Thank you so much. Good morning, everyone.

Welcome to Q1 FY27 post-results conference call of Endurance Technologies. We are pleased to host the management team 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 Mr. Anurang Jain for his opening remarks, post which we will have the Q&A.

Over to you, Mr. Jain.

Thank you very much. Good morning, everyone.

As we close quarter one of FY27, the business scenario presents a mixed picture, with a steady domestic economy set against a more challenging global environment. Domestic industrial activity held firm through the quarter.

The Index of Industrial Production grew 5.1% in May 2026, with manufacturing at 5.5%, indicating continued growth in the industrial sector. The global environment has become more difficult.

The prolonged conflict in West Asia has kept energy prices raised, and added to supply chain and freight costs. In August 2026, the RBI held the repo rate at 5.25% and retained a neutral stance.

Earlier, RBI had raised its FY27 inflation forecast to 5.1%, citing energy prices, West Asia conflict, and monsoon uncertainty. Now, RBI has lowered the inflation forecast to 5%, as quarter one actual number was below the earlier estimate.

In the Indian automotive sector, as per SIAM, two-wheeler sales reached 7.18 million units in quarter one FY27, up 23.5% year-on-year, with motorcycles at 19.3% growth and scooters at 32.4% growth. Passenger vehicle sales increased by 23% to 1.5 million units, while three-wheeler sales rose 39.8% to 0.36 million units.

In the European Union, new car sales saw a year-on-year rise of 7.4% in quarter one FY27, with each country recording high single-percentage sales growth, and Italy leading with 9.9% growth. In quarter one FY27 new car volumes in Europe, there was a 21.9% share of battery electric vehicles, 10.1% share of plug-in hybrids, and 36.1% share of hybrids.

Roughly two out of every three vehicles being sold in the European Union are either electric or hybrid. In Europe, the operating environment was perhaps even more challenging, with sharp increase in energy costs, uncertainty around policies regarding electrification and localization, and rising presence of Chinese OEMs.

In our Indian operations, our strategy is to look at our core capabilities, including manufacturing, technology, and innovation, and accordingly look at new products through greenfield projects or through M&A, which meet the criteria of being technology-intensive, having a strong scalability of growth based on our OEM customer requirements, and most importantly, helping us to increase our margin percentage as compared to now. Our focus is on two-wheeler proprietary products; four-wheeler aluminum castings and forgings; four-wheeler proprietary products including suspension, braking, and drive shafts.

In the non-auto products, our immediate focus is on solar suspension dampers and actuators, as well as on electronic products, including for auto and non-auto, battery management systems, motor controller units, DC-DC converters, and our battery packs, which plant we have just started SOP in June 2026. You will recall the draft guideline by the government in June 2025 extending ABS requirements to lower engine cc vehicles.

We welcome the intent behind this move, which will meaningfully improve rider safety across the two-wheeler segment. In line with this, we are adding 9 lakh ABS units per annum.

Earlier, we had announced a figure of 12 lakh units per annum to our existing ABS capacity of 6.4 lakh units per annum. The reason for the decrease from 12 to 9 lakh units of ABS is, due to the strong demand in the brake assembly system business, we had to shift certain machineries from the ABS lines to take care of the large increase in the brake assembly orders from different OEMs.

Our brake assembly share was 34.5%, and our brake disc share in India was 42% in FY26. I would like to mention that the brakes business in the last four years has grown with a CAGR of more than 30%.

Though the government is yet to issue final guidelines, our ABS as well as our CBS hydraulic braking expansion is progressing as planned, with SOP expected in September or early October 2026. For the dual-channel ABS, SOP for Bajaj Auto with 120,000 units per annum is scheduled for this quarter.

The SOP for a second program of 120k units is expected to start in quarter three of FY27. We are enhancing our ABS product offering with new features.

We've already started the ride modes, and now we are adding the traction controls for improved stability. This will help in our sales value and margin growth in our ABS business.

In view of our plans to manufacture electronic control units for ABS and with higher volumes of battery management systems needs indicated by our OEM customers, we had ordered a new surface-mounted technology line, which SOP is expected from next month. It may be noted that our civil infrastructure is in place not only for this new SMT line, but also for further potential expansion.

At our new Chennai plant for disc brake assembly systems, civil construction is at its final stage. This new plant is in close proximity to certain prominent OEMs, enabling us to serve them better, while also lowering our freight costs.

The phase one key machinery is being shifted from Waluj, and the phase two will be completed in quarter three of this year. The SOP for Royal Enfield is expected by next month, with other OEMs following in quarter three.

This plant will have a capacity of 3 million disc brake assemblies per annum and 4 million discs per annum as a part of our total Endurance capacities of 9 million disc brake assemblies and 9.6 million brake discs per annum that we have planned by quarter one of FY28. In the previous call, we spoke of setting up assembly lines for four-wheeler passenger vehicle foundation brakes for Tata Motors.

We're on track, and SOP is expected next quarter. We've also increased our three-wheeler brake assembly volumes from 0.6 million to 0.85 million per annum, and are expected to increase the capacity to 1.5 million per annum by end of this financial year.

I'm happy to inform you that with the new KTM brakes technology, we have started the SOP for the 390 cc and the 790 cc motorcycles of KTM in quarter one of this financial year. These include export orders served from our brakes plant in Waluj.

Also, to meet increased demand from Hero MotoCorp and TVS, we are adding capacity at our Waluj brakes plant, increasing our volumes by 1 million numbers per annum. This SOP is expected to be in this quarter.

With our focus on increasing four-wheeler casting business at our AURIC Shendra plant at Sambhaji Nagar, order wins have continued to build, taking cumulative bookings to a peak annual business potential of Rs 513 crores per annum. These include orders from a large USA EV OEM for automotive and non-auto applications, from Jaguar Land Rover, as well as from Valeo for their electric platforms of Mahindra and Tata.

SOP will start in September 2026, and we expect significant pickup in this business by quarter four FY27. Also, we are expanding our existing four-wheeler casting operations at our Chennai plant, where we have secured orders for hybrid models of Isuzu, and we expect SOP in quarter four of this financial year.

We have won orders from Hyundai and Kia for new parts, with SOP already started in this month. The business value is Rs 80 crores per annum and will reach peak sales in FY28.

The presence of multiple global OEMs based in the South India region enables deeper engagement, and we are in active dialogue with new OEM players for which the plant is undergoing audits. At our Chakan die casting plant, we're also expanding our four-wheeler machined aluminum casting business for existing and new programs of Tata Motors and Mahindra, with demand from these OEMs seeing a strong traction.

At our AURIC Bidkin alloy wheel plant, SOP for Bajaj began last year in October, and for Royal Enfield it is expected to start by end of this month, with peak volumes expected in quarter three of this financial year. The total capacity across our Chakan and Bidkin alloy wheel plants is 48 lakh wheel sets of front and rear wheels per annum, and we will be serving Bajaj, Royal Enfield, Yamaha, HMSI, Ather, Suzuki, and Piaggio from our alloy wheel plants in Chakan and AURIC Bidkin.

Our battery pack plant near Pune commenced SOP for Hero MotoCorp in June 2026. With this large order win, the plant is in a ramp-up phase to reach peak volumes by quarter three of this financial year.

We have also announced our entry into four-wheeler battery packs from the same plant, with a capex of Rs 62 crores, and we expect SOP by quarter four of this financial year. We will continue to leverage this capability to pursue opportunities across two-wheelers, three-wheelers, and other high-potential segments.

The battery pack business would also help increase our battery management system and aluminum casting business, as both these products are supplied from our plants. In quarter one FY27, our wholly owned subsidiary, Maxwell, achieved a 21% quarter-on-quarter growth, with a total income of Rs 56.5 crores as against Rs 46.3 crores in the previous quarter.

We have supplied more than 1 lakh numbers of BMS for scooters, three-wheelers, tractors, e-bikes, and construction equipment this quarter. We're also in close engagement with a key electric two-wheeler OEM for a BMS opportunity.

We have been asked to give the prototypes, and this program has a large annual business potential. At Maxwell, we have won Rs 13 crores of new business in quarter one, which has taken the total cumulative orders won to Rs 238 crores per annum, which will peak in the quarter two of the next financial year.

Further, we have a strong pipeline of request for quotes of more than Rs 300 crores for trucks and for two-wheeler applications. Our suspension business continues to grow, led by inverted front forks and monoshock absorbers, with wider adoption across OEMs and a steadily growing OEM customer base.

With the increasing offtake of inverted front forks by OEMs, we are adding assembly lines and are on track to reach a monthly 100,000 units by monthly 100,000 units by end of FY27, which is this financial year. At our Pantnagar plant, we have won new suspension order wins, including the monoshock absorbers and inverted front forks for Bajaj Auto, and we are investing to be able to start SOP of 25,000 sets a month from quarter four of this financial year.

We're also happy to tell you that we'll be starting SOP for our suspensions for Hero MotoCorp and Suzuki in quarter three of this financial year. This total order values is approximately Rs 120 crores per annum.

The aluminum forgings has become an increasingly strategic part of our portfolio, serving both rising captive demand from our inverted front fork business and a growing external customer base. To meet this demand, and as we have shared earlier, we are adding a fifth forging press, with SOP expected in the next quarter.

Execution across our programs is on track, with supplies to Royal Enfield in quarter two, and for Jaguar Land Rover in quarter three of this financial year, and SOP for a leading German OEM towards the second quarter of FY28. Together, these programs deepen our presence with global marquee customers and widen the base of our aluminum forging business.

In the non-automotive segment, our state-of-the-art solar damper plant at Sanand is ready now, and our SOP for our Spanish client for this plant has started earlier this month. For the US client, our internal validations have been completed, and the validation at customer end are in progress.

The SOP for the US client is expected in the second half of this financial year. We are also gearing up for the supply of solar actuators, and the SOP is expected in quarter four of this financial year.

The total business won is Rs 118 crores for the solar dampers and Rs 227 crores for solar actuators, totaling Rs 345 crores of business. In the transmission segment, we've introduced our new technology, the assist and slip clutches, from our Italian subsidiary, Adler, in the Indian market, with supplies to Royal Enfield and Kawasaki already started.

For Bajaj Auto, SOP is expected in the next quarter. In our four-wheeler driveshaft program, SOP for Tata Motors is expected also in the next quarter, and the peak business will be reached by October 2026 itself.

For three-wheeler driveshafts, SOP has started for Bajaj, Mahindra, and TVS, and we remain on track to close Rs 100 crores of business for these three OEMs in this financial year. We also are seeing an uptake in our Bajaj EV driveshaft program, with volumes expected to grow, for which additional balancing equipments will be installed in September this year.

A key focus area of our FY27 capex budget is automation. We are undertaking these targeted investments across existing plants to enhance quality, improve consistency, and drive operating efficiency.

Our India capex in FY26 was approximately Rs 800 crores, compared to Rs 611 crores in the previous year, driven by investments in new growth areas. We expect capital expenditure in FY27 to remain similar to the FY26 capex, of Rs 800 crores.

Under the Maharashtra Package Scheme of Incentives 2019 scheme, we had received an addendum taking our incentive from Rs 600 crores to Rs 858 crores. These incentives will be availed through the Industrial Promotion Subsidy by way of a state GST refund, broadly over a seven-year period.

We are well-placed to avail more incentives, with several of our plants located in Chhatrapati Sambhaji Nagar and serving OEM customers within the state of Maharashtra. Let me now give you a gist of orders won during this quarter.

Please note that the business value for new orders is without including new orders of Bajaj Auto. Our overall order win in quarter one FY27 in the India business was Rs 391.6 crores, of which Rs 26.1 crores is new business and 365.4 crores is the replacement business.

The EV business won was Rs 11.3 crores, and the remaining 380.3 crores was the internal combustion business. Similarly, 18.6 crores business wins were for four-wheelers, while the remaining 373 crores was almost fully for two-wheelers.

We also have a total of Rs 4,526 crores of request for quotes in hand. In quarter one FY27, out of this Rs 391.6 crores business won, 336 crores of business was from HMSI in this quarter, and out of this, 219.6 crores was that HMSI suspension facelift business, which has better margins.

Also in quarter one FY27, 35 crores of TVS brakes business was added, taking our total TVS brakes business to Rs 250-plus crores per annum. Rs 10.5 crores of business was won from a leading US EV OEM for our Shendra plant, taking their total business win to Rs 223 crores per annum.

The cumulative India business wins for electric vehicles in the conventional product areas now stands at Rs 1,496 crores without Bajaj Auto. This reaches Rs 1,806 crores per annum of orders if we include Bajaj Auto.

The overall total orders won now in products other than Maxwell and battery packs since FY23 stands at Rs 5,720 crores, out of which Rs 4,241 crores is new business. In Europe, the industry continues, as mentioned earlier, to operate in a challenging environment shaped by the Middle East crisis, high energy costs and 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. In our Europe business, we have booked orders worth 13.9 million euro in quarter one FY27.

This includes a large order from Mercedes for their hybrid program and an order from Stellantis for their internal combustion engine program. Our aftermarket in India remains a strategic priority for us, with ambitious growth goals set out till 2030, guided by a comprehensive capability-focused blueprint built around the voice of our team, our channel partners, retailers, and mechanics.

We are deepening our long-term partnership with distributors aligned to Endurance's vision, while driving secondary demand generation with retailers and mechanics. Our mechanic loyalty program continues to gain traction through certification, trainings from BS4 to BS6, electric vehicles, and product fitness trainings, health camps, and scholarships for the children of our top mechanics.

We remain the first in the industry to deploy an AI-enabled tech platform to drive secondary order maximization. For aftermarket exports, we understand the voice of our stakeholders in each country and have translated it into a unique value proposition.

Our customized offerings provide us a competitive edge in each geography. Our teams are based locally, close to our key stakeholders, and able to build capabilities as their requirements evolve.

Now coming to our financial performance, the information has been uploaded at the stock exchanges last evening, along with our presentation explaining the numbers. I will, however, highlight some key numbers.

During quarter one of FY27, the company recorded a standalone total income of Rs 3,194.15 crores, a year-on-year growth of 35.9% from Rs 2,350.7 crores in the previous year. EBITDA grew 17.1% from 305.61 crores to Rs 357.78 crores, with a margin at 11.2%.

The PAT grew 17.4% from Rs 165.82 crores to Rs 194.62 crores. The PAT was at 6.1%.

In quarter one FY27, it has been a challenging quarter due to the geopolitical situation. This has led to huge increase in commodity prices like aluminum, steel, copper, rubber, and oils, and fuels including diesel, PNG, and LPG gases, as well as consumables such as cutting tools.

The commodity increases led to our RMC percentage to total income going up to 68.4% as compared to 64.8% in quarter one FY26. You must keep in mind that this commodity increase has no value add and passed on by most OEM clients to us.

If we remove this non-value-add commodity increase and then see EBITDA margin, it is at 13.33% as compared to our reported 11.2% in standalone financials. In spite of the conversion cost increase of fuels, gases, and cutting tools in quarter one FY27, we could still post a healthy EBITDA amount increase of 17.07% at Rs 357.77 crores compared to Rs 305.61 crores in the previous year.

This was due to better operational efficiency and various cost controls across our plants. I would like to mention some of the key factors in quarter one on raw materials.

Most purchase order amendments not accounted in quarter one and will get effective in this quarter. The raw material base in quarter one has been considered mostly on the quarter four FY26 raw material rate base.

In this quarter, we will get the raw material rates of quarter one average. As far as the aluminum alloys are concerned, which are 60% of our quarter one raw material purchase, we are seeing softening of the aluminum alloy rates in this quarter, which will be a gain to us in this quarter.

Other raw materials, including steel, plastic, rubber, and oils, are in the final stages of settlement. On the quarter one gas, fuel, and manpower rate increases, we hope to settle these rate increases in this quarter with each of our OEM clients, and we should see these rates being effective in this quarter or in the next quarter of this financial year.

Also, our alloy wheel plant at Bidkin and the battery pack plant at Mindewadi are still at a ramp-up phase and have not reached optimum sales, which should happen in quarter three of this financial year. I would like to mention that in quarter one FY27, the commodity increases of approximately Rs 318.06 crores was paid upfront by Endurance, as most commodity increases come with a quarter lag.

We still close the quarter for a standalone net cash balance of Rs 14 of Rs 415.7 crores. In quarter one FY27, our consolidated total income grew 29.6% over quarter one of the last year, from Rs 3,353.54 crores to Rs 4,348.28 crores.

The EBITDA grew 18.7% from Rs 479.51 crores to Rs 569.21 crores. Our margin was at 13.1%.

The consolidated PAT grew 8% from Rs 226.35 crores to Rs 244.52 crores at 5.6% PAT margin. I would like to mention that our subsidiary, Maxwell, for the first time achieved PAT positive in quarter one FY27, with an 85% growth in total income from Rs 30.53 crores in quarter one FY26 to Rs 56.51 crores in quarter one FY27.

I would like to inform you that our electric vehicle sales in India standalone for quarter one FY27 grew by 87.4% from Rs 69.2 crores in quarter one of last year to Rs 129.7 crores in quarter one of this year, while our overseas EV and plug-in hybrid sales increased by 14.4% from Rs 701.4 crores to Rs 802.2 crores in quarter one of this year. The consolidated growth of the electric vehicle and plug-in hybrid sales was 20.9% was I mean it grew 20.9 was 20.9% from Rs 770.6 crores in quarter one to 931.9 crores.

So 20.9% growth in EV and plug-in hybrid sales in the first quarter. We're happy to inform you that CRISIL has upgraded our ESG rating to a strong score of 68 from FY26, up from 59 in the previous financial year.

Our progress on ESG is being recognized consistently also across other agencies. Earlier, our FY25 ESG score for SES and NSE had also improved year-on-year to 74.9 and 69, reflecting our company's continued focus on ESG.

Endurance continue to receive recognition from industry forums for quality, innovation, and sustainability. We won the Economic Times AutoTech Innovative Ride Technology Award 2026.

We also won the platinum award for sustainable materials and supply chain at CII's National Excellence Practice Competition, along with one platinum and three gold awards at the CII National Competition on Low Cost Automation and Industry 4.0. With these opening remarks, I would now like to invite questions from all of you.

We will first take the questions from the European management team as they will be travelling. We can start with questions for the European team.

Mr. Venuti is on the line.

Thank you.

Hi. Thanks for the opportunity and congratulation on great set of numbers.

Massimo, my first question is on our order win. At about 14 million euro for this quarter, the quarterly run rate is quite encouraging as compared to last few quarters.

If you can talk about the quality of the order win, what are the different types of orders we are getting in terms of powertrain as well as customers?

Yes. Hi, Aditya.

This was a very important acquisition in this moment, because we are speaking about a component for hybrid vehicle in the transmission. Mercedes decided to assign the business to Endurance due to the fact that we have already this part in our product portfolio, but only with 60% of the total volume, whereas 40% was with a competitor of us that unfortunately, or fortunately, let me say, went in bankruptcy, and so the decision was to move fastly the production capacity 100% to Endurance, and we will have the start of production in January 2027 with more or less 14 million of euro.

We are speaking about a component that we know very well. It means that this was the only component in the transmission hybrid in AWD of Mercedes where we had a second source, but this company will stop the production at the end of the year, and we will take 100% of the business.

Very important, let me say.

Oh, sir, that's very helpful. Secondly, if you can talk about that how is the integration of Sefferle progressing?

We understand that the core strength of Sefferle was only machining, but clearly the backward integration with Endurance would mean that there could be a significant value that we can generate. How is the integration progressing with Sefferle?

I could say that the integration is 100%, speaking about, for sure, the managerial activity and also the commercial activity, because now we are moving, considering the production capacity available, productions from Endurance GmbH and Sefferle, making synergy and considering only the contribution margin of the part. Regarding the raw part, as Sefferle is buying raw parts from the market, and I hope in the next few months to give you positive news about the process of integration, because we are looking for production capacity available into the market and as you can imagine in this moment is full of production available, but we are considering to integrate specific component in big high-pressure die casting machine for Sefferle, and I hope within January 2027 to reach this agreement.

The integration with the company is absolutely positive, and also for the next quarter, probably we will have positive info regarding new business in Sefferle.

Oh, that's good to know. The full impact of this positive integration would be seen in FY28?

Absolutely, yes, starting from, let me say, September 2027.

Okay. That's very good to hear.

That's it from me. I'll fall back in queue.

Thank you.

Thank you. Bye.

Hi. Good morning, sir.

Thank you for taking my question. Only on the European business, if you could just let us know the revenue and EBITDA and PAT in euros, that would be first question.

If I could just add the second part to it as well, what is the demand outlook now in Europe? Mr.

Jain alluded to some challenges in the first quarter, but now given the order wins, specifically for Endurance, how does the outlook look in the European business?

Okay. I start from in euro term, as usual, with the result of the previous quarter of this financial year.

We close with 104.3 million of euro turnover, compared 103.2 of the previous financial year, with an increase of 1.1 million, 1.1%. In terms of EBITDA, we close with 18.9 million of euro, compared to 18 of the previous financial year.

In terms of percentage, we close with 18.2%, compared 17.4% of the previous financial year. We grew 5.5% in terms of EBITDA.

In terms of net result, we close with 4.4 million of euro, 4.2%, compared 6.4 million of euro of the previous financial year, with a reduction of 31%. This is due to the fact that we increased the depreciation from 8.5 million of euro the previous financial year to 11.6 million of euro this financial year.

We decided to, in a cautelative way, to depreciate 100% of the residual fixed asset linked to specific project of internal combustion engine that will go in phase out in the next 18 months. The demonstration of the positive effect of the EBITDA in the quarter compared to the previous year, without consider the depreciation, is that the cash profit reached in the quarter 16 million of euro, compared 14.8 million of euro the previous financial year, with an increase of 7.9%.

Speaking about the market, as Mr. Jain told you, the market in Europe closed with 7.4% of increase compared to the previous year.

We reached a peak of 22% in the BEV registration, but please consider that the production compared to the previous year go down 5%. What does it mean?

That in this quarter there was an absurd and exceptional performance of the Chinese OEM, only to give an idea, SAIC grew 32% -- 137%, Geely 7%, Chery 272%, Leapmotor 500% compared to the previous year. If I offset the registration of the Chinese brand, the market was absolutely stable.

I repeat, there was a reduction in the production capacity. It means that in this moment they are reducing the stock to the dealer.

The situation continues to be very difficult, because as in all the newspaper they are speaking about important restructuring plan, Mercedes, Volkswagen, and they will close also specific platform because they want to close the plant, but to be honest, in this moment we don't see important reduction of volume, and we continue as in the first quarter to grow compared to the previous financial year. I'm speaking about for sure as Endurance.

On top of this, the acquisition of the last few months of component that are not new, but that are moving from company in bankruptcy to Endurance, from my point of view is absolutely positive for us.

Got it, sir. Thank you so much for this.

I'll come back in the queue for questions for the India business. Thank you so much.

For sure.

Thank you for the opportunity again. My question is on India, starting with the margins.

Now, this quarter clearly we had a commodity headwind. Now, you mentioned that some part of that would be covered as a negotiation from customers in the subsequent quarter.

Is there a way to quantify that, that is number one? Number second is that, incremental cost inflation in Q2, how much of that you think is on the cards?

Number third is that, what are the offsetting factors for these commodity headwinds?

No, so Aditya, one is that we are surely going to get all the raw material increases from every OEM in this quarter. Basically we'll get the quarter one FY26 rates in this quarter.

As I mentioned, we are seeing softening of the aluminum alloy rates, definitely not the quarter four base, but of course, lower than lower than maybe could be 12 to 17 rupees a kg is what we are seeing as as of now in in this quarter, which will be a gain to us, for sure, because 60% of our quarter one raw material purchases was, this thing, I mean it was was this alloy. Basically, we were operating on the quarter four base in quarter one largely.

Now we'll be operating on the quarter one In quarter two, we will be operating on the quarter one base, which is definitely much higher than the quarter four base. Definitely that should improve the EBITDA margin and percentage.

I, to be honest, I don't know what that percentage is, because because right now we have done the aluminum alloy, this thing, I mean those have been, like settled. For like I mentioned, the steel, rubber, plastics, this is being talked to all the OEMs.

We will conclude in this quarter. This will also be effective in this quarter, you know?

That will be a gain for us. Third, like I mentioned, is on the conversion cost increases also, we are in touch with every OEM, and we hope to settle these conversion cost increases also in this quarter.

We may get partly this quarter, partly next quarter. Definitely we see a much better quarter two and a quarter three, for sure, you know?

If you tell me to give an amount, to be honest, there are so many variables around it that I cannot give a figure. It won't be fair to give a figure right now, but I can definitely tell everybody it will be better, than quarter one.

Sure, that's good to know. Second question is on four-wheelers.

I think if you can give us some sense that last few years, how has been our journey in the four-wheeler die casting part? In this, you can also give some color on the Shendra facility that we have set up for four-wheeler die casting that also includes some of the exports.

How has been the progress in the last few years? Which are the OEMs that we have started engagement with and where we are seeing a good acceleration that would also include exports and EV?

Yeah.

I would say that almost 1,800 crores is our business sorry, almost 180 crores is the business for four-wheelers in quarter one, okay? Because our four-wheeler share is 6%.

This is largely for castings.

Now,

of course, AURIC Shendra sales are not in this because the SOP is starting next month. It's for the leading US EV OEM, for Jaguar Land Rover, and for Valeo, like I mentioned.

That will add to the sales and the profitability, okay? Now here in Shendra we have won an order of almost Rs 513 crores per annum, but that will reach peak in only early FY28, it'll be FY29, because these are long lead programs, and we have to be certified for these orders much earlier when it comes to for these foreign OEM players.

I think a large increase will be seen from, I think, quarter four of this year in Shendra, which I mentioned. Then also we are growing in a large way with Tata and Mahindra in Chakan plant, where we see a strong traction from both Tata and Mahindra, and as you all know, they are both doing well.

As far as I mentioned, we won this new Hyundai and Kia order of 80 crores per annum, which is also starting, which has actually already started in this month, okay? This will only increase.

We are talking to other South-based also OEMs with Isuzu. We have started for their hybrid model, hybrid model parts.

There's a lot happening in this space, and if you ask me, our focus now will be more on four-wheeler and non-automotive castings and not that much on the two-wheeler casting space going forward, because we are, like I mentioned, very, very now focused on improving our margins. I have no control on the raw material percentage of sales.

That's not in our control. If you look at absolute margins, definitely we want to increase them.

The raw material percentage goes lower, then of course the margin percentage will go up. We are very, very focused on the four-wheeler auto as well as the non-auto casting space.

To just tell you, we did about 180 crores in the first quarter of business, and this will only grow, because Shendra is not included in this. Sure,

sure. That's very encouraging.

My final question is on our battery pack business. We are seeing encouraging progress in the two-wheeler battery pack.

The question is that how should we look at the profitability of this? Is it that we will be using our own BMS for the two-wheeler as well as the four-wheeler battery pack facility, customer that we are engaging?

Is it a high single digit, low double digit margin, or is it close to company average margin, the battery pack assembly with our BMS or without the BMS?

Of course, this is, as a very high-value business. We have started.

We've started on a certain pricing. There is a lot of work to be done on the raw material and the BOM, okay?

This is something which we are working on to increase the margin percentage. I'll be better positioned to tell you what kind of margin percentage we can do and reach in our next call, which we have.

There I'll be much more clear. Definitely the volumes are going to be very good on the two-wheeler.

In fact, our whole assembly line, which has got a capacity of almost, I think, 17 to 18,000 battery packs a month, will be fully used up by October, is the plan. Even for the four-wheeler, the new investment we are doing, I cannot name the company.

I'm not allowed to name the company. Of course, that will come with also a good margin.

Now, of course, our target would be to try and reach margins which we are doing today on an average. That is our target.

You must keep in mind this is very high-value business. When you talk for a car business, a battery pack can be as high as about a lakh of rupees.

What I'm saying? Those are the kind of pricing you are seeing when we talk about a margin on that.

It's a very exciting space to be. It is related to electric vehicles, and as you all know, there's a lot of traction happening in two-wheeler.

Three-wheeler, of course, is the fastest. We're seeing in two-wheelers, and now we are seeing even in the four-wheeler space a lot of traction of EVs and hybrids happening.

This is the future. For us in Endurance to be a part of this journey is very important.

Sometimes you enter at a price, but we are very confident that we will be able to make good margins on this, and that's our focus. We have to enter, and that's very, very important.

This, as you all know, was a forward integration from our battery management system. For the existing two-wheeler order, the BMS is ours, and the aluminum casting is ours.

That also increases our business for that, and that has a separate margin on this business. When you see battery pack, we also have a margin on our BMS as well as on our aluminum die casting business as a company.

As far as the four-wheeler is concerned, there also both these products should be ours only, and I think that is almost finalized, because we want to start by quarter four of this financial year. Step by step, we are finding other people also approaching us, but this is something we'd like to do step by step.

We don't want to go so fast, but the opportunity is huge, is what I want to say.

That's very, very good to know. All the best.

That's it from my side.

Thank you, Aditya.

Thank you for the opportunity, and congratulations on stable numbers. Firstly, on capex, our key customers like Bajaj, RE, TVS are announcing very big capex.

Even some of them have upgraded their capex in some case in 1Q. What's stopping us to improve our capex like we are giving stable capex guidance, where is the gap, just wanted to understand.

Thanks.

No, look, there's no gap, because what is happening is we already have capacities, and at the same time, we as a company have a mix of outsourcing as well as doing it in-house. We have some strong Tier 2 vendors.

When we go in for capex, it's not only capex being done at Endurance, it's being done by our strong Tier 2 suppliers also. If you account for that capex, then of course it will be higher than the 800 crores.

This is a very dynamic situation. That is the status as of now.

Today if we get some very large opportunities, which we feel may happen, but I don't want to speak about it now, if that happens, the capex will increase. We are not falling behind.

Look, you're seeing our growth of 35.9%. If you take out the raw material content increase of 12.9%, okay, we've still grown about 23.5 to 24%, and that's the kind of growth which we are sustaining.

The question is, we continue to grow. We are not going to lose any orders from any OEMs, and like I mentioned in my opening remarks, we are focused on the two-wheeler, four-wheeler proprietary business, the focus on the non-auto space, the focus on the electronic space.

These are areas we really want to grow. We are not lagging behind in capex.

That I can assure you.

Sure, sir. Thank you.

Helpful. Secondly, on our business mix, around 70% of our standalone business, I believe, comes from motorcycle, and on console basis, it is 70 -- Hello?

Yeah.

Please repeat.

Percent of standalone business comes from motorcycle...

Yeah.

And 50% of the business on console basis is from motorcycle. We are seeing scooterization happening in two-wheeler space.

Is that reducing your TAM for two-wheeler space, or how is it to look?

Yeah. No.

Scooters also we are really increasing our presence, and here the main thing is not only on the ICE, but on the EV. The EV is gaining a lot of traction, and in fact, with most OEMs, tomorrow I have a meeting with a large OEM, not tomorrow, on 17th, Monday, and that's why you see our share is 14.5% for scooters.

In our business, scooters, which was less than 10% a few years ago, I think it was three years ago, has now gone up to 14.3%. That content is increasing.

Let me tell you, and you're seeing especially from September of last year, the growth in both motorcycle and scooters is very, very high. As you're seeing, it's more than 20%.

We are not losing, but at the same time, with this high growth, like I mentioned last quarter, scooters has grown around 37%, but still our share is 14.5%, you know what I'm saying? We are growing the share, we are not going to lag behind in two-wheeler space.

That I can assure you.

Okay. Lastly, on the order book, on Q-o-Q basis, I'm seeing European business order book for FY28, 29, even for 27, it's been declining around 32, 38, 9% on range.

What is the reason, and which products have seen major decline in European business? Thanks.

Last one.

Massimo, are you still there?

No.

Massimo is not there. See what I'll say is that if you see the European Union, like I mentioned earlier, there are a lot of Chinese OEMs having their presence.

Massimo told you about the growth of these OEMs in Europe,

and

right now they are importing the powertrains from China. Of course, we are in touch with them, and according to me, once they start sourcing the parts in Europe, there we have a great opportunity, because part of this growth which is happening in Europe is also because of the Chinese vehicles selling well.

Also there are imports from Korea. Brands like Kia are doing very well there.

When you see growth, you have to account that it includes the sales of both China and Korea. Right now our focus in Europe is, because we are amongst, I would say, very few players now who are financially strong, and that's why you see this 100% SOP coming from Mercedes, which is starting in 2027 January, and such kind of businesses will keep coming, but at the same time, I think it's most important in Europe to also look at the M&A areas.

In future, you will see certain M&As happening both in the automotive as well as the non-automotive field, which we will talk to you, we'll have more clarity in the next investor call. If you see, even this sales you see now is after the acquisition of Sefferle in April '25.

Europe will grow a lot in M&A because there are good companies available at good prices, and these are opportunities we will take for our growth. At the same time, when I see a new business acquisition like we did, that is really, I would say, that's a bonus in a market which today, technically if you see German OEMs are not doing that well.

Their exports to China, also their sales have come down. We at Endurance have our own strategy for growth and to make money, and that's what we are doing in a very difficult environment in Europe.

We are very focused on Endurance, but to answer your question, definitely the opportunities of getting orders has definitely come down, but whatever opportunities are there, Endurance is one of the first to get them, is what I would like to say.

Thank you, sir. Helpful.

Hi. Thank you.

Three questions from my side. First, we have gained further market share in suspension and brake side.

Just wanted to understand where are we in now two-wheeler market share for your different product categories, suspension, brakes, and your aluminum castings? Second question, you already highlighted that you have won orders for battery pack for EVs, and you are supplying your existing products to EVs.

Just wanted to understand if there is any plan to get into other EV-specific products which are not required in ICE, but are required in EVs, so that we are able to grow faster than the overall industry? The third question is on alloy wheels.

Where is our capacity now after the expansion, and what would be the utilization level right now, because you mentioned that your recently started plant has not yet reached optimal capacity utilization? Thank you.

Yeah. I would say that on the 48 48 lakh wheel sets, or 4.8 million, which is 9.6 million wheels per annum, as far as our plant in Chakan is concerned, it is fully which is about 2.

that will be what, 3 million is it? That will be about 3 million

Yeah.

sets per annum. That is fully used up.

There we supply so that is full. It is our Shendra plant which is at

1.8.

which is the balance 1. that comes 1.8 million sets.

Yeah. There we are, I think, at a capacity of right now 60%.

We're starting with Royal Enfield. We'll be starting with Ather, and we are starting with Suzuki, and we are starting with Piaggio.

All this we should see from now to quarter four these customers coming in, and then we'll be at full capacity in Bidkin also. I would say by end of this financial year, we should be at full capacities as far as alloy wheels is concerned.

Your other question was on the battery pack, right?

No, are there any other EV-specific products like battery packs that you plan?

See one thing please remember that except for the clutch assembly, which is now become 3.5% of our India sales, everything else is required for EVs. We have to see that we make entry into scooters, three-wheelers for all our products very fast.

That itself is a huge business for us. Tomorrow one of the largest OEMs in the country are coming to meet not tomorrow, on 17th, to finalize some new things.

Our first focus is that. Definitely, if you see the BMS is a big opportunity in Maxwell also.

Of course, we are doing even the non-EV products, like motor controller units, but you have the DC-DC charger, which is an EV product, and we'll be looking out for many other such products. Battery packs itself is a very high-value product.

We'd like to go a bit step by step. We have our own business, which is EV agnostic to do.

We have the battery packs, huge potential; Maxwell, huge potential for EVs, okay? We are going step by step right now.

What about these market shares?

Sorry. The market share, let me tell you, in quarter one, we were on two-wheelers, we were at 43.8, we can say 44%.

For brake systems, I've already told you 34.5. For front fork was 43.8%.

For shock absorbers was 37%.

Okay. Thank you.

Just one follow-up, please. This battery pack business that you have won and you will supply, that will be part of standalone or that will be part of Maxwell?

Standalone. No, that is a part of standalone, because battery pack is a part of Endurance.

It's a plant at Mindewadi near Chakan.

Thank you so much. That's it from my side.

Thank you.

I think I have made all my comments in my opening remarks, I have no further comments to add, and I'm just want to thank everybody for taking their time out to be on this call. Thank you.