Endurance Technologies continues to earn a BUY rating with a target price of ₹3,050. That's a 15% upside from the current price of ₹2,641.
ENDU is set to outperform domestic 2W industry growth on the back of multiple capacity ramp-ups: the new alloy wheel plant at Bidkin, dual-channel ABS rollout, and inverted front forks expansion. The bigger story? Management wants to take 4W contribution from 30% to 45%, and they're winning orders to make it happen.
Here's a quick snapshot of Endurance Technologies:
Three factors continue to drive conviction in this auto ancillary player:
1. Best Proxy for India's 2W Opportunity
ENDU is the best way to play India's two-wheeler story, especially the premiumization trend and scooter upswing. With ₹46.7 billion in orders won since FY22 (including ₹39.5 billion in new orders), the company is positioned to outperform underlying 2W industry growth consistently.
2. Aggressive 4W Expansion Underway
Following the Stoferle acquisition, 4W now contributes 30% of revenue, up from 25%. Management has set an aggressive target of 45%. They've already won orders in die castings, brakes, and drive shafts, and are close to winning an order in suspensions with a Korean technology partner.
3. New Growth Engines Taking Shape
Beyond the core business, ENDU has built presence in adjacent segments that could scale significantly: battery pack assembly (₹3 billion order), solar dampers (₹2 billion order from a Spanish OEM), and aluminum forgings (line of sight to ₹1.4 billion revenue by FY27).
The 2W Business: Where Outperformance Comes From
1. Alloy Wheels - New Bidkin Plant Firing Up
ENDU's existing alloy wheel capacity of 5.5 million units annually is fully utilized. The new greenfield facility at AURIC Bidkin started production in October 2025, with initial capacity of 150,000 sets per month (max capacity: 300,000 sets per month).
The facility is already fully booked:
First supplies to Bajaj and Royal Enfield (₹680 million) commenced December 2025
Suzuki supplies start 1QFY27
Won new Ather Energy order worth ₹310 million in 2QFY26
Plant expected to ramp up to annualized sales of ~₹6 billion by 2QFY27
2. Braking Systems - ABS and Traditional Both Growing
In ABS, ENDU has total capacity of 640,000 units annually. Single-channel ABS (400,000 units) is fully utilized. Dual-channel ABS (240,000 units) has started supplies – the first OEM SOP commenced in 3Q and the second OEM is likely to commence in 4QFY26.
The government's draft notification making ABS mandatory for all 2Ws from January 2026 is a potential tailwind. ENDU has already ordered a 1.2 million single-channel capacity line, expected to be set up by March 2026. The company is also backward integrating into steel-braided hoses, valves, and ECU assemblies.
On traditional brakes, a new Chennai plant is under construction. It will produce 3 million disc brake assembly systems and 4 million brake discs annually, with production starting 2QFY27. This frees up space at the Waluj plant for growing ABS production.
3. Inverted Front Forks - Market Leader Status
ENDU is the clear market leader in inverted front forks. Recent developments:
Started supply to TVS
KTM has increased schedules, expected to cross 650,000 units in FY26
Hero MotoCorp SOP expected by Q4FY26
Chinese OEM SOP in 1QFY27
With this, ENDU will supply inverted front forks to six OEMs.
Management is focused on increasing 4W contribution. Here's where they're making progress:
Die Casting - Strong Order Momentum
Customer
Order Details
Peak Revenue/Status
Valeo (for Mahindra EV)
Machined aluminum castings for e-axle
₹730 million peak annual
US-based EV OEM
Die-casting orders
SOP 1QFY27
European OEM
New client for ENDU
SOP 1QFY27
Yazaki
Recent order win
SOP 2QFY27
Total
₹3.9 billion
A greenfield die-casting facility at AURIC Shendra is being set up with higher tonnage capacity and advanced finishing capability. SOP is scheduled for 4QFY26. Peak potential to be achieved in FY28. Given improved value addition, these orders are expected to deliver improved margins.
2. Drive Shafts - First 4W Order Secured
While ENDU currently supplies drive shafts to multiple 3W OEMs, it has recently secured its first order for 4W drive shafts. On-vehicle testing is underway at ENDU's captive testing ground, with SOP expected in 4QFY26. A separate 4W drive shaft assembly line is being set up in 3Q.
3. 4W Brakes - Small Start, Big Potential
Working with technical partner BWI, ENDU has received its first-ever 4W braking order: drum brakes for Tata Motors worth ₹250 million, with SOP scheduled for 4QFY26. The company also plans to develop advanced braking systems, including ESP.
4. 4W Suspensions - Entry in Progress
ENDU has entered a technical tie-up with a Korean player that delivers about 100 million shock absorbers globally per year. Engagements with leading Indian and global PV OEMs are ongoing, with three programs in advanced stages of discussion.
New Growth Engines: What's Emerging?
1. Battery Pack Assembly
ENDU is setting up a greenfield lithium-ion battery pack manufacturing facility in Pune with planned production capacity of 35,000 battery packs per month at full ramp-up. Investment of ₹473 million is funded via internal accruals. Production expected from January 2026.
The company has already won an order from a large 2W OEM worth ₹3 billion per year. Beyond automotive, ENDU plans to target battery packs for inverters, telecom, and battery energy storage systems.
2. Solar Dampers
Moving beyond vehicle suspensions, ENDU has won ₹2 billion worth of order from a Spanish OEM to supply solar dampers. New infrastructure at the Sanand plant is being built to execute this order by FY27. Management indicates this business has potential to scale into a major revenue stream.
3. Aluminum Forgings
Initially developed as backward integration for inverted front forks (in technical collaboration with FGM Italy), aluminum forgings have evolved into a distinct product line. Order wins so far:
Customer
Order Value
SOP
JLR
₹270 million
4QFY26
German OEM
₹50 million
1QFY28
Royal Enfield
₹120 million
1QFY27
Management has line of sight to ramp up this business to ₹1.4 billion by FY27.
4. Aftermarket Expansion
Aftermarket currently accounts for ~5% of standalone revenue. ENDU targets 10% contribution by FY28. The company has appointed a new Domestic Head and another Head for bought-out products, developed district action plans for 78 district clusters, and defined unique value propositions for 39 countries.
Europe: Steady Despite Macro Headwinds
Demand in Europe remains tepid, with OEMs pushing discounts to drive volumes. ENDU's Europe business is largely growing in line with the industry.
Europe order backlog: €242 million (including new orders worth €207 million) Peak revenue expected: FY29
Of the €242 million orders won in the past five years:
41% for EV applications
45% for hybrid applications
ICE end-use, currently at ~40% of ENDU's Europe revenue, is expected to reduce to 25% in FY28.
The Stoferle acquisition (integrated from 1QFY26) is expected to drive growth in FY26. Stoferle's product line includes crankcase lower sections, oil pans, control housings, torque converter housings, gearbox housings, and parts for hybrid/EV systems. The company also has machining capabilities for large castings and can manufacture its own machines, giving ENDU strategic access to German OEMs.
Management is exploring further inorganic opportunities in Europe to reach the 45% 4W contribution target.
Financial Outlook: FY26-28
Steady growth with improving margins is expected. Revenue projected to grow at ~16% CAGR from FY25 to FY28.
The India business (72% of H1FY26 sales) will be driven by 2W outperformance and 4W ramp-up. Europe (27% of sales) will see steady growth despite weak macro, supported by Stoferle synergies and healthy order backlog.
Margin Trajectory:
EBITDA margins expected to improve from 13.5% in FY26E to 13.9% in FY28E. Die-casting orders with improved value addition should help margins. RoE improves from 15.2% to 16.3% over the period.
Balance Sheet Strength:
Net debt/equity turns negative by FY27E (-0.1x) and further improves to -0.2x by FY28E, indicating the company will be net cash positive. This provides firepower for potential inorganic opportunities.
ENDU is valued at 36x September 2027E consolidated EPS, arriving at ₹3,050.
Current Valuations:
Metric
FY26E
FY27E
FY28E
P/E
40.2x
33.6x
29.0x
P/BV
5.7x
5.1x
4.4x
EV/EBITDA
19.6x
17.2x
15.1x
Dividend Yield
0.5%
0.6%
0.7%
The stock is trading near its historical average P/E of 33.3x. Given the strong order book, diversification into 4W and new segments, and consistent execution track record, the premium valuation looks justified.
Should You Buy Endurance Technologies Stock?
Here's the complete breakdown:
Reasons to Consider Buying:
Best proxy to play India's 2W opportunity with premiumization and scooter trends
₹46.7 billion in order wins since FY22 provides strong visibility
Aggressive 4W expansion with wins in die casting, brakes, drive shafts
New growth engines (battery packs, solar dampers, aluminum forgings) scaling up
Diversified revenue base across products and customers with respectable RoE
Strong balance sheet turning net cash positive by FY27
Stoferle acquisition provides access to German OEMs
Risks You Should Know:
Government decision on mandatory ABS for 2Ws still pending – 2W OEMs continue to be in discussion with the government for possible alternative options
Europe macro environment remains weak
4W expansion requires long lead times, especially in braking systems
Premium valuations leave limited room for execution misses
Auto sector cyclicality can impact near-term performance
Who Should Buy:
Investors with 12+ month horizon
Those seeking exposure to India's 2W growth with diversification benefits
Investors comfortable with auto ancillary sector dynamics
Investors seeking high dividend yield (current yield: 0.5%)
The Bottom Line for Endurance Technologies
Endurance Technologies offers a solid play on India's two-wheeler growth story with the added benefit of diversification into four-wheelers and new adjacent segments. The ₹46.7 billion order book since FY22 provides strong visibility for outperformance.
The stock suits investors with 12+ month horizons who want auto ancillary exposure without betting on a single OEM or vehicle segment. At 33.6x FY27E earnings with improving RoE trajectory, the valuation looks reasonable for a company with ENDU's execution track record.
Near-term, watch for clarity on mandatory ABS regulation and execution on the 4W expansion. The battery pack, solar damper, and aluminum forging businesses could evolve into meaningful contributors over the next few years.
Frequently Asked Questions
1. What is Endurance Technologies' target price?
The target price is ₹3,050, representing 15% upside from ₹2,641. The target is based on 36x September 2027E consolidated EPS, reflecting ENDU's strong positioning in 2W and diversification into 4W.
2. Is Endurance Technologies a good stock to buy?
ENDU maintains a BUY rating. The stock suits investors with 12+ month horizons who want exposure to India's 2W growth story with added diversification. Key positives: ₹46.7 billion order book, 4W expansion, new growth engines. Key risk: premium valuations.
3. What is ENDU's order backlog?
ENDU has won orders worth ₹46.7 billion since FY22, including new orders worth ₹39.5 billion. In Europe, the order backlog stands at €242 million with peak revenue expected in FY29.
4. How much does 4W contribute to ENDU's revenue?
4W currently contributes 30% of consolidated revenue (up from 25% before Stoferle acquisition). Management targets 45% contribution in the coming years through organic wins and potential acquisitions.
5. What are ENDU's new business segments?
ENDU is building presence in battery pack assembly (₹3 billion order won), solar dampers (₹2 billion order from Spanish OEM), and aluminum forgings (₹1.4 billion revenue line of sight by FY27).
6. What is ENDU's growth outlook?
Revenue expected to grow at ~16% CAGR over FY25-28. EBITDA growth at ~17% CAGR. PAT growth at ~16% CAGR. The company expects to outperform core industry growth in both India and Europe.
7. What is the ABS opportunity for ENDU?
ENDU has 640,000 units annual ABS capacity. With the government's draft notification making ABS mandatory for all 2Ws from January 2026, ENDU has ordered 1.2 million single-channel capacity line. The company is also backward integrating into key components.
8. How is ENDU's Europe business performing?
Europe contributes 27% of H1FY26 sales. Despite weak macro, ENDU is growing in line with industry. Order backlog of €242 million provides visibility, with 41% for EV and 45% for hybrid applications. Stoferle integration adds German OEM access.
