Exide Industries reported a 27.1% rise in quarterly profit to ₹407 crore for Q1 FY27, driven by a 17.6% increase in revenue. The company also confirmed progress in its lithium-ion gigafactory project, which has now seen a total investment of ₹4,902 crore. The stock trades at a P/E ratio of 40.36, as investors weigh strong operational results against high capital spending.
Exide Industries reported a strong start to the current financial year, with the company’s Q1 FY27 results showing significant growth in both revenue and profitability. The battery manufacturer posted a revenue of ₹5,305 crore, a 17.6% increase compared to the same period last year. Profit after tax grew by 27.1% to ₹407 crore, with the profit margin standing at 7.7%. Operating profit, or EBITDA, rose by 19.5% to ₹655 crore, as the company’s operating margin improved slightly to 12.4% from 12.2% in the previous year.
Lithium Project and Capital Spending
A primary area of focus for the company is its subsidiary, Exide Energy Solutions, which is developing a lithium-ion gigafactory. The company has officially moved into the operational phase for its 3-gigawatt (GWh) cylindrical NMC line by starting sample deliveries. Additionally, it has begun supplying LFP prismatic samples for telecom and three-wheeler applications. According to company disclosures, total capital spending on this gigafactory project has reached ₹4,902 crore. Investors are tracking these projects closely, as revenue generation from these new ventures is expected to start in the current financial year.
Market Reaction and Brokerage Views
Following the announcement of the quarterly results, the stock price traded at ₹447.70, reflecting a 0.67% gain on Tuesday. The stock has appreciated by 23.25% year-to-date and currently trades at a price-to-earnings (P/E) ratio of 40.36. Brokerage views remain divided regarding the company’s long-term outlook. While some analysts have maintained positive ratings due to strong OEM growth and the potential for the new lithium business, others have expressed caution. Concerns include the high levels of money being spent on expansion, the competitive nature of the lithium-ion sector, and a reliance on external technology partners and imported raw materials. Specifically, some analysts have noted that the need to ramp up production yields and manage commodity costs could exert pressure on future profit margins.
Key Monitorables for Investors
The central factor for shareholders to track moving forward is the pace of revenue contribution from the new lithium-ion business. Investors will likely look for updates on project execution timelines and the ability of the company to maintain its profit margins while balancing the heavy capital spending required for the gigafactory. Future exchange filings regarding order wins, capacity utilization, and any potential changes in raw material costs will be important indicators of the company’s ability to scale this new segment successfully.