Endurance Technologies Limited (NSE: ENDURANCE) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Anurang Jain — Managing Director
Massimo Venuti — Non-Executive Director
Analysts:
Unidentified Participant
Nishit Jalan — Analyst
Aditya Jhawar — Analyst
Pramod Amthe — Analyst
Arvind Sharma — Analyst
Presentation:
operator
Foreign Ladies and gentlemen, good day and welcome to the Endurance Technology Q1 FY26 earnings conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this call is being recorded with this. I now hand the conference over to Mr. Nishit Jalan. Thank you. And over to you sir.
Nishit Jalan — Analyst
Thank you so much. Good morning everyone. Welcome to Q1FY26 post 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 Abhangay, Director and COO Mr. Rajagopal Sastry Group CFO and Mr. Raj Mundra, Treasurer and Industrial Relations. I’ll now hand over the call to Mr. Anuran for his opening remarks post which we can move to the Q and A. Over to you Mr. Jen.
Anurang Jain — Managing Director
Thank you. Good morning to all. As we conclude quarter one of FY26, India’s economic landscape reflects a steady foundation amid evolving global dynamics. As per latest government estimates, the Indian economy achieved a gdp Growth of 6.5% in FY25. CII and S& P have maintained a similar guidance in FY26. Businesses worldwide are facing uncertainties with regard to trade barriers, rare earth magnet supplies, inflation and end user demand. Very recently challenges faced included the pandemic wars, chip shortages and energy price hikes. Individual businesses like ours cannot change the cost of these events. We instead focus on building strength and diversity in our own business.
At present, we serve multiple OEMs across India and Europe. Our products go into ice and electric vehicles. In India, we are strong in two wheeler and three wheeler end use and are focused on growing our presence in the four wheeler segment which is already our area of strength in Europe. We are also adding new products to our portfolio in the automotive sector. As per CM, two wheeler sales reached 5.81 billion units in quarter one FY26 down 1.6% year on year. With motorcycles at 1.8% degrowth and scooters at 0.8%. Degrowth passenger vehicle sales increased by 0.8% to 1.22 million units while three wheeler sales rose 10.4% to 0.26 million units.
Endurance in its stand alone financials for quarter one FY26 saw a year on year growth of 10.1% in our European Union new car sales saw a year on year drop of 1.8% in quarter one FY26 while our endurance Europe total income growth was significantly higher than at 28.5%. If we also remove the impact of the Stephele acquisition, our top line in Europe grew by 0.6% in quarter one FY26 industry volumes there was a 15.9% share of battery electric vehicles, 9.2% for plug in hybrids and 34.2% for hybrids in Europe. On the strategic growth front, we are pleased to share key updates as most of you are aware, the Ministry of Road Transport and Highways has proposed new safety requirements mandating 100% use of ABS for greater than 50cc ICE two wheelers and all two wheeler EVs greater than 4 kilowatt motor power.
This as of now is made effective from January 2026. As you are aware, Endurance had embarked upon the ABS journey and had rolled out its first ABS in September 2021 by MNC players. We have installed capacity of 640,000 units both for single and dual channel ABS. Our single channel ABS has been on the road since 2021 and a dual channel ABS final samples have been sent to Royal Enfield and Bajaj and we expect SOP to start in the next month. The new safety requirements are expected to increase the ABS requirement in India fivefold. Higher ABS use would also lead to higher disc brake penetration.
Endurance is in touch with its OEM customers to meet the OEM’s deadlines for higher quantum of ABS requirements. This would involve expanding our ABS setup in Waluch which process has already started and will complete by March 2026. We are planning setup of a new plant for this brake assembly including for master cylinder, caliper, brake disc and brake hoses in Chennai where we already have a land bank. This plant will cater to the South Indian OEM clients including TBS, Royal Enfield and Yamaha India amongst other OEMs. I’m pleased to highlight significant progress also at our Orec Chandra facility.
We have successfully commenced shipments to a leading European OEM for pre SOP builds, completing the journey from customer LOI to facility installation in a record time of four months. We have also supplied initial samples for the electric vehicle motor housings for Mahindra’s 6en9 platform through Valeo within a record 10 week lead time achieving first time ride paths to support the localization drive. The Orexchendra plant is a green building die casting facility and actively supports our ESG goals with sustainable manufacturing practices. Die casting press machines ranging from 1100 ton to 2500 ton are planned to align with market trends towards higher tonnage and lightweighting in electric vehicles and advanced automotive components.
The SOP is now planned in quarter four of this financial year. I’m pleased to inform you that the SOP at a two wheeler alloy wheel plant in Orec Bidkin will start in week four of this month. The plant has an installed capacity of 3.6 million wheels per annum and bulk of this capacity has been booked with orders from OEM plants at a battery pack manufacturing facility near Pune. Civil work and statutory consents are in place. Machinery has been ordered and will be installed at our plant in early next quarter. We had mentioned that we have received an LOI from a leading two wheeler OEM for a peak business value of Rupees 300 crore per annum.
3D validation and simulations have been completed in quick time. Rotos will be submitted in this quarter which is in line with our planned SOP in January 2026. In quarter one of FY26 we accelerated the purchase of the balanced 38.5% stake in Maxwell. We are now 100% owners of this business and have strong plans to make it the cornerstone of our electronics and energy business. With good acceptance of reconfigured models of electric two wheelers for our key OEM clients. Maxwell has witnessed a healthy uptick in sale of battery management systems. With our RAD and innovation we have been able to improve.
We have been able to provide optimized products for each of their offerings. Apart from scooters, we also have orders for battery management system usage in motorcycles, three wheelers tractors and have recently secured an order for airport cargo handling electric buggies where BMS supply will begin in November 2025. This strategic transition also paves the way for future high voltage platforms for four wheelers and E buses. We have won cumulative orders to the extent of rupees 156 crore per annum at maximum which will reach peak in quarter one of FY27. Maxwell is also pursuing leads now of rupees 150 crore per ann.
With increased business both in BMS and for future ABS electronic control unit boards we would need to add capacity at our surface mounted technology lines in Chhatrapaji Sambhaji Nagar. We have recently installed additional end of the line testing lines and in due course two new high speed surface mounted technology lines will also be set up to cater to this increased demand. Our new generation suspension R and D Center at Waluch for two, three and four wheeler applications is fully operational since July 25th marking a significant milestone in our innovation journey. This state of the art facility helps us to co create advanced suspension solutions with OEMs further solidifying our leadership in two wheeler and three wheeler suspensions.
Also the new R&D Center’s four wheeler testing and validation capabilities along with our expanded RD team and a four wheeler suspension technical assistance agreement with a leading Korean entity that enable us to enter and grow in the four wheeler suspension market. We are actively pursuing new business prospects with multiple OEMs. Endurance is by far the market leader for inverted front forks. Over the years this business has grown with demand from various Bajaj and KTM models. In January we have begun supplies to TVS for the inverted front fork requirement. We have orders from Hero Motocorp and the leading Chinese OEM which SOPs will start in this financial year.
The KTM export offtake has been lower than the earlier years. Now with Bajaj in full control over the global KTM operations, we expect demand to increase in the next quarters. Aluminium forging products are used as components namely axle clamps for inverted front forks. They are also offered to third party two wheeler and four wheeler OEM plants. Our supplies to Jaguar Land Rover are expected to begin in January 2026. We now have orders also from Royal Enfield and Hero MotoCorp and multiple RFQs are being addressed from Indian and international OEMs. This is a huge focus area of growth for us.
Increased demand would require setting up of more aluminium forging presses. We have ordered our fifth press now which we would install next year in a new aluminium forging plant at Waduch. Our existing aluminium forging setup will also be moved to this new plant where the similar work is on. We have begun SOP in May 25 for the first Hero Motor Corp clutch which peak requirement will reach 100k clutch assemblies per month which we hope to do in quarter four of this financial year. In September next month we will begin SOP also for the first assist and slip APTC clutches to Royal Enfield and Bajaj Auto.
This introduces our Italian company Atlas Technology to the Indian market for the first time. We are also setting up a new R and D facility for ABS and two and four wheeler brakes at our second brakes plant at Baluch. This will have advanced test rigs focusing on higher end two wheeler brakes, ABS testing including electronic tests as well as four wheeler brake tests. We have also secured our first order for the four wheeler drum brakes from Tata Motors. This is the Start of a journey where we would require and deploy technology for advanced four wheeler braking systems.
Our aluminium casting plant at Vallamm has won the Best supplier award for Excellence in delivery from Ather Energy for the first time. Ride products and quick ramp up. This is another testimony to our unwavering commitment to high levels of achievement in qcddm. I mentioned to you about our first order in the four wheeler passenger vehicle drive shaft. We have begun on vehicle testing at a captive proving ground in Chhatrapati Sambhaji Nagar. Our testing facilities cater not only to our current needs but also act as a pathway to reach our aspirations in new product segments. As informed in the previous call, we completed the acquisition of the 60% stake in the Stephele entities in Germany in the beginning of quarter one.
Stepele has an annual turnover of approximately 80 million euro from April 2025. Stepele Financials are consolidated in the Endurance Group financials. We had announced that under the Maharashtra PSI 2019 scheme we received an eligibility certificate of rupees 606 crore for capex incurred till September 2025. Under this 2019 scheme we would apply now for additional eligibility for CAPEX up to financial year 2026 based on rupees 606 crore. We have recorded a PSI incentive of rupees 32.91 crore in quarter one of this financial year. You will recall that we have booked almost all amounts under the rupees 446 crore under the PSI scheme of 2013 and have collected cash to the tune of rupees 329 crores.
Let me now give you a gist of orders won during quarter one of FY26. Please note that the business value from new orders are without including orders from Bajaj Auto. Overall order booking in quarter one FY26 India business was rupees 252 crores of which rupees 247 crore is new business. This is excluding the rupees 300 crore per annum business which we have won for battery packs key OEM customers. In the list of quarter one FY26 orders are two wheeler OEMs such as Royal Enfield, TBS and Mahindra. And our first four wheeler foundation breaks business one from Tata Motors which opens the door to a new vertical.
We have won a total of rupees 3225 crore worth of RFQs in hand. Cumulative India business orders for EV segment till date stands at rupees 864 crore and with Bajaj Auto this figure is now at rupees 1017 crores. Total orders won since FY21 is Rs. 4950 crore which rupees 3986 crores is new business out of the rupees 3986 crores. New business close to Rs. 1400 crore saw SOP in FY25. A further rupees 1150 crores is expected in this year FY26. The rest of the business will be realized in FY27 and FY28. In our Europe business we have booked orders worth 2 million euro during quarter one.
These are electric vehicle component orders for our specialties plastics unit in Durin. In continuation of the strategic aftermarket plan started with a global consultancy firm on ground activations have begun across the top hundred high potential districts in India. We also began test marketing new product ranges with a focused go to market approach for exports. Detailed market studies were conducted to have a robust product and channel strategy for high potential countries. In addition we have introduced front fork pipes in Indonesia and Brazil catering to both Indian and non Indian two wheeler platforms to further expand our range in these key markets.
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 FY26 the company recorded a standalone total income of Rupees 2,351 crores a year on year growth of 10.1%. This growth comes majorly from content addition as the industry volumes were tepid in this quarter. The major content addition comes in new business especially in brakes and suspension segments with OEMs such as TVS, Royal Enfield, Honda which is HMSI, Suzuki and Hero Motor Park. A significant portion of the growth in the total income is also from price corrections to compensate increase in commodity prices.
Unfortunately, the commodity inflation based total income increase had a negative impact on our percentage margins which is evident in the 0.5% drop in the EBITDA margins. Further, this is a period where we are investing in our future and along with the lands, factories and assets we are also hiring the talent required to further our multi prolonged business growth plans. The people cost increase reflects our talent acquisition which is a strong positive for us to consolidate our growth plans in the future. Further quarter one FY26 had its own seasonal and mixed factors. Therefore the standalone profit after tax is rupees 166 crore or 7.1% against rupees 163 crore or 7.6% in quarter 1 FY25 which is a 3 crore increase in profit after tax.
Europe top line increase in euros is 28.5%. With the car market in Europe being 20% below the pre Covid size, we have achieved higher sales through the acquisition of Stepele. Even without Stepele our European product sales had a year on year growth. In spite a decline in new car sales, the European profit after tax is at rupees 62 crore which grew 42% over quarter one FY21 profit after tax of rupees 44 crore with margins slightly improving in quarter one FY26. A consolidated total income grew 17.3% over quarter one of last year from rupees 2,859 crore to rupees 3,355 crores.
The EBITDA grew 17.5% from rupees four hundred and eight crore to Rs. 480 crore and the margins was maintained same at last year’s level of 14.3%. The profit after tax grew 11% to rupees 226 crore at 6.7%. I would like to also mention specifically that our consolidated earnings per share have more than doubled From IPO year FY17 to FY25, that is from Rupees 23.48 per share to Rs. 59.46 per share. A high performing inclusive culture remains core to our success. We have deepened our focus on inclusion, capability building and employee experience through sensitization programs, upgraded HR policies and infrastructure enhancements.
Flagship skill and capability programs like Saksham for the white collared people and Unity for the blue collared employees are helping nurture talent across levels while also grooming high potential employees for future leadership roles. On the sustainability front, we made significant progress this year onwards towards our ambitious goals for FY30. We achieved a 45% carbon neutral percentage. We lowered specific electrical and thermal energy as well as specific water consumption while water recycling and hazardous waste recycling stands at 96% each. We also enhanced our renewable power share from 23% in FY24 to 25% FY25. We have now increased this share to 31% in quarter one FY26 through expanded rooftop solar and wind power agreements.
We contributed 300,000 kilo of water through water augmentation projects. CSR is a strategic priority for endurance rooted in our belief that real impact comes from reducing inequity which means one community, one child, one individual at a time and this will help in every community we transform and every child we inspire and every individual we empower. I’m happy to inform you that our CSR arm Saver Trust has transformed 55 schools with solar energy and hygiene focused facilities, enhancing attendance and outcomes While training over 900 adolescent girls in health and skills with sustainable agriculture training. Our Farmers Empowerment program has benefited over 4,000 people.
And Eco, which is a vocational training centre in Chatrapati Sambhaji Nagar has imparted training to over 2,000 youth securing over 85% employment. Her health work has reached 42 villages serving 17,000 people. And we have built 2,300 toilets to improve sanitation. Our wetvan program too has been successful providing treatment to 40,000 animals in 47 villages. I’m happy to tell you that in quarter one, three of our plants have received the national award for Manufacturing Competitiveness and awards from Integration from International Research Institute for Manufacturing. With these opening remarks I would now like to invite questions from all of you.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Aditya Jawar from Investec. Please go ahead.
Aditya Jhawar
Hi, thanks for the opportunity and congrats on good set of numbers. My first question is on the PV brakes business. It’s a very encouraging start. If you can just let us know that what could be the SOP and broadly the order, size and one pertinent question here is that based on this breakthrough, do you think that we could get access to other OEMs or do we still need a tech tie up on this? That’s the first question.
Anurang Jain
Yes, yes. So of course it’s very heartening to do because you need a first break, you know, to start the business right now, the drum brake assembly business on a per annum basis I think the value is a small value is about 25 crores and per annum and this will start end of quarter four is the plan as of now. And as far as the collaboration is concerned, ultimately our aim is to go into advanced systems of braking like the ESP for example which is required for four wheelers. We have a collaboration with Beijing based industries as you know for two wheeler abss and we are totally involved with them to try and introduce this of Course this will take some time because there’s a long lead time for the four wheeler, advanced braking systems, but we are totally focused to try and get and try and increase these orders in the four wheeler space.
Aditya Jhawar
Yeah, thank you for that. Second question is on our ABS opportunity. So clearly this regulation change has come in our favor. If you can help us understand that what could be the opportunity size in ABS and plus the risk break and how is your Discussion Progressing with OEMs on this? Do you think that there could be some postponement of the timeline and you know, when you look at a slightly, you know, few quarters or say by end of next year, do you think that India would have enough capacity to support the ABS requirement for the two wheeler industry?
Anurang Jain
Yes. See we are today engaged with most OEMs because there are not many players. You have Bosch, Continental, Nissan, Nissan and it is us. We are the only Indian company doing abs. And as I mentioned, what we feel is that the at least 16 million, and in case not more, at least 16 million two wheelers will need, you know, abs. Of course, as per the draft, this thing, draft which we have seen from the Ministry of Road Transport and Highways, they are talking about January. But if I look at our past experience which has happened normally, the delay could be three to six months, but of course we don’t know what will happen.
We expect that we get some clarification by next month is what I’m told. So let’s hope that happens. But definitely I think this is here to stay. It could be three to six months of delay is what we feel based on past experience when such drafts have come in the past. But we’ll have to wait and watch that as far as endurance is concerned, of course our capacity was 640,000. We are expecting a tenfold growth for sure. The commitments which we have already got from certain customers, we are immediately going ahead with two lines which will add another 2.4 million.
The line should be ready by March 2026. And as we engage and as we get commitments, we will keep adding more lines. But for us this opportunity is definitely 10 times. And I also expect the two wheeler industry to grow because as per figures which they say of FY30, even if we take a small growth, I think we should reach 29, 30 million vehicles by FY30. So today we are talking about a figure of 16 million on a 22 million sales which we expect both in India as well as in exports. But this industry will also grow.
And so at present we feel it’s a Tenfold opportunity for us to go to at least for 6.4 million. And then looking at technology and pricing, we’ll do our best to try and increase this in future. So this is of course for Endurance. No, it’s a real game changer.
Aditya Jhawar
Yeah, that’s good to know. My final question is on CapEx, if you can help us understand that how should we think About CapEx for FY26? In the presentation you have included for the quarterly CapEx, but for a full year basis, how should we think about that number and directionally, if you can give us a sense that what could be the capex in 27 and 28 as compared to the last couple of years?
Anurang Jain
Yes. So you know, the Capex has been growing every year to see a past track record. And we have been growing, you are seeing in turbulent times, which I mentioned in my opening remarks. We have been growing, you know, both in India as well as in Europe. Europe also with acquisitions. And also these acquisitions make a lot of money for us. And so if you see quarter one in India, we have spent 286 crores. And as you know, there are three projects which I already mentioned. The big ones are the Orech Shedra starting in quarter four, There’s a slight postponement to that.
And then you have the Orec Bitkin which is starting in week four of this month. And also we have the battery pack plant which is starting in January 26th. And of course we have our existing business expansion which is going on. So I see looking at the capacities which we need to sweat. Also the capex crossing 800 crores in this year in FY28 or I would say FY27. Definitely this figure of course very difficult to say. But the question is we believe in sweating our assets. That’s why you see, operational efficiency is quite good since the beginning.
So we only spend when there is a requirement to spend. But as we look at inorganic growth opportunities also both in India and Europe and which is actively going on as we speak. So I don’t see this figure, to be honest, as of now going down FY27. And of course we at Endurance will take all opportunities. We have now aluminum castings, the Orex Chandra, which is a very good margin export plant, mainly starting with EVs to start with is a huge opportunity if you ask me. You know, Alloy wheels is a large sales business plant.
Aluminum forgings, which is a new product segment which is coming up. We started at a backward integration that is starting battery pack in the new Energy space is a good opportunity for the future. And of course I would say like I’ve always mentioned and I mentioned earlier in my opening remarks, we don’t supply all our products to all the OEMs. I just mentioned suspension and brakes in quarter one we have really increased business for brakes and suspension in Suzuki. There were no scooter front for last year. Now we are doing 60,000amonth from April to June.
As far as Hero Motor Corp. Is concerned it was 5,000 breaks a month. Today we have gone to 30 to 35,000 breaks a month. TBS we were doing 75,000 breaks a month, now it’s 100,000 breaks a month. Royal Enfield break days per month have increased from 50,000 to 100,000. So there’s a lot happening and as we increase new customers to all our product segments that will be the biggest growth driver. It’s not just the industry volumes. So we are very excited because of our strengths in process products and technology as well as our ability. The trust we have created with the OEM clients of two and three wheelers now starting on a new four wheeler journey.
And as I also mentioned in my this thing that today we have last end of last month started solar suspension called a solar tracking system. We were 200 crores order from a Spanish OEM. A Spanish client, not OEM, Spanish client. It’s 200 crores per annum which will be reached reach peak next year. And now we are talking to somebody else. I mean there’s a huge business opportunity for profitable growth in the non auto also. We are looking at non auto in organic growth also. And of course when you talk about Capex there would be capex high capex now for the ABS.
So I’ve said more than 800 crores but it could go higher. So we’ll see what really happens. Because ABS is also there which is plus with ABS I forgot to tell you there are new brake systems which are coming. So because ABS requires a brake system and not a drum brake and if it’s above 50cc so all the drum brakes will convert to ABS. Now that requires a disc brake assembly system. So whatever orders and business nominations we are getting since its announcement even the brake system orders are increasing and that’s why I mentioned that in Chennai we are planning to put up a brakes plant and because we can’t handle it in these existing two plants.
So I would say there’s a lot happening on the growth front at endurance and we are really really excited about that. So I just want more.
Aditya Jhawar
Just one clarification if you have to summarize what you have just said, that in terms of numbers, last year overall we spent about little over 1000 crore including Europe business. In terms of Capex this year we are talking about India Capex of north of 800 crores and Europe capex. You know, should we, you know, assume about a 550 crore number or is there an update on that? So, and what could be the total capex in terms of absolute number?
Anurang Jain
Because there’s a lot of money which has gone into stephale acquisition and which will go in the next five years. Like we said, we’re exploring new acquisition there. Okay, so I would request Massimo to answer this question. Massimo, could you answer this Capex question?
Massimo Venuti
Yes. So in the first quarter of this financial year we spent 9 million of euro in terms of capex for the new project with the Stellantis Mercedes basically, and also Volkswagen for sure. In this financial year the effort in terms of Capex will be lower compared to the previous year where we spent. 50 million of euro. Due to the fact that in this moment the market is waiting an official position about the European government for the new rules of green deal and everybody are stopping the investment. And this is positive from our side as endurance because we can use the cash profit of the company for extraordinary operation in organic growth that we are evaluating after the acquisition of Stellari. The European market, as you know, is consolidating the business and we are part of this consolidation from a point of view on the right side, on the part of the customer. And so we will see.
But for sure the impact of the Capex for this financial year will be 50% compared to the previous year. A maximum of 20 million euros. 25 million.
Aditya Jhawar
Thanks Ms. Nemo. I’ll fall back in queue. Thank you. All the best.
Massimo Venuti
Thank you.
operator
Thank you. The next question comes from the line of Pramod from increased capital. Please go ahead.
Pramod Amthe
Yeah, hi. So first I want a clarification on this Europe sales. So if you have to look at the Stoffrel, can you give a similar breakup in terms of Ebitda where it stands now? Because you are given a breakup of sales addition how much it is brought to EBITDA and.
Massimo Venuti
Absolutely, yes. So we closed this quarter with 103.2 million of euro of turnover compared 80.3 of the previous financial year. So we grew 28.5% of which settler like 22 million of euros. Mr. Zhang told you before, also without the acquisition of Settler, the European company grew more or less 1% EBITDA we closed with 18 million, it means 17.4%. Compare 13.3 million of Euro the previous financial year, 16.5%. And so we grew in terms of EBITDA, 4.7 million of Euro 35.1% compared to the previous year. In terms of net result, we closed with the 6.4 million of euro, it means 6.2%.
Compare 4.9 million of euro the previous financial year 6.1% with an increase in terms of net result of 1.5 million of euro it means 31.3% compared to the previous year.
Pramod Amthe
Sorry, there is some disturbance.
operator
Please go ahead with your question.
Pramod Amthe
Yeah, sorry. The second question is with regard to the APS side, wanted to know based on your experience on R D over the last four years, what’s the ideal timeline you would require to do R and D for this 100cc and come up with a product? One and second, what cost efficiencies or the product improvements can be brought in because these guys will look for a more economical solution. Would you feel you can be a better position to give much better solution than the MNC players? And how.
Anurang Jain
See, I think cost is, is a very big strength for us because we have our own R and D and as I’ve always said, it’s not the performance and durability we do in R and D. We do a lot of value engineering and I’ve been saying over the past, ABS stainless steel braid hoses which used to be imported, valves which were imported are being done in house today. The electronic control units which I’ve been mentioning will be started from next quarter in house, you know, so these are all ways how you lower the cost. Plus definitely when the volumes go up, your fixed costs are spread that also brings down the cost.
And I can only say that we are very strong as far as the cost controls are concerned. So that’s why we feel very confident already based on the confirmations we have got. We’ve already started the work. We are not waiting to be honest for the final because final, you know, this thing to come. The note to come from the Ministry of Highways and Road Transport. So we are going ahead because we want to be ready with the capacity which I said should be by March 2026, but that’s the time it takes. There are some long lead machineries in that.
So we are going ahead and we’ll be very fast on the capex. But that’s the time it takes to set it up because I don’t think that capacity is there in India. Right now.
Pramod Amthe
And what’s the. You also supply cbs. So incrementally it will be a CBS vanishing and ABS coming for you. Right. If I understand right,
Anurang Jain
it is not. Only ABS growth and it took us a day to realize that that is also a CBS growth. Because ABS needs CBS and not a drum break. You know, because it is above 50cc now it’s 50cc and above. So for example, if scooters had drum brakes, now they’ll have a ABS with a disc brake.
Pramod Amthe
Right. But you will lose out on the cbs. Right, sir, if I’m able to understand it and then gain on the ABS front.
Anurang Jain
No, no. In fact there are many vehicles, like I mentioned, scooters which are largely a drum brake in the front. So now when you have an abs, ABS requires a disc brake assembly. It doesn’t need a drum brake. So that becomes the added volume. And the reason for this new Chennai plant is those volumes are also going up.
Pramod Amthe
Sure.
Anurang Jain
So based on that we immediately have started this thing. You know, we are just planning to start the work there.
Pramod Amthe
Sure. And considering your experience with the higher cc, would you still be looking at giving a full system or you would also be open for just supplying disc brakes and capture a value with the customer. How are you trying to approach this?
Anurang Jain
No, no, see we are a complete solution provider endurance. We give the whole system. But what happens is some customers have a step by step approach. So like I said, we first start with the brake disc and then they get into the brake system. So that is normally what also happens. Sometimes that’s been a journey of last 20 years. First some were directly the system, some break this and then the system, you know.
Pramod Amthe
Okay, okay. And if you had to look at the current market size and the market share, how it has traveled for you, would you give some color, what’s the size of the market in terms of value?
Anurang Jain
See, value I will not give you, but the value I can see. Okay, leaving the value apart, I just mentioned that we are gauging the market to be 16 million out of 22 million. Now maybe that’s a conservative figure, I don’t know. Okay, so that is the volume.
Pramod Amthe
Yeah.
Anurang Jain
Well, I’ve seen some analyst reports talking about 2500 2750, you know, as the price. Now you can gauge what the price would be.
Pramod Amthe
Okay, sure. And where is your market share currently, sir? And where you expect to be post this
Anurang Jain
right now? Because we were doing single channel on a 640,000. We were at a run rate of 400,000 which I mentioned earlier.
Pramod Amthe
Right. Right
Anurang Jain
now with this happening, I mean I’ve already said 640/2.4 is confirmed. That’s why we are placing the orders now. Rez, we are in talks. I mean, I mean I’m again going next week to meet a major customer. So all this is in process but they also just waiting that finally will it be January, will it be April, will it be July? It will be, you know, when. But, but some people don’t want to wait. So they already started giving commitments, you know. So, so, so, so, so that’s where it stands. But, but we have gone this thing.
I mean we are going ahead.
Pramod Amthe
Okay, so is it fair to say you have a single digit market share now and which can be substantially moving up? Is that the fair understanding to have?
Anurang Jain
Right? No, not single. It would be, I think it should, should be about, I mean the market size I thought was 3 million. I’ve been saying and we are doing 400,000. So it would be about 13 to 15% I think.
Pramod Amthe
Okay, sure. And dare you.
Anurang Jain
No, no, sorry, no. This right now is 13 to 15. But we should now with this higher volume, our target is at least 25%.
Pramod Amthe
Okay, sure sir. Thanks.
Anurang Jain
25% of the higher number.
Pramod Amthe
Yeah, got it. So you are ambitious to ramp up and how do you. The last one is with regard to R and D capability. Even though you have been seeding this with the R and D capability in the ABS front, how is it prepared to handle this rush of customers? And how are you better placed on RD and test track versus the others? If you can give quote.
Anurang Jain
See, I don’t like to comment about others. I would like to talk about ourselves. We are fully ready. I can only say that.
Pramod Amthe
Okay, sure. And how does it compare versus when you started in abs? Is that substantial improvement in capability on R and D side?
Anurang Jain
Yes, yes, yes, yes, absolutely. A lot of learnings. Because you learn a lot from, from, you know, from customers, your experience lowering costs, improving efficiencies. The main thing is on the software part, the collaboration of software. Right now we used to depend a lot on our collaborative Beijing based industries. Now with the test riders and our internal team, we are able to do it ourselves. And that’s I would say one of the biggest learnings. And also the speed and the cost comes down.
Pramod Amthe
Okay. And I hope that should also substantially reduce your development time.
Anurang Jain
Yes, absolutely.
Pramod Amthe
Sure. Thanks. And all the ways.
operator
Thank you. The next question comes from the line of Arvind Sharma from Citigroup. Please go ahead.
Arvind Sharma
Hi, good morning sir. Thank you for taking My question, sir, first question would be on the ABS part. So just to confirm, your current capacity is 640,000 and on top of it you plan to add another 2.4 million. Is that right? Understand?
Anurang Jain
Yes, absolutely.
Arvind Sharma
Great, sir. And any timeline for the 2.4 million? Sir?
Anurang Jain
Yes, I said March 26th will be ready.
Arvind Sharma
Okay. So
Anurang Jain
March 26th will be ready March 26th.
Arvind Sharma
Got it. So March 23rd you’ll have a total capacity of almost 3 million units.
Anurang Jain
Yes, yes, yes.
Arvind Sharma
And sir, this the Chennai facility that you talked about, that is also for abs, I believe.
Anurang Jain
No, no, that is for. Like I clarified in my opening. Is this brake assembly system which is master cylinder, caliper, disc brake disc and brake hose.
Arvind Sharma
Got it. Sir, this is one small clarification in the presentation when you give the number for disc brake that includes your abs, I believe.
Anurang Jain
Which number did I give?
Arvind Sharma
So in the. In the presentation there’s this 15.5% contribution which is given by disk break.
Anurang Jain
Yeah, yeah, yeah, yeah, yeah, yeah, yeah. Uploaded a quarterly presentation. Okay.
Arvind Sharma
Yes sir. Yes sir. That is total breaking, right?
Anurang Jain
Yes, yes, yes. That is total breakage. If you use ABS that 100,000 per annum we are doing.
Arvind Sharma
Sure sir. Thank you so much. For the
Anurang Jain
reason why we not got to 640 is because of the dual channel which is now starting like I mentioned from next, you know. So. So that’s the reason that 240 is available.
Arvind Sharma
Got it. The second question would be on Europe. First of all, sorry, I. I did not get the exact step away contribution this quarter. If you could repeat that sir. In revenue and ebitda.
Anurang Jain
Massimo, can you, can you clarify that?
Massimo Venuti
So we close with the 103 million of euro turnover. Compare 80.3 of the previous financial year. And so it means 22.9 million of euro of increase in terms of Tornavaro which 22 million of you is stellar level. And speaking about EBITDA, 18 million of euro was the actual of this financial. This first quarter compared 13.3 million of the previous financial year. And so it means 4.7 million of euro different of which 4.5 million of euro. And certainly that also without stressor le the profitability of the company. And also the turnover grew compared to the previous financial year.
0.6% in terms of turnover and 0.2% in terms of percentage in EBITDA.
Arvind Sharma
Got it. Thank you so much. And just one last question if I may ask. In the European ramp up schedule that you give in the. That you give in the presentation, there’s been a very slight slowdown, especially in FY26. Is that a reflection of the broader industry environment?
Massimo Venuti
Absolutely, yes. This moment is very difficult to predict the next 18 months as you can imagine. I can tell you only one thing. In the first quarter of this financial year, the European market reached 25% of share in the electrical vehicle Bev and also for again. And this is an important signal. So we are waiting the official position of the government for the incentive. Have you seen that Spain is the only market that is growing double digit compared to the previous year? Only because there are incentives in the automotive. Everybody in Germany, France and Italy are waiting for this incentive.
And this could be a boost for the future growth the next 18 months.
Arvind Sharma
Got it, got it. And just one final clarification. I know I’m slightly overstepping the time given, but the current revenue and EBITDA by Stephen is only for the 60% stake. The remaining 40% is yet to come.
Massimo Venuti
100% of the debt because we are consolidating also for the Indian gap, the residual payment of 40% in our financial debt. These are the rules. And so we are considering also the potential 27 million of euro that we will pay in the next five years due to the multiplicator of the bidder for the future five years. So in our figures you will see 100% of the result and also 100% of the debt due to the acquisition.
Arvind Sharma
Oh, got it. Thanks for clarification. That’s all from my side. Thank you so much.
operator
Thank you. Thank you. The next question comes from the line of Shagun Vedya from Anand Raji. Please go ahead.
Unidentified Participant
Hello.
operator
Yes, ma’.
Anurang Jain
Am.
operator
Please go ahead with your question. You’re audible.
Unidentified Participant
Yes, I wanted to check. So since the acquisition for Stephele is 60%, there will be some minority interest. So want to check which line item is it reported in in the consolidated financials? That’s my first question. Next is what is the opportunity size for desk breaks and pads with the new norms? And what are the plans to expand market share with the new customers in abs? Also the Capex in terms of disk breaks and pads and the market penetration for disk breaks currently.
Massimo Venuti
Okay, for the first answer I repeated there are no minority interest in the acquisition of. We are consolidating 100 of the result and also 100% of the absent and the relative depth.
Unidentified Participant
Okay, okay, got it.
Anurang Jain
Okay. So. So. So your question was that on the. I mean abs. Right,
Unidentified Participant
right.
Anurang Jain
So. So see. Okay. Now I’ll put it like this. At present in two wheelers endurance has 43% market share in the braking system is mainly master cylinder and caliper. When you come to only brake disc I think it’s over 60% now what is happening is ABS. Right now our capacity is 640,000 as we are only doing single channel. It’s 400,000 is what we are doing per acre. Okay, 240,000. We’ll realize mainly from the next quarter when we start the dual channel ABS.
So we’ll try and use up our 640,000 there. I also mentioned that the total market on 22 million should be at least 16 million on a conservative basis for the use of ABS as it talks about above 50cc all vehicles including scooters. Now in the 16 million we as you know endurance we have started with right now another 2.4 million which we want to reach by March 26th. And of course I mean our target. I said as the 16 million is there and as it grows we start with a 25% sob is where we want to reach first.
You know that is what I said and we’ll go step by step from there, you know.
Unidentified Participant
Okay, thank you. Yeah,
Anurang Jain
okay, thanks.
operator
Thank you. The next follow up question comes from the line of Aditya Jawar from Investec. Please go ahead.
Aditya Jhawar
Yeah, hi, thanks for the follow the you know one of the comment you mentioned about this Chinese you know OEM. So is it included in the 300 crore order, you know that we talked about in the presentation?
Anurang Jain
Chinese we. Sorry. Yeah, yeah. Please continue. So the question.
Aditya Jhawar
Yeah so the question is.
Anurang Jain
See the 300 crores per annum is for the battery pack which is for an Indian two wheeler OEM which I mentioned in my opening remark. That is for battery pack. What I talked about the Chinese. A leading Chinese OEM is for supply of inverted front forks and rear mono shocks which will start in this financial year most probably quarter three or quarter four. We’ll see how that goes. So that was more of our growth other than Bajaj and KTM you know to get in like I said TVs we have started Hero Motor Coffee is starting to talking to almost everybody and we’ve got this order from these Chinese.
I mean it is a leader in. It is one of the top companies for making bikes. And so that is for the inverted front and rear mono shocks. The Chinese.
Aditya Jhawar
Okay, okay. So I was referring to this, you know order of 300 crore for e4wheeler application. Fair enough, that was a good clarification. So you would be supplying in which market on this? The Chinese oem.
Anurang Jain
No. So this will be exported to China.
Aditya Jhawar
China. Okay. Perfect.
Anurang Jain
That’s what helpful are you talking about the Orex Chandra plant to global OEMs.
Aditya Jhawar
So that you know. There are two separate questions. One is this Oryx Chandra. That’s about the 300 crore order for E4 Wheeler application.
Anurang Jain
Actually it’s a coincidence that. Okay, okay, okay. So that 300 crores. That 300 crores is for two global OEMs in US and Europe. Okay,
Aditya Jhawar
okay. Okay. So you’ll be. Okay. Fair enough.
Anurang Jain
Okay. As far as the. Okay, which was the second question.
Aditya Jhawar
No, I think that that’s quite helpful. So this is a separate, you know, 300 crore order in this Chinese, you know order. So if you can give some order s of this Chinese customer.
Anurang Jain
Chinese. Okay. As of now I don’t have it. But it’s. It is quite a decent value. But I, I and I can get back to you on this.
Aditya Jhawar
Sure.
Anurang Jain
The Chinese.
Aditya Jhawar
Yeah,
Anurang Jain
yeah. But it. It will be more Peak in FY27 as we are starting only in next quarter end. You know.
Aditya Jhawar
Perfect. All the best. Thank you.
Anurang Jain
Thank you.
operator
Thank you. The next question comes from the line of Mr. Nishit Jalan from Access Capital. Please go ahead sir.
Nishit Jalan
Yeah. Hi sir. My question is. You are talking about that at least the size of ABS will be 16 million units. Now if ABS is getting mandatory on every product higher than 50cc then will it not be applicable in entire 22 million units? Is it something we are missing here?
Anurang Jain
See, I mean. I mean let us hope so. But I’ve just taken mopeds are there also there, you know, in that figure? Well, we have taken a conservative figure of 16 to be honest. I mean by that logic you’re right. It should be and all. But we are just looking at 16 right now with this TC till we get the final this thing exports may not have. Yeah, no, no, no, no. In fact one important point. Yeah. Which is just struck me. See a lot of these two Wheeler OEMs are exporting to Africa, South America. So their ABS may not be mandatory, you know, so. Well, it just struck me that. That we have adjusted.
Nishit Jalan
No, but the domestic market. Domestic market itself will be like 20 million unit plus excluding the exports.
Anurang Jain
See the exports. Yeah, you’re right. I mean but exports would be at least 3 million. I have to get the numbers would be at least 3 million. Okay, so. So. So your figure 22 could be 19. I’m saying we are saying 16. Okay. So it’s a 3 million difference. But we’ll see how that goes. You know. But but exports may not have it because major exports are South America, Africa, Southeast Asia and they don’t have these ABS rules. Correct?
Nishit Jalan
Correct. Correct. One last question on Europe, right? This toll acquisition that we have done, this company seems to be very, very profitable, right? 4.5 million euro on a 22 million euro top line. So just wanted to understand, just wanted to understand what actually happened? Did we get to do this mna, it was not a struggling company, right? So. So why were they looking to sell? And what drove this M and A? And what was the total amount? Sorry, what is the total amount that we have paid to acquire 60% stake in this company?
Anurang Jain
Massimo?
Massimo Venuti
Okay, so the first answer is that we spent 37.7 million of Euro to buy 60% of share. Speaking about the second, the first, your statement regarding the profitability of the company, for sure, I guarantee you that the profitability of the company is very high. For us was a strategic acquisition, basically for the consolidation of one customer, that is Mercedes. And you have to consider that this is a company with only machining. So as you can imagine, the bidder is. You can compare the bidder of the company to only machining with a company that also foundry component.
And so the profitability of the company is 20%. 18.7% will continue to grow from a point of view in the next future year. Due to the fact that now we are doing important synergy between enduranceovers is Stephanie. Due to the fact that Stephanie bought In the past 100% of the raw part to the market. Now we can produce this raw part for them. And so it means that we can add in the our added value in our ebitda. Also the added value of the foundry process. This was the strategy of the acquisition of the company.
And so from my point of view only to give you an idea, as you know, two years ago we acquired an important business with BMW for 5 million of Euro for a new transmission, 100% electric. Thirdly, we produce the machining of this component because we understood that they have the production capacity available. And we can move from endurance GmbH to self service. This it means that we can save in our balance sheet more or less 3.5 million of euro fixed assets. These are the economy of scale that we are trying to do that we did in the past in the acquisition.
When you are obliged to grow in terms of inorganic growth in a market that is not growing in terms of volume. So this is the only possibility to save and to survive and to increase and maintain our profitability.
Nishit Jalan
Thank you. Thank you so much.
Anurang Jain
And I would also like to add, Massimo, I just had to add that even there’s a machine building capability which we have acquired by, you know, acquiring Stephanie.
Massimo Venuti
Sure, sure. As you know Stephanie, produce. Produce the machine. And so in terms of saving for the future capex, it will be an important asset for endurance because usually we are obliged to reinvest from greenfield when we start with a new business with our customer, with Stephele we can also learn and we can make experience also reusing the existing production capacity to the market. You can imagine what does it mean to move to transform the existing production capacity of the internal combustion engine for the future project of electric. If we’ll be able to do this, we can save important amount in our future assets.
Nishit Jalan
Okay, thank you so much. That’s it from my side.
Anurang Jain
Thank you.
operator
Thank you.
Massimo Venuti
Thank you.
operator
Ladies and gentlemen, we take that as the last question. I now hand the conference over to the management for the closing comments.
Anurang Jain
Well, I would just like to close this by saying that we are really focused on profitable growth. There are a lot of opportunities now. Now our focus will be how we can give high technology products at affordable prices so that we can increase the range and the volumes of our products which were earlier meant for 250, 400cc and bring them down to a 125cc. So that will be a focus how to gain business viable value engineering and giving more and more features to our customers which we have done for the last 25 years. So that’s what I would like to say.
Thank you.
operator
Thank you members of the management team. Ladies and gentlemen, on behalf of Access Capital Ltd. That concludes this conference call. We thank you for joining us and you may now disconnect your lines. Thank you.
Anurang Jain
Thank you. Thank you everybody. Thank you.