Endurance Technologies has received a fresh Demand Order dated 15th May, 2026 from the Deputy Commissioner, Rudrapur-I, Uttarakhand, in continuation of its earlier intimations dated 30th December, 2025 and 30th March, 2026. The order relates to an Input Tax Credit (ITC) dispute pertaining to the financial year 2021-22, specifically alleging non-confirmation of ITC reversal by customers towards credit notes issued by the company.

Background of the Dispute

The original order passed by the Deputy Commissioner, Rudrapur-I, Uttarakhand, involved a demand of ₹12.39 crore, inclusive of disputed tax amount and penalty, arising from a mismatch of Input Tax Credit. The Hon'ble High Court of Uttarakhand subsequently quashed that order and remanded the matter back to the relevant authority for reassessment and fresh adjudication, after considering submissions made by the company.

Details of the Fresh Demand Order

Upon reassessment, the fresh Demand Order dated 15th May, 2026 has resulted in a significant reduction in the disputed amount. A demand aggregating to ₹12.07 crore has been dropped, while a demand of ₹32.49 lakh has been confirmed. The breakdown of the confirmed demand is as follows:

The order was received by the company on 15th May, 2026 at 11:17 hrs.

Company's Response and Financial Impact

Endurance Technologies has stated that it is in the process of filing an appeal against the fresh order, citing that the authority has not duly considered all supporting documents submitted by the company. The company has also clarified that there is no material impact on its financials, operations, or other activities as a result of this order. The disclosure was made under Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Endurance Technologies has reported its audited financial results for the quarter and financial year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 14, 2026, and recommended a dividend of ₹11.50 per equity share of face value ₹10 each (115%) for FY 2025-26. The company also announced the appointment of Mr. Indrajit Banerjee as Chairman of the Board with effect from June 10, 2026, consequent upon the conclusion of the tenure of Mr. Soumendra Basu as Chairman on June 9, 2026.

Consolidated Financial Performance

For the full year, the company achieved its best-ever standalone and consolidated topline and bottomline. Consolidated Total Income including Other Income rose by 26.1% to ₹14,720 crore, while Profit After Tax (PAT) increased by 13.8% to ₹952 crore. Consolidated EBITDA for the year stood at ₹2,090 crore, a growth of 25.3% year-on-year. The following table summarises the consolidated financial performance:

On a quarterly basis, Q4 EBITDA stood at 5.68B rupees compared to 4.22B rupees in the same period of the previous year, with the EBITDA margin at 13.90% versus 14.26% year-on-year.

Standalone Financial Performance

On a standalone basis, Total Income for the year grew by 20.0% to ₹10,695.99 crore, with PAT reaching ₹733.83 crore, an increase of 8.1% over the previous year. Revenue from operations stood at ₹10,640.18 crore for the full year. The standalone Basic & Diluted EPS for the year was ₹52.17 compared to ₹48.25 in the previous year.

Balance Sheet Highlights

On a consolidated basis, total assets stood at ₹11,627.39 crore as at March 31, 2026, compared to ₹9,139.28 crore in the previous year. Total equity increased to ₹6,840.82 crore from ₹5,717.41 crore. On a standalone basis, total assets were ₹6,196.08 crore against ₹5,395.90 crore previously, with standalone equity at ₹4,940.75 crore.

Cash Flow Summary

Consolidated net cash flows from operating activities for the year were ₹1,850.72 crore, compared to ₹1,531.69 crore in the previous year. Net cash used in investing activities was ₹1,816.23 crore, largely reflecting capital expenditure of ₹1,295.81 crore and acquisition of a subsidiary amounting to ₹350.06 crore. On a standalone basis, net cash from operating activities was ₹895.64 crore, while net cash used in investing activities was ₹804.55 crore.

Operational Highlights

Indian operations contributed 73% of Consolidated Total Income. The European business reported a 29% growth in Total Income, largely driven by the Stöferle acquisition. Endurance Overseas SpA, Italy, completed the acquisition of a 60% stake in Stöferle Automotive GmbH and Stöferle GmbH, Germany, for €37.74 million, with the transaction completed on April 2, 2025. The Group recognised Goodwill of €32.30 million on this acquisition. The SPA also includes call and put options for the remaining 40% stake, exercisable over five years from June 2026. Additionally, the company acquired the remaining 38.50% stake in Maxwell Energy Systems Private Limited for a total cash consideration of ₹7.50 crore, making it a wholly-owned subsidiary. Aftermarket sales from Indian operations increased to ₹575 crore from ₹506 crore in the previous year.

Corporate Developments

The Board appointed Mr. Indrajit Banerjee, Independent Director, as Chairman of the Board with effect from June 10, 2026. Mr. Banerjee has a career spanning more than 40 years, having served as Chief Financial Officer/Executive Director at Ranbaxy, Lupin, Cairn India, and Indian Aluminium Company Limited, with expertise spanning finance, strategy, mergers and acquisitions, and general management. The Twenty Seventh Annual General Meeting of the Company is scheduled for August 13, 2026. The Register of Members and Share Transfer Books will remain closed from August 1, 2026 to August 13, 2026 for determining shareholders entitled to receive the dividend. The Record Date for dividend entitlement has been fixed as July 31, 2026, and the dividend, if declared, shall be paid on or before September 12, 2026. The Cut-off Date for e-voting eligibility has been fixed as August 6, 2026.

Management Commentary

Managing Director Mr. Anurang Jain noted that despite geopolitical and supply chain uncertainties, the company navigated the challenging environment through cost-control measures and pricing discussions. He highlighted that Total Income growth in India was higher than the industry two-wheeler volume growth. The company expects trade agreements and new order wins to aid profitable growth going forward.