Ladies and gentlemen, good morning and welcome to the Endurance Technologies quarter two FY 2026 Earnings Conference Call, hosted by Axis Capital Limited. As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Jalan from Axis Capital Limited. Thank you, and over to you, sir. Thank you so much. Good morning, everyone. Welcome to quarter two FY 2026 Post-Results Conference Call of Endurance Technologies. We are pleased to host the management team of Endurance. Today, we have with us Mr. Anurang Jain, Managing Director, Mr. Massimo Venuti, Director and CEO, Endurance Overseas, Mr. Rajendra Abhange, Director and COO, Mr. Raja Gopal Sastry, Group CFO, and Mr. Raj Mundra, Treasurer and Investor Relations. I'll now hand over the call to Anurang for his opening remarks, after which we can start with the Q&A. Over to you, Mr. Jain. Thank you very much. Good morning, everyone. As we close quarter two of FY 2026, India's economic backdrop remains strong, even as global uncertainties persist. The domestic economy continues to show strength as we move into the second half of the year. The RBI has revised its FY 2026 growth forecast from 6.5% - 6.8%. It has lowered its CPI inflation forecast for FY 2026 to 2.6%, down from 3.1%. These, along with the steady repo rate, reflect a supportive macro backdrop for demand and investment. World Bank too has raised India's GDP growth forecast for FY 2026, but have cut their FY 2027 forecast to 6.3%, citing headwinds from the recent 50% U.S. tariffs impacting Indian exports and slower global demand. We are hopeful for a better and amicable settlement on the trade tariff issue. A major domestic policy move of the last quarter is the GST rationalization implemented from 22nd September 2025, which simplified the rate structure into fewer slabs and lower rates for many consumer goods, farm and manufacturing inputs, and for most automobiles and auto parts. This is expected to support growth of the automotive industry by improving affordability and consumption across segments, and the robust festive season sales were also attributed to such lower cost of ownership. In the automotive sector, as per SIAM, two-wheeler sales reached 6.9 million units in quarter two FY 2026, up 10.3% year-on-year, with motorcycles at 9.6% growth and scooters at 12.4% growth. Passenger vehicle sales increased by 2.4% to 1.3 million units, while three-wheeler sales rose 21.4% to 0.4 million units. Endurance in its standalone financials for quarter two FY 2026 saw a year-on-year growth of 16.2%. In the European Union, new car sales saw a year-on-year rise of 7.7% in quarter two FY 2026, while at Endurance Europe, total income growth was significantly higher at 32.5%, with Stöferle consolidation. If we remove the impact of Stöferle consolidation as well as the tooling sales, total income grew by 7.8%. In quarter two FY 2026 industry volumes, there was a 17.4% share of battery electric vehicles, 10.2% for plug-in hybrids, and 34.3% for hybrids in Europe. On the strategic growth front, we are pleased to share key updates. As you are aware, the central government had issued a draft guideline mandating ABS for all vehicles sold after 2025. It announced a capacity expansion, increasing ABS capacity by 2.4 million units per annum, which is a five-fold increase, along with a significant increase in disc brake systems and brake discs also. A new ABS capacity of 2.4 million ABSs per annum will be installed in two phases, with the first line of 1.2 million will be operational in quarter one FY 2027, and the second line will be linked to the timing based on the final guidelines, which is expected in this month. Since ABS was already mandatory for more than 125cc two-wheelers, we expect much of the incremental demand to come from 125cc or lower two-wheelers with a single-channel ABS. For a dual-channel ABS SOP, one OEM will start SOP next month, and the second OEM by January 2026. So the run rate of 640,000 ABS per annum capacity we have will be reached in quarter four of this financial year. For the large increase in volumes of single-channel ABS, we are lining up backward integration of steel-braided hoses, valves, and ECU assemblies. We also plan to insource part of the ECU printed circuit boards needs through our SMT line. We have started civil work for setting up a new plant for disc brake systems, which includes the master cylinder, caliper, brake disc, and brake hoses, where we expect SOP in quarter two FY 2027. Here we will produce 3 million disc brake assembly systems per annum and 4 million brake discs per annum. This will be part of the total 7.6 million disc brake systems and 8.6 million brake discs at Endurance, which is planned at Endurance. This will help us not only to serve better OEM customers in South India like TVS, Yamaha, and Royal Enfield, as we will be close to them, but also help create space for our new ABS expansion in our existing brakes plant at Chhatrapati Sambhajinagar. As you are aware, we are also setting up a new integrated R&D facility for brakes, which will be double the size of the existing one. The new R&D facility will be ready and commissioned by quarter four of this financial year and will completely integrate two-wheeler brakes as well as the ABS R&Ds, with space provisioned for four-wheeler brake assemblies also. Here we are also adding a brake dynamometer measurement lab. We continue to position our new AURIC Shendra facility as a key point of critical machined castings for four-wheeler and non-auto applications. We are therefore equipping this plant with highly sophisticated machining and finishing equipment. In the past, we have mentioned about orders from marquee U.S. and U.K.-based OEMs and also orders from Valeo for electric platforms of Mahindra. Now we have added Yazaki as a customer, taking the total sales close to INR 388 crores per annum at peak. SOP for both the U.S. and U.K. OEMs will start in quarter one of FY 2027, and we will reach peak sales in FY 2028. The SOP for the AURIC Shendra plant is going to be in January 2026. At a new two-wheeler alloy plant at AURIC Bidkin, the SOP has already started in October for Bajaj Auto, while supplies for Royal Enfield will start in next month, and Suzuki alloy wheels will start by the end of quarter one FY 2027. This plant will have annualized sales of more than INR 600 crores by quarter two of FY 2027. As you are aware, the plant has an installed capacity of 3.6 million wheels per annum, which has been entirely booked with orders from OEM clients. A Chakan alloy wheel plant is also running full with a capacity of 5.5 million wheels per annum. For a battery pack manufacturing facility near Pune, key imported machinery shall be installed by next month, and SOP will be from January 2026 for a leading two-wheeler OEM in India. Once this battery pack cylindrical line is installed, we are confident of getting battery pack business for other two-wheeler and three-wheeler programs. W e will also focus on battery packs for high-potential sectors like inverters, telecom, and battery energy storage systems. With respect to the INR 300 crore per annum business won from a leading two-wheeler OEM, the proto samples have been submitted in this quarter, which is in line with our SOP, which is planned in January 2026. In half one of this financial year, a wholly-owned subsidiary, Maxwell, achieved a record turnover of INR 73 crores, as against INR 70 crores in the full year of FY 2025. We are now supplying battery management systems for scooters, three-wheelers, tractors, construction equipment for a European company, as well as for telematics, along with motor control units. A strong R&D and innovation cell at Maxwell has helped us to optimize and value engineer the battery management system products across two-wheelers, three-wheelers, and tractor segments. We are also focusing now on a high-voltage battery management system for four-wheelers and e-buses. The festival season demand was met by products rolling out of a highly automated surface-mount technology line at Chhatrapati Sambhajinagar, where we have now a capacity of 44,000 battery management systems per month. We will be adding another 44,000 battery management systems per month on the second SMT line by March 2026. In half one FY 2026 at Maxwell, we have won INR 21 crores of new business, which has taken the total cumulative orders won to INR 209 crores per annum, which will peak in quarter three of FY 2027. The orders won are for two-wheelers, e-rickshaws, e-bikes, electrical construction equipments, and for airline buggies. We at Maxwell have now a strong pipeline of RFQs of INR 137 crores. We are the clear market leader in inverted front forks, and this business has grown steadily over the years with rising demand from multiple OEM customers. We have started supply of inverted front forks and mono shocks to TVS, where the front fork has been upgraded with adjustable features and with both-side cartridge systems. The SOP for another OEM, Hero MotoCorp, is planned within this financial year, while SOP for a leading Chinese two-wheeler OEM is expected to start in quarter one of FY 2027. This would take the total number of OEMs using our inverted front forks to six. Our overseas OEM client, KTM, has also started increasing schedules for inverted front forks, which should cross a total of 650,000 inverted front fork sales in this financial year. As you are aware, our aluminum forging business, which has a technical collaboration with FGM in Italy, started as a backward integration for supplying aluminum forged axle clamps for our inverted front forks. This large inverted front fork growing business is a captive use opportunity for our aluminum forging axle clamps. We already have four aluminum forging presses, which we will move to a new forging facility in quarter one of FY 2027, along with the fifth aluminum forging press, which has already been ordered. For our aluminum forging business, we have now won export orders of INR 5 crores per annum for new parts from a German OEM. SOP is planned in quarter one FY 2028. As you are aware, we have orders for aluminum forging from Jaguar Land Rover of INR 27 crores per annum, which business will start in quarter four of this financial year. We have also won aluminum forging orders from Royal Enfield of INR 12 crores per annum, which SOP in quarter one FY 2027. Our line of sight for aluminum forging business next year is around INR 140 crores. Sale of the first set of containers carrying export consignment of solar dampers to place in quarter two. We are building a new infrastructure in our Sanand plant in Gujarat to cater to the large volume orders for these solar dampers. This business value won from a Spanish OEM is INR 200 crores, which will be executed by FY 2027. There is a tremendous opportunity to increase this business. We are in the process of finalizing business with another global client. In quarter two, we started supplies also of our assist and slipper clutches to Royal Enfield and Kawasaki, introducing assist and slipper technology to the Indian market. SOP for Bajaj Auto is expected in the next quarter. As mentioned earlier, we have started on-vehicle testing for our first four-wheeler driveshaft order. We expect to commence SOP in quarter four FY 2026. In view of multiple three-wheeler orders across five OEMs and expected growth in the four-wheeler business, we plan to set up a separate four-wheeler driveshaft assembly line during this quarter. As informed in the previous calls, we completed the acquisition of the 60% stake in Stöferle entities in Germany in the beginning of quarter one of this financial year, with a line of sight of acquiring the remaining 40% in five years. Stöferle has an annual turnover of approximately EUR 80 million. From April 2025, Stöferle financials are consolidated in the Endurance Group financials. We had mentioned earlier that under the Maharashtra PSI 2019 scheme, we received an eligibility certificate of INR 600 crores for CapEx incurred in September 2025. Under this 2019 scheme, we will now apply for an additional eligibility certificate for CapEx up to full FY 2026. Based on INR 606 crores certified by the authorities, we have recorded a PSI incentive of INR 33 crores in quarter one and INR 37 crores in quarter two of this financial year. You will recall that we have booked almost all amounts totaling INR 446 crores under the PSI 2013 scheme and have collected cash to the tune of INR 350 crores. Let me now give you a gist of orders won during half one of this financial year. Please note that the business value from new orders is without including orders from Bajaj Auto. Overall order win in half one FY 2026 in India business was INR 909 crores per annum, of which INR 903.8 crores is new business. This includes the new business of INR 300 crores per annum for the battery pack at a Talegaon plant and INR 21 crores new order of BMS at Maxwell. Our four-wheeler business win in half one FY 2026 is INR 355.8 crores, which is 61% of the total business win won this year. This includes INR 103 crores of EV casting business for a leading U.S. EV OEM and INR 146 crores aluminum casting order from Hyundai and Kia Motors. SOP is in FY 2027, which is next year. We have also won from Ather Energy for their scooters. The alloy wheel business was INR 31 crores, with a 100% share of business for their new upcoming plant at AURIC Bidkin at Chhatrapati Sambhajinagar. Cumulative India business orders for the EV segment till date stand at INR 1,012 crores per annum, and with Bajaj Auto, this figure is INR 1,195 crores per annum. So the total orders won since FY 2022 is INR 4,671 crores per annum, out of which INR 3,953 crores is new business. We expect INR 3,500 crores per annum out of this to peak in FY 2028. We have a total of INR 4,209 crores worth of RFQs in hand. We expect to win more than INR 1,500 crores of business in the next 12 months-18 months. In our Europe business, we have booked orders worth EUR 12.7 million during half one. These are orders for machined castings from the Volkswagen Group, machining orders from Stöferle, and EV component orders for a specialty plastics unit in Turin. The aftermarket is a strategic priority for us. We have set ambitious growth goals since 2013. We are focusing on secondary demand generation with retailers and mechanics for the domestic business. We have appointed a new domestic head and a value-add products head for the bought-out products we buy. We have developed district action plans for 78 district clusters and defined unique value propositions for 39 countries. We are the first in our industry to launch a global rewards program, which is a tiered loyalty program for our channel partners. We are also driving a holistic development program to build capability of our sales team and to empower them with the right tools and skills. Coming to our financial performance, the information has been uploaded at the stock exchanges last evening, along with a presentation explaining the numbers. I will, however, highlight some key numbers. During quarter two FY 2026, the company recorded a standalone total income of INR 2,692.2 crores, a year-on-year growth of 16.2% from INR 2,317.1 crores in the previous year. The EBITDA grew 6.3% from INR 316.1 crores to INR 335.9 crores, with a margin at 12.5%. The PAT grew 1.5% from INR 184.8 crores to INR 187.6 crores. The EBITDA drop of 1.16% on total income is largely contributed by raw material cost increase led by aluminum alloy, which forms 55% of the total raw material purchases. Around INR 10 crores is due to investment in people for future business growth in the areas of strategy, R&D, aftermarket, and sourcing. A further around INR 10 crores is in two special projects, which are for the aftermarket profit growth and the sourcing savings with a leading global consulting firm, which is an investment of profit growth as well as cost control, and this will continue till quarter four of this financial year. In quarter two FY 2026, our consolidated total income grew 22.6% over quarter two of last year from INR 2,939.2 crores to INR 3,603.8 crores. The EBITDA grew 21.9% from INR 408.5 crores to INR 497.8 crores. Our margin was at 13.8%. The PAT grew 12% from INR 203 crores to INR 227.3 crores at 6.3% PAT margin. With diversification and business growth, our HR department continues to play a key role as an enabler in shaping the business outcomes. Our focus remains on strategic workforce planning and talent ramp-up, with emphasis on strengthening the mid-management layer to build a balanced organizational pyramid. HR digitization is being actively leveraged to enhance efficiency and improve ease of business. To build future ready capabilities, we have also launched the LEGS, which is a Learn, Earn, Grow, and Succeed program, which is a customized skill development program for our blue-collar employees. Alongside, we continue to strengthen our leadership and capability-building agenda through multiple flagship programs such as the Endurance Leadership Program. On the sustainability front, we made significant progress this year towards our ambitious goals for FY 2030. We achieved a 48% carbon-neutral percentage. We lowered specific electrical and thermal energy as well as specific water consumption, while water recycling and hazardous waste recycling both stand at 98% each. We also enhanced our renewable power share from 23% in FY 2024 to 25% in FY 2025, and now we have increased it in quarter two of this financial year to 28% through expanded rooftop solar and wind power agreements. We also contributed 300,000 KL of water through water augmentation projects. CRISIL has increased our ESG rating for FY 2024 to 59, up from 56 in FY 2023, while another agency, SES, has increased our rating to 74, up from 68 in the previous year. Our K-120 Waluj plant has been awarded the prestigious CII GreenCo Gold rating. At Endurance, we see CSR as a way to create real and lasting impact. Our approach is centered on lowering inequity: one community, one child, one individual at a time. This is how we create impact that endures well beyond the tenor or scope of CSR work we are doing. I'm pleased to share that our CSR arm, Sevak Trust, has transformed 61 schools with solar energy and hygiene-based focused facilities, enhancing attendance as well as outcomes, while training over 900 adolescent girls in health and skills. With sustainable agriculture training, our farmer empowerment program has benefited over 4,900 people, and ECoVE, our vocational training center at Chhatrapati Sambhajinagar, has imparted training to over 2,300 youth, securing over 85% employment. Our health work has reached 42 villages, serving 19,000 people, and we have built 2,300 toilets to improve sanitation. Our Vet v an program too has been successful, providing treatment to 43,000 animals in 47 villages. This quarter, we have started work on the biggest dense forest project covering 25 acres land with 2.5 lakh tree plantations. I'm happy to inform you that we have won the Quality Excellence Award from Tata Motors at their annual supplier conference in September 2025. I'm also happy to inform you that in October this year, our Endurance Overseas plants supplying to Stellantis Group was recognized as a top supplier in the Global Supplier Awards 2025. Now, with these opening remarks, I would now like to invite questions from all of you. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead. Yes, sir. Thank you for the opportunity, and I have a question on the slide number 12 of the presentation where the scooter segment has seen a decline of 4.4%. In the last quarter, there was a very strong growth. So, any spillover effect, and can you comment on this line item why there is a decline in this particular quarter? Yeah, I think this decline is mainly due to the decline of Honda motorcycles and scooters. As you know, they have had a degrowth. I think that is the major reason for this. I mean, industry volume is 12.4% in your presentation, and your income growth is negative 4.4%. Yes. So the reason for that is that HMSI is our second largest OEM customer. And when they get impacted, we also get impacted. So that's the main reason. So if you see the previous financial year when they really grew, we did very well. So it does have an impact because, as you know, HMSI is a market leader for scooters. Right, right. Okay. Thank you. Thank you. The next question is from the line of Aditya Jhawar from Investec. Please go ahead. Yeah, thank you for the opportunity and congrats on a resilient quarter. My first question is on the standalone business, the India business, where we saw a YoY basis margin compression. If you can explain that, if you can quantify what could be the impact of aluminum pass-through and what would be the other variables to drive this YoY margin compression? Yes, I will request Raja Gopal Sastry, our Group CFO, to answer. So, Aditya, thanks for this question. So we did get a flavor of that when the Managing Director spoke. So we did have a compression in margin, and we are trying to compare that with our sales on production, on product sales. And that is close to a 1.36% increase in material cost. And this is coming predominantly; about 35% of that or 40% of that is coming from aluminum increase. And then we have seen a few other topics where strategically we have been spending some consuming some material for our R&D projects because we are getting a lot of suspension orders, and also we are getting ready for the upcoming legislation. And there have been some seasonal effects where generally we have this benefit in terms of turnover discount. In the last year, in the same quarter we had in the first half this year, there have been moved to the second half of the year. There have been some seasonality effects. In effect, I would say that close to 40%, 50% of that is from the commodity side. Some part of it is the additional consumption due for our R&D projects, and some of it is the seasonality aspect of some on-timer effects in the last year, same quarter, and some of them which have been postponed to the upcoming quarters in this year. This is largely the main reason. The other aspect is which was also mentioned by the Managing Director in his opening remarks, this is the employee cost. So we have spent a bit on the employee cost for strategic reasons, and this will have a gestation effect, gestation impact where all these additional people in the sourcing, in the strategic functions, in the R&D functions will be important for our upcoming growth plans. And the third one is on the special project in the other expenses. We did spend a bit on the consultants' costs and associated travel and other deployment costs of the strategies to reduce the material costs and also to increase our aftermarket sales. And this, again, this would continue for the next two quarters at least. So we are seeing the impact of some of the initiatives which we are taking for future growth and also the future cost competitiveness, and that has impacted this quarter. Yeah, that's good to know. So do we expect that next financial year we'll be back to historical margin trajectory for the standalone business? Is it fair to assume that some of these headwinds might no longer be there? Yeah. So we are very, very focused on that, and we'll put all our efforts to improve the product mix also. And so that's clearly our target as we go forward. As we believe in only profit growth, but I think this raw material cost increase and these two special projects as well as our investment in people for the future was very, very important for us. So here we don't look at just the margin percentage, we look at the future of the company. And that's very, very important for us going forward. Thank you, and next question is on our ABS expansion plan, so where are we in terms of the, if you can remind us of the expansion plans and incremental discussion with customer, what kind of timelines you are anticipating for the regulation to get implemented? Just a quick update on ABS. So right now we have a capacity of 640,000, which I said we'll reach in quarter four based on the line of sight we have on schedules from our customers by quarter four of this year. We have ordered a 1.2 million capacity ABS line, which will be coming, which we will install by April or I would say quarter one of next financial year. On this line, depending on the guidelines, of course we believe there was a meeting which took place, but it will not be good for me to speculate anything on this call. So we expect the guidelines to come in this month. And based on that, looking at the lead time which is there to, I mean, implement these new guidelines, based on that, I think the line which we have ordered, the capacity, I mean, use on that will depend on that. But today, definitely we have a line of sight to use that line, but we'll have to see what is the timeline which comes under this new guideline. And the second 1.2 million line we will order based on this guideline which we get in this month. So 2.4 million, we were very clear to place the orders after we got the draft guidelines. So 1.2 million ordered already beyond 640,000, and 1.2 million we will wait for the new guideline. But we are talking to all the OEMs on the ABS, and there are not many players. So we are very, very optimistic of this new business for sure going forward. Okay. The next question is on the four-wheeler suspension business. Has there been any discussion with customers, and what is the initial sense we are getting on the four-wheeler suspension side? Yes. I will request Mr. Rajendra Abhange, our Director and CEO, to speak on this. Yes. Thanks for this question, Aditya. See, you already know we have made some inroads into four-wheeler proprietary products. It's been already spoken in the last couple of management meetings. Suspension is very much on our cards, and we are very close to getting into one of the OEMs now. As you know, it's a technology product, and OEMs will only take it when you prove your competency. We are very close to getting into one OEM, major leading OEM of India. The second one is also in the queue. So as we get closer to it and we get a letter of intent, you will anyway come to know about it. But there can be exciting news in the near future. Yeah. That's good to know. And my next question is for Massimo. If you can give outlook for the European business, medium-term outlook, and any impact of this chip shortage issue that they are anticipating on the production line? Okay. So the situation in Europe, the quarter closed with an increase of 7.7% in terms of volume, in terms of registration. But if you analyze the production, the production continues to go down. And so it means that in this moment, the market is growing only because they are reducing stock with important discount. The expectation for the future months is to maintain more or less the stability. In this situation, as Endurance, we are performing aligned compared to the market with an increase of 7.8% without suffer compared to the previous year. And this is not stock, as you can imagine, but it's more production compared to the previous year. And we continue to be more or less optimistic for the future two quarters because the expectation is to maintain stability. Everybody in Europe, we are waiting the position of the government for the new rules of the Green Deal in June 2026. From my point of view, till that date, the situation will be more or less stable. Speaking about the situation of the shortage of components and so on, in this moment, no particular issue from our customer. We received official position already by Stellantis and also Volkswagen Group, more or less 50% of our customer portfolio. In this moment, we don't see particular problem. That's good to know. That's it from my side. Thank you. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Viraj from SiMPL. Please go ahead. Yeah, thanks for the opportunity. Just a couple of questions. First, the suspension part. We don't know about us getting [audio distortion]. So is it more into the new technology areas like the active suspension or semi-active, or it's more on the mass tech side? So that is one. And a later question, if you see the landscape right now, you've seen the market largely being a two-three-player market. When you're in the structure, there's a good amount of competition. You'll see switching of the pricin g [inaudible]. Sorry to interrupt in between. Actually, your voice is not very clear, so we cannot understand everything you're saying. The first question we, I mean, understood was the technology which you will use in suspension, whether semi-active, active, or a normal technology, and the second question, we are not clear what you were asking. The second question was. Yeah, yeah, yeah, sure. Let's take one by one. Can you repeat your question in a short way so that we really understand exactly? Yeah, sure. So what technology areas the business we are looking for in four-wheeler, and how should one look at the margin structure in four-wheeler given the company's intensity is very high? Actually, not able to understand. I'm sorry. It's not clear. Did anybody understand? Sorry to interrupt in between. Mr. Viraj, can you please speak in the handset mode? Yeah, I'm already on handset mode. Now you're much clearer, Viraj. [crosstalk] Sorry for that because if you don't understand your question, you may not get the right answer. No, no, no problem. If you want, I can repeat in. Sorry for that. So what technology we are looking for in the business in four-wheeler suspension? And second is the competitive industry is quite high, and there are players who are quoting business at [audio distortion] margins or low margins. So how should we understand profitability in this segment for us? With With technology, competition, and with competition quoting lower prices, how do we see the profitability in this business? Yeah. Let me tell you, the question is very good. It's a tough business to get into. Let me honestly admit that. We We are a late entrant. Rather, we have not entered the four-wheeler suspension as yet. There are already established players in the market, but as you know, we always strive to give best value to our customers by way of the frugal technology. As we told you the last time, we already have a technology partner from Korea who is very formidable, and we feel their technology will be highly suited for the Indian smaller cars, especially the small-sized cars, and we will definitely bring some value. Our engineering is also equally strong in suspension. As you know, we are market leaders in two-wheelers, so there will be a lot of horizontal deployment from the learning of two-wheelers, and we are pretty sure that we will crack into certain major markets, major customers in the passenger vehicle, and also make decent kind of the profitable proposition to the company, so we are confident about it. Okay. The second question is on the four-wheeler suspension. You talked about inverted front forks. What will be the market share in there? Just to get a perspective and what is the adoption we are seeing in the industry? Yeah. So I don't, to be honest, I would not know the market share. But definitely, it is, I mean, it is a high majority. I can say that. I don't have that, but I know on suspension, I mean, that in the front fork, we are, I think, at 43% of the market. And in shock absorbers, we are 37% of the market. This is as of quarter two. Sorry, 44% in quarter two. No, but the inverted fork would be higher. Inverted fork is definitely higher because there are very few players in this. We had the first mover advantage with our technology with KTM in 2008. Like I said, we are also one is we have Bajaj Auto, of course, also increasing its requirement. As well as we are seeing also, I said we are starting with Hero MotoCorp as well as with a Chinese OEM in quarter one, FY 2027. We are in touch with almost every OEM on this inverted front fork. Okay. Last question on the solar damper side. You talked about us looking to further a few larger OEMs. Any color you can give in what stage the discussions are and how big this business can be for us in, say, three to four years? Okay. So this, I think, can be replied by. Okay, so this is relatively a new addition to our portfolio, and as two or three investors called before, we already declared that we are going to get into it, and the good news is we already started bulk supplies to this market as one of the fastest entrants into this segment. We know there is a competition in this segment as well, but I think the way we have gotten into it has been well appreciated by the customers. The confidence has gone up, so we will grow this business very rapidly. This is point number one. Last time I told the market potential is huge. Without quoting any number, I can tell you it can be a very significant part of our total business. It all depends upon how well we are able to garner these customers, of course, and there are multiple players in this. One is already a Spanish company who is already with us. Now we are going to get into another two companies. We are in deep discussions. If that happens, the size of this business could be very significant. So, over a five-year period, c an it be like 10% or 15% of our business? Does it have that kind of a potential to be? For total business, no, no, no. I don't want to say any number at this stage. It's a bit too premature, but I can only say the potential is huge. Okay. I'll come back. Thank you. Thank you. Yes. Thank you. Thank you. The next question is from the line of Rajit Aggarwal from Nilgiri Investment Managers. Please go ahead. Good morning, sir. Am I audible? Yes, yes. Can hear you clearly. Okay. Thank you. This question is related to the European business and also on the overall margins. So the European business sequentially has seen a decline in turnover. Whereas the last quarter, there was an industry-wide degrowth. This quarter, the industry has actually grown, and despite that, sequentially, our numbers are lower. At the same time, the margins seem to be higher. Now, one, the question on how do we read these numbers. Second is if the margins of this quarter in the European business are going to be carried forward, and overall, the consolidated margins will be at similar levels as of this quarter. Okay. So speaking about the second quarter of the European operation, we closed with EUR 88.7 million turnover compared to EUR 66.9 million of the previous financial year, with an increase of 32.7%. In terms of EBITDA, EUR 15.8 million, 17.8% compared to EUR 10.7 million, 16% of the previous financial year. In terms of net result, we grew 36%. Net profit, EUR 3.9 million, 4.4% compared to EUR 2.9 million the previous year, 4.3%. This increase in terms of turnover, EBITDA, and net profit, also without considering severance, so it means that the company grew without considering severance, more or less 6% in terms of turnover and 7% in terms of EBITDA and 10% in terms of net result. If you compare this quarter with the previous quarter, the reduction is due only to the normal seasonality of the business in Europe. In fact, we grew. We We closed with 88, as I told you, EUR 0.7 million turnover compared to EUR 103 million of the previous quarter of the previous quarter of quarter one, 2023-2026, but the market go down 13.3% compared to the previous quarter. In the European Union, we registered EUR 2.5 million in this quarter compared to EUR 2.9 million of the previous quarter. This is the normality in Europe because in the second quarter of the financial year, there is the month of August, and this is the month of holiday in Europe. This is the normality. You can't compare to the first quarter. This is the normality also in the past. You can check. No, that's fine. Thanks a lot for the clarification. And the follow-up question was on the margins. So the margins of this quarter, are they going to continue for the European business? I mean, will the trend be same? We will try to do the best. For sure, this is our target. We are growing more than 47% in terms of the EBITDA compared to the previous financial year. The EBITDA reached 17.8%. We are very happy if you consider that now nobody speaks about energy, but please consider that we continue to have three times the energy cost and the gas compared to the pre-COVID situation, so from my point of view, the performance is really, really good, and the expectation for the future months is to maintain and to improve the profitability as we have done in the past, for sure. Right. The performance is much appreciated. Thanks for the clarification. Just one small follow-up question. The presentation did mention that there were certain tooling orders in this quarter. So if those were to be removed, then what would be the margins in the European business? Because tooling orders, I'm assuming, are generally higher margin orders. It depends because in the tooling, you can have from 10% - 40% of the trade margin. It depends if we are speaking about tooling of foundry or tooling for the machining. Because when you start, when you do important investment, you receive, generally speaking, from 15% - 20% of contribution from the customer. But we don't consider the profitability of the tooling. We consider only the industrial profitability. In the analysis, it's correct to say that in the previous financial year, in the second quarter, we have had an important impact in terms of turnover of tooling, and if you offset this, the current increase of turnover compared to the previous year has been 7.8% compared to a market that grew 7.5%. This is the reason why we are saying that we are growing more than compared to the market. On top of this, please, our increase of turnover is real production, as you can imagine. For the registration, as I told you before, the market is only the stocking, the dealer situation, because the production continues to go down. Only to give you an idea, the German market, the major market in terms of production in Europe, lost more or less 4% of production compared to the previous year in the quarter. Right. Thanks a lot. If I may persist again, I'm sorry for the follow-ups. Can you quantify the amount of tooling orders in terms of EUR or INR? The existing tooling order could be something like 14 million. No, I'm sorry. No, the revenue from tooling in Q2. The revenue in Q2 is EUR 1.9 million. That's the reduction. That's it. Okay. That's it. Okay. EUR 1.9 million is the reduction compared to the previous quarter. All right. Okay, sir. Fine. Thank you. May I ask a question related to the capital expenditure of the group as a whole? What will be the CapEx in Q3 and Q4? Speaking about Europe, more or less, the actual is EUR 20 million. Our expectation is to reach EUR 30 million-EUR 32 million in the total financial year. All right. And for India? In India's standalone business, we may be closing the year with close to INR 750 crores-INR 800 crores, and we already have done INR 450 crores in the first half. There'll be an increment of INR 300 crores -INR 350 crores. Yes, yes. Mainly, it's the three new plants which are coming up this year. Right, right. That's the reason for this increase. Got it. Got it. Thank you, sir. I'll get back into queue. Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Mr. Nishit Jalan from Axis Capital Limited. Please go ahead. Yeah. Thank you. Two questions from my side. First, on the India business. On the four-wheeler side, Mr. Jain, if we look at this business, we have been winning a lot of orders, but our revenue has been stuck at around 5%-6% of total revenues. So just wanted to get a sense based on whatever orders that we have won so far, how do you see revenue scaling up in this business over the next two years? Will the contribution from this business go up meaningfully from here on? And my second question is on Europe. In Europe, if I remember, Massimo, earlier you used to talk about that given that a lot of EV business is coming in where investments initially will be higher, right? So we should start looking at EBIT margin. If we look at your depreciation expenses have gone up substantially, is it because of that same EV trend where EBITDA margin will be higher, but since investment has been higher initially, so the depreciation will go up, or we should look at it differently? Thank you so much. Okay. First of all, from Europe, I confirm to you that the increase of depreciation in the quarter is due to the startup of the important investment we have done for Stellantis and for Volkswagen. And there will be another step of increase of depreciation in the next quarter for the startup of the fourth new line for the 1.5L gasoline of Volkswagen. This is due to the important investment we have done in the past, but from my point of view, it's not an issue because we are growing more or less 1.6% in terms of cash profit. And so if we are able to increase the EBITDA in the same way of the increase of the depreciation, it means that the payback of the investment is aligned with our expectations. So in this moment, I don't see any kind of problems. Sorry, just one follow-up here. So you mentioned that the depreciation is increasing because of some startup costs. So is it going to be the normal run rate, or you will see depreciation coming off beyond once the plant starts, or it's going to stay around a similar level? No, no, no. It's a normal trend. Absolutely, it's a normal trend. Okay. Thank you. Yeah. So as far as India is concerned, no, like I said, that we have won since FY 2022, INR 3,953 crores of business, out of which we have realized around INR 1,440 crores last year. And this year, we'll do about INR 1,160 crores of this business. And the balance will be in the next two years. I said we will reach a peak of INR 3,500 crores per annum in FY 2028 versus 3,953. That's the line of sight we see which is there. I also said we will win further more than INR 1,500 crores against the INR 4,200 crores we have of RFQs. This is the line of sight which we have. We are also winning mainly for our AURIC Shendra plant. If you see the casting orders for electric vehicles, we already won INR 456 crores from, in fact, five customers or from four customers. Apart from that, we have also won another INR 355 crores of orders this year, which is for four-wheeler castings. We also won the drive shaft proprietary business of about INR 24 crores per annum last year. Now we won the drum brakes order, which is there. And we are really focusing on growth on the proprietary business, which is taking a bit of time, but definitely step by step, like I mentioned earlier also, that like in two-wheeler, we gradually built up the business. We plan to do so with our strength on technology and on cost, our strength on cost. So we are in a good place. I'm not worried about the growth. I think we have to focus more on product mix and cost control. And that's why we are trying to see that we take more and more profitable business in the future. I'm very, very confident of that, the way things are going. Okay. Thank you so much. Thank you. The next question is from the line of Jinesh Gandhi from Oaklane Capital. Please go ahead. Hi, Anurang. Good morning. Yes, sir. Good morning. Good morning, Jinesh. Anurang, a question on Maxwell. Given that we are broadbasing that business from pure play BMS now to also having other electronic components, are we also thinking of broadbasing beyond e-two-wheelers, broadbasing beyond autos given opportunities which are opening up in energy storage and other areas? Yes, sir. Yes, sir. Yes, sir. So we are definitely seeing, one is the forward integration we have done into battery packs. That's a big move. And that is going to start in January 2026 with a major OEM EV customer. But apart from that, I think what is happening in the non-auto space, everybody wants to see our cylindrical assembly line of battery packs running, okay? And that will help us to get into the non-auto. Because when they see such a good automated line, we have imported this from China, it's already come, it will be installed, commissioned by next month, then seeing is believing. So most of the people have told us, "You please start running, you please see it," and then we get confidence. Because see, these kind of projects are still new in India. I mean, EVs are still a new area. Battery packs is maybe six, seven, eight years because the EV business has really caught up post-COVID, I would say. So still initial space, but very, very confident of our technology, of our cost competitiveness, whether it's on BMS, whether it's on battery pack. I mentioned about innovation scale, how we are able to value engineer our products both on the BMS as well as battery pack space. Our sourcing is very strong. So we are very confident of really scaling up this business in future. And the value add, especially, I mean, I would say the value of the business on battery packs is huge, as you know. So that can really scale up our sales in future. I mean, INR 300 crores is just one platform. Right. There's a lot happening. As we talk, there's a lot more new business we are talking about. Got it, and secondly, so battery pack on non-auto side, obviously, will get benefits from the start of assembly operations. But BMS for energy storage side, is our product ready, or how far are we from product preparedness as well as getting orders? See, we definitely know, I mean, what type of BMS we have to offer. R&D team is fully aware of it. It's a question of just getting the business. We know what kind of equipment we have to order, the product, the cost competitiveness. We are fully aware. The question is, first is to get the business. So the main target is, focus is not on the technology side, whether it's a process or the product. The main focus is to get the business. Right. Got it. Got it. That's it from my side. Thanks. Thank you, Jinesh. Thank you. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments. No. So I just want to say that we at Endurance are fully committed to profitable growth, sales growth. We have done that since the IPO in October 2016, and we'll continue to do so. There'll be a huge focus on, of course, technology, process, and product. Huge focus on financial improvement, and so this will always be our focus. So just want to say that. Thank you. Thank you very much, sir. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us today, and you may now.