Exide Industries posted a 27.1% jump in net profit to ₹407 crore for the June quarter, supported by strong automotive demand and strategic price hikes. Revenue grew by 17.6% as the company continues to invest heavily in its lithium-ion cell manufacturing subsidiary, Exide Energy Solutions.
Exide Industries reported a standalone net profit of ₹407 crore for the quarter ended June 30, 2026, marking a 27.1% increase compared to the ₹320 crore recorded in the same quarter last year. This performance was supported by steady demand from the automotive sector and the company's ability to adjust product pricing to manage input costs.
Revenue Growth and Margin Performance
The company’s revenue from operations reached ₹5,305 crore, a 17.6% increase from the ₹4,510 crore reported in the year-ago period. Despite challenges such as rising raw material costs and currency fluctuations, the company managed to improve its EBITDA margin to 12.4%. This represents a 20 basis point improvement year-on-year and a 70 basis point increase compared to the previous quarter. Management attributed these gains to effective cost control measures and improvements within the company's supply chain.
Strategic Investment in Lithium-ion Capacity
Exide continues to focus on its transition toward electric vehicle components. In July 2026, the company injected an additional ₹100 crore into its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL). This brings the total equity investment in the lithium-ion cell manufacturing project to ₹4,902 crore. The company maintains its outlook that this facility will begin generating revenue in the 2027 financial year.
Demand Drivers and Export Growth
The automotive replacement market remains a significant contributor to the company’s business, showing consistent demand. Additionally, Exide’s export business expanded by over 20% compared to the previous year, benefiting from normalized shipping routes and expansion into new geographic regions. The company also noted steady demand across other segments, including original equipment manufacturers (OEMs), home inverters, industrial UPS systems, and infrastructure projects.
Sector Context and Investor Focus
While the company has seen strong operational performance, the automotive battery sector faces ongoing pressure from volatility in lead prices, a primary raw material. Investors may continue to monitor how the company balances price hikes with competitive pressures in the battery market. Furthermore, the large-scale capital spending required for the lithium-ion plant in the coming quarters will remain a key monitorable regarding cash flow and debt management. Market participants will likely watch for updates on the commissioning timeline of the EESL plant and the pace of demand for electric vehicle batteries as the project nears its revenue generation phase in FY27.