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Informist, Tuesday, Aug. 12, 2025

By Adhithya Aji

MUMBAI – Auto ancillary company Endurance Technologies Ltd. is expected to report double-digit growth in its net profit and revenue for the June quarter, driven by increased production of auto components for two-wheelers and four-wheelers. Growing demand for its braking systems and aluminium die castings and a strong performance in the European market will also benefit the auto parts maker, according to brokerages tracking the company.

The company's net profit for Apr-Jun is likely to rise nearly 13% on year to INR 2.30 billion. However, the net profit is expected to decline 6% sequentially, according to an average of estimates from six brokerages. The highest estimate for net profit is INR 2.41 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 1.96 billion from YES Securities India Ltd. The company is expected to report a top line of INR 31.20 billion, up over 10% on year and up 5.3% on quarter. The highest estimate for net sales is INR 32.21 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 30.33 billion from InCred Research Services Pvt. Ltd.

A recovery in exports of two-wheeler components and growth of the four-wheeler business is expected to boost Endurance Tech's sales and net profit for June quarter. The fast-growing businesses of aluminium alloy wheels, disc brakes, and auto-braking systems are expected to improve both the top line and bottom line of the company.

The company's revenue from European subsidiary will likely rise 12% on new order wins and favourable currency exchange, Kotak Institutional Equities said. According to HDFC Securities, low aluminium prices in the reporting quarter will also likely benefit the company.

Endurance Tech acquired 60% stake in Europe-based machined aluminium die castings maker Stoferle for nearly 38 million euros in April. Motilal Oswal believes this acquisition will help Endurance Tech improve its European business by 25% on year. The brokerage also said it expects the auto components maker to outperform its peers in the June quarter.

Endurance Tech is expected to post earnings before interest, tax, depreciation, and amortisation of INR 4.20 billion, according to an average of estimates from four brokerages. The highest estimate for EBITDA is INR 4.35 billion from Motilal Oswal and the lowest estimate is INR 3.78 billion from Yes Securities.

Brokerages' views on the EBITDA margin are mixed. Kotak expects Endurance Tech's EBITDA margin to rise 70 basis points on year to 14%, driven by operating leverage benefits and higher profitability in the Europe business. YES Securities believes the company's EBITDA margin will decline by 10 bps on year due to higher staff costs and lower sales in Europe.

"EBITDA margin to get impacted due to other operating costs, though (will likely be) partially negated by lower aluminium prices," HDFC Securities said. EBITDA margin of the India business is estimated to remain stable at 12.9%, Motilal Oswal said. The brokerage expects EBITDA margin of the Europe business to also remain stable despite the consolidation with Stoferle.

At 1257 IST, shares of Endurance Tech were trading at INR 2,552.90 on the National Stock Exchange, up 1.3% from the previous close. The company will announce its June quarter earnings Wednesday. The stock is up almost 14% since the company announced its March quarter earnings. Of the 10 research reports on the company available with Informist, seven have a 'buy' rating with an average target price of INR 2,577. Two brokerages have a 'hold' rating and one has a 'sell' rating.

Following are the Apr-Jun estimates for Endurance Tech, in INR million, based on six broking firms in descending order of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Nishant Maher

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