Exide Industries reported a 75.1% rise in Q2 FY27 net profit to ₹386.45 crore, supported by revenue growth and strong automotive demand. Following the results, the stock rose 7% in intraday trade as investors reacted to the company's operational improvements and the recent commissioning of its 6 GWh lithium-ion gigafactory.
Exide Industries delivered a strong performance for the second quarter of the 2027 fiscal year, with standalone net profit jumping 75.1% year-on-year to ₹386.45 crore. Revenue from operations also saw a healthy increase of 20.3%, reaching ₹5,026.14 crore compared to the same period last year. Investors responded positively to these results, driving the company's share price up by approximately 7% during intraday trading.
Operational Efficiency and Margin Expansion
The company attributed its improved bottom line to a mix of calibrated price adjustments and consistent volume growth. A highlight of the quarterly results was the expansion of EBITDA margins by 270 basis points, which settled at 12.1%. This operational efficiency was achieved despite external headwinds, including geopolitical tensions in West Asia that created pressure on input costs. While the company benefited from softer lead and antimony prices, management noted that currency fluctuations prevented the full realization of these cost benefits.
The Automotive Original Equipment Manufacturer (OEM) business remained a key driver, recording over 25% year-over-year growth for the fourth consecutive quarter. This demand, coupled with strong replacement cycles for both two-wheeler and four-wheeler batteries, provided a solid foundation for the topline growth.
Strategic Expansion and Future Risks
A major milestone for the company’s long-term growth strategy is the commissioning of its 6 GWh lithium-ion cell gigafactory in Bengaluru, which was finalized on September 23, 2026. This facility represents a significant step in the company's efforts to diversify into the energy storage market. Additionally, the firm is expanding its international footprint through a new long-term cooperation agreement with Germany-based ExCom Energy Solutions, aimed at scaling its industrial and energy storage presence within the European Economic Area.
Despite the positive outlook, investors should monitor specific business uncertainties. While the company maintains a strong liquidity position, successful execution remains critical as it ramps up operations at the new lithium-ion gigafactory. The speed and efficiency of this ramp-up will be vital for future revenue contributions. Furthermore, persistent volatility in raw material costs and currency risks are factors that could impact margin stability in the coming quarters. The primary focus for stakeholders will be observing how the new gigafactory contributes to financial performance and how effectively the company manages these operational scaling challenges.