Exide Industries has invested an additional ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), to fund its greenfield lithium-ion cell manufacturing plant in Bengaluru. EESL reported a loss of ₹248.16 crore for FY2025-26.
Exide Industries Infuses ₹100 Crore into Lithium-ion Battery Venture
Exide Industries has invested an additional ₹100 crore in its wholly-owned subsidiary, Exide Energy Solutions Limited (EESL).
EESL reported a Net Worth of ₹3,991.06 crore and a Loss After Tax of ₹248.16 crore for FY 2025-26.
Reader Takeaway: Continued investment in a strategic growth area offsets ongoing subsidiary losses as the company builds future capacity.
What just happened
Exide Industries Limited (EIL) has subscribed to 2,85,71,428 equity shares of its subsidiary, Exide Energy Solutions Limited (EESL), for approximately ₹100 crore. This investment was made on a rights basis at a face value of ₹10 per share plus a premium of ₹25 per share.
Why this matters
This capital infusion is crucial for the development of EESL's greenfield multi-gigawatt Lithium-ion cell manufacturing facility in Bengaluru. This project marks Exide's significant entry into the advanced chemistry battery market, targeting both electric vehicles (EVs) and stationary storage solutions.
The backstory
Exide Industries has been systematically investing in EESL to build this new manufacturing capacity. The total cumulative investment in EESL now stands at ₹4,902.23 crore, with Exide Industries maintaining its 100% ownership.
What changes now
The fresh capital will accelerate the construction and ramp-up of the lithium-ion cell manufacturing plant. This move positions Exide to compete in the growing energy storage and EV battery market.
Risks to watch
EESL reported a Loss After Tax of ₹248.16 crore for FY 2025-26 on a turnover of ₹157.56 crore. This indicates the subsidiary is currently in a high-expenditure phase, typical for greenfield infrastructure projects. Investors will need to monitor the path to profitability and the project's timeline.
Peer comparison
While specific peer investment figures for similar lithium-ion cell projects are not detailed in the filing, Exide's move signals its ambition to establish significant domestic manufacturing capabilities in a sector attracting substantial global and domestic investment.
Context metrics (time-bound)
- Investment Amount: ₹100.00 crore (FY 2025-26)
- EESL Turnover (FY 2025-26): ₹157.56 crore
- EESL Loss After Tax (FY 2025-26): ₹248.16 crore
- Total Cumulative Investment in EESL: ₹4,902.23 crore (as of the filing date)
What to track next
Investors will be keen to track the progress of the Bengaluru manufacturing facility, its commissioning timeline, and the eventual commercialization and revenue generation from the lithium-ion cell, module, and pack production.