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Exide Industries Ltd — Q4 FY26
Exide Industries reported Q4 FY26 revenue growth of 9.4% YoY, driven by strong domestic demand across auto OEM (25%+ growth for second consecutive quarter), home UPS, solar (crossed ₹1,000cr), and industrial infrastructure.
bullish
high
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Exide Industries reported Q4 FY26 revenue growth of 9.4% YoY, driven by strong domestic demand across auto OEM (25%+ growth for second consecutive quarter), home UPS, solar (crossed ₹1,000cr), and industrial infrastructure. EBITDA margin expanded 50bps YoY to 11.7% despite a ₹150cr commodity cost headwind, aided by cost controls and warranty reduction. Management guided for high single-digit to double-digit core business growth in FY27, supported by robust OEM and replacement demand. However, geopolitical tensions and commodity inflation (sulfuric acid up 5x YoY) remain key risks. The lithium-ion cell plant is progressing: cylindrical samples to customers in May/June, prismatic trials by June/July, with revenue expected from prismatic lines first. The company plans ₹1,400cr investment in FY27 for the cell business.
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Commodity inflation pressure
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Domestic business sales growth (Q4)
12%
+12% YoY
Domestic business grew 12% YoY in Q4, excluding telecom and exports.
Auto OEM revenue growth (Q4)
25%+
+25%+ YoY
Auto OEM business recorded second consecutive quarter of 25%+ YoY growth.
Sulfuric acid price (April exit)
₹74/kg
+393% YoY
Sulfuric acid price surged from ₹15/kg a year ago to ₹74/kg in April 2026.
Cumulative investment in Exide Energy
₹4,820cr
+₹1,500cr in FY26
Total equity investment in lithium-ion subsidiary stands at ₹4,820cr as of Q4.
What Changed vs Last Quarter
NEW
₹1,400cr investment in Exide Energy in FY27
The company plans to invest ₹1,400cr in FY27 for the lithium-ion cell manufacturing project, covering capex and working capital.
NEW
Cylindrical cell customer samples by May/June 2026
Cylindrical cell samples will be delivered to customers starting May/June 2026, with prismatic samples targeted for June/July 2026.
NEW
Price hikes of ~5-6% in aftermarket in Q4, additional 3% in April
The company took price increases of 5-6% across segments in Q4 and an additional 3% on April 1 to offset commodity inflation.
UPDATED
Core business growth of high single-digit to double-digit in FY27
Management expects the core lead-acid business to grow at high single-digit to double-digit rates in FY27, driven by strong OEM and replacement demand.
DROPPED
Potential 150 bps margin improvement in FY27
Management indicated EBITDA margin could improve by ~150 bps next year, assuming commodity price support and continued cost excellence.
DROPPED
Lithium-ion cell commercial dispatches by Q1 FY27
Management expects commercial dispatches of lithium-ion cells to begin around March-April 2026, with customer validation samples being sent imminently.
DROPPED
Capex of ₹1,400 crore for lithium and ₹500 crore for lead-acid in FY27
Planned capex includes ₹1,400 crore for Exide Energy Solutions and ~₹500 crore for the core lead-acid business, funded through internal accruals.
NEW RISK
Commodity inflation pressure
Sulfuric acid prices have risen 5x YoY, and lead prices remain volatile due to rupee depreciation. Management expects continued headwinds in H1 FY27.
NEW RISK
Geopolitical tensions impacting exports
Exports business declined due to West Asia conflict and global uncertainties, with management expecting these to persist at least in H1 FY27.
NEW RISK
Lithium-ion cell yield and cost competitiveness
Analyst raised concerns about cell yields and pricing vs imports. Management acknowledged yield improvement takes time and current costs are higher than imports, but expects to match landed cost with scale and localisation.
NEW RISK
Dependence on government policy for cell manufacturing
Management noted that without government incentives for local cell manufacturing, investments may not be viable. Policy support is uncertain.
RISK GONE
Raw material cost inflation not fully passable
Despite a 2% price hike in January, management could not fully pass on cost increases due to competitive pressures, risking margin compression if commodity prices remain elevated.
RISK GONE
Lithium-ion business margin uncertainty
Management declined to provide specific margin guidance for the lithium-ion business, citing B2B pricing dynamics and import competition, creating uncertainty for investors.
RISK GONE
Senior-level exits in lithium-ion venture
Analyst raised concern about senior-level exits at Exide Energy Solutions; management acknowledged churn but downplayed impact, though succession planning may be tested.
RISK GONE
Export recovery dependent on tariff clarity
Exports remain weak (5-6% of revenue) due to geopolitical tensions and tariff barriers; recovery hinges on favorable tariff announcements and new partner ramp-up.
Fast read
Guidance and risk preview
Management expects the core lead-acid business to grow at high single-digit to double-digit rates in FY27, driven by strong OEM and replacement dem...
Sulfuric acid prices have risen 5x YoY, and lead prices remain volatile due to rupee depreciation.
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