Exide Q1 Results: PAT Rises 27% as Revenue Grows 17.6% in Q1 FY27

What Happened ?

Exide Industries reported a strong start to FY27, driven by robust demand across automotive OEM, replacement, industrial, inverter, solar, and export businesses. Despite higher raw material costs arising from geopolitical tensions in West Asia and Rupee depreciation, the company improved operating margins through calibrated price increases, supply-chain efficiencies, and cost optimization. Exide also continued advancing its lithium-ion business, with its Bengaluru gigafactory achieving key commissioning milestones and beginning customer sample deliveries.

key details

Key Highlights

• Standalone revenue increased 17.6% YoY to ₹5,305 crore.
• EBITDA rose 19.5% YoY to ₹655 crore.
• EBITDA margin improved to 12.4%.
• PBT increased 26.4% YoY to ₹543 crore.
• PAT grew 27.1% YoY to ₹407 crore.
• Automotive OEM business recorded 25%+ YoY growth for the third consecutive quarter.
• 2W/4W Replacement business achieved its third consecutive quarter of double-digit growth.
• Industrial Infrastructure business maintained low double-digit growth.
• Inverters and Solar businesses expanded by 20%+ YoY.
• Export business returned to 20%+ YoY growth.
• Maintained a zero-debt balance sheet with strong cash flow generation.
• Invested an additional ₹100 crore into Exide Energy Solutions Limited (EESL) during July 2026, taking cumulative equity investment to ₹4,902 crore.
• Bengaluru Gigafactory milestones:
  • 100% of equipment installed across all four production lines.
  • 100% of utilities operationalised.
  • First NMC cylindrical cell customer samples dispatched.
  • LFP prismatic cell samples supplied for 3-wheeler and telecom applications.
  • Commercial revenue from the facility expected during FY27.
• EESL completed key product certifications, including BIS IS 16046, IS 16893, IS 16085, and UN 38.3 certification.

Business Impact:

• Exide continued strengthening its leadership across conventional battery businesses while making significant progress in its lithium-ion manufacturing strategy. The Bengaluru gigafactory is nearing commercial operations, positioning the company to participate in India’s rapidly growing electric mobility and energy storage markets. Strong operating performance, a debt-free balance sheet, and continued investments in new energy solutions support Exide’s long-term growth outlook.

Risk Analysis

Summary:

• Although demand remains healthy, Exide continues to face input cost volatility arising from geopolitical developments, currency fluctuations, and commodity price movements. Commercial success of its lithium-ion business will also depend on successful customer ramp-up after commercial production begins.

Key Risks:

• Raw material costs remain vulnerable to geopolitical tensions.
• Rupee depreciation may increase import-related input costs.
• Battery margins remain exposed to commodity price volatility.
• Revenue contribution from the Bengaluru gigafactory will depend on customer commercialization.
• EV battery market competition continues to intensify.

Worst Case:

• If commodity prices remain elevated, currency depreciation continues, or commercial ramp-up of the lithium-ion business is delayed, profitability and return on new investments could come under pressure.

Risk Level: Medium

Company Commentary

According to Exide Industries:

• Management stated that strong momentum from the second half of FY26 continued into Q1 FY27.
• Broad-based growth was achieved across automotive OEM, replacement, industrial, solar, and export businesses despite cost pressures.
• Calibrated price increases and cost-efficiency initiatives supported EBITDA margin expansion.
• The Bengaluru gigafactory remains on track to commence revenue generation during FY27 after successfully dispatching its first lithium-ion cell samples.
• The company remains focused on maintaining healthy operating performance while building a strong foundation for its new energy business.