Exide Industries has released its investor presentation for the first quarter of fiscal year 2027 (Q1FY27), signaling that revenue generation from its advanced chemistry battery gigafactory is expected during FY27. The company, which maintains a zero-debt balance sheet, highlighted critical milestones in its new energy vertical, including the dispatch of Nickel Manganese Cobalt (NMC) cylindrical samples and the supply of Lithium Iron Phosphate (LFP) prismatic samples for three-wheeler and telecom applications.

The presentation was filed with stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. An earnings call for analysts and investors was held on August 3, 2026, at 12:00 PM IST. The company emphasized its strategic shift towards localisation in the battery sector, aiming to transition India’s demand from import-led to localisation-led by leveraging shorter working-capital cycles and potential policy support.

New Energy Business Milestones

Exide’s subsidiary, Exide Energy Solutions Limited (EESL), has achieved significant operational milestones in its Bengaluru-based cell manufacturing platform and Prantij-based packs and modules facility. Key achievements include:

• Utilities: 100% utilities operationalised across four production lines.
• Certifications: Completed key certifications including BIS- IS 16046, IS 16893, IS 16085, and UN 38.3.
• Samples: Dispatched NMC cylindrical samples and supplied LFP prismatic samples for specific applications.

Current focus areas include production stabilisation, yield improvement, customer validation, homologation, and OEM qualification. The company has invested ₹4,902 crore in this segment till date.

Core Business & Financial Resilience

The core lead-acid battery business continues to benefit from a diversified portfolio spanning mobility, backup power, and critical infrastructure. Exide operates 16 manufacturing plants, including two from EESL and three lead recycling plants from wholly-owned subsidiary Chloride Metals Limited (CML). This integrated model supports raw material recovery and input-cost control through circularity.

Financially, the company reports a strong balance sheet with healthy liquidity. It holds an ICRA AAA/Stable rating and an A1+ rating. As of June 30, 2026, domestic shareholders held 43% of the equity. The market capitalization stood at ₹37,655 crore as of July 24, 2026.

Growth Levers

Management identified several structural growth drivers for the medium to long term:

• Automotive Expansion: Low passenger vehicle penetration (~40 cars per 1,000 people) and rising affordability are expected to drive demand. The company holds a 100% share of business on key new models with large OEMs.
• Solar Power: A GST reduction from 12% to 5% and the ‘PM Surya Ghar’ scheme are supporting rooftop solar adoption. India targets 500 GW of renewable energy by 2030.
• Infrastructure Capex: Public and private sector capex is driving demand for backup and motive-power batteries, particularly in railways, data centers, and logistics.

What the Numbers Show

While specific revenue and profit figures for Q1FY27 were not detailed in the provided presentation text, the strategic allocation of capital is evident. With ₹4,902 crore invested in the new energy business and a clear timeline for revenue generation in FY27, Exide is positioning itself to capture the shifting demand towards lithium-ion chemistry in EVs and stationary storage. The maintenance of a zero-debt status amidst such heavy investment underscores strong internal cash flows from the core business.

Exide Industries Limited reported a strong start to FY27, with standalone profit after tax (PAT) rising 27.1% year-on-year to ₹407 crore in the quarter ended June 30, 2026. The growth was driven by a 17.6% increase in revenue from operations to ₹5,305 crore, supported by robust demand across automotive OEMs, two-wheeler/four-wheeler replacement segments, and exports. Despite headwinds from raw material costs and rupee depreciation, the company expanded its EBITDA margin by 20 basis points year-on-year to 12.4%, reflecting effective cost management and price adjustments.

Financial Performance

The Board of Directors approved the unaudited standalone and consolidated financial results on July 30, 2026. Standalone EBITDA grew 19.5% to ₹655 crore from ₹548 crore in Q1FY26. Consolidated PAT rose 27.8% to ₹351 crore, while consolidated revenue increased 17.8% to ₹5,528 crore. The company maintained a zero-debt balance sheet, underscoring its strong liquidity position.

Operational Highlights

Broad-based growth was observed across key business verticals. The Automotive OEM business delivered over 25% YoY growth for the third consecutive quarter. The 2W/4W replacement segment registered its third consecutive quarter of double-digit growth, indicating sustained aftermarket demand. Exports returned to growth with a 20%+ YoY increase, aided by the reopening of shipping routes to major markets. Inverters and solar businesses grew by over 20% YoY, benefiting from summer-season demand.

Gigafactory Progress

Exide Energy Solutions Limited (EESL), the wholly-owned subsidiary, achieved critical milestones at its Bengaluru gigafactory. All equipment across four production lines has been installed, and utilities are fully operational. The facility, with an initial capacity of 6 GWh scalable to 12 GWh, commenced customer sample deliveries from its NMC cylindrical line during Q1FY27. LFP prismatic lines have also begun supplying samples for three-wheeler and telecom applications. Revenue contribution from the Bengaluru plant is expected to commence in FY27. Exide infused ₹100 crore in equity into EESL in July 2026, bringing cumulative investment to ₹4,902 crore.

What the Numbers Show

The expansion in EBITDA margin to 12.4% amidst rising input costs highlights the effectiveness of Exide’s pricing strategy and operational efficiencies. While lead prices remained rangebound, currency depreciation pressured import-linked costs; however, calibrated price adjustments mitigated these impacts. The consistent double-digit growth in OEM and replacement segments suggests resilient end-consumer demand, further supported by GST 2.0 reforms. The transition toward lithium-ion manufacturing marks a strategic diversification beyond traditional lead-acid batteries, positioning the company for future electric mobility trends.