Endurance Technologies Ltd Management Discussions

Economic Review

Global Economy1

The global economy during CY 2025 unfolded against a backdrop of intensifying trade tensions and elevated geopolitical rhetoric. Nevertheless, it exhibited a degree of resilience that exceeded expectations. Global GDP expanded by 3.4% in CY 2025, broadly in line with the previous year, indicating stable underlying momentum.

This outcome was the result of a confluence of several factors. Front loading of trade provided lift to manufacturing and logistics activity. Notably, capital expenditure in Artificial Intelligence (AI), semiconductor ecosystems and digital infrastructure, particularly across North America and select Asian economies supported investment cycles. Accommodative fiscal policies implemented by major economies worldwide maintained a balance between stability and stimulus.

Advanced economies grew by 1.9%. The US led this growth with a 2.1% expansion, attributable to robust investor confidence and fiscal continuity, even as employment growth moderated. Europe grew by 1.4%, exhibiting notable resilience in the face of trade headwinds.

Emerging and developing economies expanded by 4.4%, with China outperforming at 5.0%. This was facilitated by government spending and strong exports. However, several smaller economies continued to face challenges, such as resource constraints, currency pressure and high sovereign debt levels.

Overall, policy agility and innovation continue to bolster the global economy. However, it remains susceptible to renewed trade disruptions and geopolitical escalations. The escalating tensions in West Asia have introduced renewed geopolitical fragility into the global macroeconomic landscape. While markets have so far remained relatively resilient, any prolonged disruption to key energy supply routes could trigger volatility in global oil markets, potentially impacting fuel prices, logistics costs and industrial production across economies. In response, several countries have intensified diplomatic efforts to stabilise the region while simultaneously exploring alternative energy supply channels and diversifying crude sourcing to mitigate potential supply shocks.

Outlook

Following a period of elevated trade barriers and uncertainty, global GDP is projected to grow by 3.1% in CY 2026, followed by a marginal improvement to 3.2% in CY 2027.

Global headline inflation is expected to rise modestly to 4.4% in CY 2026 before easing to 3.7% in CY 2027.2 The impact of slower growth and higher inflation is likely to be more pronounced in emerging markets and developing economies. Fiscal and monetary stances around the world is expected to remain supportive, while expanding bilateral trade partnerships may help economies diversify away from concentrated trade dependencies.

Simultaneously, advancements in AI could significantly elevate productivity. As supply chains normalise, long-term growth and stability will depend on strengthened trade integration, institutional reforms and investment-led growth across emerging markets.

This expansion can be attributed to resilient rural consumption, steady agricultural output and industry growth supported by Production Linked Incentive (PLI) programmes. The Union Budget 2026-27 further augmented the PLI outlay for automobiles and auto components. Public capex and services spending continue to drive recovery.

Inflation has moderated considerably, with CPI easing to 3.40%4 (revised base year 2024). This has strengthened real purchasing power and is expected to contribute to the recovery of both urban and rural demand.

At the same time, the recent India-EU Free Trade Agreement and ongoing trade dialogue with the US mark an important inflection in Indias external economic strategy. New trade partnerships are expected to diversify export markets, promote technology transfer and position India more firmly within global value chains. India has also responded prudently by diversifying its crude import sources and strengthening alternative supply channels to safeguard its energy security and national interests.

Outlook

India remains well-positioned to maintain its strong trajectory of growth in the years ahead, with real GDP growth for FY 2026-27 expected to be 6.9%5. Strong public investment and an uptick in private consumption are expected to drive growth. The Real Private Final Consumption Expenditure is estimated to expand by almost 7.0%, signalling rising purchasing power and stable employment conditions.

RationalisationoftheGSTframework,enhancedtradeintegration through new FTAs and improvements in ease of doing business are foreseen to bolster export competitiveness and improve business sentiment. Although global trade fragmentation and geopolitical uncertainties persist, easing inflation under the revised CPI base year provides the Reserve Bank of India with some leeway to retain a supportive monetary stance.

Overall, the interplay of policy prudence and steady domestic demand is likely to strengthen the countrys long-term growth narrative.

Industry Review

Global Automobile Industry Review6

Light Vehicle Sales Data for CY 2025

Region CY 2025 Sales (million units)

Global automobile sales in CY 2025 reached approximately 91.7 million light vehicles, surpassing pre-pandemic 2019 levels of 89.9 million units for the first time. This milestone brings into focus the industrys steady recovery from pandemic-related disruption to the fore and also highlights the gradual normalisation of supply chains that had constrained production in prior years.

Electrification gained strong momentum. Battery Electric Vehicles (BEVs) achieved record market share in several advanced markets, with Norway exceeding 95% and Europe averaging around 27%7. Policy support, stringent emission norms and growing consumer acceptance of sustainable mobility propelled this shift. Hybrid vehicles also gathered pace, particularly in Asia, complementing the broader transition to cleaner powertrains amid improving battery costs and expanding charging infrastructure worldwide.

Looking ahead to CY 2026, the industry is poised for modest growth of 0.2%, reaching 91.86 million units. Supportive emissions norms in Europe and

regulations, such as stricter CO2

eco-incentives in key Asian markets, are expected to expedite BEV and hybrid adoption, while affordability measures and new model launches from leading OEMs could help unlock pent-up demand. Overall, the sector stands at the cusp of a new phase of growth, with electrification and smart mobility solutions supporting long-term expansion opportunities.

Global Auto Components Industry Review8

The global auto components industry reached $ 573.65 billion in CY 2025 amid intense competition. Innovation and engineering capabilities continued to emerge as key differentiators.

CY 2025 witnessed major shifts as electrification continued to shape the industry landscape. Accelerating Electric Vehicle (EV) adoption, advancements in Advanced Driver Assistance Systems (ADAS) and robust aftermarket expansion catalysed demand for maintenance and replacement parts.

The sector is projected to reach $ 609.34 billion in CY 2026, on track to reach $ 896.71 billion by CY 2032 at a CAGR of 6.58%. This growth is envisioned to be powered by sustained innovation, rising investments in electrification and autonomous technologies and expanding e-commerce channels. As players navigate dynamic market conditions, they are pursuing geographic expansion, portfolio diversification and strategic partnerships to capture emerging opportunities in a rapidly evolving automotive value chain.

Indian Automobile Industry Review9

The Indian automobile industry remains one of the most dynamic globally, anchored by scale, demographic depth and expanding mobility needs. The country continues to lead global three-wheeler production and is the largest two-wheeler market worldwide. During FY 2025-26, total production across passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles surged to 347.1 lakh units. This reflects robust manufacturing capacity amid rising domestic and export demand. Policy measures, such as GST restructuring, have streamlined taxation and enhanced affordability across segments.

Two-wheeler segment

Domestic two-wheeler sales climbed to 217.1 lakh units in FY 2025-26, attributable to resilient rural consumption, electric variant launches and expanded financing options that broadened market accessibility.

Three-wheeler Segment

Sales in the three-wheeler segment rose to 8.4 lakh units in FY 2025-26. Growth was supported by demand for electric cargo vehicles and the expansion of e-commerce and last-mile logistics activities.

Four-wheeler Segment Passenger Vehicles

Passenger vehicle domestic sales reached 46.4 lakh units in FY 2025-26, buoyed by blockbuster SUV launches and technologically advanced offerings. Festive demand and stable financing conditions further bolstered volumes.

Commercial Vehicles

Commercialvehiclesalestotalled10.8lakhunitsinFY2025-26.This performance was aided by steady infrastructure development, fleet replacement cycles and favourable export tailwinds.

Electric Vehicles (EV)10

Indias EV industry witnessed strong momentum in FY 2025–26, with total EV retail sales rising by 24.6% YoY to 24.5 lakh units, significantly outpacing growth in the broader automobile market. Electric two-wheelers remained the largest segment with sales of 14.0 lakh units, registering a growth of 21.8%, while electric three-wheelers grew 19% to 8.3 lakh units. The passenger vehicle segment emerged as the fastest-growing category, with electric car sales surging 83.6% to 2 lakh units, driven by improving consumer adoption, expanding product portfolios and enhanced charging infrastructure. Electric commercial vehicle sales more than doubled to 0.2 lakh units, reflecting increasing electrification in fleet and logistics operations. Rising fuel prices, supportive government policies, improving infrastructure and growing consumer preference for clean mobility continued to accelerate EV adoption across segments in India.

EV Sales Performance at a Glance (Nos. in unit)

Category	FY 2025-26	FY 2024-25	YoY Growth
			(%)
Two-wheelers	14,01,818	11,50,790	21.8%
Three-wheelers	8,30,819	6,98,914	19.0%
Passenger vehicles	1,99,923	1,08,873	83.6%
Commercial	19,454	8,820	120.6%
vehicles
EVs	24,52,014	19,67,397	24.6%

Sales by Indian OEMs* (Nos. in unit)

Category	FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25	FY 2025-26
Passenger vehicles	36,47,398	45,53,005	48,90,855	50,72,212	55,48,639
Commercial vehicles	8,08,863	10,41,113	10,34,588	10,37,657	11,74,664
Three-wheelers	7,61,115	8,54,317	9,94,778	10,48,334	12,96,798
Two-wheelers	1,80,13,139	1,95,14,893	2,14,32,781	2,38,05,735	2,68,86,403
Quadricycles	4,450	3,005	4,903	6,542	6,700
Grand Total	2,32,34,965	2,59,66,333	2,83,57,905	3,09,70,480	3,49,13,204

* The figures include domestic and export sales Source: SIAM Report11

Indian Auto Components Industry Review13

Indias auto components industry has built both scale and resilience over the past decade. The sector has grown steadily, emerging as an important contributor to both the domestic economy and global supply chains. Over the past five years, the sector has exhibited an estimated Compound Annual Growth Rate (CAGR) of 10%, reflecting consistent expansion in production and demand. This growth reflects increasing sales in both the local market and exports.

The sectors competitiveness can be attributed to a skilled workforce, improving technological capabilities and rising vehicle production. The industry plays a critical role in supporting passenger vehicles, commercial vehicles, two- and three-wheelers and increasingly Electric Vehicles (EV) too. As global players recalibrate supply chains, Indias reputation as a reliable sourcing destination continues to strengthen.

The outlook for the sector remains optimistic. The industry is anticipated to sustain its growth momentum and reach a total market value of approximately $ 200 billion by 2030. Growth in domestic demand and expanding export opportunities are expected to be crucial drivers. Domestic auto component sales are anticipated to grow at a healthy rate through 2030, fuelled by incremental vehicle penetration, higher parts per vehicle and the adoption of new-age technologies.

Exports are expected to expand significantly, lifted by both conventional Internal Combustion Engine (ICE) parts (with a $ 20–30 billion export opportunity) and the rise of Electric Vehicle (EV) technologies aligned with global electrification trends. Even as global trade shifts due to geopolitical fragmentation, Indias auto-component industry is well-positioned to benefit from diversification of supply chains and global demand.

Company Overview

Endurance Technologies Limited is one of Indias leading automotive component manufacturers. The Company offers a diversified portfolio encompassing aluminium die casting, suspension systems, braking systems, transmission components, alloy wheels and embedded electronics, including ABS and Battery Management Systems (BMS). The Company serves major Indian and global OEMs across two-wheeler, three-wheeler and four-wheeler segments, with a growing presence in Europe.

With strategically located manufacturing facilities in India and Europe, the Company combines scale, engineering strength and operational excellence to deliver high-quality and safety-critical products. During the year, production commenced at its alloy wheel plant at AURIC Bidkin, alongside sustained expansion in ABS, disc brakes, aluminium forgings, machined castings and lithium-ion battery packs, supporting evolving mobility requirements.

Manufacturing and R&D

The Companys manufacturing footprint spans strategically located facilities in India and Europe, situated in proximity to OEM customers to ensure responsiveness, delivery reliability and cost efficiency. These modern and scalable facilities are continually upgraded to align with evolving industry requirements, such as electrification, lightweighting and advanced braking technologies, including ABS.

During FY 2025-26, the Company commenced production at its alloy wheel plant at AURIC Bidkin with an annual capacity of 36 lakh wheels. The facility is already fully booked. In parallel, the Company is establishing new facilities for aluminium forging and machined castings at AURIC Shendra, Dist. Chhatrapati Sambhajinagar, a lithium-ion battery pack plant at Mindewadi,

Dist. Pune and is expanding brake, ABS and electronics capacities across Waluj, Chennai and Sanand. Expansion capex continues to be largely growth-oriented, supporting new orders from both domestic and global OEMs.

Complementing its manufacturing strength is a robust R&D ecosystem, which plays a critical role in driving innovation and product development. Next-generation Suspension and Brakes R&Dcentresarenowoperational,enhancingin-housecapabilities across design, testing, validation and advanced engineering. The state-of-the-art R&D facility at Waluj significantly expands laboratory and testing infrastructure, supporting development of future-ready technologies, such as smart mobility solutions, EV components, embedded electronics, BMS and sustainable product technologies. With a portfolio of 96 patents and 89

New Product Development

Innovation continues to be a guiding tenet for the Company. It prioritises technology-led product development aimed at improving performance, safety, durability and cost efficiency across vehicle segments. Its strong engineering backbone, comprising advanced design tools, virtual validation systems, Computer-Aided Engineering (CAE), simulation capabilities and in-house testing infrastructure enables faster development cycles and robust product validation aligned with evolving OEM requirements.

During FY 2025-26, several advanced programmes transitioned from development to commercialisation. Commercial production of the Adler technology-based Assist and Slip (APTC) clutch commenced, while dual-channel ABS systems progressed through customer validation, supported by ongoing capacity expansion.

The Company also expanded into electric mobility components, securing significant orders for battery packs, BMS, casting components, brakes, suspensions and alloy wheels across e-two-wheeler, e-three-wheeler and e-four-wheeler platforms. The expansion of the SMT line for in-house ABS ECU and higher BMS volumes further strengthens embedded electronics capabilities. The Company secured cumulative EV-related business wins exceeding 1,700 crore, including battery pack and embedded electronics orders and continued to strengthen its product portfolio in line with electrification, smart mobility and evolving technology trends.

Key business initiatives undertaken in FY 2025-26

The Company commenced commercial production of the APTC clutch during the year, strengthening its proprietary product portfolio in the motorcycle segment.

Dual-channel ABS systems are under customer validation. The Company is also augmenting capacities for ABS and Disc Brakes at Waluj and Chennai to meet growing demand.

The SMT line is being expanded to support in-house ABS ECU manufacturing and higher Battery Management System (BMS) volumes, enhancing embedded electronics capabilities.

Production commenced at the Alloy Wheel plant at AURIC Bidkin, Dist. Chhatrapati Sambhajinagar, with an installed capacity of 36 lakh wheels per annum, which is already fully booked.

The Company is setting up a lithium-ion battery pack plant at Mindewadi, Pune, with Commercial production expected in Q1 of FY 2026-27, to support growing EV demand.

The Company has established a presence in the niche components segment for solar power generation plants, creating a platform for future growth in domestic and international markets.

The Company is installing capacity at AURIC Shendra, Chhatrapati Sambhajinagar, for four-wheeler and non-automotive machined castings, with Commercial production expected in Q2 of FY 2026-27.

A new Aluminium Forging plant is under construction to meet rising production requirements, with Commercial production expected in Q3 of FY 2026-27.

Endurance Overseas SpA completed the acquisition of a 60% stake in St?ferle Automotive GmbH and St?ferle GmbH, Germany, with a clear pathway towards acquiring the remaining 40% stake over the next five years.

The Company increased its stake in Maxwell Energy Systems Private Limited to 100% during the year and streamlined its European corporate structure to enhance operational efficiency.

The next-generation Suspension and Brakes R&D centres became operational, further strengthening advanced engineering, validation and product development capabilities.

utilisation of cutting-edge technologies and in-house tooling has strengthened its market position as it continues to enhance its technical expertise to meet evolving industry demands.

Performance of Aluminium Die Casting and Machining in FY 2025-26

During FY 2025-26, the Company continued to strengthen its aluminium die casting and machining business through capacity expansion, technology enhancement and an increasing focus on four-wheeler and non-automotive applications. The Company secured business from leading global customers for EV and hybrid platforms, including programmes for a large U.S.-based EV OEM, taking the peak annual business potential of the plant to nearly 513 crore, with Commercial production for key programmes expected to commence during Q2 of FY 2026-27. In addition, the Company continued expanding its die casting and machining operations at Chakan.

braking technologies and evolving ABS regulations. The Company expanded its ABS and disc brake capacities at Waluj and initiated development of a new brake manufacturing facility at Mambakkam, Chennai, to cater to OEMs in South India and support future growth requirements. Dual-channel ABS systems progressed through customer validation during the year, while in-house ECU manufacturing capabilities were strengthened through expansion of the SMT line at Waluj. The Company also operationalised its integrated Brakes R&D Centre, enhancing testing, validation and product development capabilities for two-wheeler and four-wheeler brake systems. Additionally the Company has secured proprietary orders for passenger vehicle foundation brakes, further strengthening its presence in advanced braking solutions.

The Company is a well-established player in transmission systems for two and three-wheelers, with strong design and manufacturing expertise. For motorcycles, it produces cork- and paper-based clutches, including advanced APTC clutches. For three-wheelers, it manufactures clutches and driveshafts, with driveshafts also supplied for four-wheeler applications.

Performance of Transmission in FY 2025-26

During FY 2025-26, the transmission business continued to expand, supported by increasing premiumisation in motorcycles and growing demand for proprietary products. Commercial production of the APTC clutch commenced during the year, strengthening the Companys advanced transmission portfolio. The Company also made progress in its driveshaft business, completing assembly line installation and vehicle-level validation activities for its first four-wheeler driveshaft programme, with Commercial production expected in FY 2026-27. In addition, the Company secured proprietary orders for passenger vehicle driveshafts, strengthening its position in the four-wheeler transmission business.

The Company is broadening its footprint in EV and hybrid mobility through its core products and embedded electronics capabilities. Its wholly-owned subsidiary, Maxwell Energy Systems, develops advanced BMS solutions, while a new lithium-ion battery pack plant further bolsters its EV portfolio. The Company continues to secure strong EV orders across segments in India and Europe.

Performance of Embedded Electronics in FY 2025-26

During FY 2025-26, the embedded electronics and EV solutions business recorded strong growth supported by increasing order inflows, technology development and expansion of Maxwell Energy Systems. The Company strengthened its EV portfolio through BMS, battery packs and advanced embedded electronics solutions across two-wheeler, three-wheeler and emerging four-wheeler applications.

Maxwell achieved highest ever turnover during the year, while cumulative BMS and embedded electronics orders increased to 247 crore annually, with additional RFQs exceeding

300 crore. The Company also expanded its embedded electronics capabilities through enhancement of SMT lines for in-house ABS ECU manufacturing and higher BMS volumes. In addition, significant progress was made in establishing the lithium-ion battery pack facility near Pune, with Commercial production expected in Q1 of FY 2026-27. EV-related business wins continued to strengthen across domestic and global OEM platforms, including battery pack, braking, casting and electronics applications.

The Company is strengthening its presence in the aftermarket segment by deepening its distribution network and augmenting engagement with mechanics and retailers. With a comprehensive portfolio spanning suspension, braking, transmission and allied components, the focus remains on driving secondary demand and improving product reach across key markets. Supported by continued growth in the domestic automotive industry, particularly in two- and three-wheelers, the replacement market continues to present a strong opportunity, with increasing vehicle parts and rising preference for premium and safety-linked components aiding demand visibility.

In line with its long-term roadmap, the Company is building a capability-led aftermarket ecosystem through stronger distributor alignment, targeted mechanic engagement programmes and structured training initiatives covering evolving technologies, including BS6 and Electric Vehicles (EV). The introduction of mechanic loyalty programmes, along with initiatives such as certification, health camps and community engagement, is helping deepen relationships at the last-mile level. In parallel, the Company is leveraging digital and AI-enabled platforms to streamline secondary order booking and enhance channel efficiency, while also investing in strengthening its sales capabilities to drive sustained growth in this strategic business segment.

Performance of Aftermarket in FY 2025-26

During FY 2025-26, the aftermarket business continued to strengthen through deeper channel engagement, expansion of product offerings and increasing focus on premium and technology-led products. The Company continued enhancing its distributor network and mechanic engagement initiatives to improve market penetration and secondary demand generation across domestic markets. Demand in the replacement market remained supported by growing sales of two-wheeler and three-wheeler spare parts, alongside increasing adoption of premium products. The Company also continued to leverage digital platforms, AI-enabled channel initiatives and mechanic loyalty programmes to improve operational efficiency, customer reach and engagement across domestic and international aftermarket operations.

Subsidiaries

Performance of Indian subsidiary in FY 2025-26 Maxwell Energy Systems Private Limited

Maxwell Energy Systems Private Limited, a wholly owned subsidiary of the Company, continued to strengthen its position in advanced electronics and EV solutions during FY 2025-26. The subsidiary is engaged in BMS, battery packs and embedded electronics solutions catering to electric two-wheelers, three-wheelers, tractors and other mobility applications. During the year, the Company increased its stake in Maxwell from 61.5% to 100%, reinforcing its commitment to the expanding electric mobility ecosystem.

During FY 2025-26, Maxwell reported total income of 161 crore, compared with 70 crore in FY 2024-25, representing growth of approximately 130%. The subsidiary reported an EBITDA of

1 crore against an EBITDA loss of 7 crore in the previous year, while its net loss narrowed to 10 crore from 17 crore in FY 2024-25. During the year, Maxwell secured new business worth

56 crore, taking cumulative embedded electronics orders to approximately 247 crore on an annualised basis. The subsidiary also received a Letter of Intent for a battery pack programme with peak annual sales potential of approximately 300 crore and continued pursuing additional opportunities exceeding

300 crore across BMS, TPMS and charger applications. Supported by expanding customer engagements, new product introductions and growing participation in the EV value chain, Maxwell remains well positioned for future growth.

Performance of Overseas Subsidiaries in FY 2025-26

During FY 2025-26, the Companys international subsidiaries continued to strengthen their presence across key European markets through strategic investments, operational integration and sustained customer engagement. The acquisition of St?ferle Automotive GmbH and St?ferle GmbH ("St?ferle Group"), together with the restructuring of the Italian operations, enhanced the Groups manufacturing, engineering and automation capabilities. The subsidiaries secured new business from leading automotive customers and remained focused on improving operational efficiency, technological capabilities and long-term profitability.

Endurance Overseas SpA

Endurance Overseas SpA ("EOSpA"), a wholly owned subsidiary of the Company, is a Special Purpose Vehicle incorporated in Italy to facilitate strategic overseas investments. In addition, EOSpA provides management support services to the Group entities across Europe, overseeing certain critical functions that are centralised within the organisation for strategic and operational effectiveness.

During FY 2025-26, EOSpA reported total income of € 11.91 million compared with € 12.25 million the previous year. The marginal decline was primarily attributable to lower income received from the Company under the licence agreement. PAT increased from € 12.6 million in FY 2024-25 to € 27.8 million, driven by higher dividend income from its Italian subsidiaries, which amounted to € 30 million during the year compared to € 13 million in the previous year.

Endurance SpA

Endurance SpA ("ESpA"), formerly Endurance Castings SpA, is a step-down operating subsidiary of the Company in Italy. It manufactures high-pressure die-casting and machining components for the automotive sector, including engine, gearbox and transmission parts, as well as assembled metallic components using aluminium alloys, cast iron and steel.

With effect from 1st January, 2026 (retrospectively effective from 1st April, 2025 for reporting purposes), Endurance Engineering Srl and Endurance SpA were merged into Endurance Castings SpA as part of a business restructuring initiative. Following the merger, Endurance Castings SpA was renamed Endurance SpA. The integration consolidated manufacturing, engineering and product capabilities within a single organisation, creating a more diversified player in the four-wheeler automotive components market with expertise in both metal and plastic components for automotive applications.

During FY 2025-26, ESpA reported a total income of € 234.07 million and a PAT of € 14.54 million. For comparison, the standalone entity reported a total income of € 46.86 million and PAT of € 1.88 million in the previous year. On a pro forma basis, reflecting the combined performance of the merged entities, total income for the previous year was € 229.9 million with a PAT of €16.72 million.

The increase in revenue during the year supported higher EBITDA; however, this improvement was more than offset by higher depreciation charges and a higher tax burden, as enhanced depreciation allowances on technologically advanced machinery acquired in earlier years had expired, reducing the available tax shield. Energy costs also remained significantly above historical levels, with the material component of electricity and gas prices remaining approximately twice the levels prevailing up to 2021. On average, electricity prices were around 160% higher and gas prices around 180% higher than pre-2021 levels.

During the year, the subsidiary secured new orders from several automotive manufacturers, primarily for powertrain components, representing an estimated annual revenue of approximately € 12 million at full production volumes. Production for most of these programmes is scheduled to commence in FY 2026-27.

Endurance GmbH

Endurance GmbH ("EGmbH"), a wholly owned subsidiary based in Germany, manufactures high-pressure die-casting and machining components for leading automotive OEMs in the German market. During the year under review, EGmbH reported total income of € 52.45 million, representing a decline of 13.5% from € 60.63 million in the previous year. The company recorded a net loss after tax of € 0.69 million, compared with a profit of € 2.0 million in the previous year, which had benefited from a gain on the disposal of investments.

Endurance Two Wheelers SpA

Endurance Two Wheelers SpA ("E2WSpA"), a step-down operating subsidiary of the Company in Italy, manufactures clutches, brake systems and other metal-rubber components for the OEM market. It also produces brake pads, brake discs, centrifugal clutches, clutch discs and brake shoes for two-wheeler aftermarket and replacement segments.

During FY 2025-26, E2WSpA reported a total income of € 17.6 million and PAT of € 0.8 million, compared with total income of € 16.9 million and PAT of € 0.6 million in the previous year. The improved performance was supported by cost savings realised from the reorganisation initiatives undertaken following the merger completed in the previous year.

Veicoli Srl

Veicoli Srl ("Veicoli") is a step-down operating subsidiary of the Company in Italy, providing fleet management services through its proprietary digital platform. During FY 2025-26, Veicoli reported a total income of € 3.2 million, compared with € 2.2 million in the previous year, while PAT increased to € 0.6 million from € 0.4 million. The company remained focused on expanding its customer base and broadening its portfolio of service offerings to support future growth.

Ingenia Automation Srl

Ingenia Automation Srl ("Ingenia"), a step-down operating subsidiary in Italy, specialises in automation solutions for industrial applications. The company works extensively with EOSpAs subsidiaries and was acquired to enhance the Groups automation expertise and technological capabilities. During FY 2025–26, Ingenia reported total income of € 12.6 million, compared with € 8.6 million in the previous year, reflecting contributions from both captive and non-captive transactions. PAT increased from € 0.2 million in the previous year to € 0.7 million in the year under review, supported by higher business volumes and improved operational performance.

St?ferle Automotive GmbH

St?ferle Automotive GmbH ("SAG") is a step-down subsidiary operating in Germany and specialising in the machining of cast components for automotive application. EOSpA acquired 60% of the capital share in SAG in April 2025 for a consideration of € 26.4 million. The acquisition enhances the Groups machining capabilities and strengthens its presence in the European automotive components market.

Under the terms of the acquisition agreement, the purchase consideration for the remaining 40% stake will become payable upon the exercise of the respective call options, which are scheduled annually in tranches of 8% each from June 2026 to June 2030.

During FY 2025-26, SAG reported total income of € 76.99 million and PAT of € 5.28 million.

St?ferle GmbH

St?ferle GmbH ("SGH") is a new step-down operating subsidiary in Germany and specialises in the machining of cast components for automotive applications. In April 2025, EOSpA acquired 60% of the capital share in SGH for a price consideration of € 11.3 million.

The purchase price for the remaining 40% stake is payable upon exercise of each option, scheduled annually in tranches of 8% each from June 2026 to June 2030.

During FY 2025-26, SGH reported total income of € 17.34 million and a PAT of € 4.12 million.

Quality and Productivity Focus

Long-term growth in a complex manufacturing environment depends as much on quality discipline as it does on innovation. The Company continues to strengthen its quality and productivity architecturethroughitsCentralQualityfunction,ensuringuniform standards across plants, platforms and geographies. Advanced manufacturing technologies, automation initiatives and in-house capabilities enable consistent product performance, cost efficiency and timely delivery.

Digitalisationacrossoperationsfurtherstrengthensthisapproach. Process monitoring, data-driven quality systems and traceability tools improve transparency across operations. Focused sourcing strategies and localisation further strengthen supply chain resilience while also contributing to cost optimisation.

The Company remains committed to the Quality, Cost, Delivery, Development and Management (QCDDM) philosophy as a core driver of competitiveness. Value Analysis and Value Engineering (VAVE) initiatives are actively pursued to enhance product design, optimise material usage and reduce component weight, particularly in aluminium die casting. Continuous investments in new technologies, process automation and R&D capabilities reinforce its ability to deliver high-quality, innovative and productivity-led solutions.

Environment and Sustainability

Sustainability remains integral to the Companys operations and long-term strategy. During FY 2025–26, the Company strengthened its commitment to the Science Based Targets initiative (SBTi) and completed its internal Net Zero roadmap, targeting operational Net Zero by 2035 and full Net Zero in the longer term. Progress towards its 2030 goals continues through energy efficiency initiatives, deployment of heat pump technology, improved thermal management and lightweighting across products, contributing to reduction in Scope 1, Scope 2 and Scope 3 emissions.

Renewable energy adoption accelerated during the year with the addition of ~18 MW capacity, including wind-solar hybrid solutions. The Company also made strong progress in circularity, expanding its Zero Waste to Landfill programme, improving recycling rates and increasing the use of recycled aluminium. Water conservation initiatives and Life Cycle Assessment (LCA) studies across key product lines continue to support resource efficiency and decarbonisation efforts.

Sustainability is further embedded across operations through energy optimisation and green building practices, alongside growing focus on a responsible supply chain and employee-led sustainability initiatives. ESG ratings improved during the year, reflecting strengthened performance and disclosures.

Human Resources

Human resources remain central to the Companys long-term growth and organisational transformation journey. During the year, the Company strengthened its people practices in line with business expansion, capability enhancement and future-readiness. With the addition of new plants and capacities, the Company continued to focus on building a scalable and agile workforce supported by structured talent acquisition, leadership development and digital HR initiatives.

Leadership Development and Capability Building

Developing future-ready leaders and strengthening internal capabilities remained a strategic priority for the Company. During the year, the Company increased its focus on learning and development, with average training man-days increasing to nearly 4 days per employee. Structured training programmes across technical, behavioural and managerial domains continued to strengthen capabilities at multiple levels.

Initiatives undertaken by the Company to strengthen leadership and organisational capabilities:

Introduction of a structured Leadership Academy Programme focused on Leading Self, Leading Others and Leading the Organisation.

Launch of the Plant Head Qualification Programme to groom internal talent for future plant leadership roles.

Continued focus on skilling and upskilling initiatives across functions, particularly to strengthen mid-management capabilities and succession readiness.

Deployment of programmes such as Unnati and Saksham to strengthen technical, functional and behavioural competencies across employee groups.

Strengthening succession planning and internal leadership pipelines for critical positions across the organisation.

Developing a High-Performance Culture and Employee Engagement

The Company continued to strengthen a high-performance culture anchored in its CITTI values. Employee engagement initiatives focused on Culture, Connect, Competence and Career, contributing to improved employee experience and retention. White-collar attrition reduced from 16.4% to nearly 10% during the year.

Initiatives undertaken during the year to strengthen employee engagement:

Strengthened recognition culture through the digital reward and recognition platform "WOW" and structured award programmes.

Conducted initiatives such as Hobby Lobby, Innovation Jam, CITTI Value Month, Sustainability in Action and Appreciation Week to strengthen collaboration and belongingness.

Enhanced onboarding experience through structured Day-1 connect, 30-90 day interactions and onboarding committee interventions.

Strengthened employee connect through initiatives such as Hi-Five with HR, Infinity Bridge and Lead edge.

Internal employee satisfaction scores improved from 39 to 64 over the last three years.

Work-Life Balance and Employee Well-Being

The Company continued to strengthen employee well-being initiatives with focus on physical, emotional and financial wellness.

Initiatives undertaken during the year to support employee well-being:

Conducted wellness sessions on nutrition, diabetes, ergonomics, stress management and emotional wellness.

Organised Yoga and mindfulness sessions, fitness challenges and sports initiatives to promote physical and mental wellness.

Continued Employee Assistance Programmes (EAP) offering confidential psychological, legal and financial counselling support.

Provided employees and families access to online doctor consultation, e-pharmacy and diagnostic support facilities.

Conducted wellness and financial planning programmes for senior employees and leadership teams.

Diversity, Equity and Inclusion (DEI)

Diversity, Equity and Inclusion continued to remain a strategic priority for the Company. Female representation increased from nearly 2% to approximately 10% over the last three years, while women participation on the shop floor improved to nearly 12–13%.

Initiatives undertaken during the year to strengthen diversity and inclusion:

Formation of a dedicated DEI Committee to drive diversity initiatives across the organisation.

Conducted Unconscious Bias training programmes for managers.

Organised Diversity Week initiatives including Taste of Diversity and Embracing Neurodiversity.

Strengthened accessibility and inclusivity measures for persons with disabilities (PWD).

Continued women-centric initiatives such as Winning with Women and workplace self-defence programmes.

HR Digitisation

The Company continued to strengthen HR digitisation initiatives to improve process efficiency, accessibility and employee experience. Online learning platforms, virtual training programmes and digital HR tools were increasingly leveraged across HR processes and employee engagement initiatives.

The Performance Management System (PMS) was further strengthened with structured review mechanisms, Performance Improvement Plans (PIP) and stronger alignment with organisational goals.

Health and Safety

The Company continues to promote a strong EHS-led culture, with safety, environmental protection and employee well-being embedded at the core of its operations. Guided by its philosophy of ‘Zero Harm, Zero Compromise, the Company remains committed to achieving zero reportable injuries, supported by a zero-tolerance approach towards unsafe practices, structured audits and strong governance.

Safety accountability is driven through active leadership involvement with regular cross-functional reviews ensuring continuous improvement in safety performance. The Company has strengthened its proactive risk management through robust Hazard Identification and Risk Assessment (HIRA) processes, adoption of advanced machine safety standards and increasing digitisation of EHS systems for real-time monitoring.

A culture of collective ownership is promoted through behaviour-based safety programmes and employee-led initiatives, empowering individuals to identify risks and exercise stop-work authority. Contractor safety remains a key focus through structured training and emergency preparedness. Cross-plant initiatives further enable standardisation and sharing of best practices across facilities.

Company also places considerable emphasis on womens empowerment and broader community participation.

Through close collaboration with local communities, institutions and implementation partners, the Company aims to ensure that its initiatives are aligned with local priorities and deliver meaningful, long-term impact.

Education

Education remains a core priority of the Companys community development initiatives. The Company works to expand access to quality education in rural communities by improving school infrastructure and fostering an enabling learning environment.

The Company undertakes the renovation of government schools and provides essential facilities, such as libraries, digital learning tools and reliable electricity through solar power installations. These efforts aim to promote digital literacy and ensure uninterrupted access to education. Additionally, the Company also supports teacher development programmes that encourage participatory teaching practices and contribute to improved learning outcomes.

To further support rural students, the Company provides mobility assistance and facilitates access to basic amenities, such as safe drinking water inside school premises.

Key Highlights

108 bicycles distributed to support students travelling long distances to school

Government schools upgraded with libraries, digital learning tools and improved infrastructure

Solar power systems installed to ensure uninterrupted electricity for digital education

Health and Sanitation

Access to quality healthcare is a critical factor in improving the well-being of rural communities. The Company seeks to bridge healthcare gaps through mobile medical services, preventive care and focused awareness initiatives.

The Company operates a mobile medical clinic that delivers free consultations, medicines and primary healthcare services in underserved villages. The regular visits ensure consistent access to essential care, while patients requiring specialised treatment are referred to partner hospitals under government healthcare schemes.

Additional health initiatives include cataract surgeries conducted in partnership with private hospitals, along with programmes aimed at promoting menstrual hygiene, reproductive health awareness and preventive screening for cervical cancer.

Financial Outcomes

Consolidated Financial Results

Particulars	FY 2025-26	FY 2024-25
Revenue from operations	14,595.88	11,560.81
Other income	123.97	116.97
Total income	14,719.85	11,677.78
EBITDA	2,089.61	1,668.05
Profit Before Tax (PBT)	1,277.08	1,094.71
Profit After Tax (PAT)	951.71	836.35

The key financial ratios – Standalone

Particulars	FY 2025-26	FY 2024-25	% change	Explanation for change exceeding 25%
Trade receivables turnover (times)	8.8	8.0	10%	-
Inventory Turnover (times)	11.0	11.0	0%	-
Current Ratio	2.4	2.6	-8%	-
Net Debt Equity Ratio (times)	(0.1)	(0.1)	0%	-
Net Profit (%)	6.9	7.6	-10%	-
ROCE (%)	21.1	22.2	-5%	-
Interest coverage ratio (times)	106	461	-77%	Interest coverage ratio has decreased due to increase in interest expenses on borrowings and lease liability, as compared to previous year.
Operating profit margin (%)	9.4	10.4	-10%	-
Return on net worth (%)	15.8	16.6	-5%	Variance is on account of decrease in net profit margin as compared to previous year mainly due to increase in metal prices which are compensated by customers at cost.

Internal Control Systems and their adequacy

The Company has adequate internal financial control systems and details of the same are mentioned in the Boards Report has been spelled Boards Report at several places.

Company Outlook

The Company enters the coming years with a clear strategic direction, supported by ongoing capacity expansion, product premiumisation and diversification across EV, four-wheeler and non-automotive segments. It continues to strengthen its position in the four-wheeler market through the development of machined aluminium castings, aluminium forgings, foundation brakes and driveshaft programmes, while further enhancing capabilities in suspension and braking systems.

Simultaneously, the Company is investing in advanced technologies, including in-house ABS electronics, embedded systems, BMS and aluminium forging, to increase value addition and support margin enhancement. The planned ramp-up of multiple greenfield facilities, including alloy wheels, machined castings, battery packs, disc brakes and aluminium forgings, is expected to strengthen manufacturing capabilities and support future revenue growth.

Within the EV ecosystem, the commissioning of the lithium-ion battery pack plant and the expansion of BMS capabilities through its subsidiary Maxwell are set to deepen its participation in electric mobility and energy storage solutions. The growing contribution of proprietary products, increasing localisation efforts and expanding EV order wins are expected to further strengthen the Companys competitive positioning.

Backed by a healthy order book across India and Europe, rising premiumisation in two-wheelers and steady growth in four-wheeler and non-automotive applications, the Company is well positioned to capitalise on evolving mobility trends while delivering sustainable, profitable and technology-led growth over the long term.

Risk Management

Effective risk oversight remains integral to the Companys long-term growth. Its risk management policy provides a structured framework for identifying, evaluating and mitigating risks that may affect business growth and operational performance. It is aligned with the nature and scale of the Companys operations and incorporates measures to manage potential risks effectively. The Board retains overall supervision of the risk management process. It periodically reviews risk assessments and examines the executive leaderships risk management and internal audit reports on control systems.

Cautionary Statement

This document contains some statements about expected future events, financial and operating results of the Company, which are forward-looking. By nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements may not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements.