Exide Industries Q1 FY27: Strong Growth, Higher Margins, and India’s Lithium-Ion Battery Future Takes Shape
Exide Industries Ltd. delivered an impressive start to FY27, reporting strong double-digit revenue growth, expanding margins, and significant progress in its ambitious lithium-ion battery manufacturing project.
During the company’s Q1 FY27 earnings call, Managing Director & CEO Avik Roy highlighted robust demand across both automotive and industrial businesses while providing investors with a detailed update on Exide’s Bengaluru lithium-ion gigafactory—a project that could transform India’s EV battery ecosystem.
Let’s look at the key takeaways.
Q1 FY27 Financial Highlights
Despite higher raw material costs and currency headwinds, Exide posted healthy growth across its businesses.
| Particulars | Q1 FY27 Highlights |
|---|---|
| Revenue Growth | 17.6% YoY |
| EBITDA | ₹655 crore |
| EBITDA Growth | 19.5% YoY |
| EBITDA Margin | 12.4% |
| Margin Expansion | +20 bps YoY |
| Balance Sheet | Debt Free |
| Cash Flow | Healthy Operating Cash Flow |
The company said margin expansion was achieved through:
- Higher sales volumes
- Cost excellence initiatives
- Efficient supply chain management
- Calibrated price increases
Broad-Based Growth Across Businesses
Unlike quarters where one segment drives growth, Exide witnessed strength across almost every major business.
Automotive OEM Business
The automotive OEM business delivered its third consecutive quarter of around 25% year-on-year growth, supported by healthy automobile production and improved consumer sentiment.
Volume growth remained strong across categories:
- 4-Wheeler OEM: 21%
- 2-Wheeler OEM: 20%
- 4-Wheeler Replacement: 10%
Management clarified that this growth was achieved without any major new customer contracts and reflected normal business expansion.
Replacement Market Continues to Perform
Replacement demand remained healthy across rural and urban India.
The company noted that:
- Consumer demand remained positive
- GST rationalisation continued supporting vehicle demand
- Replacement battery sales remained robust
Home UPS and Solar Business Shine
One of the biggest highlights of the quarter was the strong performance of the home inverter and solar business.
According to management:
- Home UPS business grew more than 20%
- Solar business also recorded over 20% growth
- Solar crossed ₹400 crore in quarterly revenue, its highest ever
The strong summer season significantly boosted inverter battery demand.
Industrial Business Remains Healthy
Industrial Infrastructure continued delivering double-digit growth.
Key growth drivers included:
- Industrial UPS
- Traction batteries
- Manufacturing sector demand
However, government tenders remained relatively slow during Q1, although Exide expects activity to improve in the second half of FY27.
Export Business Returns to Growth
After facing weakness over several quarters, exports returned to growth.
Management stated that export revenues grew by more than 20% on a relatively low base despite continuing uncertainty in global markets.
Lithium-Ion Gigafactory Reaches Major Milestone
Perhaps the biggest announcement during the earnings call was the progress of Exide’s lithium-ion battery project.
The Bengaluru Gigafactory has now achieved several important milestones:
- Equipment installed across all four production lines
- Utilities fully operational
- Customer sample deliveries have started
- First locally manufactured NCM cylindrical cells delivered
- LFP prismatic cells supplied for 3-wheelers and telecom applications
- Multiple BIS certifications completed
Management expects commercial revenue from the Bengaluru plant to begin during FY27.
Commercial Production Begins With Existing Demand
Exide believes demand will not be a challenge.
Instead of creating a new market, the company plans to replace imported lithium-ion cells currently used in:
- Electric two-wheelers
- Electric three-wheelers
- Telecom batteries
- Stationary storage
Management believes domestic manufacturing will gradually substitute imports.
Discussions Underway With Major EV Manufacturers
Exide confirmed it is currently working with:
- Three major two-wheeler EV manufacturers
- Multiple legacy and new-age OEMs
- Leading four-wheeler manufacturers
The company said these customers collectively represent nearly 80–85% of India’s EV market.
Currently:
- Samples have been supplied
- Homologation process is underway
- Commercial production will begin after approvals
First-Year Utilisation Target Remains 25–30%
Management maintained its guidance that the lithium-ion facility should operate at 25–30% utilisation during FY27.
Growth will initially come from:
- Two-wheelers
- Three-wheelers
- Telecom batteries
- Stationary energy storage
Battery Energy Storage Systems (BESS) and four-wheeler applications are expected to become larger contributors as additional production lines are commissioned.
Localisation Strategy Takes Centre Stage
One of Exide’s biggest long-term objectives is reducing dependence on imported battery materials.
Currently:
- Most raw materials continue to be imported
- Electrolytes are sourced through established global suppliers
- Discussions are underway with Indian manufacturers for future localisation
Management aims to localise 50–60% of the battery bill of materials within the next two to three years, subject to ecosystem development.
Battery Energy Storage System (BESS): A Large Opportunity
Exide also highlighted the growing opportunity in Battery Energy Storage Systems.
The company plans to manufacture:
- Large-format LFP cells
- Battery racks
- Battery Management Systems (BMS)
Management believes BESS approvals could happen faster than automotive applications because they involve project-based deployments rather than lengthy vehicle homologation.
Lead-Acid Business Continues to Receive Investment
While lithium-ion remains the growth story, Exide reiterated that it continues investing approximately ₹500 crore annually in its traditional lead-acid battery business.
Investments include:
- Automation
- Capacity debottlenecking
- Brownfield expansion
- Manufacturing technology upgrades
Management expects replacement demand from recently sold vehicles to provide long-term support for the lead-acid business.
Strong Balance Sheet Supports Expansion
One of Exide’s biggest strengths remains its financial position.
The company highlighted:
- Zero debt
- Healthy operating cash flows
- Internal funding for expansion
The Board has already approved ₹1,400 crore investment during FY27 for the lithium-ion business.
Cumulative equity investment in subsidiary Exide Energy Solutions Ltd. has reached ₹4,902 crore as of July 31, 2026.
Management Outlook
While management avoided giving full-year revenue guidance, it remained optimistic about the business outlook.
Key expectations include:
- Continued automotive demand
- Recovery in government tenders during H2
- Commercial revenue from lithium-ion operations beginning in FY27
- Faster localisation of battery manufacturing
- Strong opportunities in EVs, telecom, solar, and energy storage
At the same time, the company remains cautious about:
- Currency fluctuations
- Commodity prices
- Geopolitical risks affecting supply chains
- Chinese export regulations on battery materials