while driving secondary demand generation with retailers and mechanics. Our mechanic loyalty program continues to gain traction through certification trainings from BS4 to BS6, electric vehicles and product fitness trainings, health camps, and scholarships for the children of our top mechanics.

Anurang Jain: Our mechanic loyalty program continues to gain traction through certification, trainings from BS4 to BS6, electric vehicles and product fitness trainings, health camps, and scholarships for the children of our top mechanics. We remain the first in the industry to deploy an AI-enabled tech platform to drive secondary order maximization. For aftermarket exports, we understand the voice of our stakeholders in each country and have translated it into a unique value proposition. Our customized offerings provide us a competitive edge in each geography. Our teams are based locally, close to our key stakeholders, and able to build capabilities as their requirements evolve. Now, coming to our financial performance. The information has been uploaded at the stock exchanges last evening, along with our presentation explaining the numbers. I will, however, highlight some key numbers.

Speaker #3: We remain the first in the industry to deploy an AI-enabled tech platform to drive secondary order maximization. With aftermarket exports, we understand the voice of our stakeholders in each country and have translated it into a unique value proposition.

Speaker #3: Our customized offerings provide us with a competitive edge in each geography. Our teams are based locally, close to our key stakeholders, and are able to build capabilities as their requirements evolve.

Speaker #3: Now coming to our financial performance, the information has been uploaded at the Stock Exchanges last evening, along with our presentation explaining the numbers, I will however highlight some key numbers during Q1 of FY27, the company recorded a standalone total income of rupees 3,194.15 crores, a year-on-year growth of 35.9% from rupees 2,350.7 crores in the previous year, EBITDA grew 17.1% from 305.61 crores to rupees 357.78 crores with a margin at 11.2%, the PAD grew 17.4% from rupees 165.82 crores to rupees 194.62 crores, the PAT was at 6.1%.

Anurang Jain: During Q1 FY27, the company recorded a standalone total income of INR 3,194.15 crores, a year-on-year growth of 35.9% from INR 2,350.7 crores in the previous year. EBITDA grew 17.1% from INR 305.61 crores to INR 357.78 crores, with a margin at 11.2%. The PAT grew 17.4% from INR 165.82 crores to INR 194.62 crores. The PAT was at 6.1%. In Q1 FY27, it has been a challenging quarter due to the geopolitical situation. This has led to huge increase in commodity prices like aluminum, steel, copper, rubber and oils and fuels, including diesel, PNG and LPG gases, as well as consumables such as cutting tools. The commodity increases led to RMC percentage to total income, going up to 68.4% as compared to 64.8% in Q1 FY26.

Speaker #3: In Q1 FY27, it has been a challenging quarter due to the geopolitical situation. This has led to a huge increase in commodity prices like aluminum, steel, copper, rubber, and oils, as well as fuels including diesel, PNG, and LPG gases, and consumables such as cutting tools.

Speaker #3: The commodity increases led to our RMC percentage to total income going up to 68.4%, as compared to 64.8% in Q1 FY26. You must keep in mind that this commodity pass-on is by most OEM clients too.

Anurang Jain: You must keep in mind that this commodity increase has no value add, and passed on by most OEM clients. If we remove this non-value add commodity increase and then see EBITDA margin, it is at 13.33% as compared to our reported 11.2% in standalone financials. In spite of the conversion cost increase of fuels, gases and cutting tools in Q1 FY27, we could still post a healthy EBITDA amount increase of 17.07% at INR 357.77 crores compared to INR 305.61 crores in the previous year. This was due to better operational efficiency and various cost controls across our plants. I would like to mention some of the key factors in Q1 on raw materials.

Speaker #3: If we remove this non-value-add commodity increase and then see EBITDA margin, it is at 13.33%, as compared to our reported 11.2% in standalone financials.

Speaker #3: In spite of the conversion cost increase of fuels, gases, and cutting tools in Q1 FY27, we could still post a healthy EBITDA increase of 17.07% at ₹357.77 crore, compared to ₹305.61 crore in the previous year. This was due to better operational efficiency and various cost controls across our plants.

Speaker #3: I would like to mention some of the key factors in Q1 on raw materials. Most purchase order amendments were not accounted for in Q1, and will become effective in this quarter.

Anurang Jain: Most purchase order amendments not accounted in Q1 and will get effective in this quarter. So the raw material base in Q1 has been considered mostly on the Q4 FY26 raw material rate base. In this quarter, we will get the raw material rates of Q1 average. As far as the aluminum alloys are concerned, which are 60% of our Q1 raw material purchase, we are seeing softening of the aluminum alloy rates in this quarter, which will be a gain to us in this quarter. Other raw materials, including steel, plastic, rubber and oils, are in the final stages of settlement.

Speaker #3: So, the raw material base in Q1 has been considered mostly on the Q4 FY26 raw material rate base. In this quarter, we will get the raw material rates of Q1 average, as far as the aluminum alloys are concerned, which are 60% of our Q1 raw material purchase.

Speaker #3: We are seeing softening of the aluminum alloy rates in this quarter, which will be a gain to us in this quarter. Other raw materials, including steel, plastic, rubber, and oils, are in the final stages of settlement.

Speaker #3: On the Q1 gas, fuel, and manpower rate increases, we hope to settle these rate increases in this quarter with each of our OEM clients, and we should see these rates being effective in this quarter or in the next quarter of this financial year.

Anurang Jain: On the Q1 gas, fuel, and manpower rate increases, we hope to settle these rate increases in this quarter with each of our OEM clients, and we should see these rates being effective in this quarter or in the next quarter of this financial year. Also, our alloy wheel plant at Bidkin and the battery pack plant in Mindevadi are still at a ramp-up phase and have not reached optimum sales, which should happen in Q3 of this financial year. I would like to mention that in Q1 FY27, the commodity increases of approximately INR 318.06 crores was paid upfront by Endurance as most commodity increases come with a quarter lag. We still closed the quarter for a standalone net cash balance of INR 415.7 crores.

Speaker #3: Also, our alloy wheel plant at Bitkin and the battery pack plant at Mindabadi are still in a ramp-up phase and have not reached optimum sales, which should happen in Q3 of this financial year.

Speaker #3: I would like to mention that in Q1 FY27, the commodity increases of approximately ₹318.06 crore were paid upfront by Endurance, as most commodity increases come with a quarter lag.

Speaker #3: We still close a quarter for a standalone net cash balance of rupees 400.15.7 crores. In Q1 FY27, our consolidated total income grew 29.6% over Q1 of the last year, from rupees 3,353.54 crores to rupees 4,348.28 crores, the EBITDA grew 18.7% from rupees 479.51 crores to rupees 569.21 crores, our margin was at 13.1%.

Anurang Jain: In Q1 FY27, our consolidated total income grew 29.6% over Q1 of the last year from INR 3,353.54 crores to INR 4,348.28 crores. The EBITDA grew 18.7% from INR 479.51 crores to INR 569.21 crores. Our margin was at 13.1%. The consolidated PAT grew 8% from INR 226.35 crores to INR 244.52 crores at 5.6% PAT margin. I would like to mention that our subsidiary, Maxwell, for the first time, achieved PAT positive in Q1 FY27 with an 85% growth in total income from INR 30.53 crores in Q1 FY26 to INR 56.51 crores in Q1 FY27.

Speaker #3: The consolidated PAT grew 8%, from Rs 226.35 crore to Rs 244.52 crore, at a 5.6% PAT margin. I would like to mention that our subsidiary, Maxwell, for the first time achieved PAT positive in Q1 FY27, with an 85% growth in total income from Rs 30.53 crore in Q1 FY26 to Rs 56.51 crore in Q1 FY27.

Anurang Jain: I would like to mention that our subsidiary, Maxwell, for the first time, achieved PAT positive in Q1 FY27 with an 85% growth in total income from INR 30.53 crores in Q1 FY26 to INR 56.51 crores in Q1 FY27. I would like to inform you that our electric vehicle sales in India standalone for Q1 FY27 grew by 87.4% from INR 69.2 crores in Q1 of last year to INR 129.7 crores in Q1 of this year. While our overseas EV and plug-in hybrid sales increased by 14.4% from INR 701.4 crores to INR 802.2 crores in Q1 of this year.

Speaker #3: I would like to inform you that our electric vehicle sales in India, standalone for Q1 FY27, grew by 87.4%, from ₹69.2 crore in Q1 of last year to ₹129.7 crore in Q1 of this year, while our overseas EV and plug-in hybrid sales increased by 14.4%, from ₹701.4 crore to ₹802.2 crore in Q1 of this year.

Anurang Jain: I would like to inform you that our electric vehicle sales in India standalone for Q1 FY27 grew by 87.4% from INR 69.2 crores in Q1 of last year to INR 129.7 crores in Q1 of this year. While our overseas EV and plug-in hybrid sales increased by 14.4% from INR 701.4 crores to INR 802.2 crores in Q1 of this year.

Speaker #3: The consolidated growth of electric vehicle and plug-in hybrid sales was 20.9%. I mean, it grew 20.9% from ₹770.6 crore in Q1 to ₹931.9 crore, so 20.9% growth in EV and plug-in hybrid sales.

Anurang Jain: The consolidated growth of the electric vehicles and plug-in hybrid sales was 20.9% from INR 770.6 crores in Q1 to INR 931.9 crores. 20.9% growth in EV and plug-in hybrid sales in the first quarter. We are happy to inform you that CRISIL has upgraded our ESG rating to a strong score of 68 from FY26, up from 59 in the previous financial year. Our progress on ESG is being recognized consistently across other agencies. Earlier, our FY25 ESG score for SES and NSE had also improved year-on-year to 74.9 and 69, reflecting our company's continued focus on ESG. Endurance continued to receive recognition from industry forums for quality, innovation, and sustainability. We won The Economic Times ETAuto Innovative RIDE Technology Award 2026.

Speaker #3: In the first quarter, we are happy to inform you that CRISL has upgraded our ESG rating to a strong score of 68 for FY26, up from 59 in the previous financial year. Our progress on ESG is being recognized consistently, also across other agencies.

Speaker #3: Earlier, our FY25 ESG scores for SES and NSC had also improved year on year to 74.9 and 69, respectively, reflecting our company's continued focus on ESG.

Speaker #3: Endurance continued to receive recognition from industry forums for quality, innovation, and sustainability. We won the Economic Times Autotech Innovative Right Technology Award 2026. We also won the Platinum Award for Sustainable Materials and Supply Chain at CII's National Excellence Practice Competition, along with one Platinum and three Gold awards at the CII National Competition on Low-Cost Automation and Industry 4.0.

Anurang Jain: We also won the Platinum Award for Sustainable Materials and Supply Chain at CII's National Excellence Practice Competition, along with one platinum and three gold awards at the CII National Competition on low-cost automation and Industry 4.0. With these opening remarks, I would now like to invite questions from all of you. We will first take the questions from the European management team as they will be traveling. We can start with questions for the European team. Mr. Vinoth is on the line. Thank you.

Speaker #3: With these opening remarks, I would now like to invite questions from all of you. We will first take questions from the European Management Team, as they will be traveling.

Speaker #3: So, we can start with questions for the European team. Mr. Venuti is on the line. Thank you.

Speaker #1: 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 their touch-tone telephone.

Operator: 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 their touchtone 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. Please note that we will be taking questions from European business first. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Jhawar from Investec. Please proceed.

Speaker #1: 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.

Speaker #1: Please note that we will be taking questions from European business first. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: The first question is from the line of Aditya Dhawar from Investech. Please proceed.

Speaker #3: Hi. Thanks for the opportunity and congratulations on the great set of numbers. My first question is on our order wind. So, at about €14 million for this quarter, the quarterly run rate is quite encouraging as compared to the last few quarters.

Aditya Jhawar: Hi. Thanks for the opportunity and congratulations on a great set of numbers. Massimo, my first question is on our order win. At about EUR 14 million for this quarter, the quarterly run rate is quite encouraging as compared to last few quarters. If you can talk about the quality of the order win, what are the different types of orders we are getting in terms of powertrain as well as customers.

Speaker #3: If you can talk about, you know, the quality of the order wind—what are the different types of, you know, orders we are getting in terms of, you know, powertrain as well as, you know, customers.

Speaker #4: Yes, hi Aditya. So, this was a very important acquisition at this moment because we are thinking about a component for hybrid vehicles in the transmission, and Mercedes decided to assign the business to Endurance due to the fact that we already have this part in our product portfolio, but only with 60% of the total volume.

Massimo Venuti: Yes. Hi, Aditya. This was a very important acquisition in this moment because we are speaking about a component for hybrid vehicle and the transmission. Mercedes-Benz decided to assign the business to Endurance due to the fact that we have already this part in our product portfolio, but only with 60% of the total volume. Whereas 40% was with a competitor of ours that unfortunately, or fortunately let me say, went in bankruptcy. The decision was to move fastly the production capacity 100% to Endurance. We will have the start of production in January 2027 with more or less EUR 14 million. But we are thinking about a component that we know very well. It means that this was the only component in the transmission, hybrid in Maybach of Mercedes-Benz, where we have a second source.

Speaker #4: The remaining 40% was with a competitor of ours that, unfortunately or fortunately, let me say, went into bankruptcy. So, the decision was to quickly move the production capacity 100% to Endurance, and we will have the start of production in January 2027 with more or less €14 million.

Massimo Venuti: The decision was to move fastly the production capacity 100% to Endurance. We will have the start of production in January 2027 with more or less EUR 14 million. But we are thinking about a component that we know very well. It means that this was the only component in the transmission, hybrid in Maybach of Mercedes-Benz, where we have a second source. But this company will stop the production at the end of the year, and we will take 100% of the business. So very important, let me say.

Speaker #4: But we are talking about a component that we know very well, and so it means that this was the only component in the transmission hybrid and mild hybrid of Mercedes where we have a second source. But this company will stop production at the end of the year, and we will take 100% of the business.

Massimo Venuti: But this company will stop the production at the end of the year, and we will take 100% of the business. So very important, let me say.

Speaker #4: And so, very important, let me say.

Speaker #3: Oh, so that's very helpful. Secondly, if you can, you know, talk about it, how is the integration of Stoplay progressing? We understand that, you know, the core strength of Stoplay was on machining, but clearly the backward integration with Endurance would mean that there could be, you know, significant value that we can generate.

Aditya Jhawar: So that's helpful. Secondly, if you can talk about that, how is the integration of Stöferle progressing? We understand that the core strength of Stöferle was on machining, but clearly the backward integration with Endurance would mean that there could be significant value that we can generate. So how is the integration progressing with Stöferle?

Speaker #3: So, how is the integration progressing with Stoplay?

Speaker #4: Okay, I could say that the integration is 100 percent, speaking about, for sure, the managerial activity and also the commercial activity, because now we are moving considering the production capacity available, production from Endurance to aviation, stepper line, making synergy and considering only the contribution margin of the part.

Massimo Venuti: Okay. I could say that the integration is 100%, speaking about for sure the managerial activity and also the commercial activity, because now we are moving, considering the production capacity available, production from Endurance in the Asian sector, like making synergy and considering only the contribution margin of the part. Regarding the raw part, as you know, machine, as you know, Stöferle is buying raw parts from the market. And I hope in the next few months to give you positive news about the process of integration, because we are looking for production capacity available into the market. And as you can imagine, in this moment, it's full of production available. But we are considering to integrate a specific component in a bigger pressure die casting machine for Stöferle. And I hope within January 2027 to reach this agreement.

Speaker #4: Regarding the raw part, as you know, the machine—as you know, the stepper line is buying raw parts from the market. I hope in the next few months to give you positive news about the process of integration, because we are looking for production capacity available in the market. As you can imagine, at this moment it’s full of production available, but we are considering integrating specific components in the big air pressure Decathlon machine for the stepper line.

Massimo Venuti: And I hope in the next few months to give you positive news about the process of integration, because we are looking for production capacity available into the market. And as you can imagine, in this moment, it's full of production available. But we are considering to integrate a specific component in a bigger pressure die casting machine for Stöferle. And I hope within January 2027 to reach this agreement. But the integration with the company is absolutely positive, and also for the next quarter, probably we will have a positive info regarding new business in Stöferle.

Speaker #4: And I hope within January 2027 to reach this agreement. But the integration with the company is absolutely positive, and also for the next quarter, probably we will have positive info regarding new business in the Stepper line.

Massimo Venuti: But the integration with the company is absolutely positive, and also for the next quarter, probably we will have a positive info regarding new business in Stöferle.

Speaker #3: Oh, that's good to know. So, the full impact of this positive integration would be seen in FY28.

Aditya Jhawar: Oh, that is good to know. So the full impact of this positive integration would be seen in FY28?

Speaker #4: Absolutely, yes. Starting from, let me say, September 2027.

Massimo Venuti: Absolutely, yes. Starting from, let me say, September 2027.

Speaker #3: Okay, that's very good to hear. So that's it from me. I'll fall back in the queue. Thank you.

Aditya Jhawar: Okay. That is very good to hear. So that is it from me. I will fall back in queue. Thank you.

Speaker #4: Thank you. Bye.

Massimo Venuti: Thank you. Bye.

Speaker #1: Thank you. The next question is from the line of Arvind Sharma from Citi Group. Please proceed.

Operator: Thank you. The next question is from the line of Arvind Sharma from Citigroup. Please proceed.

Speaker #2: Yeah, hi. Good morning, sir. Thank you for taking my question. Only in the European business, if you could just let us know the revenue and EBITDA and PAT in euros.

Arvind Sharma: Yeah. Hi, Massimo. Thank you for taking my question. Only on the European business, if you could just let us know the revenue and EBITDA and PAT in euros. That would be first question. If I could just add the second part to it as well. What is the demand outlook now in Europe? You said, you alluded to some challenges in the first quarter, but now given the order wins, specifically for Endurance, how does the outlook look in the European business?

Speaker #2: That would be the first question. And if I could just add the second part to it as well: what is the demand outlook now in Europe?

Speaker #2: Mr. Jan, I'll read to some challenges in the first quarter. But now, given the order wins, specifically for Endurance, how does the outlook look in the European business?

Speaker #4: Okay, so I start from Neuroterm. As usual, with the result of the previous quarter of this financial year, we close with €104.3 million of turnover, compared to €103.2 million in the previous financial year, with an increase of €1.1 million, or 1.1%.

Massimo Venuti: Okay. I start from Eurotherm, as usual, with the result of the previous quarter of this financial year. We closed with EUR 104.3 million of euro turnover, compared EUR 103.2 million of the previous financial year, with an increase of 1.1%. In terms of EBITDA, we closed with EUR 18.9 million compared to EUR 18 million of the previous financial year. In terms of percentage, we closed with 18.2% compared 17.4% of the previous financial year. We grew 5.5% in terms of EBITDA. In terms of net result, we closed with EUR 4.4 million, 4.2%, compared EUR 6.4 million the previous financial year with a reduction of 31%. This is due to the fact that we increased the depreciation from EUR 8.5 million the previous financial year to EUR 11.6 million this financial year.

Speaker #4: In terms of EBITDA, we closed with €18.9 million compared to €18 million in the previous financial year. In terms of percentage, we closed at 18.2% compared to 17.4% in the previous financial year.

Speaker #4: We grew 5.5% in terms of EBITDA. In terms of net result, we closed with €4.4 million, or 4.2%, compared to €6.4 million in the previous financial year, with a reduction of 31%.

Speaker #4: This is due to the fact that we increased depreciation from €8.5 million in the previous financial year to €11.6 million in this financial year.

Speaker #4: The decision is linked to what we decided—to, in a cautionary way, depreciate 100% of the residual fixed asset linked to the specific project of internal combustion engine. That will go into results in the next 18 months.

Massimo Venuti: We decided to, in a cautionary way, to depreciate 100% of the residual fixed asset linked to specific project of internal combustion engine that will go in phase out in the next 18 months. The demonstration of the positive effect of the EBITDA in the quarter compared to the previous year, without considering the depreciation, is that the cash profit reached in the quarter EUR 16 million, compared EUR 14.8 million the previous financial year with an increase of 7.9%. Speaking about the market, as Mr. Jain told you, the market in Europe grew 7.4% of increase compared to the previous year. We reached a peak of 22% in the BEV registration. But please consider that the production compared to the previous year went down 5%. What does it mean? In this quarter, there was an absolute and exceptional performance of the Chinese OEM.

Speaker #4: The demonstration of the positive effect of the EBITDA in the quarter compared to the previous year, without considering the depreciation, is that the cash profit reached in the quarter €16 million compared to €14.8 million in the previous financial year, with an increase of 7.9%.

Speaker #4: Speaking about the market, as Mr. Jane told you, the market in Europe closed with a 7.4% increase compared to the previous year. We reached a peak of 22% in the bad registration.

Speaker #4: But please consider that production compared to the previous year went down 5%. What does it mean? That in this quarter, there was an absolute and exceptional performance by the Chinese OEM. Only to give an idea, size grew 32%.

Massimo Venuti: Only to give you an idea, SAIC grew 32%, 57%, Geely 7%, Chery 272%, Leapmotor 500% compared to the previous year. If I accept the registration of the Chinese brand, the market was absolutely stable. But I repeat, there was a reduction in the production capacity, certainly in this moment they are reducing the stock to the dealer. The situation continues to be very difficult because, as you know, in all the newspapers, they are speaking about important restructuring plan, Mercedes, Volkswagen, and they will close also specific platform because they want to close the plant. But to be honest, in this moment, we do not see important reduction in volume and we continue as in the Q1 to grow compared to the previous financial year. I am speaking about for sure as Endurance.

Speaker #4: 57%, Geely 7%, Chery 272%, Leapmotor 500% compared to the previous year. And so, if I accept the registration of the Chinese brand, the market was absolutely stable.

Speaker #4: But I repeat, there was a reduction in the production capacity, and so it means that at this moment they are reducing the stock to the dealer.

Speaker #4: The situation continues to be very difficult because, as you know, in all the newspapers they are speaking about important restructuring plans. Mercedes, Volkswagen, and they will close also specific platforms, because they want to close the plant.

Speaker #4: But to be honest, at this moment, we don't see any important reduction in volume, and we continue, as in the first quarter, to grow compared to the previous financial year.

Massimo Venuti: But to be honest, in this moment, we do not see important reduction in volume and we continue as in the Q1 to grow compared to the previous financial year. I am speaking about for sure as Endurance. On top of this, the acquisition of the last few months of company that are not new, but that are moving from company bankruptcy to Endurance, from a point of view is absolutely positive for us.

Speaker #4: I am speaking about, for sure, as Endurance. On top of this, the acquisition over the last few months of components that are not new, but are moving from company bankruptcy to Endurance, from our point of view, is absolutely positive for us.

Massimo Venuti: On top of this, the acquisition of the last few months of company that are not new, but that are moving from company bankruptcy to Endurance, from a point of view is absolutely positive for us.

Speaker #2: Got it. Thank you so much for this. I will come back and thank you for questions regarding the India business. Thank you so much.

Arvind Sharma: Got it. Thank you so much for this. I come back and thank you for questions for the India business. Thank you so much.

Speaker #1: Thank you. A reminder to all participants: anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchtone telephone.

Operator: Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Aditya Jhawar from Investec. Please proceed.

Speaker #1: The next question is from the line of Aditya Dhavar from Invest Tech. Please proceed.

Speaker #3: Yeah, thank you for the posting again. So, my question is on India. Starting with the margins, now this quarter, clearly we had a commodity headwind.

Aditya Jhawar: Yeah. Thank you for the opportunity again. My question is on India. Starting with the margins. This quarter, clearly we had a commodity headwind. You mentioned that some part of that would be covered as a negotiation from customers in the subsequent quarter. Is there a way to quantify that? That is number one. Number second is that incremental cost inflation in Q2, how much of that you think is on the cards? Number third is that what are the offsetting factors for these commodity headwinds?

Speaker #3: Now, you mentioned that some part of that would be covered as a, you know, negotiation from customers in the subsequent quarter. Is there a way to quantify that—that is, number one.

Speaker #3: Number second is that incremental cost, you know, inflation in Q2, how much of that you think, you know, is on the cards? And number third is that what are the offsetting factors for, you know, for these commodity headwinds?

Speaker #4: No, so Aditya, one is that we are surely going to get all the raw material increases from every OEM in this quarter. Okay, so basically we'll get the Q1 FY26 rates in this quarter.

Anurang Jain: No. Aditya Jhawar, one is that we are surely going to get all the raw material increases from every OEM in this quarter.

Anurang Jain: Okay, so-

Aditya Jhawar: Yeah

Aditya Jhawar: Yeah.

Anurang Jain: Okay, so basically we will get the Q1 FY26 rates in this quarter. As I mentioned, we are seeing softening of the aluminum alloy rates. Definitely not the Q4 base, but of course, lower than maybe it could be INR 12 to INR 17 a kg is what we are seeing as of now. In this quarter, which will be a gain to us for sure, because 60% of our Q1 raw material purchases was this thing, I mean, was just alloy. So basically, we were operating in the Q4 base in Q1, largely. Now we will be operating on a Q1. In Q2, we will be operating on the Q1 base, which is definitely much higher than the Q4 base. Definitely that should improve the EBITDA margin and percentage. To be honest, I do not know what that percentage is.

Speaker #4: As I mentioned, we are seeing a softening of the aluminum alloy rates. Definitely not at the Q4 base, but of course, lower than before. Maybe it could be ₹12 to ₹17 per kg—this is what we are seeing as of now.

Speaker #4: In this quarter, which will be a gain to us for sure, because 60% of our Q1 raw material purchases was, you know, this thing—I mean, was just alloy.

Speaker #4: So basically we were operating in the quarter four base in quarter one, largely. Now we'll be operating on the quarter one in quarter two we'll be operating on the quarter one base, which is definitely much higher than the quarter four base.

Anurang Jain: Now we will be operating on a Q1. In Q2, we will be operating on the Q1 base, which is definitely much higher than the Q4 base. Definitely that should improve the EBITDA margin and percentage. To be honest, I do not know what that percentage is. Because right now we have done the aluminum alloy, this thing, those have been settled. For, like I mentioned, the steel, rubber, plastics, this is being talked to all the OEMs. We will conclude in this quarter, which will also be effective in this quarter.

Speaker #4: And definitely that should improve the, I mean, EBITDA margin and percentage. To be honest, I don't know what that percentage is, because right now we have done the aluminum alloy—this thing, I mean, those have been settled. Like I mentioned, the steel, rubber, and plastics—this is being discussed with all the OEMs.

Anurang Jain: Because right now we have done the aluminum alloy, this thing, those have been settled. For, like I mentioned, the steel, rubber, plastics, this is being talked to all the OEMs. We will conclude in this quarter, which will also be effective in this quarter. So that will be a gain for us. And third, like I mentioned, is on the conversion cost increases also. We are in touch with every OEM, and we hope to settle these conversion cost increases also in this quarter. We may get partly this quarter, partly next quarter. So definitely we see a much better Q2 and a Q3 for sure. But if you tell me to give an amount, to be honest, there are so many variables around it that I cannot give a figure. It won't be fair to give a figure right now.

Speaker #4: We will conclude in this quarter, which will also be effective in this quarter. You know, so that will be a gain for us. And third, like I mentioned, is on the conversion cost increases also.

Anurang Jain: So that will be a gain for us. And third, like I mentioned, is on the conversion cost increases also. We are in touch with every OEM, and we hope to settle these conversion cost increases also in this quarter. We may get partly this quarter, partly next quarter. So definitely we see a much better Q2 and a Q3 for sure. But if you tell me to give an amount, to be honest, there are so many variables around it that I cannot give a figure. It won't be fair to give a figure right now. But I can definitely tell everybody it will be better than Q1.

Speaker #4: We are in touch with every OEM, and we hope to settle these conversion cost increases also in this quarter. We may get it partly this quarter, and partly next quarter.

Speaker #4: So definitely we see a much better quarter two and a quarter three for sure. You know, but if you tell me to give an amount, to be honest, there are so many variables around it that I cannot give a figure.

Speaker #4: It would not be fair to give a figure right now, but I can definitely tell everybody it will be better than Q1.

Anurang Jain: But I can definitely tell everybody it will be better than Q1.

Speaker #3: Sure, that's good to know. Second question is on four-wheelers. I think, you know, if you can give us some sense of how our journey has been in the four-wheeler die casting part over the last few years. In this, you can also give some color on the Shendra facility that we have set up for four-wheeler die casting, which also includes some of the export business.

Aditya Jhawar: Sure. That's good to know. Second question is on four-wheelers. I think, if you can give us some sense that last few years, how has been our journey in the four-wheeler die casting part? In this, you can also give some color on the Shendra facility that we have set up for four-wheeler die casting that also includes some of the export. So how has been the progress in the last few years, which are the OEMs that we have started engagement with and where we are seeing a good acceleration? That will also include exports and EV. So yeah.

Speaker #3: So, how has the progress been in the last few years? Which are the OEMs that we have started engagement with, and where are we seeing good acceleration?

Speaker #3: That will also include exports and EV, so yeah.

Speaker #4: So, I would say that almost ₹1,800 crores is our business—sorry, almost ₹180 crores is the business for four-wheelers in quarter one. Okay.

Massimo Venuti: So, I would say that almost INR 180 crores is the business for four-wheelers in Q1. Okay? Because our four-wheeler share is 6%. This is largely for castings.

Anurang Jain: So, I would say that almost INR 180 crores is the business for four-wheelers in Q1. Okay? Because our four-wheeler share is 6%. This is largely for castings.

Speaker #4: Because our four-wheeler share is 6%. This is largely for castings. You know, of course, Auric Shendra sales are not in this because the SOP is starting next month.

Aditya Jhawar: Yeah.

Massimo Venuti: Of course, Aurangabad, Shendra sales are not in this because the SOP is starting next month. It is for the leading US EV OEM.

Anurang Jain: Of course, Aurangabad, Shendra sales are not in this because the SOP is starting next month. It is for the leading US EV OEM. For Jaguar Land Rover and for Valeo, like I mentioned, that will add to the sales and the profitability. Here in Chhindwara, we have won an order of almost INR 513 crores per annum, but that will reach peak in only early FY28. So it will be FY29, because these are long lead programs, and we have to be certified for these orders much earlier when it comes to these foreign OEM players.

Speaker #4: It's for the leading U.S. EV OEM, for Jaguar Land Rover, and for value, like I mentioned. So, that will add to the sales and the profitability.

Anurang Jain: For Jaguar Land Rover and for Valeo, like I mentioned, that will add to the sales and the profitability. Here in Chhindwara, we have won an order of almost INR 513 crores per annum, but that will reach peak in only early FY28. So it will be FY29, because these are long lead programs, and we have to be certified for these orders much earlier when it comes to these foreign OEM players. I think a large increase will be seen from, I think, Q4 of this year in Chhindwara, which I mentioned. Also we are growing in a large way with Tata and Mahindra in Chakan plant, where we see a strong traction from both Tata and Mahindra, and as you all know, they are both doing well.

Speaker #4: Okay, now here in Shendra, we have won an order of almost ₹513 crore per annum, but that will reach its peak only in early FY28.

Speaker #4: You know, so it'll be, you know, FY29, because these are long-lead programs. And we have to be certified for these orders much earlier.

Speaker #4: When it comes to, you know, these foreign OEM players, I think a large increase will be seen from, I think, Q4 of this year in Shendra, which I mentioned.

Anurang Jain: I think a large increase will be seen from, I think, Q4 of this year in Chhindwara, which I mentioned. Also we are growing in a large way with Tata and Mahindra in Chakan plant, where we see a strong traction from both Tata and Mahindra, and as you all know, they are both doing well. As far as I mentioned, we won this new Hyundai order of INR 80 crores per annum, which is actually already started in this month. This will only increase. We are talking to other south-based OEMs.

Speaker #4: We are also growing significantly with Tata and Mahindra at the Chakun plant, where we see strong traction from both Tata and Mahindra.

Speaker #4: And as you all know, they are both doing well. You know, as I mentioned, we won this new Hyundai and Kia order of ₹80 crore per annum.

Anurang Jain: As far as I mentioned, we won this new Hyundai order of INR 80 crores per annum, which is actually already started in this month. This will only increase. We are talking to other south-based OEMs. With Isuzu, we have started for the hybrid model, hybrid model products. So there is a lot happening in this space. If you ask me, our focus now will be more on four-wheeler and non-automotive castings, and not that much on the two-wheeler casting space going forward. Because like I mentioned, we are very now focused on improving our margins. I have no control on the raw material percentage of sale. That is not in our control. But if you look at absolute margins, definitely we want to increase them. If the raw material percentage goes lower, then of course, the margin percentage will go up.

Speaker #4: You know, which is also starting—actually, it has already started this month. Okay, and this will only increase, and we are talking to other South-based OEMs as well. You know, with Isuzu, we have started for the hybrid model.

Anurang Jain: With Isuzu, we have started for the hybrid model, hybrid model products. So there is a lot happening in this space. If you ask me, our focus now will be more on four-wheeler and non-automotive castings, and not that much on the two-wheeler casting space going forward. Because like I mentioned, we are very now focused on improving our margins. I have no control on the raw material percentage of sale. That is not in our control. But if you look at absolute margins, definitely we want to increase them. If the raw material percentage goes lower, then of course, the margin percentage will go up. But we are very focused on the four-wheeler auto as well as the non-auto casting space.

Speaker #4: You know, hybrid this thing, model products. So there's a lot happening in this space. And if you ask me, our focus now will be more on four-wheeler and non-automotive castings.

Speaker #4: And not that much on the two-wheeler casting space, going forward. Because we are, like I mentioned, we are now very, very focused on improving our margins.

Speaker #4: I mean, I have no control over the raw material percentage, as that's not within our control. But if you look at absolute margins, we definitely want to increase them.

Speaker #4: If the raw material percentage goes lower, then of course the margin percentage will go up. But we are very, very focused on the four-wheeler auto as well as the non-auto casting space.

Anurang Jain: But we are very focused on the four-wheeler auto as well as the non-auto casting space.

Speaker #4: You know, so just to tell you, we did about ₹180 crores in the first quarter, our business. And this will only grow, you know, because Shendra has not been included in this.

Aditya Jhawar: Yeah.

Anurang Jain: To just tell you, we did about INR 180 crore in the first quarter of business, and this will only grow.

Aditya Jhawar: Yeah.

Anurang Jain: Because Chhindwara is not included in this.

Speaker #3: Sure, sure. That's very encouraging. My final question is on our battery pack business. We are seeing, you know, encouraging progress in the two-wheeler battery pack segment.

Aditya Jhawar: Sure. That is very encouraging. My final question is on our battery pack business. We are seeing encouraging progress in the two-wheeler battery pack. The question is that, how should we look at the profitability of this, and is it that we will be using our own BMS for the two-wheeler as well as the four-wheeler battery pack customer that we are engaging? Is it a high single digit, low double digit margin, or is it close to company average margin? The battery pack assembly with our BMS or without a BMS.

Speaker #3: So the question is, how should we look at the profitability of this? And is it that we will be using our own BMS for the two-wheeler as well as the four-wheeler battery pack facility, you know, with the customer that we are engaging?

Speaker #3: Is it a high single-digit, low double-digit margin, or is it close to the company average margin? You know, the battery pack assembly with our BMS or without the BMS?

Speaker #4: So, of course, this is, as you know, a very high-value business. We have started. We have started on a certain pricing. There is a lot of work to be done on the raw material and the BOM.

Anurang Jain: This is, as you know, a very high-value business we have started. We have started on a certain pricing. There is a lot of work to be done on the raw material and the BOM. And this is something which we are working on to increase the margin percentage. I will be better positioned to tell you what kind of margin percentage we can do and reach in our next call, which we have. There I will be much more clear. But definitely, the volumes are going to be very good on the two-wheeler. In fact, our whole assembly line, which has got a capacity of almost, I think, 17,000 to 18,000 battery packs a month, will be fully used up by October, is the plan. Even for the four-wheeler, the new investment we are doing, I cannot name the company.

Speaker #4: Okay, and this is something which we are working on to increase the margin percentage. I’ll be better positioned to tell you what kind of margin percentage we can achieve and reach in our next call, which we have.

Speaker #4: There, I'll be much more clear. But definitely, the volumes are going to be very good on the two-wheeler. In fact, a whole, you know, assembly line which has got a capacity of almost, I think, 17,000 to 18,000 battery packs a month will be fully used up by October.

Speaker #4: This is the plan. Even for the four-wheeler, the new investment we are making, I cannot name the company. I'm not allowed to name the company.

Anurang Jain: I'm not allowed to name the company. Of course, that will come with also a good margin. Our target would be to try and reach margins which we are doing today on an average. That is our target. You must keep in mind, this is very high-value business. When you talk for a car business, a battery pack can be as high as about 1 lakh of rupees. You know what I'm saying? So those are the kind of pricing you are seeing when we talk about a margin on that. So it's a very exciting space to be. It is related to electric vehicles. As you all know, there's a lot of traction happening in two-wheeler. Three-wheeler, of course, is the fastest. We are seeing in two-wheelers, and now we are seeing even in the four-wheeler space.

Speaker #4: Of course, that will also come with a good margin. Now, of course, our target would be to try and reach the margins that we are achieving today, on average.

Speaker #4: That is our target. But you must keep in mind, this is very high value business. When you talk, when you talk for a car business, I mean, it can be as high a battery pack can be as high as about a lakh of rupees.

Speaker #4: You know what I'm saying? So those are the kind of pricing you're seeing when we talk about a margin on that. So, it's a very exciting space to be in.

Speaker #4: It is related to electric vehicles. And as you all know, there's a lot of traction happening in two-wheelers. Three-wheelers, of course, is the fastest.

Speaker #4: We are seeing it in two-wheelers, and now we are seeing it even in the four-wheeler space—a lot of traction in EVs and hybrids.

Anurang Jain: A lot of traction of EVs and hybrids happening. This is the future. For us in Endurance to be a part of this journey is very important. Sometimes you enter at a price, but we are very confident that we will be able to make good margins on this, and that's our focus. We have to enter, and that's very important. This, as you all know, was a forward integration from our battery management system. For the existing two-wheeler order, the BMS is ours, and the aluminum casting is ours. That also increases our business for that, and that has a separate margin on this business. When we see battery pack, we also have a margin on our BMS as well as on our aluminum die casting business as a company.

Speaker #4: You know, happening. So this is the future. So for us in Endurance to be a part of this journey is very important. Sometimes you enter at a price, but we are very confident that we will be able to make, you know, good margins on this.

Speaker #4: And that's our focus. But we have to enter, and that's very, very important. And this, as you all know, was a forward integration from a battery management system.

Speaker #4: For the existing two-wheeler order, the BMS is ours, and the aluminum casting is ours. You know, so that also increases our business for that.

Anurang Jain: That also increases our business for that, and that has a separate margin on this business. When we see battery pack, we also have a margin on our BMS as well as on our aluminum die casting business as a company. As far as the four-wheeler is concerned, there also, both these products should be ours only. I think that is almost finalized, because we want to start by Q4 of this financial year. Step by step, we are finding other people also approaching us, but this is something we'd like to do step by step. We don't want to go so fast, but the opportunity is huge, is what I want to say.

Speaker #4: And that has a separate margin on this business. So, when we see battery pack, we also have a margin on our BMS as well as on our aluminum die casting business.

Speaker #4: As a company, as far as the four-wheeler is concerned, both these products should be ours only. You know, I think that is almost finalized.

Anurang Jain: As far as the four-wheeler is concerned, there also, both these products should be ours only. I think that is almost finalized, because we want to start by Q4 of this financial year. Step by step, we are finding other people also approaching us, but this is something we'd like to do step by step. We don't want to go so fast, but the opportunity is huge, is what I want to say.

Speaker #4: Because we want to start by Q4 of this financial year. So, step by step, we are finding other people also approaching us. But this is something we'd like to do step by step.

Speaker #4: We don't want to go so fast. But the opportunity is huge, is what I want to say.

Speaker #3: Yeah, that's very, very good to know. All the best. That's it from my side.

Aditya Jhawar: That's very good to hear. All the best. That's it from my side.

Speaker #4: Thank you, Adit.

Anurang Jain: Thank you, Aditya.

Speaker #1: Thank you. The next question is from the line of Ravi Gupta from Incred. Please proceed.

Operator: Thank you. The next question is from the line of Ravi Gupta from InCred. Please proceed.

Speaker #3: Yeah, thank you for the opportunity and congratulations on the stable numbers. Firstly, on capex—so, our key customers like Bajaj, Aari, and TVS are announcing very big capex.

Ravi Gupta: Yeah. Thank you for the opportunity, and congratulations on the stable numbers. Firstly, on CapEx. Our key customers like Bajaj Auto, Royal Enfield, TVS Motor Company are announcing very big CapEx. Even some of them have upgraded their CapEx in some case in one Q. So what is stopping us to improve our CapEx like we are giving stable CapEx guidance. So where is the gap? Just want to understand. Thanks.

Speaker #3: Even some of them have upgraded their capex in some cases in Q1. So what's stopping us from improving our capex? Like we are giving stable capex guidance.

Speaker #3: So where is the gap? Just wanted to understand. Thanks.

Speaker #4: No, see, there's no gap because, you know, what is happening is we already have the capacities. And at the same time, you know, we as a company have a mix of outsourcing as well as doing it in-house.

Anurang Jain: No. There is no gap because what is happening is we already have the capacities and at the same time, we as a company have a mix of outsourcing as well as doing it in-house. So we have some strong tier 2 vendors. So when we go in for CapEx, it is not only CapEx being done at Endurance, it is being done by our strong tier 2 suppliers also. So if you account for that CapEx, then of course it will be higher than the INR 800 crores. But this is a very dynamic situation. That is the status as of now. But today, if we get some very large opportunities, which we feel may happen, but I do not want to speak about it now. If that happens, the CapEx will increase. So we are not falling behind. Look, you are seeing a growth of 35.9%.

Speaker #4: You know, so we have some strong tier-two vendors. So when we go in for Capex, it's not only Capex being done at Endurance.

Speaker #4: It's being done by strong Tier 2 suppliers also, you know. So if you account for that capex, then of course it will be higher than the ₹800 crore.

Speaker #4: But you know, this is a very dynamic situation. I mean, that is the status as of now. But today, if we get some very large opportunities—which we feel may happen, but I don't want to speak about it now.

Speaker #4: If that happens, the capex will increase. So we are not falling behind. Look, you're seeing a growth of 35.9%. If you even take out the raw material content, the increase is 12.9%.

Anurang Jain: If you even take out the raw material content increase of 12.9%, we have still grown about 23.5% to 24%. That's the kind of growth which we are sustaining. The question is, we continue to grow. We are not going to lose any orders from any OEMs. Like I mentioned in my opening remarks, we are focused on the two-wheeler, four-wheeler proprietary business. We are focused on the non-auto space, we are focused on the electronic space. These are areas we really want to grow. We are not lagging behind in CapEx, that I can assure you.

Speaker #4: Okay. We are still growing about 23.5% to 24%, and that's the kind of growth we are, you know, which we are sustaining.

Speaker #4: You know, which is, you know. So the question is, as we continue to grow, we are not going to lose any orders from any OEMs.

Speaker #4: And like I mentioned in my opening remarks, we are focused on the two-wheeler and four-wheeler proprietary business, as well as the focus on the non-auto space.

Speaker #4: The focus is on the electronic space. So these are areas we really want to grow, you know, so we are not lagging behind in capex.

Speaker #4: That I can assure you.

Speaker #3: Sure, thank you. That's helpful. Secondly, on our business mix—around 70% of our standalone business, I believe, comes from motorcycle. And on a consolidated basis, it is 70%.

Operator 2: Sure. Thank you. Helpful. Secondly, on our business mix. Around 70% of our standalone business, I believe, comes from motorcycle. On a consolidative, it is 70. Hello? Yeah.

Ravi Gupta: Sure. Thank you. Helpful. Secondly, on our business mix. Around 70% of our standalone business, I believe, comes from motorcycle. On a consolidative, it is 70. Hello? Yeah.

Speaker #3: Hello. Yeah.

Speaker #4: Please, please repeat. Standalone business comes from motorcycle. Yeah, yeah, yeah, yeah.

Anurang Jain: Please repeat.

Ravi Gupta: 70% of standalone business comes from motorcycle.

Anurang Jain: Yeah.

Speaker #3: Yeah. And 50% of the business, on a console basis, is from motorcycles. So we are seeing scooterization happening in the two-wheeler space. Is that reducing your TAM for the two-wheeler space, or how should we look at it?

Operator 2: And 50% of the business on a consolidated basis is from motorcycle. So we are seeing scooterization happening in two-wheeler space. Is that reducing your temp for two-wheeler space, or how is it to look?

Ravi Gupta: And 50% of the business on a consolidated basis is from motorcycle. So we are seeing scooterization happening in two-wheeler space. Is that reducing your temp for two-wheeler space, or how is it to look?

Speaker #4: Yeah. No, no. So, scooters also—we are really increasing our presence. And here, the main thing is not only on the ICE, but on the EV.

Anurang Jain: Yeah. No, so scooters also, we are really increasing our presence. And here the main thing is not only on the ICE but on the EV. The EV is gaining a lot of traction. And, in fact, with most OEMs, tomorrow I have a meeting with a large OEM, not tomorrow, on 17th, Monday. And that's why you see our share is 14.5% for scooters. So in our business, scooters, which was less than 10% a few years ago, I think it was 3 years ago, has now gone up to 14.3%. So that content is increasing. And let me tell you, and you're seeing especially from September of last year, the growth in both motorcycles and scooters is very high. As you're seeing, it's more than 20%.

Speaker #4: The EV is gaining a lot of traction. And in fact, with most OEMs—tomorrow, I have a meeting with a large OEM. Not tomorrow, on 17th, Monday.

Speaker #4: And that's why you see our share is 14 and a half percent of scooters. So in our business, scooters, which was less than 10% a few years ago, I think it was three years ago, has now gone up to 14.3%.

Speaker #4: With that, content is increasing. And let me tell you, you are seeing—especially from September of last year—the growth in both motorcycles and scooters is, you know, very, very high.

Anurang Jain: And let me tell you, and you're seeing especially from September of last year, the growth in both motorcycles and scooters is very high. As you're seeing, it's more than 20%. So we are not losing, but at the same time, with this high growth, like I mentioned last quarter, scooters have grown around 37%, but still our share is 14.5%. You know what I'm saying? So we are growing the share. So we are not going to lag behind in two-wheeler space. That I can assure you.

Speaker #4: As you can see, it's more than 20%. So, we are not losing, but at the same time, with this high growth, like I mentioned last quarter, scooters have grown around 37%.

Anurang Jain: So we are not losing, but at the same time, with this high growth, like I mentioned last quarter, scooters have grown around 37%, but still our share is 14.5%. You know what I'm saying? So we are growing the share. So we are not going to lag behind in two-wheeler space. That I can assure you.

Speaker #4: But still, our share is 14 and a half percent. You know what I'm saying? So we are growing the share. So we are not going to lag behind in two wheeler space.

Speaker #4: That I can assure you.

Speaker #3: Okay. Lastly, on the order book—so on a quarter-on-quarter basis, I'm seeing the European business order book for FY27, FY28, and FY29 has been declining by around 32%, 30%, 8%, and 9%, in that range.

Operator 2: Okay. Lastly, on the order book. So on QOQ basis, I'm seeing European business order book for FY2028, 2029, even for 2027, it has been declining around 32%, 38%, 39% on range. So what is the reason and which products have seen major decline in European business? Thanks. Last one.

Ravi Gupta: Okay. Lastly, on the order book. So on QOQ basis, I'm seeing European business order book for FY2028, 2029, even for 2027, it has been declining around 32%, 38%, 39% on range. So what is the reason and which products have seen major decline in European business? Thanks. Last one.

Speaker #3: So, what is the reason, and which products have seen a major decline in the European business? Thanks. Last one.

Speaker #4: Massimo, are you still there? Okay. So Massimo is not there. So what? See, what I'll say is that if you see the European Union, there's a lot like I mentioned earlier, there are a lot of Chinese OEMs having their presence.

Anurang Jain: Massimo, are you still there?

Ravi Gupta: No.

Massimo Venuti: No.

Anurang Jain: Okay. Massimo is not there. What I will say is that if you see the European Union, there is a lot, like I mentioned earlier, there are a lot of Chinese OEMs having their presence. Massimo told you about the growth of these OEMs in Europe.

Speaker #4: Massimo told you about the growth of these OEMs in Europe.

Speaker #3: Right.

Speaker #4: And right now, they are importing the powertrains from China. Of course, we are in touch with them. And according to me, once they start sourcing the parts in Europe, there we have a great opportunity because part of this growth which is happening in Europe is also because of the Chinese vehicles selling.

Operator 2: Right.

Ravi Gupta: Right.

Anurang Jain: Right now they are importing the powertrains from China.

Anurang Jain: Right now they are importing the powertrains from China. Of course, we are in touch with them. According to me, once they start sourcing the parts in Europe, there we have a great opportunity because part of this growth which is happening in Europe- is also because of the Chinese vehicles selling well. There are also imports from Korea. Brands like Kia are doing very well there. When you see growth, you have to account that it includes the sales of both China and Korea.

Anurang Jain: Of course, we are in touch with them. According to me, once they start sourcing the parts in Europe, there we have a great opportunity because part of this growth which is happening in Europe-

Anurang Jain: is also because of the Chinese vehicles selling well. There are also imports from Korea. Brands like Kia are doing very well there. When you see growth, you have to account that it includes the sales of both China and Korea. Right now, our focus in Europe is, because we are amongst, I would say, very few players now who are financially strong, and that's why you see this 100% SOB coming from Mercedes-Benz, which is starting in 2027, January. Such kind of businesses will keep coming. But at the same time, I think it's most important in Europe to also look at the M&A areas. In future you will see certain M&As happening, both in the automotive as well as the non-automotive field, which we will talk to you when we have more clarity in the next investor call.

Speaker #4: Well, and also there are imports from Korea. Brands like Kia are doing very well there. So, when you see growth, you have to account for the fact that it includes sales from both China and Korea.

Speaker #4: So right now, our focus in Europe is because we are among, I would say, very few players now who are financially strong. And that's why you see this 100% SOB coming from Mercedes.

Anurang Jain: Right now, our focus in Europe is, because we are amongst, I would say, very few players now who are financially strong, and that's why you see this 100% SOB coming from Mercedes-Benz, which is starting in 2027, January. Such kind of businesses will keep coming. But at the same time, I think it's most important in Europe to also look at the M&A areas. In future you will see certain M&As happening, both in the automotive as well as the non-automotive field, which we will talk to you when we have more clarity in the next investor call.

Speaker #4: You know, we're starting in January 2027, and such kinds of businesses will keep coming. But at the same time, I think it's most important in Europe to also look at the M&A areas.

Speaker #4: So, in future, you will see certain M&As happening, both in the automotive as well as the non-automotive field, which we will talk to you about.

Speaker #4: We’ll have more clarity in the next investor call. So, if you see, even these sales you see now are after the acquisition of Stapler in April '25.

Anurang Jain: If you see, even this sales you see now is after the acquisition of Stöferle in April 2025. Europe will grow a lot in M&A because there are good companies available at good prices. These are opportunities we will take for our growth. But at the same time, when I see a new business acquisition like we did, that is really, I would say, that's a bonus in a market which today, if you see, technically if you see the German OEMs are not doing that well. Their exports to China also, the sales have come down. But we at Endurance have our own strategy for growth and to make money. That's what we are doing in a very difficult environment in Europe. We are very focused on Endurance.

Speaker #4: So, Europe will grow a lot in M&A, because there are good companies available at good prices. And these are opportunities we will take for our growth.

Speaker #4: But at the same time, when I see a new business acquisition like we did, that is really, I would say, I mean, that's a bonus.

Speaker #4: In a market which today, if you see technically, if you see the German—and this thing, I mean, German OEMs are not doing that well.

Speaker #4: They are—I mean, exports to China. Also, the sales have come down. But we at Endurance have our own strategy for growth, and to make money.

Speaker #4: And that's what we are doing in a very difficult environment in Europe. So, we are very focused on Endurance. But to answer your question, the opportunities for getting orders have definitely come down.

Operator 2: Right.

Ravi Gupta: Right.

Anurang Jain: But to answer your question, definitely the opportunities of getting orders has definitely come down. But whatever opportunities are there, Endurance is one of the first to get them, is what I would like to say.

Speaker #4: But whatever opportunities are there, Endurance is one of the first to get them—is what I would like to say.

Speaker #3: Thank you, sir. Helpful.

Operator 2: Thank you, sir. Helpful.

Ravi Gupta: Thank you, sir. Helpful.

Speaker #1: Thank you. The next question is from the line of Nisha Jalan from Axis Capital. Please proceed.

Operator: Thank you. The next question is from the line of Nishit Jalan from Axis Capital. Please proceed.

Speaker #3: Yeah. Hi, thank you. Three questions from my side. First, we have gained further market share in the suspension and brake side, so I just wanted to understand where we are now in two-wheeler market share for your different product categories: suspension, brakes, and your aluminum castings.

Nishit Jalan: Yeah, thank you. Three questions from my side. First, we have gained further market share in suspension and brake side. Just wanted to understand where are we now at two-wheeler market share for your different product categories, suspension, brakes, and your aluminum castings. Second question, you already highlighted that you have won orders for battery pack for EVs, and you are supplying your existing products to EVs. Just wanted to understand if there is any plan to get into other EV specific products, which are not required in ICE but are required in EVs, so that we are able to grow faster than the overall industry. The third question is on alloy wheels. Where is our capacity now after the expansion? What would be the utilization level right now? Because you mentioned that your recently started plant has not yet reached the optimum capacity utilization. Thank you.

Speaker #3: Second question, you already highlighted that you have won orders for battery packs for EVs, and you're supplying your existing products to EVs. I just wanted to understand if there are any plans to get into other EV-specific products which are not required in ICEs but are required in EVs, so that we are able to grow faster in the overall industry.

Speaker #3: And the third question is on alloy wheels. Where is our capacity now after the expansion? And what would be the utilization level right now, because you mentioned that your recently started plant has not yet reached the optimum capacity utilization.

Speaker #3: Thank you.

Speaker #4: Yeah, yeah. So I would say that on the 40 lakh wheel sets, 4.8 million, which is 9.6 million wheels per annum, you know. As far as the plant in Chakkar is concerned, it is fully, you know, which is about 2.

Anurang Jain: Yeah. I would say that on the 48 lakh wheel sets or 4.8 million, which is 9.6 million wheels per annum. As far as our plant in Chakan is concerned, which is about 2 point, that will be about 3 million, is it? That will be about 3 million-

Speaker #4: That will be about 3 million, is it? That will be about 3 million sets per annum. So that is fully used up. There we supply.

Nishit Jalan: Yeah

Nishit Jalan: Yeah.

Anurang Jain: sets per annum. That is fully used up. That is full. It is our Chinchwad plant which is at-

Speaker #4: So that is full. It is the Shendra plant, which is the balance of one. That comes to 1.8 million sets, yeah. So there we are, I think, at a capacity of right now 60%.

Nishit Jalan: 1.8

Nishit Jalan: 1.8.

Anurang Jain: which is the balance of 1 point, that comes

Nishit Jalan: 8 million.

Anurang Jain: 1.8 million sets.

Nishit Jalan: Bidkin.

Anurang Jain: Yeah. So there we are, I think, at a capacity of right now 60%. We are starting with Royal Enfield, we will be starting with Ather, and we are starting with Suzuki, and we are starting with Piaggio. So all this we should see from now to Q4, these customers coming in. Then we will be at full capacity, in Bidkin also. So I would say by end of this financial year, we should be at full capacities for as far as alloy wheels is concerned. Your other question was on the battery pack, right?

Speaker #4: We are starting with Royal Enfield. We'll be starting with Ather, and we are starting with Suzuki. And we are starting with Piaggio. So, all this we should see from now to Q4, these customers coming in.

Speaker #4: And then we'll be at full capacity—in Bitkin also. So, I would say by the end of this financial year, we should be at full capacities, as far as alloy wheels are concerned.

Speaker #4: And your other question was on the battery pack, right?

Speaker #2: No, EV-specific products that we're planning to enter. Are there any other EV-specific products, like battery packs, that we're planning to enter?

Nishit Jalan: No, EV specific products that you are planning to enter. Are there any other EV specific products like battery pack that you are planning?

Speaker #4: See, see, one thing, please remember that except for the clutch assembly, which has now become 3.5% of our India sales, everything else is required for EVs.

Anurang Jain: See, one thing please remember that except for the clutch assembly which is now become 3.5% of our India sales, everything else is required for EVs.

Speaker #4: So, we have to see that we make entry into scooters, three-wheelers, for all our products very fast. That itself is a huge business for us.

Nishit Jalan: Okay.

Anurang Jain: We have to see that we make entry into scooters, three-wheelers for all our products very fast. That itself is a huge business for us. Tomorrow, one of the largest OEMs in the country are coming to meet, not tomorrow, on 17th, to finalize some new things. Our first focus is that, but definitely if you see the BMS is a big opportunity in Maxwell also, of course, we are doing even the non-EV products like Motor Control Units. But you have the DC-DC charger, which is a EV product. We will be looking out for many other such products. But battery packs itself is a very high-value product. We would like to go a bit step by step. We have our own business, which is EV agnostic to do. We have the battery pack, huge potential. Maxwell, huge potential for EVs. Okay.

Speaker #4: And tomorrow, one of the largest OEMs in the country is coming to meet us. I mean, tomorrow, on the 17th, to finalize some new things.

Speaker #4: So our first focus is that. But definitely, if you see, the BMS is a big opportunity in Maxwell also. Of course, we are doing even the non-EV products like motor controller units.

Speaker #4: And, but you have the DC-DC charger, which is an EV product. And we'll be looking out for many other such products, you know. But battery packs themselves are a very high-value product.

Anurang Jain: But you have the DC-DC charger, which is a EV product. We will be looking out for many other such products. But battery packs itself is a very high-value product. We would like to go a bit step by step. We have our own business, which is EV agnostic to do. We have the battery pack, huge potential. Maxwell, huge potential for EVs. Okay. We are going step by step, right now.

Speaker #4: You know, so we'd like to go a bit step by step. We have our own business, which is EV-agnostic to do. We have the battery pack—huge potential.

Speaker #4: Maxwell, there is huge potential for EVs. Okay, so we are going step by step, you know, right now.

Anurang Jain: We are going step by step, right now.

Speaker #3: I wanted these market shares.

Nishit Jalan: What would be the market shares?

Speaker #4: Yeah, sorry. And the market share—let me tell you—in Q1, on scooters and two-wheelers, we were at 43.8, so you can say 44%.

Anurang Jain: Yeah, sorry. The market share, let me tell you. In Q1, on two-wheelers, we were at 43.8%, you can say 44%. For brake systems, I already told you 34.5%. For front fork was 43.8%, for shock absorbers was 37%.

Speaker #4: For brake systems, they only told you 34.5%. For front forks, it was 43.8%. For shock absorbers, it was 37%.

Speaker #3: Okay. Okay. Thank you. Just one follow-up, please. This battery pack business that you have won and you will supply—will that be part of standalone, or will that be part of Maxwell?

Nishit Jalan: Okay. Thank you. Just one follow-up, please. This battery pack business that you have won and you will supply, that will be part of standalone or that will be part of Maxwell?

Nishit Jalan: Okay. Thank you. Just one follow-up, please. This battery pack business that you have won and you will supply, that will be part of standalone or that will be part of Maxwell standalone?

Speaker #4: Standalone. That is a part of standalone. But the battery pack is a part of Endurance. It's a plant at Mindemwadi near Chakkar.

Anurang Jain: standalone.

Anurang Jain: No, that is a part of standalone, because battery pack is a part of Endurance. It is a plant at Mindevadi near Chakan.

Speaker #3: Okay. Okay. Okay. Thank you so much. That's it from my side.

Nishit Jalan: Okay. Thank you so much. That is it from my side.

Speaker #4: Thank you.

Anurang Jain: Thank you.

Speaker #1: Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.

Operator: Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Over to you, sir.

Speaker #4: Yeah, so I think I've made all my comments and my opening remarks. So I have no further comments to add. And I just want to thank everybody for taking time out to be on this call.

Anurang Jain: Yeah. I think I have made all my comments in my opening remarks, so I have no further comments to add. I just want to thank everybody for taking time out to be on this call. Thank you.

Speaker #4: Thank you.

Speaker #1: Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.

Operator: Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.

Speaker #2: June, I want to say thanks for so much. I also want to disconnect. Disconnect.

Anurang Jain: You can go ahead and disconnect.

Operator: You can go ahead and disconnect.

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Q1 2027 Endurance Technologies Ltd Earnings Call

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