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.

Exide Industries Limited (EIL), a leading battery manufacturer in India, has made a significant move to bolster its presence in the advanced battery technology sector. The company has invested ₹100 crore (1 billion rupees) in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL), to support the manufacturing of advanced chemistry battery cells.

Investment Details

According to a recent disclosure filed with the stock exchanges, Exide Industries has subscribed to 2,50,00,000 equity shares of EESL at ₹40.00 per share, which includes a premium of ₹30.00 per share. This investment, made on a rights basis, brings the total investment by Exide Industries in EESL to ₹3,702.23 crore.

Purpose of Investment

The funds are earmarked for EESL's ongoing project to establish a greenfield plant in Bengaluru. This facility will focus on manufacturing and selling lithium-ion battery cells, modules, and packs, primarily targeting India's growing electric vehicle market and stationary applications.

Subsidiary Overview

Exide Energy Solutions Limited, incorporated on March 24, 2022, is wholly owned by Exide Industries. As of March 31, 2025, EESL reported:

Strategic Importance

This investment underscores Exide Industries' commitment to expanding its capabilities in advanced battery technology. By focusing on lithium-ion batteries, the company is positioning itself to meet the increasing demand for high-performance energy storage solutions in the rapidly evolving electric vehicle and renewable energy sectors.

Market Implications

The move by Exide Industries reflects the growing importance of advanced battery technologies in India's industrial landscape. As the country pushes for greater adoption of electric vehicles and renewable energy, companies like Exide are playing a crucial role in developing the necessary infrastructure and technologies.

This strategic investment not only strengthens Exide's position in the market but also contributes to the broader goal of enhancing India's capabilities in advanced energy storage solutions.