Exide Industries reported sales growth of 1.3% YoY for the first half of FY26, despite transitional challenges from GST rate changes. The company anticipates stronger growth in Q3 FY26, particularly in trade and Auto OEM businesses, due to the recent GST rate cuts. A large GST reform will welcome production cuts in August and September to reduce inventory and is accompanied by short-term trade challenges.
Financial Performance Overview
For the first half of the financial year 2025-26, Exide Industries reported a sales increase of 1.3% on a year-over-year basis, despite facing transitional impacts due to changes in Goods and Services Tax (GST) rates.
Key Financial Figures (Standalone)
Here’s a summary of Exide Industries’ standalone financial performance:
- Revenue: ₹8688 Crore (H1FY26) compared to ₹8580 Crore (H1FY25)
- EBITDA: ₹943 Crore (H1FY26) compared to ₹978 Crore (H1FY25)
- PBT: ₹727 Crore (H1FY26) compared to ₹773 Crore (H1FY25)
- PAT: ₹541 Crore (H1FY26) compared to ₹577 Crore (H1FY25)
- EPS: ₹6.37 (H1FY26) compared to ₹6.79 (H1FY25)
GST Reform and Market Impact
Exide Industries views the GST 2.0 reform announced on August 15, 2025, as a positive step. The GST rate on batteries was reduced from 28% to 18%, effective September 22, 2025. Exide aims to pass on the full benefit of the GST rate reduction to consumers.
The announcement of GST rate cuts led to a shift in momentum in the trade business as channel partners postponed purchases, anticipating new stocks with updated prices. Exide Industries implemented production cuts in August and September to reduce inventory.
Business Segment Performance
Exide Industries anticipates stronger growth in Q3 FY26, particularly in the trade and Auto OEM sectors, driven by GST rate cuts.
Key observations across business verticals:
- Solar business showed the fastest growth.
- Trade Mobility exhibited double digit growth in H1.
- Industrial Infra business (excluding Telecom) has improved.
- Reserve Power vertical faced challenges due to prolonged monsoon.
- Export business experienced degrowth.
Exide Energy Solutions Limited (EESL)
EESL’s project site is making steady progress. Exide has invested ₹580 crores in H1FY26 and a further ₹65 crores in October 2025, bringing the total equity investment to ₹3947.23 crores.
Equipment installation and construction work in EESL are nearing completion, with production expected to commence by the end of FY26. Product trials are expected from November 2025.
Management Commentary
According to Mr. Avik Roy, MD & CEO, the company experienced strong performance until mid-August, followed by muted growth due to channel destocking after the GST cut announcement. He expects a rebound in Q3 and noted that global trade remains uncertain.
Source: BSE