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Informist, Friday, Aug. 14, 2026

 

--Endurance Tech: Seeing moderating aluminium alloy rates as of now 

--CONTEXT: Comments by Endurance Tech mgmt in post-earnings analyst concall 

--Endurance Tech: See better Q2, Q3 than Q1, tough to quantify currently 

--Endurance Tech: Focused on improving margins; can't help input cost rise 

--Endurance Tech: Capex may rise if large opportunity bagged, which is likely 

--Endurance Tech: Order winning opportunities have declined in Europe 

 

By Shakshi Jain and Durgesh Nandan

 

NEW DELHI/MUMBAI – Endurance Technologies Ltd. expects the capital expenditure for 2026-27 (Apr-Mar) to be similar to that in FY26 – around INR 8 billion in India – though it may increase in the event the company secures a large opportunity, which is a likely possibility. "We already have the capacities...But today, if we get some very large opportunities, which we feel may happen, but I don't want to speak about it now. If that happens, the capex will increase," Managing Director Anurang Jain told analysts in a post-earnings conference call Friday.

 

Jain also explained that Endurance Technologies balances in-house manufacturing with strategic vendor partnerships. "So, when we go in for capex, it's not only capex being done at Endurance, it's being done by our strong tier-2 suppliers also...So if you account for that capex, then of course, it will be higher than the INR 800 crores (INR 8 billion)."

 

Jain also expects better margins in the September and December quarters compared to the June quarter, which was marred by elevated input costs. He, however, did not quantify the expected margin improvement.  

 

"We are surely going to get all the raw material increases from every OEM (original equipment manufacturer) in this quarter," Jain said, adding that the company is also witnessing moderation in aluminium alloy prices. He added that "...the steel, rubber, plastics, this is being talked to all the OEMs, we will conclude in this quarter, which will also be effective in this quarter. So, that will be a gain for us."

 

Endurance Technologies also hopes to settle conversion cost increases with original equiment manufacturers in the ongoing quarter.

 

For the June quarter, Endurance Technologies reported a consolidated net profit of INR 2.45 billion, up 8% on year and down 12% sequentially. It was the first time in 13 quarters that the company reported a single-digit year-on-year growth in net profit. The company's consolidated revenue from operations totalled INR 43.15 billion, up 30% on year and 5.6% on quarter.

 

The company's total expenses rose 32% on year to INR 40.18 billion. Faster growth in expenses compared to revenue led to modest growth in the company's net profit. The company's cost of materials consumed, which constitutes 66% of total expenses, rose 35% on year to INR 26.36 billion.  

 

The company is positive on business in the four-wheeler automobile category. For the advanced, green-building aluminum die casting and machined castings plant at AURIC Shendra in Aurangabad, Maharashtra, Endurance Technologies has secured orders worth around INR 5.13 billion per annum, according to Jain. "But that will reach peak in only early FY28. So it will be FY29 because these are long lead programs. And we have to be certified for these orders much earlier when it comes to these foreign OEM players. So, I think a large increase will be seen from, I think, quarter 4 (Jan-Mar) of this year in Shendra," he said.

 

Jain said the company's focus will be on four-wheeler and non-automotive castings and not as much on the two-wheeler casting space going forward."Because, like I mentioned, we are very, very now focused on improving our margins. I mean, I have no control on the raw material percentage of sales."

 

For the Europe business, the company said the environment remains difficult and opportunities to securing orders have declined. "But whatever opportunities are there, Endurance is one of the first to get them."

 

At 1353 IST, shares of the company traded almost 3% lower at INR 2,888 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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