Exide Industries reported its Q2 earnings, noting a 1.3% overall growth in H1, overcoming a degrowth of 2.1% in Q2. A strategic cash management initiative led to INR 500 crore in incremental cash flow. The company is progressing with its lithium-ion cell manufacturing project, expecting production to begin by the end of FY ’26 and targeting strong growth in automotive OEM demand.
Financial Performance Overview
Exide Industries began the year strongly, with Q1 showing about 5% growth. However, Q2 experienced a 2.1% degrowth, leading to an overall growth of 1.3% in H1. This slowdown was partially attributed to GST rate cuts, which led distributors and retailers to postpone purchases. A focus on cash management helped generate an incremental cash flow of over INR500 crores.
Segment Performance
Approximately 88% of the business experienced growth of around 7%, driven by aftermarket, automotive, solar, and IUPS segments. The remaining 12% of the business, including exports and telecom, saw a decline due to weaker demand.
Lithium-Ion Project Update
Exide Industries has invested around INR580 crores in H1 and an additional INR65 crores in October for its lithium-ion cell manufacturing project, bringing the total equity investment to INR3,947 crores. Equipment installation and commissioning are nearing completion, with production expected to start towards the end of FY ’26. The company is preparing samples for potential OEM customers, particularly in the 2-wheeler segment.
Outlook and Future Strategies
The company anticipates an uptick in automotive OEM demand due to recent GST reductions, with positive indicators already visible in October data. Despite tariff uncertainties impacting export business, Exide is actively exploring new geographies and portfolios. Efforts to improve operational efficiency and cost excellence are ongoing, with initiatives such as moving motorcycle battery production to Punched Grid Technology.
Solar Business Expansion
Exide Industries is also focusing on the solar business, particularly in the commercial and residential sectors. The government’s PM Surya Ghar Yojana and recent GST reductions for solar combo packs are expected to drive growth in this segment. The company has a dedicated solar vertical with a strong channel network to reach potential markets and aims to scale up its solar business significantly.
Source: BSE
