Endurance Technologies Ltd (NSE: ENDURANCE) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Unidentified Speaker
Nishit Jalan — Investor Relations, Axis Capital
Massimo Venuti — Director and Chief Executive Officer, Endurance Overseas
Rajendra Abhange — Director and Chief Operating Officer
R.S. Raja Gopal Sastry — Group Chief Financial Officer
Anurang Jain — Managing Director
Raja Gopal Sastry — Group Chief Financial Officer
Pranit Parikar — senior management team
Analysts:
Unidentified Participant
Aditya Jawal — Analyst
Mumuksh Manlesha — Analyst
Pramod Amte — Analyst
Arvind Sharma — Analyst
Aniruddha Marti — Analyst
Neil Parikh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO Endurance Technology Limited Q4 and FY25 earnings conference call hosted by Axis Capital. 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 the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Jalan from Access Capital. Thank you. And over to you sir.
Nishit Jalan — Investor Relations, Axis Capital
Thank you, Manav. Good morning everyone. Welcome to Q4FY25 Post Results Conference call of Intelligence Technologies. We are pleased to host the Ma’ Am management team. We have with us today Mr. Anuran Jain, Managing Director Mr. Massimo Venuti, Director. And CEO Endurance Overseas. Mr. Rajendra Bhange, Director and COO Mr. Rajavopal Sastry Group CFO and Mr. Raj Mundra, Treasurer and Investor Relations. I’ll hand over the call to Mr. Anurang for his opening remarks post which we will have the Q and A. Over to you Mr. Anurang.
Anurang Jain — Managing Director
Yeah. Thanks a lot. So good morning to everyone. I would like to say that India’s economic landscape remains strong in spite of tariff wars threatening global trade and the recent situation in the subcontinent. As we observe the broader economic environment. GDP growth for FY25 estimated at 6.5% lower than the 9.2% recorded in the previous fiscal.
The index of industrial production grew at an estimated 4.1% in FY25. Average inflation stood at 4.6%. Moderate inflation coupled with higher capital expenditure proposal in the Union budget this year is expected to spur consumption and investment. As for the recent Economic times article dated 5 May 2025, 2 Wheeler OEMs expect sales this year to test the pre Covid peak hoping that lower EMIs due to cut in interest rates, higher disposable income due to income tax reforms will encourage the middle class to spend on two wheelers. Also as per the CM report forecast of a favorable monsoon helping rural areas, strong replacement demand and government support for purchase of electric vehicles would be factors for growth of two wheelers in this financial year.
The passenger vehicle sales from India during quarter four FY25 grew by 4.1% year on year and Commercial vehicles witnessed a 4.6% growth while three wheelers grew 9.1% as compared to quarter four of the previous year. Two wheeler sales reached 5.7 million units in quarter four 25 up 5.3% year on year driven by scooters at 10.9% and motorcycles at 3.3% growth in our stand alone financials for the quarter, Endurance has seen a total income quarter for FY25 year on year growth of 8.4% in the European Union. New car sales saw year on year drop of 1.9% in quarter for FY25 while our endurance Europe total income growth was significantly higher at 17% in the quarter 4 FY25 industry volumes.
There was a 15.2% share for battery electric vehicles, 7.6% for plug in hybrids and 35.5% for hybrids. While our India business is fairly insulated from US markets, certain components made by our European plants do find their way into the US particularly components for the higher segment cars. We await clarity on the US duty structure and it also remains to be seen if duty changes would drive consumer preference away from niche European models. Having spoken about the macros, I would now tell you about certain steps which we have taken at etl. We are setting up a state of the art lithium ion battery pack manufacturing plant near Pune to address the rapidly growing market demand for electric vehicles and renewables energy storage systems.
The new facility will leverage our in house developed battery technology and also Maxwell’s expertise in battery management system to make superior quality battery packs. Happy to inform you that in April 25th we have won an order of rupees three billion per annum from a large OEM for the E scooter. Our offering has the advantage of better thermal stability, improved lifespan and safety and caters to requirements for Indian climate and road conditions. We are beginning with a small investment. Our unit is modular and automated thereby leading to an ease of capacity addition and better cost management.
We are focused on not only two wheeler, three wheeler and four wheeler programs but also for supplies of battery packs to high potential non automotive sectors such as telecom, battery energy storage systems and inverters. The SOP is planned in January 2026. Our 2022 agreement for the acquisition of Maxwell Energies had an upfront payment of 51% shares with a plan to buy balance 49% based on a consideration linked to the financial performance of Maxwell. As of 31st March 2025 the company had purchased a total of 61.5% of the shares in Maxwell based on the minority shareholders request for an accelerated sale of the balanced 38.5% stakeholder.
The company considered the strategic advantages of early total control and agreed to buy the same for a consideration of Rupees 75 million. As a result of this agreement, the company had to reverse the liability recorded in the books against the estimated price for the balance shares to the extent of rupees 913 million in quarter four FY25. Further, the independent big four valuer retained Bayharge to evaluate the goodwill and pertaining to Maxwell Advisor the scenario the margins in New Age automotive products may normalize in the long run with the company accepted applying conservative accounting principles. This led to lowering the value of goodwill pertaining to Maxwell by rupees 582 million.
I would like to mention that our outlook on Maxwell’s business and the overall electric and electronic business comprising battery packs, antilock braking systems, electronically controlled suspension systems and other assemblies on our surface mounted technology lines is stronger than ever, augering well for the proper growth of the company. I informed you on last quarter about the acquisition of Step AAA entities in Germany. We required statutory approvals. We have completed the acquisition of the 60% stake and will acquire the remaining 40% over five years as per the share purchase agreement. The addition of these two Stephanie plants in Germany enhances our manufacturing capabilities and takes our total number of plants in Europe to 14.
We have already begun to add new orders in this business. As mentioned earlier, from April 25th of this year, STEP AAA Financials will be consolidated in the Endurance financials. You may have noted our recent announcement of receiving the eligibility certificate for incentives totaling rupees 6.06 billion under the Maharasht PSI 2019 scheme. In earlier calls we had mentioned that our eligibility amount would be significantly higher than under the 2013 scheme where we had an eligibility of rupees 4.46 billion under the 2013 scheme, rupees 4.37 billion income has been accounted till FY25 and rupees 2.9 billion cash has been received.
Our G45 Baloch R&D facility for two, three and four wheeler suspensions will be fully operational in a month marking a significant milestone in our innovation journey. The state of the art facility helps us to co create advanced suspension solutions with OEMs, further solidifying our leadership two wheeler three wheeler technology and supporting our growth in the four wheeler segment. You will recall that we have a technical assessment agreement with a leading Korean player which will help us access four wheeler suspension business. We have established promising contacts with leading Indian and Global passenger car OEMs for this business.
Faster growth in the four wheeler segment is our key focus. Through our internal process and product technology strengths, technical collaborations and merger and acquisitions, we aim to grow our presence in the four wheel aluminum casting and aluminum forgings, four wheeler suspensions, four wheeler brakes, four Wheeler alloy wheels, four wheeler drive shafts as well as embedded electronics for the four wheelers. It gives us great pleasure to also see the developments taking place at Chhatrapati Sambhaji Nagar where our journey began. This includes the setting up of Orec bitkin and Orexchendra 10,000 acre industrial parks. The upcoming ring road which will connect Oreg Chendra to Orek Bitkin areas where one each of our new plants is being set up.
In quarter two of this financial year, OREC expansion by acquisition of a further 8,000 acres of industrial park land is testimony to the excellent industrial progress prospects of the region. Chhatrapati Sambhaji Nagar is becoming an EV capital with investments from large companies including Toyota, GSW and Ather amongst others. At our audit Chandra four wheeler casting plant the SOP is from September 2025. I mentioned to you about having one business from Valeo where our products will be part of assemblies going into Mahindra EV platforms. Further we have secured export business from two global US and European OEMs which I cannot name now.
I would like to clarify that These are new OEMs not served by our European plants. These parts are for premium cars for EVs. Both these businesses will start in this financial year. The total order book for the Orex Chandra plant stands at Rupees 2.75 billion per annum. The new alloy wheel the new two wheel alloy wheel plant at Orec Pitkin is gearing up for SOP in quarter two of this financial year 26. This plant will have a capacity of 3.6 million wheels per annum. We have firm requirements from multiple OEMs for the same. Let me now give you a list of orders.
1. During FY25 please note that the business value from these new orders are without including orders from Bajaj Auto. The overall orders won in FY25 in India business was rupees 11.99 billion of which rupees 10.82 billion is new business and the remaining is replacement business. Key customers in this list of FY25 orders are two wheeler OEMs such as Honda Royal Enfield, Euromotor Corp and Ather energy. Among key four wheeler orders are Valeo Yazaki, Tata Motors and the two large US and European OEM orders which we have got at Orexchanger. 34% of this FY25 order booking or rupees 4.11 billion of orders are for four wheeler end use and 37% of these FY25 orders or rupees 4.39 billion is for the electric vehicle segment.
The cumulative India business orders for the electric vehicle segment since financial year 22 onwards stands at rupees 8.35 billion and if I have to include Bajaj auto orders, this figure crosses rupees 10 billion per annum out of the total orders worth Rs. 46.92 billion. 1. Since FY21 rupees 37.34 billion is new business and rupees 9.58 billion is replacement business. Of this 37.34 billion new business close to rupees 14 billion has seen SOP last year in financial year 25 and a further rupees 10 billion is expected in this year. The rest of the business will be realized in financial years FY27 and FY28.
In the stand alone business we are actively quoting and pursuing the request from quotation for an annual sale of Rupees 34 billion from various OEM clients other than Bajaj and across all our product segments. This also includes a significant percentage of electric four wheeler OEM customers. In our Europe business we have booked orders worth 40.2 million Euro during the year. This includes a machining order of 5.2 million Euro from BMW in our Stefele plants. Other large orders during the year are from Volkswagen, an indirect business for Rolls Royce and Jaguar Land Rover. Also we have one non auto business in the pumps and electric electronic components space.
In our subsidiary Maxwell Energy we have won orders to extend to rupees 2.5 billion. This value is after removing business from those customers who have seen headwinds such as a sharp fall in market share. Maxwell is pursuing leads at present of rupees 2.6 billion. Now I will speak to you on our existing product segments in India starting with suspension. I just spoke about the new G45 suspension R&D and a four wheeler Focus. Talks with leading Talks with leading OEMs are underway regarding shock absorb requirements and one dealing OEM for LCBs and MCVs and we hope to conclude this order soon.
In FY25 we have won suspension orders to the tune of rupees 2,351 Million per annum of peak annual sales. These are from various OEMs and for their various platforms. While some of the orders will require capacity been added or debottling, we are also seeing order intake which would improve existing use of capacity and drive our goal of asset sweating at our Nasrapura plant in Karnataka. We have planned 80% year on year increase in sales in this year with new business getting started with Honda, tbs, Ather and Ampere. New orders won in quarter four include Royal Enfield, Hero Motor Corp.
The hmcl. The Hero Motor pump order is for inverted front forks for their Harley Davidson bikes with SOP planned this year in quarter three FY26 and the SOP for the TBS inverted front forks has already started this year in April. We have also won new orders for inverted front forks and monoshocks from a leading China based two wheeler company with FAERS SOP planned in half one of this financial year. These parts have special features including tension and rebound adjustments Post the court monitored restructuring scheme, the KTM Austria entities have again given their firm order schedules to us.
We expect to start supplies of inverted front forks and rear monoshocks in a small way come June of this year which is next month in the non auto suspension phase. We are in the final stages of developing Solar Deepers also for a Spanish client. In the braking segment we have drove 1 rupees 2,366 billion per annum of new orders in FY25 for multiple OEMs in the previous quarter I mentioned our brakes range is from 100cc to 800cc two wheeler platforms. We have now started development of brakes for a 990cc motorcycle for a key OEM client.
We also won the much awaited twin channel abs orders from two OEMs. Trial lots have begun with SOP planned for quarter two of this financial year. We are assembling the electronic control units in house at our ABS plant at Baluch. Further backward integration is possible and we wish to manufacture the printed circuit boards for the electronic control units. Also on our surface mounted technology line at Waluch we are already the leader in two wheeler disc brake market share and plan to further expand for which a new building at our E71 second brakes plant is close to completion.
Braking two is an area where we wish to serve four wheeler OEMs and we hope to conclude this business soon with a leading four wheeler OEM coming to transmission. In the previous quarter I spoke of new clutch orders from Hero Motor Corp and Royal Enfield that have enabled us to increase the annual sales of 1 million more clutch assemblies and increase sales value by more than rupees 1000 million panel. These orders will see SOP in May and July respectively and will peak in quarter four of this financial year. And for this an SMC line expansion has already been completed.
In Drive Sharps we have won business from three three wheeler OEMs and now from a leading four wheeler OEM. We are working with these OEMs as well as others for more business across passenger and goods segments. With current capacities and increased volumes, we will invest this year in augmenting our capacity to produce higher volumes of drive shafts for both three wheelers and four wheelers. In our aluminium castings business we have won orders in FY25 to the tune of rupees 6.1 billion during the year. These orders are across two wheeler, four wheeler and non automotive business and also for ICE as well as electric vehicle business.
I’ve already spoken earlier about the rupees 2.75 billion audit Chandra orders which we have won. Non auto orders include also the generator end use. Also casting volumes from Ether Energy from our Vallam plant are expected to double in quarter two FY26 and new machining assets are being installed for this purpose. For large four wheeler castings, our new investments both in Chendra and Chakan include high level of automation. At Charkan we have a fully automated machining line with no human intervention from start to end. Also we have upgraded four die casting cells with full automation. At Orexchendra we have used the services of our new European subsidiary Ingenia which we had acquired last year to assist on the automation coming to our aluminium forging business, we have added another forging press in quarter four FY25 taking the total to four numbers.
Because of increased volume and demand, more presses will be added next year. Therefore, we are in the process to move our existing aluminium forging plant to a more spacious location at Valuch and start of production in this new plant by quarter four of this financial year. The work has already started in the new plant. We have aluminum forging orders from Royal Enfield and Hero Motor Corp. This is an addition to our own capital requirement for inverted front forks and also for a four wheeler export order from Jaguar Land Rover. At our substrate Maxwell, we have redesigned the battery management system for Hero Motorcop helping us improve our product profitability and offer a cost advantage to the oem.
These steps demonstrate our prowess in embedded electronics. Apart from the battery management system, we have booked business for motor controller units and in the Internet of Things segment and SOP is in October 25 and January 2026 respectively. Further, there are other products at an advanced stage of development. Our focus is to keep increasing our profitable sales at Maxwell. In the Indian aftermarket business, we continue to progress on execution of our domestic strategy which will lead us to a strong growth as informed in the previous call, we have begun to implement a two year strategy with a global consultancy firm where we have revamped our distributor policy, introduced new value add products and enhanced our focus on expanding regional market share.
During the year FY25 we have achieved a 29% growth in aftermarket exports. We have launched a new plan targeting additional markets with products yet not supplied to the Indian market. Our value add products portfolio now contributes over 14% to our aftermarket sales coming to our financial performance. The information has already been uploaded at the stock exchanges last evening along with our presentation explaining the numbers. I will however highlight some key numbers during FY25 the company recorded standalone total income of rupees 89.1 billion, a growth of 12.5% over FY25 to 24. Consolidated total income was Rs.
116.8 billion which is a growth of 13.1%. The company recorded a profit after tax of rupees 6.79 billion and rupees 8.36 billion in the stand alone and consolidated books. It is important to note that our European companies have defied many odds to post an impressive year on year growth of 15.4% in FY25 and a growth of 20.9% in financial year 25 EBITDA. During quarter four FY25, the company turned in a total income of rupees 22.7 billion for the standalone company and rupees 29.98 billion for the consolidated company. This translates to a year on year growth of 8.4% and 10.6% respectively.
The company earned a profit after tax of rupees 1.74 billion and rupees 2.45 billion for the standalone and consolidated company. In quarter four our European business recorded a top line growth of 17% and an EBITDA growth of 21.2%. I would also like to mention specifically that our consolidated earnings per share has more than doubled from our IPO year which is FY17 to FY25 from Rupees 23.48 to 59.46. At Endurance, our people remain central to our growth. We continue to drive strategic workforce planning with women now comprising 8% of our hiring reflecting ongoing commitment to diversity with a target to take female population to 10% and 15% for our blue and white collar employees by 2030.
We have undertaken specific projects with a focus on enhancing employee experience and care and well being of them at etl focusing on an inclusive work culture focusing on best in class HR policies and building up talent by helping upgrading, focusing, helping upgrading, focusing on skills and capabilities and leadership potential of our people. On the sustainability front, we continue to advance our commitment to sustainability and community impact. This year we made significant progress towards our ambitious sustainability goals. For financial year 2030. We achieved a 45% carbon neutral percentage below specific electrical 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 25.2% in FY25 through expanded rooftop solar and wind power agreements. We contributed 300,000 kiloliters of water through water augmentation projects. Six of our plants completed zero waste to landfill assessments with Platinum ratings and third party assessment. Education, health and sanitation, environment and livelihoods continue to be at the core of our CSR focus. Through our Saber Trust which is our CSR arm, we have transformed 54 schools with solar energy and hygiene focused facilities thereby enhancing attendance and outcomes While training over 900 adolescent girls in health and skills with sustainable agriculture training.
Our Farmer Empowerment Program has helped over 4,000 people and our ECOB Vocational Training center in Chhatrapati Sambhaji Nagar has imparted vocational training to 1,900 youths securing over 75% employment. Our health work has reached 42 villages serving 17,000 people and we have built 2,300 toilets to improve sanitation. Our wet van program too has been successful in providing treatment to 40,000 animals in 47 villages. This year we have started with one village by creating a green Energy village by providing rooftop solar energy units to 100% of households promoting sustainable energy access. Endurance continues to earn accolades from its OEM customers as well as industry forums.
Some of the key awards and recognitions in this financial year were making IT to the 2024 Det Huran India Manufacturing 400 list compiled by the Dubai Department of Economy and Tourism in partnership with Huron India Winning the Innovation Award at the Mahindra Winter meet ranking 32nd amongst Fortune India’s Future Ready Workplaces getting the fourth Q1 certification for our Casting and Machining plant at Chakan Winning Platinum and Gold awards for our two brake plants at Baluj at the Bajaj Auto Vendor Meet, the CIA Intervention IP Award 2024 and the ASOCAM IP Excellence Award with these opening remarks now I would like to invite questions from all of you.
Thank you.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question May press star and one on the touch. Don’t telephone if you wish to withdraw 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 will wait for a moment while the person keyboard. I repeat if anyone wishes to ask a question you May press star and 1. We have a first question from the line of Aditya Jawal from Investec. Please go ahead.
Aditya Jawal
Yeah, good morning. Thank you for the opportunity and congrats on a good set of numbers. My first question is on our lithium ion battery pack assembly. Can you throw some more light on it in terms of, you know any commitment from any OEMs? Did you mention about a 3 billion order win for e scooter pack?
Unidentified Speaker
Yes.
Aditya Jawal
Okay, okay. Can you just throw some light on the margin profile of this business as compared to the, you know, the main business and do you expect that the ramp up in Maxwell could accelerate because we are providing more value added service? Can you throw some more light on it?
Anurang Jain
Yes. See I will not be able to talk about the margin as this is sensitive information but yes, we are one or three billion order from a leading two wheeler EV oem. This was in April and definitely this is going to be a huge growth opportunity not only for two, three and four wheelers but for other industries like telecom, inverters, battery energy storage systems and we are very excited. This will help us to. This will help also to. It’s a forward integration from Maxwell because as you know the battery management system is the heart of a battery pack and we have done forward integration with our own technology.
I would also request Mr. Pranit Parikar who is from our senior management team and a key person for our battery pack plant to explain further on this. Pranit, are you there? You can throw light on what we are doing at the battery pack plant. Yeah please.
Pranit Parikar
So we are right now setting up a plant one with two different lines which are fully automated. One line will be used for cylindrical types of cell which will be starting from 1-8650. It can accommodate up to 46120 or even 46 133. And the second line will be making packs for on the prismatic cell which will be starting from 50h prismatic cells to 675h prismatic cell. It is also designed for making packs for two wheeler, three wheeler, four wheeler as well as battery energy storage systems, UPS and telecom battery packs. The line is already installed getting installed with AGV and it is capable of handling low voltage as well as high voltage battery packs.
The technology. Yeah, the technology that is being used. It’s basically an IP late technology. A battery is designed developed by completely endurance in house.
Aditya Jawal
Okay, that’s quite helpful. My second question is that you mentioned Anurang about a 300 crore order win on E food wheeler application from international customers. So value and Yazaki you called out specifically. Can you talk a little bit about what are the products that we are doing for all four of them and which market we plan to supply. And little bit more color on the new US and EU OEM. Whatever you can share.
Anurang Jain
See three of the customers which are Valeo and the two other OEMs which I cannot name but they are leading global OEMs in the world. I would say these are products mainly for EVs and these are castings like your end caps and there are. Okay, I mean I cannot mention all these names but these are castings required for EVs very key parts. And I think when the plant is ready to start in September, you all can come and see the plant in Orexchendra at Satapari Samaji Nagar. But you can say that most of these orders are for EV platform.
The two global OEMs in US and Europe. And Value, value, I mean I mentioned this is for Mahindra functionally extremely critical and functionally extremely important. Extremely important. And which is applying and let me just tell you the margins here I will say are much higher, Much higher. I want to just put this on record.
Aditya Jawal
So these would be exported to US and Europe, right?
Anurang Jain
Well some would be for India like I said but the other two will be exported.
Aditya Jawal
Okay.
Anurang Jain
And these customers are not those customers which are European operations are supplying.
Aditya Jawal
Okay. Fair enough. Then if you can give us little bit of a you know, update on the four wheeler suspension or technical tie up that we have done that. How has been the customer engagement? Any timeline of commercialization? Any indication on what kind of customers we are talking to? Any further update on it?
Anurang Jain
Yes, I mean I’ll start and I’ll ask Mr. Rajendra Bangay, our Director CEO to speak further. These are all the leading OEMs in India also I would just say that for the time being very closely engaged with them already as we speak there are already been planned audits happened. So we had a very advanced stage. But I’ll request Mr. Mitchell Bande to speak on this only suspension right now.
Rajendra Abhange
Okay, so thanks for the question. The suspension as you know is one of the most critical parts for vehicle dynamics and also for the safety of Passenger vehicle.
So. So our tie up with this company, which is already explained, is one of the leading players of suspension manufacturing who has delivered over 10 crore shock absorbers all over the world and highly experienced company. And we joined hands with them sometime January this year. And when we approach the OEMs, all of them are completely excited about our association with this company. Company Looking into their profile and looking into their product lines. This space in India is little bit empty. There are not too many players because its products are not easy to handle by the tier one companies.
And therefore there is a huge traction from most of the OEMs. Wherever we have gone, they have welcomed us and they have actually told us to speed up the development process of these products. So, as you know, the suspension development takes a long time. It has to undergo a lot of vehicle tests, it has to undergo a lot of durability tests. So currently we have three programs in discussion and most of them are going to be very serious projects. The development time, as you asked the question, could be anywhere between eight months to 12 months.
And during this time we’ll also decide the location of the plant. It will require a greenfield facility. So all those things will be decided in next three to six months time.
Aditya Jawal
Yeah, that’s quite helpful. Thank you a lot sir for that. And final question is from Masimo. A fantastic delivery in FY25. Considering the backdrop of Europe, if you can give us some sense, then how should we expect overall industry in FY26 and what are the, you know, big order wins that might come for execution? And what is the growth expected of endurance European business in FY26?
Anurang Jain
So Massimo, are you there? Because you know, he had landed in Munich in the morning.
Massimo Venuti
Can you hear me now?
Aditya Jawal
Yes.
Massimo Venuti
Okay, so for the next financial year, as you see in the last quarter, all our makers, all our custom in our portfolio production capacity in the last two years. So I hope in this quarter, for the next quarter that we’ll be able to grow without consider the acquisition of spare. This is strategic because thanks to this acquisition we will reach more or less 25% of portfolio to weakness. But if I compare with the same level of aluminum, the EBITDA should have been 18.8% despite an increase of energy cost compared to the previous quarter, the quarter of the last financial year that affected our EBITDA 1%.
And so from the point of view, we came back in the normal in the historical profitability of Angular Sea with more or less 20%. The net result was 5.9% in the quarter and we reached the total EBITDA in the financial year of 17%. So from the point of view this is not so bad considering the situation in the European market. I continue to be happiness for the future quarter because I repeat, the important acquisition of business that we have done in the past and also the 40 million of you acquired in this financial year can support us to be to perform better.
Aditya Jawal
I think. Thank you. That’s it. From my side. I’ll fall back in queue.
Anurang Jain
Yeah, thank you. Thank you.
operator
Thank you. We have our next question from the line of Mumuksh Manlesha from Anandrati Institutional Equities. Please go ahead.
Mumuksh Manlesha
Yeah, thanks for the opportunity and congrats on a good set of numbers. So firstly on the suspension side, you mentioned about the first order for solar damper assembly. I just want to understand the size of the order, the opportunity space and what is driving the opportunity in this space.
Unidentified Participant
This is the Spanish client, the order for dampers. Yeah. What is the opportunity and what is driving this?
Unidentified Speaker
Okay, so a good question. Thank you very much. As you know, we always aspire to divest our business out of two wheeler. One of the area is four wheeler definitely, which we already spoke about. But we also are exploring areas which are non auto. And one of the success story is that we are getting into the racking system for the solar panels which is a very high tech kind of a system that requires to maneuver the solar panels during course of the day and it has to work according to the direction of the sun.
So this entire racking system we are going to produce, the technology that we applied is from our knowledge of the automotive engineering. It is an extension of what we already know. So it’s not very difficult for us. So no collaboration, nothing is needed. So the company that approached us is a Spanish company who is world’s third largest solar panel system supplier. It’s a global company and all the audits and everything has happened and we’re expecting the commercial production to start in the next quarter from one of our plants for supplying to India, Saudi Arabia and to the United States.
So these three areas will be supplying. So the question about the technology, when you speak about what is different than the automotive, is that these products are from the size perspective, they are very big, very long ones. They are more than the height of the human. And it has to operate in the field for nearly 25 years without any substantial maintenance. So we have validated our products in our lab with all kinds of tests according to the customer specifications. All the machinery is getting into place and the commercial supplies will start now within next two to three months time.
So the first supplies, I think the order has already come. If you ask about the potential, the potential is enormous. But we are going to start in a small way. I would say in a range of anywhere between 25 to 50 crores in this year. But the goal is to get to over 500 to 1000 crores business in next two to three years time.
Mumuksh Manlesha
That would be a huge number. Sorry sir. 5. That kind of a big scale for the non auto business. Yes, got it sir. So on the orange plant I just want to understand how will this ramp up of 275 crore order would happen, sir. With the second half the plant is starting sir. So next obvious what kind of revenue we can expect, sir.
Anurang Jain
See the peak of this 275 crores will reach an FY27 is what our target is. But as we speak we are also in touch with other customers to take more orders, you know. And the customers are also in a real hurry to get these supplies started, you know, in fact one of the customers was there last evening at Orexchendra, last actually two days, you know. And they’ve done the audit and quite happy. So in fact the trial lots already have started. Just to let you know, it’s only that mass production is in September already we are supplying smaller lots.
And as you know that this has a special process also which is I think first time in India. It’s a surface treatment process. So. So the potential is enormous. But we are going to go step by step. But we are very excited about this actually. And maybe after September 25th we can invite all of you to come and see the plant.
Mumuksh Manlesha
Yes, that would be great sir. So thirdly on the lower wheel business, this space is seeing very strong growth led by input substitution. Also we have seen an increasing number of players who are entering this space. I just want to understand how this business margins or the ROC stands versus how company currently does so.
Unidentified Speaker
No, the way I would put it is our focus is to see that the margins are in line with the company. That’s our target. And we made lot of efforts based on the product mix and the operational efficiency to see that we are able to do it. They have gone in for more automation which requires less, I would say dependence on people which you will see once the plant will start. So we are making our full efforts. We have learned from the past, our experience and seeing that the margins are in line with what we make in the company.
And as far as the space is concerned, we are aware of the competition. So when we take new orders for these alloy wheels we are definitely full clarity from customers who is a competition and what is the share of business. So there is no doubt about that. So there may be a number of players. I agree with you. But as far as we are concerned we have a clear cut site of our share of business and volumes what we will get subject to of course the customers doing those volumes. So if we do more, we get higher volume, if they do lower, lower.
But it’s very clear the share of business we are not concerned about that, you know, this thing at all.
Mumuksh Manlesha
So no major margin pressure it would be fair to say sir.
Unidentified Speaker
See I’ve always said in the past also price of course is very important. It’s dictated by the competition. But it’s also important about your operational strategy to make that money. You know, whether it’s your raw material purchases, whether it’s your, you know, operational efficiencies in the plant, your manpower cost, look at means on, you know. So it’s up to you what is the kind of model which you run. And that’s what Endurance has done for the last 30 years, you know. So the price of course is very important but just not the price. You know, it is a strategy which we have followed both in Europe and India which makes us a bit different, I mean without sounding this thing but a bit different from others, from most others.
Mumuksh Manlesha
Got it sir. And so finally on the state incentive, sir the annual number should be around 870 million. And so just want to check this 380 million for this quarter. Did it include any earlier quarter number as the scheme started from second half sir. And just will that 870 million annual number will be going ahead. It will be uniformly spread across the quarters or there would be bunch up in the few quarters.
Unidentified Speaker
Raja Satri or group CFO will answer this.
Raja Gopal Sastry
So we did book a total of 38 crores in Q4 and this because the scheme we got the eligibility certificate effective 1st of October. The number is slightly more than the average we are expecting. Based on. So the total eligibility certificate received by us is worth 606 crores. And we are expecting that in that year it should be anywhere in the range of 65 to 70 crores. We should be able to book maybe 75 also. So generally this is a function given of the quantum of state GST which we are paying and given the current run rate of how we are paying the state gst we do expect that in the first two quarters and A little bit in the third quarter.
We should be booking that in the year.
Mumuksh Manlesha
Got it sir. Thank you so much for this. That’s all from my side.
operator
Thank you. We have our next question from the line of Pramod Amte from Incred Equities. Please go ahead.
Pramod Amte
Yeah, hi, thanks for taking my question. So this is with regard to the battery pack. Just wanted to understand what is the value add proportion you are planning in terms of the sales value and what are these items? One second. What is it you are bringing onto the table in terms of designing battery pack as compared to established players in the system?
Unidentified Speaker
Okay, so I will request Mr. Pranit Parekar to, to answer this. Pranit, can you answer this?
Pranit Parikar
Yes, yes, yes. So there are a lot of technologies that we are bringing on table from Endurance side. So the uniqueness of a temperature monitoring system which we. So there are multiple patents which are going to be filed or even some of them are getting applied also. So basically CC which actually does the cell to cell contact system which is a very unique technology which allows the connections to happen more proper with the resistive mapping algorithm and also allows a very high rate of thermal discharge from the cell to get it from the cell to the enclosure. And believe me, these battery packs are very uniquely designed and a specific technology which makes it a wire free battery pack.
We do not use wires to connect the cells or even voltage sensing lines or temperature sensing lines. Everything is wireless done through a very unique IP LED technology. And the enclosure design is also unique such a way that it allows the thermal propagation or the thermal transfer at more than 5 watt per meter Kelvin. So I know the industry have more players like bigger players in battery industry but this lith technology is very. So the large unmet need of high quality robustly engineered battery systems is basically encouraging Endurance to bring enoughly developed IP LED battery design.
And that’s what I can say that there is a huge demand for high quality robustly designed battery packs. These batteries which Endurance is making, we are making it so that these batteries will work for more than 10 years without having a maintenance to it and keeping the R D on continuous path for making it ready for making next generation battery packs.
Pramod Amte
Okay, thanks for the explanation. And can you give some color in terms of what’s the value add as a proportion of the sales value? Because there’s a lot of bought out in terms of sales and All right.
Pranit Parikar
So value add we cannot tell you but we can give you what is the sales generally this price range, you know, which is There which can go for I think from 25,000 to 45,000, you know, for I think, I think. Let Paran answer that. What is the normal range for two wheelers?
Unidentified Speaker
Correct. So for two wheeler battery packs which starts from let’s say 15,000 rupees a kilo kilowatt and it goes up to 45, 50,000 rupees for packs which are like 4, 5, 6 kilowatts worth. And for 3 kilowatts the major Indian market is on 5 kilowatt to 15 kilowatt which starts from 30,000 rupees to a lakh rupees per battery pack. And if you ask me about the value add, it’s basically the quality and supply chain, a strategically developed supply chain with the good partners for cell supplies as well as keeping it on a very high level.
Negotiations on the sale values and proposition for oem so that the volumes which are increasing in India will be supported.
Pranit Parikar
By Endurance and these cells will be. You will be procured them or the OEM will approve it and you will be just procuring from those sources. How does it know?
Unidentified Speaker
So Endurance believes that we will be designing the pack. So there are two ways to do the battery pack. One is, is basically built to brain and second is basic, basically built to specs. So the orders which are, which we are right now getting is built to spec. So that the design and the sales selection as well as our proprietary BMS is basically selected by Endurance only. And we have a very strategical tie up with cell manufacturers throughout from China, South Korea, Japan as well as we are also talking to the companies which will be making sales in India.
So we are actually very aggressive in having the supply chain managed such a way that we should give a very big advantage in terms of costing to our OEM partners.
Pramod Amte
Sure. Thanks. And the second question is with regard to KTM supplies, considering that KTM itself is going through a restructuring, you have any direct exposure there and how do you look? Do you have to make a provision there per se or not?
Unidentified Speaker
In fact we have already made a provision of rupees 5.00 crores in quarter four. FY25 the provision was already made of 5.3 crores which is. Which was made in quarter four of FY25. Going forward we have a. We are not worried because see as far as the assets are concerned, if something goes wrong, you know, they are very flexible. They can be used for, you know, other distinct OEMs. We are not budding inventories. Also it is not such a Figure that we are alarmed about. But having received this first set of firm orders, we are quite confident that some good things will happen.
So I think we will be knowing this after 23rd of May, when the last court hearing is there.
Pramod Amte
Sure. And the last one is with regard to the EV castings. As you disclose, the name of value which seems to be in the Exles or transmissions of the EVs are the two clients. So you’re making more inroads into EV axles. Is that the fair understanding on castings?
Unidentified Speaker
It’s not only axles, it is also other casting products. Because for the other two customers, it is other castings. It is not for em, it is others. I mean, there’s a huge range and this is really a very very, I can only say very, very exciting opportunity. It’s a new world we are entering. But castings, you know, we are very strong on castings, as you know, engineering our own tool room, you know, we are very strong there. So it’s not just the dry tint products, it’s also the other parts of the vehicle. Because in ev, aluminium content is very high.
Because it’s. Sure. Because it’s a lightweighting material that already I’ve spoken in the past.
Pramod Amte
Okay, sure. And last question, if I can ask. When I look at your key customer profile for FY25, the big jump seems to be the VW Group per se moving to almost like to emerge as the second largest for you. What has gone right for you to win there and what’s the headroom you expect there? Because it’s a big entity to approach and there’s a lot of headroom for you to grow there. So how are you looking at it as an opportunity?
Unidentified Speaker
Okay, so this question can be better answered by Massimo. Massimo, are you there? Okay. Yes, we can hear you.
Pramod Amte
Yeah, we can hear you.
Massimo Venuti
Okay, now when we speak about Volkswagen Group, it doesn’t mean only the brand Volkswagen, as you can imagine, because you have to consider that more or less 25% of our total kidnova, we have 5% of Audi, 9% of Porsche, and the difference is Volkswagen Group, because as you know, we produce internal combustion engine transmission components and electric components for all the brand of Volkswagen, including Skoda, etc. And so speaking, we are not worried about the situation for the future. Also because we are speaking about the brand very strong in European market. For sure. In this moment we are suffering, some brands are suffering for China situation as Porsche, Audi, and also for the Duke in the United States.
But despite the reduction, despite the reduction of registration copper. This year we grew with Volkswagen Group 60% due to the new start of production of the business in electric field that we acquired in last three years. And we started in March, September and December of the previous financial year with this new business the total amount is 70 million real estate. So our expectation is to grow in the next financial year.
Pramod Amte
Sure. Thanks and all the best.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. We have our next question from the line of Arvind Sharma from Citigroup. Please go ahead.
Arvind Sharma
Hi, good morning sir. Thank you so much for taking my question. So the first question would be on the India business, What are your capex plans for FY26? And also given that there is so much capex endurance is doing on Fobils and non autos, what would be the broad direction impact on returns and margins? That’s the first question sir.
Unidentified Speaker
Okay, I’ll request Raja Sastri to answer this.
Raja Gopal Sastry
If you see what we have uploaded in our presentation, we have invested close to 611 crores in FY25 and quite a few of them are the growth and strategic projects which are still in their gestation period.
So there will be investment in FY26 or so to complete those projects which is our Oric Chandra, Oric Bitkin and also certain investments for the battery pack which we have announced. And this is. Well, I will not be able to give you the exact number but it is going to be a significant number of CAPEX 0 and FY26. Now as. As the managing director mentioned, quite a few of these projects are starting their startup production in the second half and also the third fourth quarter of this year. And that would mean better revenues as we go forward.
And also given that quite a few order wins of about 3500 crores of the crash. I’ve seen the sops in FY25 and also another 30% are seeing the stats of production in FY26. All these augur well for our revenues and also the bottom line in the coming year all the investments we are making in the past will see some effect in FY26 but definitely much bigger effect in FY27 ongoing. I will just say that the product mix is truly. The product mix is improved. Sure sir. Thank you so much for this. The second question would be on Europe.
Sorry I might have missed it. But if you could just share the revenue and EBITDA in euro terms, as well as a broad outlook for the European markets, including the staple acquisition. Okay.
Unidentified Speaker
Are you still there?
Massimo Venuti
Sure. Yes. So we closed the previous quarter with 80 million Euro turnover, compared 68.3 of the previous financial year with an increase of 11.7 million Euro, which means 17.1% of the increase. In terms of turmo, it was the Biddle with 14.7 million of Euro, it means 18.4%. Compare 12.2 million Euro of the previous financial year with an increase of 21.1%. In terms of net result, we closed with 4.8 million Euro, 5.9% with an increase of 19.5% compared to the previous year. Speaking above the total financial year, the company closed for the first time with 304 million of euro with an increase of 15.5%.
Compared to the previous year, the BIDDLE was a few 51.1%, 16.8% total financial year, more than 20% compared to the previous year, and the net result was 16.3 million of euro. It means 5.4% with an increase of 16.3% compared to the previous financial year. This quarter was, from a point of view, the best season in terms of time for profitability, because as told you before, if I do a statement of the energy cost and also the increase of material cost, the bidder should have been more or less 19%. So it’s a very good performance and expectation for the future now is to try to maintain a busier performance in total year.
Also, with the improvement from CEFR with other 18 and with the leverage that we did of 16, 16.5%, we are optimistic that we can maintain the profitability over the previous financial year and for sure improve the situation.
Arvind Sharma
All right, thank you so much. Thank you for sharing this. That’s all from my side.
Unidentified Speaker
Thank you.
operator
Thank you. We have our next question from the lineup. Aniruddha Marti from Standard Chartered Bank. Please go ahead.
Aniruddha Marti
Hello. Hello. Yeah, thank you so much for the opportunity and congratulations on a good set of members. I had just one question to understand. Basically, at a consolidated level, what sort. Of revenues would be driven from the US markets which might get affected because Of possible tariff implications?
Unidentified Speaker
Well, in India we don’t see anything but Europe. I can request Mr. Massimo Binuti to speak because like I mentioned in my opening remarks, there could be some of our products going into premium price which may be exported to the us. So I think he’s a better person to answer that.
Massimo Venuti
we are not speaking about a big issue for endurance because the total turnover could be something like 25 million euros. Because as you know, we produce a lot of components for small engines that are not so popular in the European market. But please consider also that our customer has Mercedes and BMW are producing specific models, the G3, also the series of Nasodes and the series of BMW in United States. And so this is a total positive because it means that they produce United States and they export Europe. And so we can try to compensate the impact of the duty for this 20 million.
I repeat, we are thinking about Pinot, the only customer that can be affected for sure in the United States and also for the situation in China, unfortunately. And have you seen that they lost 30% of the market share in the previous financial year, but it’s including this.
operator
Thank you. We have our next question from line of Neil Parikh from Auriga Capital Advisors. Please go ahead.
Neil Parikh
Hi sir. It’s a fantastic set of results. I have two questions, both on the hero geography. So first one is with respect to the acquisition liquid debt of Sucral. It acts extremely consult of revenue where he is a sole supplier. For the last three years, based on my rough calculations, we were growing Europe geography sales at around 8, 10%. With this acquisition and cross sell opportunity for the next three to five years of the combined business, do you foresee a better mid teen level of growth,
Unidentified Speaker
Massimo?
Massimo Venuti
Yes, we can understand very well, but I try to answer. So the additional step is more or less 80 million of euros expectation. We close this financial year with 300 million of euros. And so our target for the next financial year is to try to reach more than 400 million of euro. But this moment is very difficult. I can tell you that the first month, every and also the reporters for the future months we are seeing about May, June and July are absolutely positive compared to the previous financial year in terms of turnover and also in terms of profitability, considering 16.8% that was the leverage of the previous financial year.
Neil Parikh
Got it, Got it. Another question which I had was in the European geography, are we in active talks with any of the Chinese OEMs? And have we received any SOP?
Massimo Venuti
And I’m sorry.
Unidentified Speaker
Have you got any orders from a Chinese oem?
Neil Parikh
I’ll connect him back.
Massimo Venuti
Hello, Sorry, could you repeat? The question.
Unidentified Speaker
Was about progress with Chinese OEMs from Chinese OEMs. But yes, there are some Chinese OEMs with which we with whom we are in discussion.
Neil Parikh
Okay, fair enough. Thanks a lot. That’s from my side.
operator
Thank you. As there are no further questions, I now hand the conference over to the management for closing comments. Over to you, sir.
Unidentified Speaker
No, thank you. I guess you know, I said everything in the opening remarks, but as you know, endurance. We are very, very optimistic about the future and the opportunities are there. We are really excited about the same. So I’ll just leave it at that. But thank you, everybody, for your time and coming for this call. Thank you.
operator
Thank you. On behalf of Access Capital. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.