Endurance Technologies (ENDURANCE) Q2 FY27 Profit Lags Revenue as Costs Bite
The auto component maker posted a 34% revenue surge in Q2 FY27, but profit growth of 21% was held back by a sharp rise in raw material costs.
Endurance Technologies' Q2 FY27 saw robust revenue growth driven by strong automotive demand. However, profitability was squeezed as material costs surged over 50%, outpacing sales and compressing margins.
For an auto component maker, a booming vehicle market is the ultimate tailwind. Endurance Technologies rode that wave in the September quarter, but the ride came with a cost.
The company's consolidated revenue jumped 33.6% year-on-year to ₹4,786 crore. Net profit grew a slower 20.7% to ₹274 crore, as the net profit margin slipped 60 basis points to 5.7%. Sequentially, both revenue and profit grew by about 11-12%, with the margin holding flat.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 4,786.18YoY +34% | 4,314.89 | 3,582.82 |
| Profit (₹ Cr) | 274.29YoY +21% | 244.52 | 227.27 |
| Net Profit Margin (%) | 5.7YoY -9.5% | 5.7 | 6.3 |
Why the profit didn't keep up
Revenue growth was powered by a 40% surge in the standalone India business, as reported by TradingView. This mirrored strong domestic vehicle sales. Yet, total expenses grew faster at 36.1%, led by a 51.5% jump in the cost of materials consumed.
This raw material inflation, particularly in aluminium, outstripped the company's ability to pass costs through immediately. The result was a compressed EBITDA margin of 11.7%, down 160 basis points from a year ago.
The outlook hinges on cost relief
Management expects profitability to trend upward from here. In its commentary cited by TradingView, the company pointed to expected softening in aluminium prices and improved cost pass-throughs with OEMs.
New capacity is also coming online. The AURIC Shendra aluminium die-casting plant began production in September, and the battery pack facility is ramping up. These, along with the recent acquisition of Fondalpress in Europe, are aimed at securing future growth.
Key Points
- Revenue growth of 33.6% YoY significantly outpaced profit growth of 20.7%, highlighting margin pressure.
- The primary drag was a 51.5% surge in material costs, which compressed the EBITDA margin by 160 basis points.
- Management expects an improving profitability trend, aided by softer input costs and better cost pass-throughs.
- New plant commissioning and European acquisitions are set to bolster the company's medium-term growth profile.
Hexa Perspective
The quarter presents a clear picture of top-line strength meeting bottom-line friction. The margin squeeze is not a demand problem but a cost-timing one. The critical question is how quickly and fully the promised cost recoveries materialise.
If aluminium prices soften as anticipated and new plants achieve efficient scale, the earnings momentum could catch up to the impressive sales story. Until then, the gap between revenue and profit growth remains the metric to watch.
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