Thank you so much. Good morning, everyone.

Welcome to Q3 FY '26 post results conference call of Endurance Technologies. We are pleased to host the entire management team of Senior Management 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.

Rajagopal Sastry, Group CFO; and Mr. Raj Mundra, Treasurer and Investor Relations.

I'll now hand over the call to Anurang for his opening remarks, post which we can move to the Q&A. Over to you, Mr.

Jain.

Thanks a lot. Good morning, everyone.

As we close quarter three of FY '26, India's economic backdrop remains strong in a complex global environment. The government's first advance estimates project real GDP growth at 7.4% for FY '26, supported by sustained private consumption, steady investment activity, and improving services and manufacturing output.

The World Bank has also raised its FY '26 growth forecast to 7.2% and retained its FY '27 forecast at 6.5%. Inflation has remained within comfortable limits, and monetary conditions have been broadly stable through the quarter.

The RBI had lowered the repo rate in the last quarter by 25 basis points to 5.25%, thereby lowering borrowing cost and supporting consumption and investment. In the full year 2025, the repo rate was lowered by 125 basis points.

In the bimonthly meeting held in February 2026, the repo rate was kept unchanged, and RBI has cited that the trade deals are expected to boost growth. On the domestic policy front, the GST rate rationalization implemented in September 2025 has continued to support consumption.

The simplified slab structure and lower rates across most of automotive sector, including auto components, have improved affordability and lowered the cost of ownership, contributing to strong industry sales numbers well beyond the festive season. India's growth will be supported not only by strong domestic demand, but also international trade, where key trade agreements are taking shape.

India and the European Union announced a free trade agreement last month, which has been acclaimed as extremely important for both. Last week, India and the USA announced an interim agreement framework on reciprocal and mutual beneficial trade, and this is expected to progress into a more comprehensive agreement offering greater market access, new opportunities, and lower uncertainty for business.

Global growth in 2026 is expected to be more moderate due to softer demand in advanced economies and slower trade expansion amid ongoing geopolitical and trade uncertainties. In the Indian automotive sector, as per SIAM, two-wheeler sales reached 7.1 million units in quarter three FY '26, up 18.2% year-on-year, with motorcycles at 14.7% growth and scooters at 26.6% growth.

Passenger vehicle sales increased by 19.2% to 1.5 million units, while three-wheeler sales rose 29.9% to 0.34 million units. Clearly, the GST cut impact has continued beyond the festive months.

In the European Union, new car sales saw a year-on-year rise of 4.6% in quarter three FY '26, with Germany and Spain recording high single-percentage growth, Italy was flattish, while France recorded a de-growth. In quarter three FY '26 new car volumes in Europe, there was a 21% share of battery electric vehicles, 10.6% share for plug-in hybrids, and 34% share for hybrids.

Roughly two out of every three vehicles sold in the European Union are either electric or hybrid. On the strategic growth front, we are pleased to share key updates.

As you are aware, the government had issued a draft guideline in June 2025 mandating ABS for greater than 50 cc two-wheelers and all EVs greater than 4 kW motor power. We are awaiting the final guidelines for the same, which we hope should be clarified by end of this quarter.

Since ABS is already mandatory for more than 125 cc two-wheelers, we expect the incremental demand to come largely from the 125 cc and below segments with single-channel ABS, where we have over 4 years of strong execution experience. For the dual-channel ABS program, SOP is now expected to start next month as we await the final clearance from a key OEM customer.

To help increase our profit margin on ABS, the electronic control unit or the ECU, the in-house SOP for the single-channel ABS is expected to begin in quarter one of FY '27 on our surface-mounted technology line at Waluj, Sambhaji Nagar. The dual-channel ECU will follow later in the same financial year.

We are installing a new SMT line or a surface-mounted technology line as we expect volumes to substantially increase with this new line in H1 of the next financial year. Civil construction for the Chennai plant for disc brake systems is at an advanced stage.

Key machinery will be installed from quarter one FY '27 onwards, and the SOP is planned for quarter two FY '27. The plant will have a capacity of 3 million disc brake assembly systems per annum and 4 million brake discs per annum as part of the total 7.6 million disc brake systems and 8.6 million disc brakes planned at Endurance.

The location will help us better serve our OEM customers in South India, while creating space at our Chhatrapati Sambhaji Nagar plant for the new ABS expansion and the four-wheeler brakes business. Our new integrated R&D facility for brakes was commissioned in January 2026 at Waluj, Sambhaji Nagar, and we will be fully operational in this quarter.

This facility is double the size of the existing one and integrates two-wheeler brakes and ABS R&D, with space provision for testing of four-wheeler brake assemblies. Apart from transferring several key equipments from the existing R&D facility, we have added key lab and testing machines for ABS validation.

We also installed an assembly line for four-wheeler passenger vehicle drum brakes for Tata Motors, which SOP is expected in quarter one of FY '27. In addition, we are increasing our three-wheeler brake volumes from 0.6 million to 1.12 million units per annum.

Our new AURIC Shendra plant at Sambhaji Nagar is a strategic investment for key machine castings for global and Indian four-wheeler electric vehicle and ICE OEMs, as well as for non-auto applications. We are therefore equipping this plant with highly sophisticated aluminum casting, machining, and finishing process equipments.

As mentioned in the past, we have already got orders from marquee US- and UK-based OEMs, along with Yazaki and Valeo for electric platforms of Mahindra, with peak annual business value of ₹388 crores per annum for this plant, where the SOP for both UK and the US OEMs will start by quarter two of the next financial year, with peak sales expected in the financial year '29. At our Chakan die casting plant, we are growing our business for machined aluminum castings for existing and new programs of Tata Motors and Mahindra.

The business won in this financial year for these programs stand at ₹128 crores per annum. We are proactively also ensuring better use of our four-wheeler casting and machining capacities across our Chakan and Shendra plants to balance these volumes, ensure flexibility, and improve the overall sales volume growth.

At our two-wheeler alloy wheel plant in AURIC Bidkin, we have already booked 100% of capacity earlier to the SOP, which started in October 2025 starting for Bajaj Auto alloy wheels. Supplies to Royal Enfield will start in quarter two of FY '27, and supplies to Suzuki and Ather are expected to begin by quarter three of FY '27, reaching peak order wins sales in quarter three FY '27.

During quarter three, our battery pack manufacturing plant near Pune made significant progress with successful completion of assembly line factory acceptance test and installation of key imported equipments. Assembly line installation and trials were taken during this quarter.

Comprehensive battery pack validation and electric vehicle safety compliance testing will be concluded during this quarter. Post our OEM and the regulatory approvals, commercial ramp-up activities will be started to support the SOP from end of March 2026 or early April 2026.

We will also pursue additional opportunities across two-wheeler, three-wheeler, and other high-potential segments. All the above four greenfield plants which I've mentioned will be fully operational over the next few quarters, and we will feel the full impact in the second half of financial year 2027.

In the first 9 months of FY '26, our wholly owned subsidiary, Maxwell, achieved a record turnover of ₹114 crores as against ₹70 crores in the full year of FY '25. We are now supplying the battery management system for scooters, three-wheelers, tractors, e-bikes, construction equipment for a European company, as well as for telematics.

Beyond this, we are also focusing on range of high-voltage battery management system for four-wheelers, commercial e-trucks, and e-buses. At present, 1 in every 12 electric two-wheelers rolling out of Indian factories run with our Maxwell BMS.

A strong R&D and innovation cell at Maxwell has made significant progress to introduce new product technologies beyond the battery management system, catering to both the EV and internal combustion engine electronics subsystems. We already supply the motor control units, and we have also won our first order for a DC-DC converter.

In the first 9 months of FY '26 at Maxwell, we have won ₹45 crores of new business, which has taken the total cumulative orders won to ₹232 crores per annum, which will peak in quarter four of the next financial year. The FY '26 orders won for BMS are for two-wheelers, for e-rickshaws, for e-bikes, and for electrical buggies, and our major OEMs are Yatri Electric, Cargos, Ultraviolette, and Motovolt.

Further, we have a strong pipeline of request for quotes of ₹197 crores. We maintain our leadership position in inverted front forks, with steady growth driven by wider OEM adoption.

This year, we commenced supplies of inverted front forks along with the monoshocks to TVS, where the front fork has been upgraded with adjustable features and with both-side cartridge systems. The SOP for Hero MotoCorp started in January 2026, while validation is ongoing for a leading Chinese OEM, with SOP expected in quarter three of FY '27.

This takes the total number of our OEM customers using our inverted front forks to six. Schedules from our overseas customer KTM have increased.

Our total sales of inverted front forks are expected to reach more than 650,000 units in this financial year, and we expect to substantially increase further years these orders, starting from next financial year. Over the past few years, we are seeing customer preference shifting towards higher-cc premium vehicles, helping in faster adoption of our premium offerings like inverted front forks, APTC or our assist and slip clutches, and our hydraulic brake systems.

In the period FY '19 to FY '25, the share of the 75-100 cc vehicles dropped by 19%, while the 110-125 cc two-wheeler category recorded a growth of 14.5%. This clubbed with OEMs offering premium features in lower-cc segment has opened huge opportunities for our high-end products.

Our aluminum forging business, which started as a backward integration for supplying aluminum forged axle clamps for our inverted front forks, is growing consistently. We are adding one more aluminum forging press to meet the increasing captive and third-party demands.

This new press, along with our four existing presses, will be housed in a new plant at Waluj, Sambhaji Nagar. This new plant will come up in quarter two of FY '27.

As mentioned in the previous call, we have won aggregate orders of ₹44 crores for our aluminum forging business from a German OEM, Jaguar Land Rover, and Royal Enfield. These OEM orders, coupled with our captive requirements, is expected to yield an annual business of around ₹44 crores.

As discussed in the last call, we have won solar damper business from a Spanish client. Till quarter three, we have already exported solar dampers worth ₹24 crores from our Pantnagar plant to our Spanish client with requirements in USA and Saudi Arabia, and the value is expected to double by the end of this financial year.

As mentioned in previous calls, we are building a new infrastructure at our Sanand plant in Gujarat to cater to a large volume of orders. The building work is nearly complete, and we expect to start SOP of solar dampers by April 2026.

Apart from this business from a Spanish client, we have also won business from a US-based client, where execution will begin in the middle of the next financial year. The total business won till date for solar dampers and actuators across both the two clients stands at ₹250 crores.

In quarter two, we started supplies for our assist and slip clutches to Royal Enfield and Kawasaki, introducing our subsidiary Adler's technology to the Indian market. The SOP for Bajaj Auto is expected in quarter two of FY '27.

I just spoke to you regarding the vehicle premiumization, which should lead to increased orders for our assist and slip clutches. The assembly line installation and vehicle-level validation for our four-wheeler drive shafts has been completed.

The customer PPAP is planned towards the end of this month, with SOP expected by March 2026, which is next month. Under the Maharashtra Package Scheme of Incentives 2019 Scheme, we have an eligibility certificate of ₹600 crores for a capital expenditure incurred till August 2024 at our Waluj, Sambhaji Nagar units.

In January 2026, we got a addendum to this existing certificate, and with this, our Package Scheme of Incentives have increased from ₹606 crores to ₹858 crores for investments up to 31st March 2025. These incentives will be availed through the Industrial Promotion Subsidy by way of state GST refund and electricity duty exemption, broadly over a 7-year period.

Let me now give you a gist of orders won during the first 9 months of this financial year. Please note that the business value for new orders are without including new orders from Bajaj Auto.

The overall order win in the first 9 months of FY '26 in India business was ₹1,282.8 crores per annum, of which ₹1,265.5 crores is new business. This includes the new business win of ₹300 crores for our battery packs at our Talegaon, Pune plant and ₹45 crores per annum new order for battery management systems at Maxwell.

Our four-wheeler and non-automotive business win in the first 9 months of this financial year stands at ₹530 crores. These wins include orders from Tata Motors, a large USA EV OEM, Hyundai, Kia, Isuzu, which is a new customer, Mahindra, and the two clients in the solar space.

You can see our volume product mix is improving. During quarter three alone, we won ₹354 crores of new business, of which ₹163 crores was in the four-wheeler and non-automotive space.

These customers included Tata Motors, Mahindra, Kia, and Isuzu for four-wheeler castings, Hero MotoCorp for two-wheeler suspension, and the US solar OEM. We aim to supply all our product offerings to all major two-wheeler OEMs.

In the case of Suzuki, we are a significant supplier of suspensions, and during the quarter, we further strengthened our business with them by securing a new order for alloy wheels with an annual revenue of ₹57 crores for our AURIC Bidkin plant. Similarly, with Hero MotoCorp, we've been a prominent supplier of suspension and castings, with brakes added early last year.

During quarter three, we added five new brake platforms from HMCL totaling ₹58 crores, taking the overall Hero MotoCorp brakes business to ₹200 crores per annum. With this, we are now supplying a full bouquet of products to Hero MotoCorp, including the battery management system, aluminum forgings.

With this increased business, we have a line of sight to double our sales to Hero MotoCorp over the next 2 years. The cumulative India business orders for electric vehicles in the conventional product areas stand at ₹1,058.7 crores without Bajaj Auto.

This reaches ₹1,241.5 crores per annum of orders if we include Bajaj Auto. The total electric vehicle business win is ₹1,636.5 crores if we add Maxwell and the battery pack products business.

Our sales for electric vehicle two-, three-, and four-wheelers in the first 9 months of FY '26 grew 65.6% to ₹287 crores as compared to ₹174 crores till quarter three of FY '25. Our CAGR growth in last 4 years has been 71% as compared to EV two-wheeler industry's growth, CAGR growth of 21% as per the Vahan data.

This growth in our sales is across all our product segments of suspension, casting, braking, and alloy wheels. The overall total orders won now in products other than energy and electronics areas, which is your Maxwell as well as the battery pack, since FY '22 stands at ₹5,021 crores, out of which ₹4,291 crores is new business.

We have a total of ₹4,200 crores worth of requests for quotes also in hand. We expect to win more than ₹1,500 crores of business in the next 12 to 18 months.

In Europe, the industry continues to operate in a challenging environment shaped by semiconductor shortages, the energy crisis, geopolitical tensions, inflation, high interest rates, duties imposed by USA, increased competition from Chinese OEMs, and muted automotive market growth. 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.

Our acquisition of Stäfeler was completed in April 2025, adding around €80 million of profitable sales to our top line. In our Europe business, we have booked orders worth €15 million during the first 9 months of FY '26.

This includes large machine castings orders from Volkswagen and Porsche and certain plastic injection molding parts for EVs. Our aftermarket business in India is a strategic priority for us.

We have set ambitious growth goals till 2030. We have made a comprehensive long-term capability focus blueprint incorporating the voice of our team and channel partners, retailers, and mechanics.

We are focusing on building long-term partnership with distributors who have the right mindset and are aligned to Endurance's vision. In addition, we are driving secondary demand generation with retailers as well as mechanics for the domestic business.

We have launched a mechanic loyalty program, conducting trainings with certifications on BS-IV to BS-VI, electric vehicles, and product fitment, organizing health camps, and also providing scholarships to children of our top mechanics. We are the first in the industry to deploy AI or artificial intelligence-enabled tech platform to drive the secondary order booking.

We have understood the voice of our stakeholders in each country we are present in and have created a unique value proposition for them. Our customized offerings provide us a competitive edge in each geography.

We're also driving a holistic program to build capability of our sales team and to empower them with the right tools and skills to bring strong business leaders. Coming to our financial performance, the information has been uploaded by the stock exchanges last evening, along with our presentation explaining the numbers.

I will, however, highlight some key numbers. During quarter two FY '26, the company recorded a standalone total income of ₹2,678.3 crores, a year-on-year growth of 22.2% from ₹2,191.6 crores in the previous year.

The EBITDA grew 18% from ₹287.3 crores to ₹339.1 crores, with a margin at 12.7%. The PAT grew 8.8% from ₹156.9 crores to ₹170.7 crores.

During quarter three of FY '26, we booked an exceptional cost of ₹20.6 crores towards assessed impact of the new labor codes, and this impacted our PAT by ₹15 crores. The EBITDA margin drop of 0.4% on total income is largely contributed by raw material cost increases led by aluminum alloy, which swops 55% of our total raw material purchases.

In quarter three FY '26, our consolidated total income grew 26.5% over quarter three of last year from ₹2,881.1 crores to ₹3,645.6 crores. The EBITDA grew 30.4% from ₹394.5 crores to ₹514.5 crores.

Our margin was at 14.1%. The consolidated PAT after the impact of the new labor codes on the Indian operations grew 20.2% from ₹184.4 crores to ₹221.6 crores at 6.1% PAT margin.

In India, we are extremely focused on improving our profit margin percentage by focusing on manufacturing in-house versus outsourcing to our vendor partners where the cost to be higher with our vendor partners; price increases to OEMs where costs have increased mainly due to power and manpower costs; and thirdly, taking largely new business with better profit margins, thereby improving the product mix. We are highly focused on this now.

As the company diversifies and scales, our people agenda remains integral to execution. We continue to strengthen workforce planning and talent depth, particularly at the mid-management level.

Our senior leadership team reviews the key capability and performance priorities through structured forums. Digitization and artificial intelligence tools in HR processes are improving our efficiency and ease of business.

We are also investing in future-ready skills through programs such as LEGS, which is our customized Learn and Earn platform to upskill our blue-collared workforce and create a structured growth pathway, along with multiple leadership and talent platforms across levels. Inclusion remains an important focus area, with tangible progress in gender representation and engagement with diverse talent.

On the sustainability front, we made significant progress this year towards our ambitious goals for FY '30. We achieved a 49.6% carbon-neutral percentage.

We lowered specific electric and thermal energy as well as specific water consumption. Water and hazardous waste recycling both stand at 98% each, while 14 of our sites have been certified as zero waste to landfill.

Our renewable power share has increased from 25% in FY '25 to 28% now. We have also contributed around 400,000 kL or kiloliters of water through water augmentation projects.

Our ESG ratings have also seen improvement. CRISIL has revised our ESG score to 59 for FY '25, which is up from 56 in FY '24, while another agency, SES, has increased our rating to 74, which is up from 68 in the previous year.

Our K120 Waluj, Sambhaji suspension plant has been awarded the prestigious CII GreenCo Gold rating this year. At Endurance, we approach our CSR with the objective of strengthening communities and improving individual life outcomes.

Our focus is in bringing down disparities in education, livelihoods, and health, while enabling access, dignity, and opportunity. The aim is to create sustainable improvements that continue to benefit communities over time rather than short term.

Our CSR initiatives continued across education, livelihoods, environment, and healthcare. We launched a new course in the hospitality trade at EWoC, which is our vocational training center in Chhatrapati Sambhaji Nagar, to improve employment opportunities for youth.

We initiated a dense forest project over 10 acres in the Gadhana village at Sambhaji Nagar. We supported farmers with high-quality seeds and vermicompost beds.

To strengthen rural education infrastructure, we are refurbishing schools with toilets, libraries, and RO plants. In sanitation and water management, 75 household toilets and 119 soak pits were constructed across three villages.

Through the WOW bus program, 108 students were trained in basic computer skills. Our mobile veterinary van treated 1,173 cattle, and our mobile medical program treated 1,350 patients, including specialized eye and gynecology camps.

I'm happy to inform you that we have won the Quality Excellence Award from Tata Motors at their Annual Supplier Conference in September 2025. I'm also happy to inform you that in October this year, Endurance Overseas plant supplying to Stellantis Group was recognized as a top supplier in the Global Supplier Awards 2025.

In January 2026, our K120 suspension plant at Sambhaji Nagar won the Platinum Certificate of Merit at the Frost & Sullivan India Manufacturing Excellence Awards 2025, and our driveline plant, also at Sambhaji Nagar, won the Gold Certificate of Merit at the same platform. Now with these opening remarks, I would now like to invite questions from all of you.

Thank you.

Thanks for the opportunity, and congrats on a good set of numbers, especially delivery on margins. First question is on ABS.

Did I hear it correctly that you mentioned that you expect to have some clarity by end of this quarter?

That is,

okay. Second, just a little bit if you can explain that if ABS comes through clearly, the path is very clear.

However, if there is a situation where we move to electronic CBS, what is the opportunity for Endurance in that situation?

Yes. Here, what is happening is that if ABS comes, like I've mentioned, it'll be for 125 cc and below up to 50 cc vehicles.

I believe there is a testing ongoing at ARAI, which I get from sources. I'm not 100% sure.

I'm definitely told by a customer that we hope to get some clarity on the final guideline by end of March. Let's hope that happens.

Now, in case they go for a CBS, which is not electronic, it is a mechanical CBS, what happens is all the vehicles who are on drum brakes will graduate to our hydraulic braking system, which consists of a master cylinder, caliper, and a brake disc. Now, if this happens also, it's a huge increase in business because a value of a brake assembly of these three parts is even higher than a ABS price.

We gain both ways, but of course, if the ABS does come in, the gain is much higher because the value goes higher.

Okay. That's good to know.

Second question is that if you can break up the growth in Europe between Stäfeler and Endurance. You talked about €80 million on annualized basis, but in this quarter, what has been the growth of our European operation excluding Stäfeler?

I will request Mr. Massimo Venuti, Director and CEO for Europe, to answer this.

Okay. Endurance Overseas in Europe closed the quarter with €93 million turnover compared 76.8 of the previous financial year, with an increase of 21%, of which Stäfeler was €20 million.

EBITDA, €16.8 million, it means 18%, compared 12.4 of the previous financial year, 16.2%, with an increase of 4.3 million, it means 34.9% compared to the previous year. In terms of net result, we closed with €4.9 million, it means 5.3%, compared 3.8 million of the previous financial year, 5%, with an increase in terms of net profit of €1.1 million, 28.5%.

If I don't consider Stäfeler, we have had a reduction of turnover of 2%, but due to a reduction of tooling, because if I compare the production compared to the previous financial year, also without Stäfeler, the European operations grew 5.1% compared to the previous year, with more or less all the customers: Stellantis, Mercedes, and Volkswagen Group.

That's helpful, Massimo. Excluding Stäfeler, the growth would be about 6% to 7%, and Stäfeler declined 2% because of tooling, right?

Yeah. Yes, this is that.

We grew 5.1% if I consider the quarter. If you want, I can give you also an idea about the 9 months.

In terms of year-to-date, the company grew 27.2%. If I consider only part, 33.6%, and without Stäfeler, 5.1%.

Sure. The next question is on CapEx.

Last couple of years, we have seen that there has been a modest increase in CapEx from about ₹800 crores to about ₹1,000 crores. This year, if you can give a sense that what is the CapEx that we will end up considering four to five big plants are coming on stream, and directionally, how should we think about CapEx for the next couple of years?

If you see FY '26, we have been investing last 3 years average CapEx of ₹400 crores. Of course, the previous year was about ₹600 crores in FY '25, where the new plants already the CapEx had started.

We had bought two lands: one in AURIC Bidkin, Shendra and in Chennai, where our breaking system plant is coming in. This year, we'll be slightly less than ₹800 crores, largely because of these four new facilities plus expansions which we are doing in brakes, this thing also.

Going forward, now what our plan is very clear: our investments will be on profitable growth products mainly. To retain business, if I have to do products which are at existing margins, I may do it.

Going forward, and that's why I specifically mentioned in my opening remarks that ₹530 crores of that ₹930 crores, more than 2/3 business, is on four-wheeler castings and on solar dampers, which are much higher margin businesses. This is the way we are going.

The CapEx will be mainly on such businesses. We are making a plan for this, in the next week, we'll be more clear on the CapEx plan for next year.

Of course, our focus will be more on automation now for better consistency in quality and lowering contract labor which is there. On CapEx, I would say it'll be more on automation, on environment, health, and safety, or some statutory compliances, on improvement of some quality, or it'll be on profitable growth expansions or new plants.

Yeah. Just to repeat my question.

Now the CapEx, when you look at it, India and Europe separately, is it fair to assume that the CapEx in India would be in the tune of about ₹800 crore and roughly about, say, ₹700 crore in Europe for '26 because of Stäfeler acquisition, and total about ₹1,500 crore for '26? As we progress into '27, can you confirm that the CapEx intensity of about ₹800 crore would continue in India for the next couple of years or it would increase?

No. According to me, we are going to sweat our assets.

We are going to make sure, because see, if you see the impact on ROC, because in India, the customers don't give you any take-or-pay contracts. There are high risk on volumes, high risk on uncertainties.

Though we are going to in-house some of the high-cost outsourced components, but definitely there are certain components where we may use a balance about outsourcing and doing it in-house and controlling CapEx. Okay?

Unless there is a M&A, which we are already in process with. According to me, in India, the CapEx will be controlled much below this figure of ₹800 crores.

Okay? This is our focus.

I cannot speak from FY '28 onwards. I can say FY '27 is what we are seeing right now in India.

As far as Europe is concerned, I think let Massimo give you the answer.

Okay. Speaking about Europe, for sure, we spent €38 million to buy 60% of share of Stäfeler.

For the ongoing business and new investment, we spent more or less €36 million. The expectation for next financial year is to stabilize the total investment with more or less €25-€30 million.

This is the expectation for this financial year. I want to underline that despite the acquisition of Stäfeler in the 1st of April 2025, we continue to be cash-free.

It means that we close the previous financial year with more or less €20 million, at the end of December, we reached €30 million, despite the acquisition of Stäfeler and also the normal investment. It means that the cash profit is growing 3%-4% compared to the previous financial year, reached 17% in this financial year.

Okay. That's quite helpful.

That's it from my side. All the best.

I'll join back in queue.

Thank you.

Thank you so much.

Thank you, sir, for the opportunity and congrats on the good results. Sir, just first thing just want to clarify from the previous participant question on the ABS part.

You mentioned if in case the ABS doesn't come, what could be the alternate option, sir?

What happens is that a electronic ABS has to have a hydraulic brake system. I have not seen it working with a mechanical brake system or a drum brake system.

The opportunity which is there for us that even if a combined braking system comes, instead of a drum brake system, they will need to use a master cylinder, caliper, and a disc brake system rather than a drum brake system. Now that and this is what is our major brakes business, apart from ABS.

This definitely will be an opportunity for us to expand further, which will be in the bracket of 125 cc vehicles and below.

Got it. What kind of content would be there for this one, hydraulic brakes?

Sorry? Content value, sir?

See, I can only say it'll be higher than ABS because I cannot give you numbers, but let me tell you, that is higher than ABS.

Got it, sir. Thank you for this.

Sir, on the four-wheeler suspension, just wanted to understand any update how things are working with the Korean OEMs and Korean partner, sir?

Sorry, no, I didn't hear that question. Sorry, repeat

it. On the four-wheeler suspension area, just want to know what are the updates there, sir, how are we seeing the attraction with the Korean OEMs concerning our relationship with the Korean partner, there, sir?

I will request Mr. Rajendra Abhange, Director and COO for India, to reply to this.

Yes. Thank you for the question.

As it's been a while that we have joined hands with this Korean party to supply us the technology to cater to our customers in India. From that time, we have moved on to work on three proof-of-concept projects with different customers in India.

One project has almost come to a situation where customer will have to give us his opinion on the superiority of the technology that we are offering. This should happen in this quarter.

The job is already done, and there are two projects in the pipeline which are still going on, of which one we are doing on our own, and the second one we are going to do again with this Korean party. The things are advancing well.

It's a high-technology product line, our customers will be very careful, and we have to meet their requirements better than what the current suppliers are doing. That's the current state.

The good part is the progress is very good.

Got it. Sir, is it built in passive area or will be something at passive plus or semi-active area, sir?

All passive.

All passive. Got it, sir.

Thank you for the answer. Sir, wanted to come on the AURIC plant order book there, sir.

Just want to understand the reason for the change in the SOP date, sir.

Yes, I think there has been a delay mainly from the UK-based this thing OEM. That was a SOP which was to start in this quarter, actually.

There has been a delay of this OEM, and now they will be starting in the second quarter only. In fact, we have the schedules.

The US-based OEM should start by the end of quarter one. That is the line of sight we have.

In the meantime, we are also going to start orders for other customers like Valeo, for example. The I think the plant will start from from from from April, but but these two large OEM customers will come in end of quarter one and quarter two.

The US-based was was was So

so the US-based was always end of quarter one. It was this UK-based OEM where there's a delay of two quarters.

Understood, sir. The order book remained similar in terms of what earlier mentioned around ₹230 crores, right, sir?

No, you're talking about total business won?

Total business won order book, sir.

It is ₹388 crores per annum.

380, okay.

With the peak value I'd said was FY '29. As we speak, we are also getting new business from this quarter onwards also, which we will report in the May meeting.

Understood, sir. Thank you for this.

Finally, sir, just want to understand we have this Others in our segment-wise breakup, which has been growing about two more than 2x in last 9 months. Just want to understand, what are the key products that are driving the growth, sir?

All the other products which are not included in our two-wheeler, three-wheelers, four-wheelers, which is not included there, we are right now grouping them in Others. As and when they become bigger, we'll start grouping them separately.

For instance, even the solar suspension panels and all, then other businesses which you're getting, we group it within that.

Got it, sir. Thank you so much for the opportunity.

Hello? Am I audible?

Yes. Yes, we can hear you.

Yeah. I wanted to ask a specific question related to the Europe-India deal.

What is the specific advantage that we'll be getting that was not in our sight just before the deal was signed? Now, since the deal has been signed, what are the new advantages that specifically Endurance would be getting since it has a huge exposure to the Europe business, and specifically in terms of Indian auto anc companies, we have the largest exposure.

What are the advantages that we'll get specifically from this deal, which was not expected before the deal?

I think what I would like to say is we are at a stage where we are still trying to gather more information. Earlier for us taking a call on what is the strategy we have to adopt for the future.

Though we have the guidelines and rules, but we are going to the specifics, because I believe this agreement will be only effective within the next 9 months to a year, though it has been signed. I think as this has just happened, in fact, both the sides, our European and our team, are planning to meet, maybe we can throw some more light in the next quarter call in case we are ready.

Okay. That was it.

Are we having any advantage right now since our plants are located in Europe? Are we having any specific advantages right now in Europe?

Like we would already have zero duty access before the deal, right, since our plants there in the Europe?

I think it was How much was it, 2.5%?

No, even, see, because we were producing local for local in Europe

and

also in India, there was no cross-border transactions as of now. We are studying the overall deal to see what we can do going forward.

Okay. That's well.

Thank you.

Hi. Thanks for taking my question.

If I had to look at your slide 9 with regard to Europe order inflow, it seems to be dwindling down for last couple of years, and I think in spite of German acquisition, it's pretty low for the 9-month period. What is really happening there?

Is it an end-market situation or you are evaluating your own strategies to get new orders?

We are evaluating our own strategies, especially on the M&A front, but I think let Massimo answer that. Massimo?

Yes, in 9 months of this financial year, we acquired only €15 million of business. This is true compared €40 million of the previous financial year.

Please consider that in this moment, the market is in a very bad situation. As probably in December 2025, the European Commission proposed to review the 2035 rules, not yet finalized, suggesting a potential shift from 100% to 90% of emission reduction target, allowing some residual emissions to be offset through measures like green steel production or biofuel.

The market, as you can imagine, the reaction was not so positive. Now, apparently, in the second week of March, there will be the official position of the European government, and we will see.

In this moment, everybody stopped in important way the investment in the internal combustion engine and also in the electric. This is the reason why, in this moment, we are not acquiring business, but let me say, this is a stagnation of the market, unfortunately.

On top on this, please consider that even if you see the registration that is what are growing compared to the previous year, the previous quarter we closed with 4% of increase compared to the previous year in Europe, and the year-to-date is more or less 3%, you have to consider also that the mix of this registration are completely different compared to the past, because only to give an idea, in the calendar year 2025, we have had an increase of import from China and from the rest of the world of 200,000 car, and we lost 200,000 car of production in terms of export. It means 4% of reduction if I consider more or less 10 million vehicle per year.

The situation in Europe is very difficult in this moment, but despite this situation, we have been able to close 4.2% without consider the acquisition of Stäfeler. The trend for the future months is more or less aligned compared to the previous quarter.

We are optimistic even if the situation is very tough.

Sure. Thanks for the detailed answer.

Related to the same, again, looking at the M&As which you are done and turnaround in Maxwell and also the German acquisition going smooth, are you more confident now to do larger size deals or how is your M&A strategy going to plan out for next 3, 4 years?

See, the firstly is that the M&A strategy will be mainly in areas, for example, our existing areas going into, like we have done, for example, our solar business, for example. It is suspension, but going to solar.

Non-auto applications. It could be castings in other than automotive.

Basically, our strategy will be in those segments where the margins are much higher, and also which has a good target market. It's very important where we enter our new areas where there's a target market.

Question is, we're already working on a deal right now, and we'll see how that goes. We are always looking for the M&A opportunities, but of course, we will be aggressively going ahead with it, but we'll only do it if it makes sense to our business.

I just gave you these examples that definitely high on our minds is not only automotive, but also non-automotive applications, which could be partly in our products like suspension or castings, or it could be something else.

Sure, sir. Thanks, and all the best.

Thanks.

Good morning, sir. Just a quick clarification on the CapEx plans.

There are two new CapEx which have been mentioned in the slide. One is the Sanand expansion, and there is another one of aluminum forging at AURIC Bidkin.

Both they are going to be commissioned in Q1 and Q2. What is the total CapEx on these two expansions?

He's asking the CapEx for the aluminum

Sanand for solar dampers and actuators.

Solar dampers, I don't have the figures offhand. About ₹25 crores each, though I don't know the figure, but our treasury head Around

30-45.

Okay. To be honest, it's not correct to give you any wrong figures.

We don't have the figures right now, and we don't want to give you a figure is lower or higher. These are not very high CapEx.

These will be both below ₹50 crores each.

Okay?

Right, right. All right.

That's helpful.

Both will be below ₹50 crores.

Understood. Just following up from a previous participant's question on the order wins in Europe,

and

congratulations for being able to sustain the growth despite the environment being so hard. Going forward, let's say, 1 year or 2 years, if there is no inorganic expansion, do you see the growth rate coming down, or do you see a chance of a de-growth in Europe business?

See, we don't like to think on those lines. We only think of profitable growth.

Of course, we have to see the downside, but there have been many downsides since 2008 also, the global financial crisis. We have faced it, we have grown.

We will find our solutions, because we believe in Endurance to find solutions, being positive, and going this thing ahead. Because if you think in those lines, then you won't ever grow, what I'm saying.

We've faced some very tough times since 2008. When we reach there, we will face it, and we'll do something about it.

Right, sir. Appreciate that.

Thank you. Thank you.

Thank you.

Yeah. Thank you for taking my question.

Sir, just wanted to follow up on the previous participant's question on order book for Europe. You don't mention the Stäfeler business wins prior to FY '26.

What would be that quantum, would it be something which would be good in terms of numbers or that is something which is negligible?

Actually, we could understand the first part of the question because your voice is not very clear.

Yeah. Sorry, is it clear now?

Am I audible now?

Yes. Yes, now it's better.

Yeah. Sir, my question was basically on the Stäfeler business wins prior to FY '26, which you are not mentioning into our order book status.

What would be that quantum, or is it something which is negligible?

No. Stäfeler was not included in FY '25 because we only acquired the company and we consolidated into our books only from April '25.

That's why it's only showing up in FY '26. We did not have Stäfeler earlier to April '25.

Sir, but what would be the order book there as well? There would be some order book, right, which would be

You're saying order book of Stäfeler, you're saying?

Yeah.

Massimo, Massimo, can you answer

that? I can answer.

Yes, considering that more or less the total turnover of Stäfeler is 75-€80 million total financial year, in this financial year, we acquired €5 million with final customer BMW passed through Magna. Please consider that in this moment, Stäfeler has the stability of volume more or less till 2030, 2032.

In this moment, I don't see any kind of issue, and the company is really profitable and demonstrate now we can say that we integrate 100% of the company in our organization, and we are trying to do a lot of economy of scale because Stäfeler is buying raw part from the market, but we have the opportunity also to produce raw part for them in our foundry. This is the second step of the integration that will start in the next financial year.

Okay. Okay.

Just second question on the Europe front is that there are many Chinese OEMs now are putting up plants in Europe now. How are we engaging with those customers there and some kind of thoughts on approaching the Chinese OEMs now?

Yes, this is true. We are discussing with some of these OEM, but I repeat, in my opinion, we need to wait a clear position about the strategy from the European government, because these guy are coming here, they are opening new plant, but they want to assemble the car.

We need to understand if they will import the component, the power train component, and also the battery case component, and will assemble here, or in order to reduce the tariff, they will be obliged to produce here. In this moment, we are discussing, as I told you in the previous call conference, BYD, he will start in at the end of this financial year in Hungary and in the next financial year in Turkey, but only assembling the car.

For our product range, in this moment, there are no benefit, even if, for sure, we are quoting different scenario, because if they will be obliged to produce this part here in Europe, could be an opportunity for us. I want to say one thing also regarding the previous question, regarding the agreement between India and Europe.

This could be, from my point of view, a big opportunity for us, for Endurance Group, because, as you can imagine, in this moment, we are receiving a lot of attack from the Chinese supplier because they are coming in Europe also in the supply chain. The possibility to buy and to move production capacity and to acquire new business with a level of competitiveness that our competitor have it here in Europe, using our production capacity in Europe, for me, is an opportunity in front of our customer.

Our footprint, our industrial footprint in India is a big opportunity not, for sure, for the continuous growth that we will have in India, but also for Europe. I'm pretty sure about this.

Great. Okay.

Sir. Thank you.

Achha,

I just wanted to clear one point to everybody on the call. When I talked about ABS and the brake systems pricing, I had considered some other items, and I took mainly for bikes of higher cc.

I think the pricing would be quite similar because there would be no stainless steel braided hoses and some other items which are there in the higher-end bikes. I would say the prices of the brake system would be similar in some cases or even slightly lower.

I just want to clear my statement where I said earlier that they would be higher than ABS, the master cylinder caliper and the brake disc. Please make a note of that.

It may be same or a bit lower.

Yes, in fact, I've already I think mentioned my points in my opening remarks and in the question and answer. I will just say that we at Endurance, both in India and Europe, are fully focused on profitable growth and trying to improve both sales growth as well as our margins.

We'll continue to focus on that in spite of challenging conditions, I would say, in Europe mainly. We'll try and take whatever opportunities we get and make the best out of them.

Thank you for all your support, and see you in the next call. Meet you in the next call.

Thank you.