Endurance Technologies' HUGE 5X ABS Capacity Leap! Mandatory Rule Sparks Massive Growth - Is It Your Next Big Investment?

Author

Aditi Singh | Whalesbook News Team

Detailed Coverage:

Endurance Technologies Limited (ENDU) announced a robust 23% year-on-year revenue growth in Q2FY26, reaching Rs 3,583 crore, with a slight improvement in EBITDA margin to 13.3%. While Indian standalone operations faced margin pressure due to higher aluminium alloy costs, European and Maxwell businesses showed strong performance driven by new orders and acquisitions. The company secured new orders worth Rs 336 crore in India and has significant RFQs in the pipeline.

Key growth drivers include the upcoming mandatory Anti-lock Braking System (ABS) for all new two-wheelers (ICE and EV) above 4kW from January 2026. Endurance Technologies is proactively scaling its ABS capacity by 5x and expanding disc brake facilities to meet this anticipated demand, a crucial catalyst given two-wheelers constitute a large portion of its revenue.

The company is also strategically diversifying its portfolio, aiming to increase the revenue contribution from 4-wheeler components to 45% from the current 25% through a new plant and technical collaborations. Furthermore, Endurance Technologies is venturing into emerging sectors, developing battery packs and BMS via Maxwell Energy, and securing a substantial solar suspension project, marking a diversification into renewable energy solutions.

Despite a recent ~8% stock correction post-results, analysts see the current valuation of ~31x FY27e earnings as an attractive opportunity for investors, trading below its five-year average multiple.

Impact This news is expected to have a significant positive impact on Endurance Technologies Limited, driving revenue growth, market share expansion, and potentially improving stock performance. The proactive capacity expansion and diversification strategy, coupled with regulatory tailwinds, create a strong growth narrative. For the Indian auto ancillary sector, it signals robust opportunities and strategic adaptation. Rating: 8/10.

Difficult Terms: ABS (Anti-lock Braking System): A safety system that prevents wheels from locking up during braking, allowing the driver to maintain steering control. OEM (Original Equipment Manufacturer): A company that manufactures products or components sold under another company's brand name. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): A measure of a company's operating performance before accounting for financing costs, taxes, and non-cash expenses. bps (basis points): A unit of measure equal to one-hundredth of a percentage point (0.01%). YoY (Year-on-Year): Comparing financial data over a specific period with the same period in the previous year. QoQ (Quarter-on-Quarter): Comparing financial data of a quarter with the immediately preceding quarter. RFQs (Request for Quotation): A process where a company solicits bids from potential suppliers for specific goods or services. EV (Electric Vehicle): A vehicle powered entirely or partially by electricity. ICE (Internal Combustion Engine): An engine that generates power by burning fuel within a combustion chamber. BMS (Battery Management System): An electronic system that manages a rechargeable battery, monitoring its state, ensuring safety, and optimizing performance.