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Exide Industries Limited — Q3 FY26
Exide Industries reported Q3 FY26 revenue of ~INR 4,000 crore, a 5% YoY decline due to telecom and export headwinds, but domestic growth ex-telecom was 10%.
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Exide Industries reported Q3 FY26 revenue of ~INR 4,000 crore, a 5% YoY decline due to telecom and export headwinds, but domestic growth ex-telecom was 10%. EBITDA margin held at 11.7% despite raw material cost pressures, aided by cost excellence projects and improved product mix. Management expects the momentum to continue into Q4, with double-digit growth in industrial infra and a recovery in inverter/solar segments. The lithium-ion cell project is progressing: cylindrical line validation is ongoing, and commercial dispatches to OEMs are expected within a month. A 2% price hike was taken in January to offset commodity inflation. Key risk: further raw material cost escalation or inability to pass through fully could pressure margins.
एक्साइड इंडस्ट्रीज ने वित्त वर्ष 2025-26 की तीसरी तिमाही में लगभग 4,000 करोड़ रुपये का कारोबार किया। यह पिछले साल की तुलना में 5% कम है, क्योंकि टेलीकॉम और निर्यात में कमजोरी रही। लेकिन टेलीकॉम को छोड़कर देश में बिक्री 10% बढ़ी। कच्चे माल की बढ़ती कीमतों के बावजूद, कंपनी ने लागत बचत और बेहतर उत्पाद मिश्रण से 11.7% का मुनाफा मार्जिन बनाए रखा। प्रबंधन को उम्मीद है कि चौथी तिमाही में भी यह रफ्तार जारी रहेगी, खासकर औद्योगिक बुनियादी ढांचे और इन्वर्टर/सोलर सेगमेंट में। लिथियम-आयन सेल प्रोजेक्ट आगे बढ़ रहा है - जल्द ही कंपनियों को डिस्पैच शुरू होंगे। जनवरी में कीमतों में 2% बढ़ोतरी की गई। मुख्य जोखिम: अगर कच्चा माल और महंगा हुआ तो मुनाफा कम हो सकता है।
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Raw material cost inflation
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Domestic growth ex-telecom
10%
+10pp YoY
Domestic revenue excluding telecom grew 10% YoY, driven by auto OEM and aftermarket.
Auto aftermarket growth
25%
+25% YoY
Aftermarket segment grew 25% YoY in Q3, with December alone up 30%.
Industrial infra growth (ex-telecom)
Double-digit
Double-digit YoY
Industrial infrastructure (railways, motive power, UPS) grew double-digit YoY.
Data center revenue
INR 75-100 crore
N/A
Data center revenue in Q3 was INR 75-100 crore, with a strong pipeline of RFQs.
What Changed vs Last Quarter
NEW
EBITDA margin improvement of 100-150 bps next year
Management indicated potential EBITDA margin expansion of 100-150 bps in FY27 from current levels, assuming stable commodity prices.
NEW
Exports to see substantial incremental growth next fiscal
Exports are expected to rebound strongly in FY27 due to new partnerships and tariff relief, with a robust budget for next year.
NEW
Lithium-ion commercial dispatches within one month
Management expects commercial dispatches to OEMs from the cylindrical line to begin within plus/minus one month of the call date.
NEW
CapEx of INR 1,400 crore for lithium and INR 500 crore for lead-acid in FY27
Planned equity infusion of INR 1,400 crore into Exide Energy Solutions and ~INR 500 crore for lead-acid core business CapEx.
DROPPED
Lithium-ion cell production start by end of FY26
First line (cylindrical NCM for two-wheelers) to be commissioned, with process validation and sample preparation ongoing.
DROPPED
Solar business to cross INR 1,000 crore this year
Solar franchise expected to scale up to INR 1,000 crore in FY26, with aspiration to reach INR 1,500 crore in 2-3 years.
DROPPED
EBITDA margin corridor of 12-13% in coming quarters
Management expects margins to return to 12-13% range as volume growth resumes, assuming stable lead prices.
DROPPED
Export business uptick from Q4 FY26
New geographies and portfolios trials completed; exports expected to see positive tick from January onwards.
NEW RISK
Raw material cost inflation
Rising prices of tin, silver, sulfur, and copper, along with rupee depreciation, continue to pressure margins. Management has only partially passed on costs via a 2% price hike in January.
NEW RISK
Lithium-ion pricing vs imports
Pricing negotiations with OEMs are bilateral; import parity remains a challenge. Management acknowledged that import prices are a reference point, though local supply offers value.
NEW RISK
Senior-level exits in lithium business
Recent senior exits in Exide Energy Solutions could impact operations. Management downplayed the risk, stating exits were planned and successors were ready.
NEW RISK
Telecom business decline
Telecom revenue has shrunk to 1% of total as the industry shifts to lithium-ion. This structural decline is largely bottomed out but still a drag.
RISK GONE
Input cost inflation and pricing power
Lead prices remain elevated and forex unfavorable; company has not fully passed on cost increases and may face margin pressure.
RISK GONE
GST disruption impact on demand
GST rate cut caused destocking and deferred purchases; recovery in Q3 is expected but not guaranteed.
RISK GONE
Lithium-ion cell ramp-up and customer adoption
First production is near, but utilization ramp-up and customer homologation timelines remain uncertain.
RISK GONE
EPR compliance costs
New battery waste management regulations led to higher other expenses; ongoing costs may not be fully passable to customers.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q2 FY26, Q4 FY25
Solar franchise expected to scale up to INR 1,000 crore in FY26, with aspiration to reach INR 1,500 crore in 2-3 years.
Mentioned in Q2 FY25, Q4 FY25
Trial production of lithium-ion cells to start within calendar 2025, with commercial serial production expected after 4-5 months of homologation.
Fast read
Guidance and risk preview
Management indicated potential EBITDA margin expansion of 100-150 bps in FY27 from current levels, assuming stable commodity prices.
Rising prices of tin, silver, sulfur, and copper, along with rupee depreciation, continue to pressure margins.
View Risks →