Exide Industries , a leading battery manufacturer, has made a significant move to bolster its presence in the electric vehicle (EV) battery market. The company has invested an additional ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), bringing its total investment in the subsidiary to ₹3,802.00 crore.

Strengthening EV Battery Business

The fresh capital injection is aimed at supporting EESL's ongoing project - a greenfield lithium-ion cell manufacturing plant in Bengaluru. This strategic investment underscores Exide Industries' commitment to strengthening its position in the rapidly growing EV battery segment and aligns with its long-term clean energy growth plans.

Details of the Investment

According to the company's disclosure to the stock exchanges, the investment was made through a subscription to EESL's equity share capital on a rights basis. Exide Industries subscribed to 2,50,00,000 equity shares of EESL at ₹40.00 per share, which includes a premium of ₹30.00 per share.

About Exide Energy Solutions Limited

EESL, incorporated on March 24, 2022, is engaged in the business of manufacturing and selling lithium-ion battery cells, modules, and packs for India's electric vehicle market and stationary applications. The subsidiary has shown promising growth, with a turnover of ₹116.89 crore.

Financial Implications

Despite the substantial investments, EESL reported a loss after tax of ₹209.12 crore. However, the company's net worth stood at ₹2,738.06 crore, indicating a strong financial foundation for future growth.

Market Impact and Future Prospects

This investment is expected to accelerate EESL's progress in setting up the lithium-ion cell manufacturing plant. As the demand for electric vehicles continues to rise in India, Exide Industries is positioning itself to be a key player in the EV battery supply chain.

The move also reflects the company's adaptation to the changing automotive landscape, as it transitions from traditional lead-acid batteries to advanced lithium-ion technology. This strategic pivot could potentially open up new revenue streams for Exide Industries in the burgeoning EV market.

As the project develops, industry observers will be keenly watching how this investment translates into market share and profitability for Exide Industries in the competitive EV battery sector.

Exide Industries , a leading battery manufacturer in India, has announced significant progress on its lithium-ion cell manufacturing project while reporting strong financial results for the first quarter.

Lithium-Ion Project Update

The company's wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), is making steady progress on its lithium-ion cell manufacturing project. Avik Roy, MD & CEO of Exide Industries, stated, "Construction work is going on in full swing to ensure timely project completion. We intend to commercialise operations in FY26."

Key highlights of the project include:

• Equipment installation and construction works are nearing completion.
• The company is actively pursuing collaborations with OEMs and energy providers across key end consumer markets.
• Exide Industries has invested Rs 300.00 crore in Q1 and an additional Rs 100.00 crore in July, bringing the total equity investment in EESL to Rs 3,702.23 crore.

Q1 Financial Performance

Exide Industries reported robust financial results for the quarter ended June 30:

All figures in Rs Crore

The company's standalone revenues increased by 4.6% year-on-year to Rs 4,510.00 crore. The EBITDA margin improved to 12.2% during the quarter, up from 11.5% in Q1 FY25, primarily driven by better price realization, improved product mix, and benefits from various cost excellence projects undertaken at the factories.

Business Segment Performance

• Solar business emerged as the fastest-growing segment, supported by various government programs.
• The replacement market for two-wheeler and four-wheeler batteries showed strong demand, registering double-digit growth in the mobility business.
• Industrial UPS business benefited from increasing demand for critical power backup solutions across multiple sectors.
• The auto OEM business faced challenges due to lower demand from vehicle manufacturers in both passenger vehicle and two-wheeler segments.
• Industrial infrastructure business improved year-on-year, with order inflow and execution picking up in sectors like power, railways, and traction.
• Telecom and exports segments faced declines amid technology shifts and geopolitical disruptions, respectively.

Mr. Roy commented on the company's performance, saying, "The Company continues to deliver stable performance along with maintaining a strong balance sheet and positive cash flow generation, thereby establishing the strength of our brand and trade network."

Despite ongoing challenges such as tough macroeconomic conditions and pressure from input costs, Exide Industries remains focused on managing profitable growth and improving its product mix. The company expects the overall demand scenario to improve in the coming quarters and will continue to focus on innovative products and achieving cost efficiencies in its manufacturing facilities.

As Exide Industries progresses with its lithium-ion cell manufacturing project and maintains strong financial performance, the company is well-positioned to capitalize on the growing demand for advanced energy storage solutions in India's evolving automotive and industrial sectors.