Endurance margin slips as costs outpace revenue growth
Consolidated revenue rose 30.01% YoY, but net profit grew 8.03%; the results were filed after market close, so there is no market reaction yet.
Filed 13 Aug 2026, 16:04 IST · after market close · Endurance Technologies Ltd (ENDURANCE)
Key takeaways
- Consolidated revenue rose 30.01% YoY, but net profit increased only 8.03% as costs grew faster than sales.
- Operating margin fell 1.48 percentage points QoQ after expenses grew 7.42% against 5.6% revenue growth.
- Other income contributed 10.12% of pre-tax profit, while the tax rate rose 0.98 percentage points YoY.
Price around the results
Revenue growth did not translate into profit growth
Consolidated revenue rose 30.01% YoY and 5.6% QoQ, but net profit grew only 8.03% YoY and fell 11.55% QoQ. The sequential decline came despite higher revenue, pointing to weaker profit conversion after the Q4FY26 peak. Operating profit also fell 5.63% QoQ.
Higher costs, depreciation and interest weighed on margins
Expenses grew 31.44% YoY against 30.01% revenue growth, narrowing operating margin by 0.95 percentage points. Sequentially, expenses rose 7.42% while revenue rose 5.6%, cutting margin by 1.48 percentage points. Depreciation increased 34.97% YoY and interest rose 27.31%; the 0.98-percentage-point rise in the tax rate added to the pressure on net profit.
Margin remains below peers after the Q4FY26 rebound
Endurance's consolidated operating margin of 12.42% was 0.86 percentage points below the 13.28% median for 169 Consumer Discretionary peers that had reported the quarter. The margin had improved to 13.9% in Q4FY26 after declining through Q3FY26, but Q1FY27 reversed that gain. Other income accounted for 10.12% of pre-tax profit, making earnings quality a factor to track alongside operating performance.
Management outlined capacity additions and European exposure changes
Management said production began at the Pune battery-pack plant in Q1FY27 and that the AURIC Shendra machined-castings project, additional ABS capacity and a second SMT line are expected to reach SOP in Q2FY27. The company told analysts that 4W battery-pack capacity is expected to reach SOP in Q4FY27, while standalone capex of Rs 196 cr includes brake assemblies, machined aluminium die casting and battery packs. Management also said Chinese OEM gains and Europe's EV and hybrid transition could reduce future European revenue, with ICE exposure expected to fall from about 30% of Endurance Europe's revenue to 25% in FY28.
No stock reaction yet; past responses have been evenly split
The consolidated results were filed after market close, so the stock has not yet produced a reaction to this quarter's numbers. After the previous eight results, the stock rose four times and fell four times, with a median absolute move of 2.79%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,315 cr | ₹4,086 cr | +5.60% | +30.01% |
| Other income | ₹33 cr | ₹30 cr | +11.30% | -6.31% |
| Expenses | ₹3,779 cr | ₹3,518 cr | +7.42% | +31.44% |
| Operating profit | ₹536 cr | ₹568 cr | -5.63% | +20.72% |
| Operating margin (%) | 12.42% | 13.90% | — | — |
| Interest | ₹17 cr | ₹15 cr | +12.93% | +27.31% |
| Depreciation | ₹222 cr | ₹212 cr | +4.75% | +34.97% |
| Profit before tax | ₹330 cr | ₹371 cr | -10.96% | +9.45% |
| Tax | ₹86 cr | ₹94 cr | -9.23% | +13.75% |
| Net profit | ₹245 cr | ₹276 cr | -11.55% | +8.03% |
| EPS (₹) | ₹17.38 | ₹19.65 | -11.55% | +8.02% |
Operating margin of 12.42% compares with a Consumer Discretionary sector median of 13.28% across 169 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Production commenced at the battery pack plant in Pune in Q1FY27.
Guidance & outlook
- ICE end-use is expected to decline from about 30% of Endurance Europe's revenues to 25% in FY28.
Expansion
- The company is setting up the AURIC Shendra project for machined castings, with SOP expected by Q2FY27.
- The company is expanding capacity to manufacture 4W battery packs, with SOP expected in Q4FY27.
- Additional ABS capacity is being set up, with dual-channel ABS SOP expected in Q2FY27.
- A second SMT line is being established for in-house ABS ECU and higher BMS volumes, with SOP in Q2FY27.
- Standalone capex of Rs. 196 Cr includes capacity additions in brake assemblies, machined aluminium die casting and battery packs.
New orders
- The company won Rs 405 Cr of business in India in Q1FY27, including Rs. 13 Cr in Maxwell.
- The company won business worth Euro 13.9 million in Europe in Q1FY27.
New initiatives
- The company raised its stake in the Stöferle entities in Germany to 68% and plans to acquire the remaining stake over four years.
Competition
- The company cites growing market share of Chinese OEMs in Europe as a factor affecting future revenues.
Problems & risks
- The company expects future European revenues to decline because of Chinese OEM market-share growth and the transition to EVs and hybrids.
- ICE end-use is currently about 30% of Endurance Europe's revenues and is expected to fall to 25% in FY28.
What to watch
- Whether consolidated operating margin moves back from 12.42% after the 1.48-percentage-point QoQ decline.
- Whether the AURIC Shendra, dual-channel ABS and second SMT-line projects meet management's stated Q2FY27 SOP timing.
- Whether European ICE exposure changes from about 30% toward the 25% FY28 level cited by management.