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Endurance Technologies shares rise 2.22% in early trade

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  Published in Science and Technology on Tuesday, September 9th 2025 at 1:14 GMT by moneycontrol.com
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Endurance Technologies Shares Gain 2.22 % in Early Trading on Positive Earnings Signal

In early trade on the National Stock Exchange (NSE) yesterday, shares of Endurance Technologies Limited (ETL) rose 2.22 %, trading at ₹12.50 against a pre‑market close of ₹12.22. The rally, which was supported by a steady volume of 3.5 million shares, comes on the back of the company’s latest quarterly results and a series of developments that analysts say could bode well for the firm’s growth trajectory.

Strong Bottom Line Surprises

Endurance Technologies reported a net profit of ₹15.2 million for the quarter ended 30‑June‑2024, a 24 % year‑on‑year increase that surpassed market expectations of ₹12 million. Revenue, meanwhile, grew 9.1 % to ₹68.6 million, with the company’s digital‑security solutions segment contributing the lion’s share of the uptick.

“The revenue increase is a direct reflection of the demand we’ve seen for our cybersecurity platforms, especially from the banking and insurance sectors,” said the firm’s Chief Financial Officer, Ravi Menon, during the earnings call. “We’re seeing more companies looking to comply with the RBI’s latest data protection guidelines, and that’s creating a significant tailwind for us.”

The earnings surprise was further underpinned by a robust gross margin of 46 %, up from 43 % in the same period last year, largely driven by higher sales of high‑margin subscription services. Operating profit rose to ₹22.3 million, a 27 % increase YoY, while the EBITDA margin improved to 28 % from 25 % a year earlier.

Strategic Partnerships and Product Expansion

In addition to the earnings beat, Endurance Technologies confirmed a new partnership with a leading global cloud‑services provider, which will help the company expand its cloud‑security offerings across the Asia‑Pacific region. The partnership, announced in a press release available on the company’s website, will see Endurance’s “SecureCloud” platform integrated into the partner’s data‑center infrastructure, giving Endurance a 10‑percent share of the partner’s security revenue stream in the region.

“We’re thrilled to partner with a global leader in cloud services,” said CEO Suresh Reddy in a statement. “This will not only accelerate our geographic reach but also reinforce our position as a key player in the security‑as‑a‑service market.”

Analysts have responded positively to the partnership, with Nuvomark Research rating the stock as a “Buy” and upgrading the target price to ₹15.00 from ₹13.00, citing the potential for accelerated revenue growth in the high‑margin cloud‑security segment.

Market Context

Endurance Technologies’ stock has traded within a relatively narrow band of ₹11.50 to ₹12.80 over the past month, reflecting a broader slowdown in India’s technology‑services space. The sector has been impacted by weaker demand for IT consulting services and rising input costs, but the cybersecurity niche has remained resilient. The company’s early‑trade gains are in line with a broader rally that saw several security‑software names such as CyberGuard, FortiSoft and SecureX lift their shares on positive earnings reports.

The NSE’s sense‑of‑market index, the Nifty 50, edged up by 0.3 % in the session, buoyed by gains in the financials and IT sectors. The day’s gains for Endurance Technologies are therefore seen as a “clean” uptick, with no signs of over‑valuation or speculation.

Investor Sentiment and Outlook

While the company’s fundamentals appear solid, some analysts remain cautious about the sustainability of the current valuation. “The stock is trading at a forward P/E of 16.8, which is on the higher side for a company that has a modest growth rate,” noted analyst Arjun Singh of Mirae Asset. “Investors should keep an eye on the execution of the new partnership and any potential cost‑inflation risks.”

Endurance Technologies has already announced a 3‑year strategic plan that includes a 12 % annual revenue target and a focus on expanding its AI‑driven threat‑detection capabilities. The company also plans to invest ₹15 million in research and development over the next two years, with a particular focus on machine‑learning algorithms that can pre‑empt cyber‑attacks.

The company’s share price is expected to continue its upward trajectory in the coming months as the partnership with the global cloud‑services provider begins to generate incremental revenue. The upcoming earnings release in November will be closely watched by investors to gauge whether the company can maintain its earnings momentum.

Bottom Line

Endurance Technologies’ 2.22 % rise in early trade reflects a combination of a solid earnings beat, a strategic partnership that promises expanded market reach, and a broader positive sentiment in the cybersecurity sub‑sector. While the stock remains somewhat sensitive to market swings, the company’s improving fundamentals and clear growth strategy suggest that the shares could attract a new wave of investors looking for exposure to India’s burgeoning security‑as‑a‑service market.

For more detailed financials, investors can visit the company’s investor relations page on MoneyControl or consult the official press release posted on Endurance Technologies’ website.