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On the performance front in Q1FY25, revenue for the quarter grew by 15.3% YoY/+5.2% QoQ to Rs.28.25bn on a console basis. Standalone revenue grew +16%YoY/+2% QoQ to Rs.21.2bn. Consol EBIDTA increased by 16.4% YoY to Rs.3.74bn and Stnd EBIDTA up by 19% YoY to Rs.2.74bn. Margin on console basis expanded slightly 13bps YoY to 13.2%, however contracted by 126bps on QoQ basis. PAT for the quarter grew by 24.7% YoY to Rs.2bn. European revenue grew by 17.2% YoY to Rs.7.21bn despite lower single digit growth in European car registration. Margin came at 16.5% to Rs.1.19bn. Maxwell reported a loss of Rs.42mn.

* The company is enhancing its product and process technologies to produce highperformance braking systems for motorcycles over 350cc, with plans to start this business by March 2026. It has begun supplying two-wheeler ABS assemblies to Bajaj Auto and Royal Enfield, achieving a run rate of 400,000 ABS assemblies per annum. With competitors like Bosch and Continental, the company plans to start supplying dual-channel ABS next month and has scaled up additional assembly lines to 240,000 ABS assemblies per annum, increasing total capacity to 640,000 ABS assemblies per annum by Q4 of this financial year. By 2026, Company aims to increase production to 1.2 million single and dual-channel ABS assemblies.

* Additionally, the company has started in-house manufacturing of stainless steel braided hoses and ABS valves to reduce costs and eliminate import reliance. Due to increased orders for aluminum alloy wheels from Bajaj Auto, Yamaha India, TVS, and Royal Enfield, the company’s Chakan plants will supply wheels at a run rate of 5.5 million wheels per annum from this quarter onwards. In FY25, the Europe business won orders worth EUR 3.1 million, including its first Volkswagen order for a specialty plastic component for a hybrid EV. Over the last nine quarters, of the EUR 118 million in orders won, EUR 61 million are for the battery EV business, and EUR 37 million are for the hybrid business.

View and Valuations: Endurance technology has a promising growth story with various positive factors such as the increasing premiumization content in the 2W (125CC+ category), winning new orders from the non-automotive segment in the casting division, recovery in European business and margin expansion (due to lower energy cost), increasing share of EV order book, and increasing alloy wheel capacity in tandem with growing demand for alloy wheels. However, recent sharp run ups in the stock provide limited upside and factor in most of the positives. We value the stock based on FY26E EPS to arrive at the TP of Rs.2,452 (27x of FY26E EPS) and recommend Sell rating on the stock.

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