Exide Industries Limited Q3 FY25 Earnings Call Summary

Summary

Exide Industries Limited - Q3 FY 2025-26 Earnings Call Summary Monday, February 03, 2026

Event Participants

Executives 4 Avik Roy (MD & CEO, Exide Industries), Jitendra Kumar (President Legal & Corporate Affairs), Manoj Kumar Agarwal (CFO), Pravin Saraf (MD & CEO, Exide Energy Solutions)

Analysts 7 Abhishek Kumar, Aditya Jhawar, Mumuksh, Pramod Amthe, Preet, Raghunandhan, Sangeeta, Siddhartha, Sucrit D Patil, Vibhav, Vinay Singh

Financials & KPIs

Geographic & Segment Commentary

• Automotive OEM & Aftermarket: Performance reached record quarterly highs with OEM growing 25% YoY and aftermarket maintaining double-digit growth. Momentum was bolstered by GST 2.0 reforms and supply to models like Tata Sierra and Kia Seltos.
• Industrial Infrastructure: Grew 13% YoY (excluding telecom) driven by Railways, Motive Power, and Industrial UPS for data centers. Management noted a shift in Railway policy toward proactive battery replacement during overhauls.
• Exports: Contribution declined to 5-6% of revenue (from 8%) due to geopolitical tensions in Central Asia and tariff barriers in Western markets. Management expects a rebound in FY27 following recent US/Europe tariff announcements.
• Telecom & Solar: Telecom declined to 1% of revenue as the industry shifts to lithium-ion. Solar returned to growth after a weak Q2, now contributing 4-5% of total turnover.

Company-Specific & Strategic Commentary

• Lithium-Ion Cell Project: Cylindrical cell line validation for 2-wheelers is underway in Bangalore; prismatic line installation for 3-wheelers/BESS to be completed by April 2026. Management targets first revenue from the trade-heavy e-rickshaw prismatic segment.
• Cost Excellence & RM Management: Absorbed significant inflation in tin (+12%), silver (+50%), and sulfur (+40%) during Q3 without price hikes to pass GST benefits to consumers. Efficiency projects and metal yield improvements are the primary margin drivers.
• New Product Launches: Launched AGM batteries for premium passenger vehicles and preparing for Ultra/PowerBox premium inverter batteries and Solar Grid-Tie inverters.
• Strategic Pricing: Initiated a 2% price correction in January 2026 to offset currency depreciation and non-lead commodity inflation.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Lithium-Ion Commercialization

• Question: When will commercial dispatches begin for EVs and 2-wheelers? (Vinay Singh)
• Answer: Internal validation for cylindrical cells is in progress; samples will be sent to OEMs shortly. Dispatches are expected around the end of FY26 or early FY27 (Avik Roy, Pravin Saraf).

Input Costs and Pricing

• Question: Have you taken price hikes to counter rising silver and tin costs? (Siddhartha, Raghunandhan)
• Answer: We absorbed costs in Q3 to pass on GST benefits, but took a 2% hike in January 2026. Further hikes will be graduated based on competitive dynamics (Avik Roy).

Lithium Margins & Competition

• Question: How will lithium margins compare to the legacy business? (Vibhav, Pramod Amthe)
• Answer: Margins will be better than lead-acid OEM but lower than lead-acid aftermarket. Local manufacturing offers a logistical and inventory advantage over Chinese imports (Avik Roy).

Data Center Opportunity

• Question: What is the scale of the data center business? (Abhishek Kumar)
• Answer: Currently generating ₹75-100 crores per quarter with a strong RFQ pipeline. High-power “front-access” batteries are gaining traction (Avik Roy).

Key Takeaway

Exide Industries delivered a resilient Q3 FY26, crossing the ₹4,000 crore revenue mark despite structural headwinds in telecom and geopolitical pressures on exports. The core business (92% of revenue) grew 12% YoY, supported by record automotive demand and robust traction in industrial segments like Railways and Data Centers. Management successfully expanded sequential EBITDA margins by 220 bps to 11.7% through cost excellence initiatives, even while absorbing sharp inflation in secondary metals and silver. The strategic pivot toward lithium-ion manufacturing is nearing execution, with total investment reaching ₹4,252 crores and cell validation underway. Looking ahead, Exide remains focused on maintaining its debt-free status while pivoting toward a double-digit growth trajectory in FY27, backed by a ₹1,900 crore planned capex and a recovery in export markets. Forward performance will depend on the successful SOP of the lithium plant and the ability to pass through non-lead commodity inflation in the domestic market.