Exide Industries Limited conducted its Q3 FY26 earnings conference call on February 03, 2026, marking a significant milestone as the company crossed ₹4,000 crores in revenue for the first time during its traditionally smallest quarter. The earnings call, moderated by Investec Capital Services, featured key management including MD & CEO Avik Roy, CFO Manoj Kumar Agarwal, and newly appointed MD & CEO of Exide Energy Solutions Pravin Saraf.

Financial Performance Highlights

The company reported overall sales growth of 5% year-on-year for Q3 FY26, with domestic growth excluding telecom reaching 10%. Despite facing headwinds in specific segments, 92% of the business demonstrated robust growth of approximately 12% on the top line.

Segment-wise Business Performance

Auto Business Delivers Strong Results

The automotive segment emerged as a key growth driver, with both Auto OEM and domestic 2W/4W replacement markets achieving their highest ever quarterly revenues in Q3. Auto OEM business surged 25% year-on-year, driven by robust production growth and favorable market conditions following GST 2.0 reforms.

Management highlighted successful partnerships with major OEMs, including 100% supplier status for Tata Sierra Petrol model and the new domestic Kia Seltos model. The company also launched AGM batteries for premium passenger vehicles during the quarter.

Industrial Infrastructure Shows Recovery

The Industrial Infrastructure segment demonstrated positive momentum with double-digit growth across multiple sub-segments:

Challenging Segments

Telecom and export businesses faced continued pressure, collectively representing the 8% of business that experienced strong decline. Telecom business has now reduced to just 1% of total revenue as the industry transitions to lithium-ion technology. Export business, currently 5-6% of total revenue, faced geopolitical tensions and tariff uncertainties, though management expressed optimism about recent policy announcements.

Commodity Cost Pressures and Margin Management

The company navigated significant commodity price volatility during Q3, with key input materials experiencing substantial increases:

Despite these pressures, the company maintained year-on-year EBITDA margin at 11.7% through cost excellence projects and improved operational efficiency. Management took a 2% price increase in January 2026 after absorbing commodity cost increases in Q3 to pass GST reduction benefits to end consumers.

Lithium-ion Project Progress

Exide Energy Solutions continued advancing its lithium-ion cell manufacturing capabilities with significant capital deployment and operational milestones:

The cylindrical cell line for 2-wheelers has entered product validation phase, with internal validation samples being prepared for customer testing. Management confirmed engagement with multiple OEMs across 2-wheeler, 3-wheeler, and 4-wheeler segments, with commercial dispatches expected within the current financial year or shortly thereafter.

Market Outlook and Strategic Initiatives

Management expressed confidence about the lead acid business outlook, citing positive macroeconomic conditions including low inflation rates and increased purchasing power. The inverter season approaching from March to July typically drives volumes up by 3x compared to off-peak periods, representing approximately 25% of revenue during peak season.

For the lithium-ion business, the company expects margins to fall between lead acid OEM and aftermarket levels, with commodity costs largely indexed and pass-through arrangements with customers. The prismatic LFP line targeting 3-wheelers and e-rickshaw markets is expected to provide faster market entry due to reduced validation requirements.

Future Growth Trajectory

Looking ahead, management indicated expectations for high single-digit to early double-digit growth in the core business, with potential for 100-150 basis points margin improvement provided favorable commodity conditions. The combination of recovering segments, strong automotive demand, and emerging lithium-ion opportunities positions the company for sustained growth momentum.

Source: Exide Industries Limited Q3 FY26 Earnings Conference Call Transcript

Exide Industries has outlined its strategic roadmap for entering the lithium-ion battery market, with plans to begin supplying cells to automotive original equipment manufacturers across multiple vehicle segments.

Planned Market Entry Timeline

The company has announced its intention to start shipping lithium-ion cells to passenger vehicle (PV) and two-wheeler OEMs within a specific timeframe. These shipments are expected to commence either during the current financial year or early in the next financial year.

Revenue Generation Strategy

Exide Industries expects that three-wheeler and e-rickshaw cell applications will be the primary drivers of initial revenue in its lithium-ion battery business. This strategic focus on commercial vehicle segments reflects the growing demand for electric mobility solutions in the commercial transportation sector.

Market Positioning

The company's entry into lithium-ion cell manufacturing represents a significant expansion of its product portfolio beyond traditional lead-acid batteries. By targeting multiple vehicle segments including passenger vehicles, two-wheelers, three-wheelers, and e-rickshaws, Exide Industries is positioning itself to capitalize on the growing electric vehicle market across various automotive categories.