This article first appeared on GuruFocus .
Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Endurance Technologies Ltd ( BOM:540153 ) reported a strong year-on-year growth in total income, with a 26.5% increase in Q3 FY26.
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The company has successfully expanded its product offerings, including the development of new ABS and brake systems, which are expected to drive future growth.
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Endurance Technologies Ltd ( BOM:540153 ) has made significant progress in its greenfield projects, with several new plants expected to be fully operational in the coming quarters.
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The company's subsidiary, Maxwell, achieved a record turnover, indicating strong performance in the battery management systems segment.
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Endurance Technologies Ltd ( BOM:540153 ) has maintained a strong focus on sustainability, achieving a 49.6% carbon neutral percentage and increasing its renewable power share to 28%.
Negative Points
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The company faced a margin drop due to increased raw material costs, particularly aluminum alloy, which forms a significant portion of their purchases.
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Endurance Technologies Ltd ( BOM:540153 ) experienced a delay in the start of production for a UK-based OEM, impacting their order book timeline.
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The European market remains challenging due to geopolitical tensions, high interest rates, and increased competition from Chinese OEMs.
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Despite growth in the European operations, excluding acquisitions, there was a slight reduction in turnover due to tooling reductions.
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The company is facing uncertainties regarding the implementation of new ABS guidelines, which could impact future business opportunities.
Q & A Highlights
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Warning! GuruFocus has detected 2 Warning Signs with BOM:540153.
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Q: Can you clarify the potential impact if ABS regulations do not come through and the alternative options for Endurance Technologies? A: If ABS regulations do not materialize, vehicles with drum brakes will transition to hydraulic braking systems, which include a master cylinder, caliper, and brake disc. This transition would still result in significant business growth for us, as the value of these brake assemblies is higher than that of ABS systems. However, if ABS regulations are implemented, the business gain would be even greater due to the higher value of ABS systems. - Respondent: Unidentified_2
Q: Could you provide a breakdown of growth in Europe, specifically excluding the impact of the Sterle acquisition? A: Endurance Overseas in Europe closed the quarter with a 93 million turnover, a 21% increase from the previous year. Excluding Sterle, there was a 5.1% growth in production compared to the previous year, despite a 2% reduction in turnover due to tooling. - Respondent: Unidentified_5
Q: What is the expected CapEx for the current year, considering the new plants coming online, and how should we think about CapEx for the next few years? A: For FY26, CapEx is expected to be slightly less than INR 800 crores, primarily due to the four new facilities and expansions. Going forward, investments will focus on profitable growth products, automation, and environmental compliance. We aim to control CapEx below INR 800 crores in India, with a focus on automation and profitable growth. - Respondent: Unidentified_2
Q: How is the collaboration with Korean OEMs progressing in the four-wheeler suspension area? A: We have partnered with a Korean company to supply technology for our customers in India. We are working on three proof-of-concept projects, with one nearing completion and awaiting customer feedback. The progress is promising, and we are advancing well in this high-technology product line. - Respondent: Unidentified_6
Q: What are the specific advantages Endurance Technologies expects from the India-Europe trade deal? A: We are still gathering information and formulating our strategy. The agreement is expected to be effective within the next 9 to 12 months. Currently, there are no immediate advantages, but we are studying the deal to identify potential benefits for our operations in Europe and India. - Respondent: Unidentified_2
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
