Exide Industries Powers Ahead with Strong Q3 FY26 Performance and Lithium-ion Ambitions

Exide Industries, a stalwart in India's battery sector, has reported a robust performance for the third quarter of Fiscal Year 2026, showcasing resilience and strategic foresight. The company achieved a standalone revenue of INR 4,030 crore, marking a 4.7% year-on-year growth. This quarter is particularly significant as it's the first time Exide has surpassed the INR 4,000 crore revenue mark in a Q3, traditionally its smallest quarter. Profit After Tax (PAT) also saw a healthy increase of 5.2%, reaching INR 258 crore. This positive momentum was significantly bolstered by the GST 2.0 reforms, which reduced tax rates and stimulated demand across various segments, a benefit Exide consciously passed on to its end consumers.

The domestic market proved to be the primary growth engine, contributing a substantial INR 3,812 crore, accounting for 94.59% of the total revenue. The automotive sector, particularly Auto OEM and the domestic 2-wheeler and 4-wheeler replacement markets, delivered exceptional results, achieving their highest-ever quarterly revenues. Auto OEM sales surged by 25% year-on-year, while the 2-wheeler and 4-wheeler replacement markets continued their double-digit growth trajectory. The industrial infrastructure segment also demonstrated strong performance with double-digit growth, driven by increased order flows and execution in B2B sectors such as Railways, Traction, and Industrial UPS for OEMs. Furthermore, the Home Inverters and Solar verticals rebounded strongly, returning to a growth path after experiencing a slowdown in Q2 FY26. However, the telecom business continued its decline, now contributing only 1% to the total revenue, primarily due to the industry's technological shift towards lithium-ion solutions. Exports also faced headwinds, with geopolitical tensions and tariff barriers impacting supplies to key markets, resulting in a 5.41% contribution to total revenue.

Strategic Initiatives and Future Readiness

Exide is not just resting on its legacy; it is actively shaping its future through strategic investments and initiatives. The company's ambitious lithium-ion cell manufacturing project is progressing rapidly, with INR 320 crore invested in Q3 FY26 and an additional INR 50 crore in January, bringing the total equity investment in Exide Energy Solutions to INR 4,252 crore. Product validation for the cylindrical cell line, designed for 2-wheelers, is underway, and other production lines are nearing installation and commissioning. The first line is projected to have a capacity of 1.5 gigawatt. Management anticipates the LFP prismatic line will be the first revenue stream from the cell side, benefiting from a faster market entry due to less stringent validation requirements for OEMs.

In a move to strengthen its automotive OEM relationships, Exide has secured 100% supplier status for new models like the Kia Seltos facelift and the TATA Sierra petrol, both of which are performing well in the market. The company also launched several new products in February 2026, including AGM batteries for premium passenger vehicles, EL Ultra for the premium inverter segment, Powerbox for the economy inverter segment, and Solar Grid-Tie Inverters, aligning with the 'PM Surya Ghar' scheme. These launches underscore Exide's commitment to product innovation and market responsiveness.

Operational Excellence and Digital Transformation

Operational efficiency and customer centricity remain core pillars of Exide's strategy. Despite rising commodity prices for metals like tin, silver, sulfur, and copper, and a weakening rupee, the company maintained its EBITDA margin at 11.7% in Q3 FY26. This was achieved through strong volume growth, an improved product mix, and rigorous cost excellence projects. Management noted that while they absorbed some cost increases in Q3 to pass on GST benefits, a 2% price hike was implemented in January to mitigate ongoing cost pressures. The company aims to improve EBITDA margins by another 100-150 basis points next year, contingent on LME price support.

Exide is also embracing digital transformation to empower its ecosystem. It has rolled out dedicated apps for channel partners, influencers, and sales teams. A WhatsApp Bot for service booking has already garnered over 1 lakh monthly active users, significantly enhancing customer convenience. Further digital initiatives include AI-led warranty diagnosis and validation, a vision system for pre-dispatch inspection, and digital proof of delivery, all aimed at streamlining operations and improving service quality. The company's focus on process automation at its MC Plants and Punch Grid facilities is expected to drive further cost reduction and quality improvement.

Outlook and Sustainability Leadership

Looking ahead, Exide anticipates the positive momentum in its domestic automotive and industrial segments to continue into Q4 FY26. While exports may follow a similar trend in Q4, the budget for the next fiscal year projects robust growth from this segment due to a low base. The company plans significant capital allocation, with INR 1,400 crore earmarked for the lithium-ion business and approximately INR 500 crore for the core lead-acid business in FY26-27. This disciplined capital allocation, funded largely through internal accruals, ensures sustained growth and future readiness.

Exide's commitment to sustainability is also a key highlight. The company achieved a Corporate Sustainability Assessment (CSA) score of 65/100 in 2025, placing it in the Top 5 percentile within the Auto Components industry. This reflects a 50% improvement from 2024 and is nearly double the industry average, underscoring Exide's leadership in ESG performance and its dedication to fostering inclusive community growth through various CSR initiatives like 'Aarogya', 'Akshar', 'Kausal', 'Saksham', and 'Paryavaran'. Exide Industries is not just powering vehicles and homes; it is powering a sustainable future, demonstrating strategic clarity and disciplined execution across its operations.