Exide Industries delivered its highest-ever quarterly revenue in Q4 FY26, driven by broad-based domestic demand growth, even as sharply rising commodity costs—particularly a dramatic surge in sulfur prices—weighed on gross margins. The company's management, speaking at the Q4 FY26 Earnings Conference Call held on May 06, 2026, outlined a resilient operating performance underpinned by tight cost controls, multiple rounds of price hikes, and continued ramp-up of its lithium-ion cell manufacturing subsidiary.

Q4 FY26 Financial Performance

Exide Industries reported overall revenue growth of 9.4% year-on-year in Q4 FY26, with domestic business sales growing 12.5% year-on-year. For the full year FY26, the company delivered 4.1% year-on-year revenue growth, with domestic business growing approximately 7.5% year-on-year. Nearly 92% of the business grew by 16% in Q4, including the entire domestic business excluding Telecom. The company maintained its EBITDA margin sequentially at 11.7%, expanding it by nearly 50 basis points year-on-year, despite commodity cost pressures.

The following table summarizes the key performance metrics for Q4 FY26:

MD & CEO Avik Roy noted that the auto OEM business recorded its second consecutive quarter of over 25% year-on-year growth, also hitting its highest-ever quarterly revenue. The Home UPS business recorded its highest-ever Q4 sales, while the Solar vertical returned to double-digit growth, crossing the Rs. 1,000 crore mark for the full year FY26. Two-wheeler and four-wheeler replacement demand maintained mid-teens growth rates. Exports and Telecom/E-Rickshaw segments, which together represent approximately 8% of revenues, continued to decline due to geopolitical tensions and the ongoing shift towards lithium-ion technology.

Commodity Cost Pressures and Price Hike Response

Commodity cost inflation emerged as a significant headwind in Q4 FY26, with a net negative impact of approximately Rs. 150 crores on material costs. The gross margin declined by approximately 90 basis points quarter-on-quarter. The most acute pressure came from sulfur prices, which have surged approximately 5x on a year-on-year basis. The company clarified that it is sulfur prices—not sulfuric acid—that have seen this dramatic rise, driven by lower capacity utilization at petrochemical refinery plants, which has reduced sulfur supply as a byproduct.

The following table details the sulfur price movement:

Beyond sulfur, the company also flagged rising polypropylene (plastics) costs in Q4, and noted that while LME lead prices were softer year-on-year, a roughly 10% rupee depreciation offset those gains. In April, LME lead prices rose again to approximately 1,950. Key bill of material components—lead, acid, and plastics—collectively account for approximately 95%–96% of material costs.

In response, Exide Industries implemented multiple rounds of price increases across its aftermarket and trade channels: on January 1, March 1, March 20, and April 1, amounting to approximately 5%–6% across businesses. The April 1 round specifically involved an approximately 3% price hike. The company is also in active negotiations with major OEMs for price corrections, with OEM escalation typically reflecting with a lag of approximately one quarter. Management indicated further price hikes may be announced in May and June if commodity inflation persists.

Lithium-Ion Cell Manufacturing: Progress and Investment

Exide Energy Solutions, the company's lithium-ion cell manufacturing subsidiary, continued its ramp-up during Q4 FY26. The company invested Rs. 600 crores in Q4 and approximately Rs. 1,500 crores in FY26 in Exide Energy. The total equity investment in Exide Energy to date stands at Rs. 4,802 crores, with a Board-approved investment of Rs. 1,400 crores planned for FY27, covering both capital expenditure and working capital requirements.

The following table summarizes the lithium-ion project status and capacity details:

MD & CEO of Exide Energy Solutions, Pravin Saraf, noted that internal validations for cylindrical cells have been completed, with customer sample deliveries expected to begin around May 2026. Prismatic cell trials are underway, with customer samples targeted for June–July 2026. Revenue from prismatic (LFP) lines is expected to commence sooner than cylindrical lines, as LFP products for three-wheelers and stationary applications do not require the same level of OEM homologation. Customer validation for cylindrical cells is expected to take approximately two to three months depending on the customer.

The 6 GWh Phase-I capacity is separate from a co-investment arrangement with Hyundai Kia, which represents incremental capacity beyond the 6 GWh and has not yet been publicly detailed. The company's existing pack and module business, conducted through imported cells, has been generating approximately Rs. 100–200 crores in revenue. Management emphasized that achieving 85% utilization and 90% yield will be the key milestones before providing detailed return metrics for the cell manufacturing business.

Business Outlook and Strategic Direction

Management expressed cautious optimism for the lead-acid business, noting that the outlook across most verticals remains positive. The five-year CAGR for the core business has been 11%, and management indicated no reason for the next five-year CAGR to differ materially. For FY27, the core business is expected to deliver high single-digit to early double-digit growth. The UPS segment revenue for FY26 stood at approximately Rs. 2,300 crores, while Telecom now represents approximately 2%–3% of revenues. Exports, which declined to approximately 5% of revenues from approximately 8% a couple of years ago, are expected to recover as geopolitical tensions ease, with management noting a substantial upside potential. The company's 'One-Exide' operating model, transitioned from a strategic business unit-led model in FY25, has enabled greater agility and customer focus, contributing to overall performance improvements in FY26.

Exide Industries Limited reported its audited financial results for the year ended March 31, 2026, following a Board meeting held on May 4, 2026. The company delivered strong performance across key business segments, with revenue growth and improved profitability on both standalone and consolidated bases. The Board has recommended a dividend of Rs. 2 per equity share of face value Re. 1 each (200%) for the financial year, subject to shareholder approval at the 79th Annual General Meeting scheduled for July 10, 2026. Following the results, Citi maintained a Buy rating on Exide Industries with a target price of ₹420, citing in-line Q4 performance, strong segmental revenue growth, and a positive growth outlook, while acknowledging headwinds from export challenges and elevated commodity cost pressures. The audio recording of the Q4 FY26 earnings call held on May 6, 2026 has been uploaded on the company's website pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the company confirming that no Unpublished Price Sensitive Information was shared during the call.

Analyst View

Citi has maintained its Buy rating on Exide Industries with a target price of ₹420, noting that the Q4 results were in line with expectations. The brokerage highlighted strong segmental revenue growth and a positive growth outlook as key positives, while flagging export challenges and elevated commodity cost pressures as near-term headwinds.

Standalone Financial Performance

For Q4 FY26, the company achieved standalone revenue of Rs. 4,551 crore, representing a 9.4% increase compared to Rs. 4,159 crore in the corresponding quarter of the previous year. Profit before tax (before exceptional items) for Q4 FY26 grew 22.6% year-on-year to Rs. 420 crore. EBITDA margin expanded on a year-on-year basis to 11.65% in Q4 FY26 from 11.23% in Q4 FY25. For the full year FY26, standalone revenue reached Rs. 17,269 crore, while profit after tax was Rs. 1,111 crore. Q4 FY26 standalone net profit of Rs. 312 crore exceeded analyst estimates of Rs. 300 crore.

*Not annualised

Key Financial Ratios

The investor presentation highlights a significant improvement in return metrics and balance sheet efficiency for FY26. ROCE for the core business improved to 28.8% from 26.0% in FY25, while the asset turnover ratio rose to 3.4x from 3.1x. Working capital usage improved to 7.3% from 11.3% in the prior year. The company maintains a zero-debt balance sheet with strong credit ratings of ICRA AAA/Stable (long term) and ICRA A1+ (short term). Market capitalisation stood at Rs. 30,647 crore as on April 30, 2026.

*Calculated for core business excluding investments in HDFC Life and EESL project

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects total assets of Rs. 19,256.64 crore, compared to Rs. 18,819.09 crore as at March 31, 2025. Total equity stood at Rs. 14,673.58 crore versus Rs. 14,442.34 crore in the prior year. Cash and cash equivalents on a standalone basis were Rs. 164.61 crore as at March 31, 2026, up from Rs. 111.26 crore in the previous year, reflecting the company's robust liquidity position with zero debt.

Standalone Cash Flow

Net cash from operating activities for FY26 stood at Rs. 2,231.15 crore, significantly higher than Rs. 1,297.92 crore in FY25. Net cash used in investing activities was Rs. 1,962.56 crore, compared to Rs. 1,180.25 crore in the prior year, primarily driven by investments in subsidiaries of Rs. 1,500.00 crore. Net cash used in financing activities was Rs. 215.24 crore versus Rs. 223.85 crore in FY25.

Consolidated Financial Performance

On a consolidated basis, the Group reported revenue from operations of Rs. 17,995.35 crore for FY26, compared to Rs. 17,237.85 crore in FY25. Consolidated profit after tax for FY26 stood at Rs. 859.92 crore, up from Rs. 800.50 crore in the previous year. For Q4 FY26, consolidated revenue from operations was Rs. 4,735.13 crore against Rs. 4,335.42 crore in Q4 FY25, with PAT at Rs. 216.73 crore compared to Rs. 187.91 crore in the year-ago quarter. Consolidated earnings per share (basic and diluted) for FY26 stood at Rs. 10.05, against Rs. 9.35 in FY25.

*Not annualised

Consolidated Balance Sheet Highlights

The consolidated balance sheet as at March 31, 2026 shows total assets of Rs. 21,219.88 crore versus Rs. 21,396.33 crore in the prior year. Total equity (including non-controlling interest) stood at Rs. 13,931.22 crore compared to Rs. 13,934.12 crore. Consolidated cash and cash equivalents closed at Rs. 250.81 crore, up from Rs. 180.82 crore.

Consolidated Cash Flow

Consolidated net cash from operating activities for FY26 was Rs. 2,413.16 crore, up from Rs. 1,272.90 crore in FY25. Net cash used in investing activities was Rs. 1,551.20 crore compared to Rs. 1,933.92 crore in the prior year. Net cash used in financing activities stood at Rs. 804.51 crore versus net cash generated of Rs. 514.62 crore in FY25, reflecting significant debt repayments during the year.

Business Highlights

All industry businesses (2W/3W/4W) grew in double digits on a year-on-year basis. The Auto OEM business grew over 25% YoY, achieving its highest ever quarterly revenue. Overall domestic business growth during Q4 was 12.5%, despite nearly 50% de-growth in the Telecom segment due to the industry's transition towards lithium-ion solutions. The Inverters and Solar business showed mid-to-high teens growth, buoyed by peak season demand. The Industrial Infra business (excluding Telecom) continued its double-digit growth trajectory with strong order inflow and execution in railways, traction, and I-UPS sectors. The export business faced challenges amid geopolitical tensions and disruption in shipping routes.

MD & CEO Commentary

Commenting on the performance, Mr. Avik Roy, MD & CEO, said: "Q4 FY26 built on the gains observed in Q3 – GST rationalization continued to boost end-customer demand across the automotive sector, supported by strong replacement market and energy storage demand. Macroeconomic conditions in India remained favourable with low inflation, lower Repo rates and positive rural and urban sentiment. However, the West Asia conflict created challenges on two fronts: firstly, the rate escalation and timely availability of LPG, Plastics and Sulphuric Acid; secondly, freight cost escalation due to closure of multiple shipping routes and unavailability of containers. Sustained depreciation of Rupee vs. USD put further pressure on our input costs. In this environment, the Company's priority has been on managing profitable growth and focusing on preserving cash. The Company continues to deliver stable performance along with maintaining strong balance sheet and positive cash flow generation, thereby establishing the strength of our brand, trade network and OEM relationships. In the lithium-ion cell manufacturing project, installation and commissioning work is progressing in full swing. Customer sample deliveries to begin shortly for the cylindrical cells, and production trials to be initiated for the prismatic cells."

Lithium-Ion Project Update

Exide Energy Solutions Limited (EESL), the company's wholly-owned subsidiary, continues to make progress on its greenfield lithium-ion cell manufacturing facility in Bengaluru. Exide Industries invested an additional Rs. 600 crore in Q4 FY26, taking the total investment for FY26 to Rs. 1,500 crore. The cumulative equity investment in EESL stands at Rs. 4,802.23 crore (including investment made in the erstwhile merged entity). The project has an initial planned capacity of 6 GWh, scalable up to 12 GWh, with four production lines across cylindrical and prismatic cell formats, catering to both LFP and NMC chemistries. The investor presentation highlights that 95%+ of utilities are nearing completion across all four lines, all equipment is on-site for current phase lines, approximately 45 MPAs have been signed for supply chain readiness, and 450+ shopfloor associates are supporting trials and commissioning. Cylindrical lines are expected to start customer sample delivery by Q1 FY27, while the Prismatic line will initiate product trials shortly thereafter.

Dividend and Corporate Actions

The Board of Directors has recommended a dividend of Rs. 2 per equity share of face value Re. 1 each (200%) for the financial year ended March 31, 2026. The record date for determining eligibility has been fixed as Friday, July 3, 2026. The dividend will be paid within 30 days after the conclusion of the 79th Annual General Meeting. The 79th AGM will be held on Friday, July 10, 2026, through Video Conferencing or Other Audio Visual Means, in compliance with relevant circulars issued by the Ministry of Corporate Affairs and SEBI.

Auditor's Report

Statutory auditors M/s B S R & Co. LLP have not expressed any modified opinion in their audit report pertaining to the audited standalone and consolidated financial results for the year ended March 31, 2026. The financial results have been prepared in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. An exceptional item of Rs. 9.04 crore (standalone) and Rs. 10.38 crore (consolidated) was recognised for the year ended March 31, 2026, pertaining to the incremental financial impact assessed following the Government of India's notification of four Labour Codes on November 21, 2025.