Endurance Technologies Trades 24% Below Industry P/E: Can Its EV Push Unlock More Value?
Endurance Technologies has traditionally been valued as an auto-component manufacturer with strong exposure to two-wheelers, braking systems, suspension, aluminium castings and transmission components. That business remains the foundation of the company, but its product mix is gradually changing as Endurance expands into four-wheelers, electric vehicles, battery packs and embedded electronics.
This shift is becoming important from a valuation perspective. Endurance traded at 37.4 times trailing earnings, compared with an industry P/E of 49.5 times.This represents a discount of approximately 24% to the industry multiple. Its market capitalisation stood at Rs.37,343.17 crore, while its return on capital employed was 17.8%.
The traditional business remains the valuation base
Endurance has a large established business that gives it scale, customer relationships and manufacturing capabilities. Its core product portfolio includes aluminium castings, suspension systems, braking systems, transmission components and alloy wheels.
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The company has also been deliberately trying to reduce its dependence on two-wheelers by increasing its four-wheeler exposure. Management has set a target of making four-wheelers account for 45% of consolidated turnover by FY30. The strategy includes aluminium castings and forgings, alloy wheels, braking and suspension products and newer products for both internal-combustion and electric four-wheelers.
This matters because the valuation question is not limited to EVs. Endurance is simultaneously attempting to change its customer mix, vehicle mix and product mix.
In FY26, consolidated revenue reached Rs.14,596 crore, up 26.25% year on year, while consolidated PAT rose to Rs.952 crore. The company secured Rs.1,540 crore of orders in India during the year, with 34% of new orders relating to four-wheeler applications and 37% relating to EVs. During FY26, the company secured Rs. 650 crore in new EV orders in India
This provides the first part of the re-rating argument. Endurance is not abandoning its traditional business. It is using that business as a base from which to enter faster-growing categories.
EV orders are becoming more diversified
The EV opportunity at Endurance is broader than battery packs. By Q1 FY27, the company had accumulated Rs.1,806 crore of EV orders on an expected peak annual basis, including Bajaj Auto. Orders excluding Bajaj stood at Rs.1,496 crore. The non-Bajaj order book was spread across several categories, including Rs.599 crore of castings, Rs.395 crore of brakes, Rs.300 crore of battery packs, Rs.123 crore of suspension and Rs.31 crore of alloy wheels.
This composition is important because it shows that electrification is not creating a completely separate business for Endurance. Instead, it is allowing the company to sell several of its existing technologies into new vehicle platforms while adding new products such as battery packs and battery-management systems.
That reduces the dependence of the re-rating thesis on any single EV product. If Endurance were only entering battery packs, investors would have to evaluate whether it could compete successfully against established battery manufacturers and other component suppliers. Its current EV order book provides a broader opportunity because the company can participate in multiple parts of the electric-vehicle architecture.
The figures also suggest that castings and braking products remain significant parts of the opportunity, rather than the entire EV opportunity being concentrated in batteries. The distinction is relevant for valuation because a successful business transformation does not necessarily require the new businesses to replace the old ones. Even a gradual increase in the share of higher-growth products can change the consolidated growth profile.
Battery packs could become an important new business
Endurance’s battery-pack strategy is one of the clearest examples of this transition. The company announced a lithium-ion battery-pack manufacturing facility near Pune. The facility uses Endurance’s battery technology along with the BMS expertise of Maxwell Energy. Production was planned to begin in January 2026, and the company has subsequently commenced commercial output from the facility.
The opportunity also extends beyond electric two-wheelers. Endurance has said that its battery-pack capabilities can address telecom, battery-energy-storage systems and inverter applications. This is potentially important because it changes the addressable market from only automotive electrification to a wider battery-storage ecosystem. For the battery business to materially affect valuation, it would need to scale beyond its initial programmes and demonstrate attractive margins and returns on invested capital.
This is where utilisation becomes an important indicator. Endurance has indicated that its two-wheeler battery-pack line has capacity of approximately 17,000 to 18,000 packs per month, with utilisation expected to increase as customer volumes ramp up.
The market therefore has a straightforward metric to monitor. If battery-pack volumes rise steadily and the company adds four-wheeler programmes, investors can begin estimating the eventual earnings contribution. If utilisation remains low, the valuation argument becomes considerably weaker because the company would be carrying additional capital expenditure without a proportional increase in profits.
Maxwell provides the electronics angle
The second major part of the transformation is Maxwell Energy. Endurance acquired full ownership of Maxwell in May 2025, strengthening its control over battery-management-system technology. Maxwell’s products are aimed at scooters, three-wheelers, tractors, e-bikes, construction equipment and telematics, while the company is also developing high-voltage BMS solutions for four-wheelers, electric trucks and electric buses. In Q1FY27, Maxwell grew 21% QoQ from Rs.46.6 crores in Q4FY26 to Rs.56.5 crores in Q1 FY27, with new order winnings of Rs.13 crore taking the cumulative order book to Rs.238 crores, along with a pipeline of Rs. 300 crores.
This is where the valuation thesis becomes more interesting. Traditional mechanical auto components are generally valued according to factors such as vehicle production, market share, margins, capital intensity and return ratios. Electronics and BMS businesses can have different growth characteristics because their content per vehicle can rise as vehicles become more electronically controlled.
If Maxwell continues to scale rapidly and becomes a meaningful contributor to consolidated earnings, investors may begin to view Endurance as something broader than a conventional mechanical component supplier. But this is not guaranteed. Maxwell must demonstrate that its high growth can translate into sustainable profits. A rapidly growing subsidiary that remains too small to influence consolidated earnings would have limited impact on the overall valuation.
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Four-wheelers provide another growth leg
Endurance’s four-wheeler strategy is equally important to the re-rating case. Management has stated that it wants four-wheelers to contribute 45% of consolidated turnover by FY30. The company expects this to come from aluminium castings, forgings, alloy wheels, braking and suspension systems, proprietary products, acquisitions and technology collaborations.
Management has also described the newer investments as being focused on profitable growth products. During the Q3FY26 earnings call, the company said it had been investing around Rs.400 crore annually in India over the preceding three years, with FY25 capex around Rs.600 crore and FY26 expected to be slightly below Rs.800 crore.
Management highlighted that Rs.530 crore of a Rs.930 crore business opportunity discussed at the time related to four-wheeler castings and solar dampers, which it described as higher-margin businesses.
This is important because a re-rating requires more than revenue growth. If incremental revenue comes with weak margins and heavy capital requirements, the market may not assign a higher multiple. If the new businesses generate attractive returns, the same revenue growth becomes considerably more valuable.
Why the current discount exists
The 24% valuation discount cannot automatically be interpreted as a mispricing. One reason could be that Endurance’s current earnings still largely reflect its traditional automotive businesses. The market may therefore be waiting for evidence that the EV and electronics investments can materially affect earnings before assigning a valuation closer to higher-multiple peers.
Another factor is execution risk. Battery packs and BMS are newer businesses for Endurance, and scaling them requires customer approvals, manufacturing utilisation, product validation and continued investment.
There is also the question of profitability. Endurance’s Q1 FY27 performance showed consolidated revenue growth of around 30% year on year, but EBITDA growth was slower and PAT growth was about 8%. That divergence means the market has evidence of strong top-line momentum but still needs to see whether the new investments can translate into sustained earnings acceleration.
This makes the current 38.63 times P/E more complicated than a simple comparison with the 50.67 times industry P/E. The industry multiple is an average across companies with different growth rates, margins, product mixes and balance sheets. Endurance does not automatically deserve the industry multiple simply because it trades below it. The real opportunity would arise if Endurance’s earnings growth accelerates while its business mix becomes more diversified.
What could actually change the multiple
A re-rating would likely require several developments to occur together. The first would be continued growth in EV orders. The existing Rs.1,806 crore cumulative EV order pipeline provides visibility, but investors will eventually need to see actual revenue conversion.
The second would be a successful battery-pack ramp-up. Commercial production is already underway, but higher utilisation and additional customer programmes would make the business more relevant to consolidated earnings.
The third would be Maxwell’s continued expansion. Its turnover rising from Rs.70 crore for FY25 to Rs.114 crore in the first nine months of FY26 along with a 21% QoQ growth to Rs.56.5 crores in Q1FY27 demonstrates early momentum. Continued growth, followed by sustained profitability, would provide stronger evidence that Endurance is creating an electronics business rather than simply acquiring an EV-related capability.
The fourth would be the four-wheeler mix. Moving toward the stated 45% target by FY30 would reduce Endurance’s historical dependence on two-wheelers and broaden its exposure to passenger vehicles and EV platforms.
The fifth would be returns on capital. Endurance needs to demonstrate that the large investments in new plants and technologies produce returns comparable with or better than the existing business.
The valuation gap could narrow without requiring a 50x P/E
The most important point is that the re-rating thesis does not require Endurance to immediately trade at the industry average of 50.67 times earnings. At the current market capitalisation of Rs.37,343.17 crore and trailing P/E of 37.4 times, the market is already assigning a substantial value to the company’s future earnings.
If earnings grow rapidly, the multiple can fall even if the share price remains unchanged. For example, assuming the current share price remains constant, a 20% increase in earnings would reduce a 37.4 times P/E to roughly 31.2 times. A 40% increase would reduce it to about 26.7 times.
This is why earnings growth is more important than simply comparing today’s multiple with the industry. If Endurance delivers strong earnings growth while investors become more confident about battery packs, BMS, four-wheeler castings and electronics, the market could theoretically support a higher multiple while the underlying earnings denominator is also rising.
Conversely, if earnings growth remains modest and the new businesses require continued capital without sufficient returns, the existing premium to Endurance’s historical valuation could become difficult to justify. This suggests that the stock sits between two different valuation narratives. It is above its recent historical trough, but below the broader peer group.
The key metrics to watch
The next phase of Endurance’s story should therefore be judged through operating numbers rather than simply the P/E ratio. Investors should first track EV order conversion, because the Rs.1,806 crore order pipeline only becomes economically meaningful as it converts into revenue. The second metric is battery-pack utilisation, which will indicate whether the new manufacturing capacity is becoming productive capital.
Maxwell revenue and profitability will be equally important. Revenue of Rs.114 crore in the first nine months of FY26, compared with Rs.70 crore for the full year FY25 along with a 21% QoQ growth to Rs.56.5 crores in Q1FY27 demonstrates scale-up, but the business will need to become large and profitable enough to influence consolidated earnings. The four-wheeler revenue mix is another critical metric. Management’s target of 45% of consolidated turnover by FY30 would represent a meaningful shift from Endurance’s historical two-wheeler concentration.
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Investors should also monitor the consolidated EBITDA margin to determine whether new businesses are generating operating leverage rather than simply adding revenue. Alongside this, ROCE will show whether the company is earning attractive returns on the capital being deployed into new plants, technologies and acquisitions. New EV customer additions will indicate whether growth is broadening beyond existing OEM relationships, while non-automotive battery orders will test whether Endurance can extend its battery capabilities into telecom, energy storage and inverter applications.
Finally, free cash flow will remain important. The company is entering a period of elevated investment, so the ultimate quality of the transition will depend not only on reported earnings but also on how much cash remains after funding growth.