Exide Industries announced its Q2 FY26 results, showing sales growth of 1.3% YoY despite challenges from recent GST rate changes. The GST rate on batteries was reduced from 28% to 18%, affecting trade business. The company is cutting production in anticipation of subdued demand but expects a stronger Q3, and the lithium-ion cell manufacturing project is progressing with commercialisation expected in FY26.
Financial Performance Overview
Exide Industries reported a 1.3% YoY increase in sales for the first half of fiscal year 2025-26, despite the impact of changes in GST rates. Standalone revenues reached ₹8688 Crore. Domestic business grew by 5% YoY, although export business faced challenges due to market conditions and tariff-related issues.
Key Financial Figures (Standalone)
- Revenue: ₹4178 Crore for Q2 FY26
- EBITDA: ₹395 Crore for Q2 FY26
- PBT: ₹298 Crore for Q2 FY26
- PAT: ₹221 Crore for Q2 FY26
- EPS: ₹2.60
Business Highlights
The company acknowledged the GST 2.0 reform, reducing battery GST rates from 28% to 18%, effective September 22, 2025, as a positive step. However, this caused short-term challenges as channel partners delayed purchases in anticipation of updated prices.
Production cuts were implemented in August and September to manage inventory, which resulted in reduced profitability due to under-recovery of fixed costs.
Lithium-ion Cell Manufacturing Project
The EESL (Exide Energy Solutions Limited) project is progressing. Exide Industries has invested ₹580 crores in H1 FY26 and an additional ₹65 crores in October 2025, bringing the total investment to ₹3947.23 crores. Production is expected to commence by the end of FY26, with product trials beginning in November 2025. The company is seeking collaborations with OEMs and energy providers.
Consolidated Financial Results
- Revenue from Operations: ₹4,364.51 Crores (Q2 FY26)
- Total Income: ₹4,418.17 Crores (Q2 FY26)
- Profit Before Tax: ₹253.33 Crores (Q2 FY26)
- Net Profit after Tax: ₹173.64 Crores (Q2 FY26)
Source: BSE
