Endurance Technologies Limited has received a favourable outcome in a tax dispute, with the appellate authority allowing the company's appeal and setting aside a demand order that had been raised against it. The development was disclosed to the stock exchanges on 15th May, 2026, pursuant to Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Demand Order

The matter originates from an Order passed by the Deputy Commissioner (CT), LTU-DC1, Tamil Nadu, which was first intimated to the exchanges on 18th February, 2025. The Demand Order pertained to the financial year 2020-21 and involved a total demand of Rs. 98.28 lakh, comprising the disputed tax amount, interest, and penalty. The key details of the original demand are summarised below:

Appeal Filed and Outcome

Following the issuance of the Demand Order, Endurance Technologies filed an appeal before the Office of the Joint Commissioner (ST), Appeals, Chennai-35, seeking to set aside the order. Upon submission of supporting documents by the company, the appellate authority reviewed the matter and ruled in favour of the company.

The Joint Commissioner (ST), Appeals, vide Order dated 14th May, 2026, allowed the appeal and set aside the aforesaid Demand Order in its entirety. This outcome effectively resolves the tax dispute that had been pending since the original order was passed.

Disclosure and Compliance

The update was communicated to both BSE Limited and the National Stock Exchange of India Limited in accordance with the applicable listing regulations. The disclosure was signed by Sunil Lalai, Company Secretary, Compliance Officer, and Head – Legal (Membership No.: A8078), on behalf of Endurance Technologies Limited, on 15th May, 2026.

The resolution of this demand order removes the contingent liability of Rs. 98.28 lakh that had been associated with the financial year 2020-21 tax proceedings.

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.