ENDU's Explosive 5X Capacity Jump: Mandatory ABS Rule Sparks Huge Growth & Orders! Investors Watch!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

Endurance Technologies Limited (ENDU) has announced a significant five-fold increase in its Anti-lock Braking System (ABS) manufacturing capacity. This strategic move is a direct response to the upcoming mandatory ABS regulation for all Internal Combustion Engine (ICE) and Electric Vehicle (EV) two-wheelers above 4kW, set to take effect from January 2026. This regulation is a major growth catalyst, especially as two-wheelers constitute approximately 80% of ENDU's standalone revenue.

In the second quarter of fiscal year 2026 (Q2FY26), Endurance Technologies reported a consolidated revenue of Rs 3,583 crore, marking a 23% year-on-year increase. The EBITDA margin saw a slight improvement to 13.3%. While India's standalone business experienced a margin dip due to higher aluminium alloy costs, the Europe and Maxwell businesses showed strong performance driven by new orders and strategic acquisitions.

The company secured fresh orders worth Rs 336 crore for its India operations (excluding Bajaj Auto and battery packs) and is actively pursuing RFQs valued around Rs 4,200 crore. The EV segment is a key focus, with substantial orders from leading original equipment manufacturers (OEMs) for components used in electric two-wheelers, three-wheelers, and four-wheelers. Cumulative EV orders since FY22 have reached Rs 1,195 crore.

Beyond ABS and EVs, ENDU is enhancing its four-wheeler (4W) portfolio, aiming to increase its revenue contribution from 25% to 45%. It is also diversifying into emerging businesses like battery packs through its Maxwell Energy acquisition and has secured a Rs 200-crore project for solar suspension/tracking systems, marking an entry into renewable energy solutions.

Impact: This news signifies strong growth potential for Endurance Technologies, driven by regulatory mandates and strategic business expansion. The company's proactive capacity scaling and diversification position it well for increased market share and revenue. The stock's recent price dip is viewed by some analysts as an attractive entry point. Rating: 8/10

**Difficult Terms Explained:** * **ABS (Anti-lock Braking System):** A safety system that prevents wheels from locking up during braking, allowing the driver to maintain steering control. * **OEMs (Original Equipment Manufacturers):** Companies that manufacture vehicles or major components used in vehicles. * **EV (Electric Vehicle):** A vehicle powered partially or entirely by electricity. * **ICE (Internal Combustion Engine):** A type of engine that burns fuel to generate power, common in traditional vehicles. * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):** A measure of a company's operating performance. * **FY26e/FY27e (Fiscal Year 2026/2027 estimated):** Refers to projected financial performance for the respective fiscal years. * **4W (Four-Wheeler):** A car or other vehicle with four wheels. * **BMS (Battery Management System):** An electronic system that monitors and controls a rechargeable battery. * **RFQs (Request for Quotation):** A process where a company asks potential suppliers for price quotes on goods or services.