Exide Industries Limited has announced a further investment of ₹100 crore in its wholly owned subsidiary Exide Energy Solutions Limited (EESL) through subscription of equity shares on rights basis. The investment was completed on 24th February 2026, bringing the company's total investment in EESL to ₹4,352.23 crore.

Investment Details

The investment structure involved EESL allotting 2,50,00,000 equity shares of ₹10 each at a premium of ₹30 per share, aggregating to ₹100,00,00,000. The transaction was conducted on a rights basis, with no change in Exide Industries' shareholding percentage in EESL, which remains at 100%.

About Exide Energy Solutions Limited

EESL was incorporated on 24th March 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 specializes in manufacturing battery cells of advanced chemistry and form factor, including cylindrical, pouch, and prismatic formats, along with battery modules, battery packs and related activities.

Business Objectives and Strategic Purpose

The equity investment will fund EESL's green field plant setup in Bengaluru for manufacturing lithium-ion battery cells, modules and pack business. This investment aligns with the company's expansion into the electric vehicle battery manufacturing sector and supports various funding requirements for the project.

Historical Performance

EESL's turnover performance over the last three years shows:

Note: Figures are subsequent to merger of EEPL with EESL

Regulatory Compliance

The investment constitutes a related party transaction as EESL is a wholly owned subsidiary of Exide Industries Limited. The company confirmed that the transaction was conducted at arm's length and no governmental or regulatory approvals were required for the acquisition. The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

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