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Bajaj Auto: The Driving Force Behind Endurance Tech’s Sales Recovery, Says CFO

Byadmin

Bajaj Auto is emerging as a critical player in the sales revival of Endurance Technologies, according to the company’s Chief Financial Officer, PS Raja Gopal Sastry. Despite a visible dip in the overall two-wheeler market, Endurance remains optimistic about its growth trajectory—driven primarily by its longstanding relationship with Bajaj’s Auto and a growing order pipeline from other major automotive brands.

With recent signs of market revival and strategic diversification, Endurance Technologies is setting the stage for a robust recovery. And at the center of that strategy is its key client — Bajaj Auto.

How Bajaj Auto Is Powering Endurance Tech’s Growth?

Endurance Technologies, a leading auto component manufacturer based in Maharashtra, has pointed to Bajaj Auto as a crucial factor in its plans to recover lost sales volumes. The company had experienced pressure due to a slowdown in two-wheeler demand, but Sastry believes that this may be short-lived.

“It takes very little for the sentiment, as far as the two-wheeler market is concerned, to bounce back,” Sastry said during a media interaction.

He explained that as Bajaj’s Auto gears up with its new launches and export demand picks up, Endurance Technologies expects volumes to improve significantly. Given Bajaj Auto’s dominance in the domestic and export two-wheeler segments, this bodes well for Endurance’s near-term prospects.

Bajaj Auto’s Impact on Order Volumes

According to Sastry, Bajaj Auto remains Endurance’s most significant customer, accounting for a sizable portion of its revenue. Despite temporary drops in two-wheeler sales, Endurance is confident that Bajaj’s Auto expansion efforts, especially in global markets, will lead to a rebound in order volumes.

This recovery is not just speculative. Sastry pointed out that Bajaj Auto’s innovation in electric two-wheelers and premium motorcycles is likely to generate new demand for critical components, including braking systems and engine parts — two key offerings from Endurance.

Moreover, with the government’s focus on mobility and tax reforms, the demand landscape is gradually improving. These factors, combined with Bajaj’s Auto aggressive product pipeline, are set to drive volume growth.

Beyond Bajaj Auto: A Diversified Customer Base

While Bajaj’s Autos continues to be Endurance’s backbone, the company is strategically expanding its client base. Sastry revealed that Endurance has secured strong orders from major two-wheeler players such as:

  • Hero MotoCorp (HMCL)
  • Honda Motorcycle and Scooter India (HMSI)
  • TVS Motor Company
  • Yamaha

This diversification not only reduces dependency on Bajaj’s Autos but also strengthens Endurance’s positioning in the Indian two-wheeler ecosystem.

“We’ve been getting very good orders from the other customers, like Hero, Honda, TVS, and Yamaha,” Sastry shared, indicating robust future potential.

Nonetheless, the reliance on Bajaj’s Auto continues to be a key component of their growth story.

European Business Accelerates While Bajaj Auto Holds the Fort in India

Endurance’s European operations have shown strong resilience, especially in light of geopolitical uncertainties. Sastry reported a 21% year-on-year (YoY) revenue growth and a 27% YoY rise in EBITDA from the European market.

But while Europe grows steadily, Bajaj’s Auto remains the key anchor on the home front. The combination of international stability and domestic recovery—led by Bajaj Auto—has created a balanced portfolio for Endurance.

The company’s capability to serve both internal combustion engine (ICE) and electric vehicle (EV) platforms places it in a unique position to benefit from changing trends — trends that Bajaj’s Auto is also actively embracing with its foray into EVs.

Bajaj Auto’s Long-Term Order Potential and Green Initiatives

Looking ahead, Sastry confirmed that Endurance Technologies has an order pipeline worth approximately ₹3,300 crore accumulated over the last three to four years. A large portion of these orders can be attributed to demand from Bajaj’s Autos and other leading manufacturers.

What’s also encouraging is Endurance’s move toward sustainable production. The company is expanding its manufacturing footprint with a strong focus on eco-friendly facilities, in line with industry trends and Bajaj’s Autos growing emphasis on green mobility.

KTM Restructuring Update: A Positive Sign for Bajaj Auto’s Ecosystem

Another noteworthy update from Sastry was regarding KTM, another major client and a strategic partner of Bajaj’s Auto. Recent court-backed restructuring efforts have improved order visibility from KTM, and Endurance expects operations to normalize in the next couple of quarters.

This development is crucial because Bajaj’s Auto holds a significant stake in KTM, and any positive momentum there can indirectly boost Endurance’s component demand.

Bajaj’s Autos Role in Endurance’s Share Market Performance

The market capitalization of Endurance Technologies currently stands at ₹27,360.33 crore, with its shares gaining nearly 10% over the past year. Much of this market optimism is linked to the recovery in auto demand and the strategic importance of Bajaj Auto in Endurance’s business model.

As Bajaj;s Auto introduces new models and scales its EV efforts, investors are viewing this partnership as a core growth catalyst for Endurance.

Final Thoughts: Bajaj Auto Remains Central to Endurance Tech’s Revival Strategy

Despite short-term hiccups in two-wheeler sales, Bajaj’s Auto is proving to be the key driver behind Endurance Technologies’ sales recovery. With a strong order book, diversified clientele, and international expansion, Endurance is well-positioned to bounce back — and it all starts with Bajaj’s Auto.

For now, all eyes remain on Bajaj’s Autos performance in upcoming quarters and how its moves in both ICE and EV markets shape the future of suppliers like Endurance.

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