Endurance profit growth trails revenue as costs and tax rate rise
Margin recovered sequentially, but depreciation rose +48.77% YoY and the tax rate increased 3.4 percentage points.
Filed 14 May 2026, 19:40 IST · after market close · Endurance Technologies Ltd (ENDURANCE)
Key takeaways
- Consolidated revenue grew +37.88% YoY, but expenses rose faster at +38.45%, narrowing operating margin by 0.36 percentage points.
- Sequentially, operating margin recovered 0.68 percentage points as revenue growth of +13.24% outpaced expense growth of +12.36%.
- Net profit rose only +12.78% YoY as the tax rate increased 3.4 percentage points, while other income contributed 8.09% of pre-tax profit.
Price around the results
Q4FY26 revenue growth did not fully reach net profit
Endurance Technologies reported consolidated revenue growth of +37.88% YoY and operating-profit growth of +34.41%, but net profit increased only +12.78%. Depreciation rose +48.77% and interest increased +21.94% YoY, limiting the conversion of operating growth into pre-tax profit. Other income was 8.09% of pre-tax profit, making it a notable contributor to reported earnings quality.
Sequential margin recovery follows three quarters of slippage
Operating margin improved 0.68 percentage points QoQ because revenue grew +13.24%, faster than expenses at +12.36%. The recovery came after operating margin declined from 14.26% in Q4FY25 to 13.37%, 13.31% and 13.22% across the first three quarters of FY26. At 13.90%, the margin remained 0.91 percentage points below the 14.81% median among 93 Consumer Discretionary peers that had reported the quarter.
Capacity additions broaden the business, while Europe remains a transition point
The presentation said the AURIC Bidkin alloy-wheel plant began production in October 2025 and its 3.6 million wheels per year capacity is fully booked. Management said a Pune lithium-ion battery-pack plant is expected to start operations in Q1FY27, while machined-castings operations at AURIC Shendra are expected in Q2FY27; standalone capex includes Rs 828 cr of capacity additions. The company also said the transition to EV and hybrid vehicles in Europe is expected to reduce revenue from currently serviced ICE orders.
The initial market fall was close to Endurance's usual result-day move
The stock fell 2.71% on the first trading day after the results, with a 3.61% opening gap lower; the results were filed after market close. Across the past eight result reactions, the stock rose five times and fell three times, with a median absolute move of 2.8%, so the initial decline was broadly in line with its recent pattern. The stock was down 4.05% after 15 trading days.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,086 cr | ₹3,608 cr | +13.24% | +37.88% |
| Other income | ₹30 cr | ₹16 cr | +82.82% | -35.91% |
| Expenses | ₹3,518 cr | ₹3,131 cr | +12.36% | +38.45% |
| Operating profit | ₹568 cr | ₹477 cr | +19.00% | +34.41% |
| Operating margin (%) | 13.90% | 13.22% | — | — |
| Interest | ₹15 cr | ₹15 cr | +1.80% | +21.94% |
| Depreciation | ₹212 cr | ₹178 cr | +19.08% | +48.77% |
| Profit before tax | ₹371 cr | ₹301 cr | +23.29% | +17.92% |
| Tax | ₹94 cr | ₹79 cr | +19.27% | +36.14% |
| Net profit | ₹276 cr | ₹222 cr | +24.73% | +12.78% |
| EPS (₹) | ₹19.65 | ₹15.76 | +24.68% | +12.74% |
Operating margin of 13.90% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.71% | -2.52% |
| Next session | -3.55% | — |
| 5 sessions | +3.90% | +3.78% |
| 15 sessions | -4.05% | — |
| 30 sessions | +2.06% | — |
Volume on the results session was 2.99× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Commercial production of Adler technology Assist and Slip APTC Clutch commenced in Q2.
Guidance & outlook
- The company expects future European revenues from currently serviced ICE orders to decline due to the transition to EV and hybrid vehicles.
- Leads worth more than Rs. 300 crore are being pursued for BMS, TPMS and chargers.
Expansion
- AURIC Shendra is being set up for machined castings, with start of operations expected in Q2FY27.
- A lithium-ion battery pack plant is being set up in Pune, with start of operations expected in Q1FY27.
- The AURIC Bidkin alloy wheel plant started production in October 2025 and its 3.6 million wheels per year capacity is fully booked.
- A new plant is being constructed for growing aluminium forging production, with start of operations expected in Q3FY27.
- Additional ABS capacity is being set up, alongside additional disc brake capacity in Waluj and Chennai.
- Standalone capex of Rs. 828 crore includes land, brake assembly, alloy wheel, casting, machining and battery-pack capacity additions.
- The company completed its acquisition of a 60% stake in Stöferle entities in Germany and has a line of sight to acquire the remaining 40% over five years.
New orders
- The company won Rs. 1,596 crore of business in India in FY26, including Rs. 300 crore for battery packs and Rs. 56 crore in Maxwell.
- The company won business worth Euro 16 million in Europe in FY26.
New initiatives
- Next-generation suspension and brakes R&D centres are operational.
- The SMT electronics line is being expanded to support in-house ABS ECUs and higher BMS volumes.
- The company raised its stake in Maxwell to 100%.
Problems & risks
- The transition to EV and hybrid vehicles in Europe is expected to reduce revenues from currently serviced ICE orders.
What to watch
- Whether consolidated operating margin holds above 13.90% after the sequential recovery.
- Whether the tax rate moves below 25.43% after the YoY increase of 3.4 percentage points.
- Progress on the Rs 828 cr standalone capex programme and the company-stated Q1FY27 start of operations for the Pune battery-pack plant.