Endurance Technologies Reports Q2 Results

Q2FY27 Revenue: Rs 4,786 Cr (+34% YoY)
Q2FY27 EBITDA: Rs 559 Cr (+17% YoY)

Reader Takeaway: Strong revenue growth fueled by EV and 4W segments, though margin compression remains a key immediate challenge.

What just happened

Endurance Technologies delivered a mixed performance for the second quarter of FY27. While revenue surpassed broker estimates, reaching Rs 4,786 crore, profitability margins disappointed. EBITDA margins contracted to 11.7% from 13.3% a year ago, primarily due to rising costs.

Why this matters

The company’s revenue growth underscores successful penetration in the EV and 4W markets. However, the margin contraction highlights ongoing pressure from elevated input and energy costs. Management has signaled a potential recovery in margins by 100-110 bps in the upcoming quarter through price adjustments and raw material efficiencies.

The backstory

Endurance has been aggressively expanding its capacity. Notable projects include the upcoming Chennai disc brake plant, operational in March 2027, and increased production for inverted front forks. The company also maintains a solid five-year order pipeline of Rs 6,372 crore.

Risks to watch

Investors should monitor the execution of new capacity ramp-ups, especially in the competitive EV space. Global macroeconomic uncertainty and geopolitical tensions remain external risks that could impact the European market recovery, which is vital for the company's export revenue.

What to track next

The primary focus remains on the realization of margin improvements in Q3FY27. Additionally, tracking the utilization rates of new facilities like the Shendra 4W casting plant will be critical for determining future profitability.