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 , a leading battery manufacturer in India, has reported strong financial results for the quarter, demonstrating resilience in challenging market conditions.

Financial Highlights

Exide Industries reported a 24% year-on-year increase in consolidated net profit to Rs 275.00 crore, compared to Rs 221.00 crore in the same period last year. Consolidated revenue from operations grew 5.9% to Rs 4,695.00 crore from Rs 4,436.00 crore previously.

The company saw significant improvements in its profitability metrics:

The company's EBITDA margin on a standalone basis improved to 12.2% during the quarter, driven by better price realization, favorable product mix, and cost optimization measures.

Business Performance

Exide Industries reported mixed performance across its various business segments:

• The quarter saw double-digit growth in auto replacement, solar, and industrial UPS segments.
• However, demand remained subdued in auto OEM and exports verticals.

Lithium-Ion Project Update

Exide Energy Solutions Ltd (EESL), the company's lithium-ion cell manufacturing subsidiary, invested Rs 300.00 crore in the quarter with an additional Rs 100.00 crore in July. The greenfield facility is expected to begin production by the end of the fiscal year.

Looking Forward

Exide Industries continues to focus on innovation, cost efficiency, and expanding its presence in the emerging lithium-ion market to maintain its leadership position in the Indian battery industry. The company's investments in new technologies and production facilities demonstrate its commitment to long-term growth and adaptation to changing market demands.