Exide Industries has delivered strong operational performance in its third quarter, with EBITDA margin expanding significantly to 11.7%, representing a substantial improvement of 220 basis points from the previous quarter. The battery manufacturer's enhanced profitability reflects successful execution across multiple operational fronts, while also providing strategic guidance on its emerging lithium-ion business segment.

Q3 Operational Performance

The company achieved notable margin expansion during the third quarter, with EBITDA margin reaching 11.7%. This represents a significant sequential improvement of 220 basis points compared to the previous quarter, demonstrating the effectiveness of the company's operational initiatives.

Growth Drivers

The substantial margin improvement was attributed to multiple factors working in synergy. Volume growth provided operational leverage, while an improved product mix contributed to better overall profitability. Additionally, the company benefited from enhanced pricing strategies and successful cost efficiency initiatives implemented across its operations.

Lithium-Ion Business Outlook

Exide Industries provided strategic guidance regarding margin expectations for its lithium-ion battery segment. The company indicated that lithium-ion margins are expected to be positioned between its existing lead acid business segments, specifically lower than lead acid trade margins but higher than lead acid OEM margins.

The third-quarter performance demonstrates Exide Industries' operational excellence and strategic positioning across its business portfolio. The significant EBITDA margin expansion reflects the company's ability to execute on multiple growth levers simultaneously, while the lithium-ion guidance provides clarity on future business segment profitability expectations.

Exide Industries Limited has invested an additional Rs. 50 crore in its wholly owned subsidiary Exide Energy Solutions Limited (EESL) through a rights issue completed on January 28, 2026. The investment was made by subscribing to 1.25 crore equity shares of Rs. 10 each at a premium of Rs. 30 per share, maintaining the parent company's 100% shareholding in the subsidiary.

Investment Details

The latest investment brings Exide Industries' total investment in EESL to Rs. 4,252.23 crore, including investments made in the erstwhile merged subsidiary Exide Energy Private Limited. The transaction was conducted on an arm's length basis as a related party transaction.

About Exide Energy Solutions Limited

EESL was incorporated on March 24, 2022, and operates in the manufacturing and selling of lithium-ion battery cells, modules and packs for India's electric vehicle market and stationary applications. The subsidiary focuses on manufacturing battery cells of advanced chemistry and form factors, including cylindrical, pouch, and prismatic batteries, along with battery modules and packs.

Business Operations and Expansion

EESL is currently establishing a greenfield manufacturing plant in Bengaluru for producing lithium-ion battery cells, modules and packs. The fresh equity investment will fund this expansion project and meet various operational funding requirements of the subsidiary.

Historical Performance

The subsidiary's turnover performance over the last three years shows:

Note: Figures are subsequent to the merger of Exide Energy Private Limited with EESL

Regulatory Compliance

The investment was disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No governmental or regulatory approvals were required for this transaction, and the equity shares were allotted on the same date as the investment.