Endurance Technologies Limited subsidiary Endurance Overseas SpA acquired the remaining 32% equity stake in Stöferle Automotive GmbH and Stöferle GmbH for €18 million on September 29, 2026. This move secures full ownership of the German automotive casting businesses, accelerating the timeline originally set for June 2030.

The transaction was executed via an Amendment Agreement to the Share Purchase Agreement dated December 12, 2024. Prior to this deal, Endurance Overseas SpA held a 68% stake in the Stöferle entities. The accelerated acquisition allows the company to eliminate minority shareholder considerations and streamline governance under a single ownership structure.

Financial Terms and Valuation

The upfront cash consideration of €18 million is lower than the originally agreed purchase consideration of €20.13 million. This reduction reflects a negotiated price for acquiring the balance stake ahead of the scheduled tranches. The filing notes that paying less now mitigates the risk of higher future payments if the target companies' performance exceeds base case assumptions.

Target Entity Performance

The Stöferle entities specialize in machined aluminium castings for automotive applications. Data from audited financial statements as of March 31, 2026, shows combined turnover of €93.3 million. Stöferle Automotive GmbH reported turnover of €76.4 million, while Stöferle GmbH recorded €16.9 million.

Historical Turnover Trends

What the Numbers Show

The acquisition price of €18 million for a 32% stake implies an implied enterprise value significantly below the historical peak revenue levels. While Stöferle Automotive GmbH saw revenue dip from €79.4 million in December 2024 to €76.4 million in March 2026, the fixed acquisition cost locks in the valuation before potential recovery or further decline impacts the price. Furthermore, the €2.13 million saving against the original agreement represents a direct immediate benefit to Endurance's capital allocation efficiency.

Regulatory and Strategic Context

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction constitutes a related party transaction as the divesting shareholders are directors or relatives of directors of the Stöferle entities. However, the company stated the deal was conducted on an arm's length basis and is beneficial to the company. No governmental or regulatory approvals were required, and the acquisition took immediate effect upon execution.

Endurance Technologies commenced commercial production at its greenfield manufacturing plant in AURIC Shendra, Chh. Sambhajnagar, effective September 25, 2026. The facility manufactures aluminum die casting components for automotive and non-automotive sectors.

Plant capacity and operational scope

The new facility begins operations with an initial installed capacity of 900 MT of castings parts per month. The plant is designed with scalability in mind, carrying an expansion potential of up to 1,100 MT monthly. This expansion will be undertaken when the company secures further orders from its OEM customers.

The output spans both the automotive and non-automotive segments. Specifically, the automotive segment includes Internal Combustion Engine (ICE) and Electric Vehicle (EV) applications. Aluminum die casting is a core manufacturing process used to produce precision components across these industrial applications.

Project background and investment

The commencement of production follows the approval of capital expenditure for this greenfield project on May 16, 2024. The company planned to set up the new facility on a land parcel of ~11 acres situated at AURIC, previously known as Aurangabad Industrial City.

The total investment required for the project was approximately ₹4,009 million, financed through internal accruals. The rationale behind the expansion was to meet increased demand for products from existing and new customers, primarily from the four-wheeler segment and the non-auto sector.

The original timeline envisaged the start of production in Q1 FY26, with further expansion to reach above capacity expected to be completed in stages by March 2028. The current commercial start aligns with the initial phase of this plan.