Endurance revenue jumps 40.12%, but margin falls to 10.29%
Standalone expenses grew faster than revenue, while management highlighted new EV, battery-pack and braking capacity additions.
Filed 03 Nov 2026, 19:27 IST · after market close · Endurance Technologies Ltd (ENDURANCE)
Key takeaways
- Standalone revenue grew +40.12% year on year, but expenses grew faster at +42.87%, narrowing operating margin by 1.73 percentage points.
- Net profit rose only +13.81% as interest expense increased +227.63% year on year and the tax rate rose 0.34 percentage points.
- Operating margin fell to 10.29%, 1.93 percentage points below the 12.22% median of 175 Consumer Discretionary peers that have reported.
Price around the results
Revenue growth outpaced profit growth
Endurance Technologies reported standalone revenue growth of +40.12% year on year and +17.91% quarter on quarter, but operating profit rose only +19.99% year on year and +11.51% sequentially. Net profit increased +13.81% year on year to Rs 213.48 cr, showing that the revenue acceleration did not flow through at the same pace.
Faster costs and higher interest cut margins
Expenses grew +42.87% year on year against revenue growth of +40.12%, causing operating margin to narrow by 1.73 percentage points to 10.29%; sequentially, costs also grew faster than revenue and margin fell 0.59 percentage points. Interest expense increased +227.63% year on year and +63.82% quarter on quarter, while other income accounted for only 2.95% of pre-tax profit. The tax rate rose to 25.83%, up 0.34 percentage points year on year and 0.58 percentage points sequentially, so the net-profit increase was not driven by a lower tax rate.
A third straight quarter of sequential margin decline
Operating margin has declined for three consecutive quarters, from 12.37% in Q3FY26 to 11.96% in Q4FY26, 10.88% in Q1FY27 and 10.29% in Q2FY27. The current margin was 1.93 percentage points below the 12.22% median for the 175 Consumer Discretionary peers that had reported the same quarter.
New capacity broadens the business pipeline
Management said production began at the AURIC Shendra plant in September 2026 for 4W EV OEMs and exports, while the Pune battery-pack plant started production in Q1FY27. The company said it is expanding machined aluminium casting, ABS and disc-brake capacity, and setting up Sanand infrastructure for Solar Damper and Actuator orders. Management also said it won Rs 801 cr of business in India and Euro 28 million in Europe in H1FY27, and expects the 2W battery-pack business to fully ramp up in Q3FY27.
No immediate market reaction after the close
The standalone results were filed after market close, so there was no market reaction to report at the time of filing. Across the eight prior result reactions, the stock rose four times and fell four times, with a median absolute move of 2.71%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,753 cr | ₹3,183 cr | +17.91% | +40.12% |
| Other income | ₹8 cr | ₹11 cr | -25.79% | -39.36% |
| Expenses | ₹3,367 cr | ₹2,836 cr | +18.69% | +42.87% |
| Operating profit | ₹386 cr | ₹346 cr | +11.51% | +19.99% |
| Operating margin (%) | 10.29% | 10.88% | — | — |
| Interest | ₹7 cr | ₹5 cr | +63.82% | +227.63% |
| Depreciation | ₹99 cr | ₹93 cr | +7.05% | +21.45% |
| Profit before tax | ₹288 cr | ₹260 cr | +10.55% | +14.33% |
| Tax | ₹74 cr | ₹66 cr | +13.10% | +15.85% |
| Net profit | ₹213 cr | ₹195 cr | +9.69% | +13.81% |
| EPS (₹) | ₹15.18 | ₹13.84 | +9.68% | +13.88% |
Operating margin of 10.29% compares with a Consumer Discretionary sector median of 12.22% across 175 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects full ramp-up of its 2W battery pack business in Q3 FY27.
- SOP for the newly nominated 4W battery pack business is expected in H1 FY28.
- SOP for additional disc brake capacity in Chennai is expected in Q4 FY27.
- Actuator SOP is expected in Q4 FY27.
Expansion
- Production commenced at the AURIC Shendra plant in September 2026 to serve 4W EV OEMs and exports.
- The company is expanding 4W machined aluminium casting capacity across Chennai, Vallam and Chakan.
- The battery pack plant in Pune began production in Q1 FY27.
- The company is setting up additional ABS and disc brake capacities.
- New infrastructure is being set up at Sanand, Gujarat for large-volume Solar Damper and Actuator orders.
New orders
- The company won Rs 801 crore of business in India and Euro 28 million in Europe in H1 FY27.
- Q2 FY27 order wins included machined aluminium, suspension and die-casting orders from Indian and European customers.
New initiatives
- A second SMT electronics line has been installed for in-house ABS ECU and higher BMS volumes.
- The company acquired 100% of Fondalpress SpA in Italy, which specialises in aluminium die-casting and machining.
- The company raised its stake in the Stöferle entities in Germany to 100% through an accelerated acquisition.
What to watch
- Whether operating margin holds above 10.29% after its third straight sequential decline.
- Whether expenses continue to grow faster than revenue after rising +42.87% year on year against revenue growth of +40.12%.
- Management's stated full ramp-up of the 2W battery-pack business in Q3FY27.