Exide Industries Ltd
NSE:EXIDEIND
Exide Industries Ltd
Exide Industries Ltd., a formidable entity in the energy storage solutions sector, has carved a niche that speaks volumes of its resilient legacy and innovation-driven approach. Rooted in its origins dating back to 1947, the company has transformed from a traditional lead-acid battery manufacturer into a diversified power solutions provider. Known primarily for its automotive batteries, Exide serves both the vehicular market—catering to every spectrum, from two-wheelers to heavy-duty trucks—and the industrial segment, powering critical sectors such as telecommunications, railways, renewable energy, and uninterrupted power supplies. Leveraging a well-established distribution network, Exide ensures nationwide reach and service, maintaining a formidable presence across urban and rural landscapes.
Exide's business model is robustly underpinned by its commitment to technological advancement and sustainability. Continuous investment in research and development is evidenced by their state-of-the-art facilities fostering innovations like advanced maintenance-free batteries and eco-friendly manufacturing processes. Supplementing its core operations, Exide extends its revenue streams beyond battery sales through comprehensive after-sales services, including battery maintenance, warranty services, and recycling programs. This cyclical approach not only enhances customer loyalty but also aligns with global shifts towards sustainable and environmentally friendly business practices. As it deftly navigates the challenges and opportunities in the rapidly evolving energy landscape, Exide Industries remains a compelling player dedicated to powering life with reliability and innovation.
Exide Industries Ltd., a formidable entity in the energy storage solutions sector, has carved a niche that speaks volumes of its resilient legacy and innovation-driven approach. Rooted in its origins dating back to 1947, the company has transformed from a traditional lead-acid battery manufacturer into a diversified power solutions provider. Known primarily for its automotive batteries, Exide serves both the vehicular market—catering to every spectrum, from two-wheelers to heavy-duty trucks—and the industrial segment, powering critical sectors such as telecommunications, railways, renewable energy, and uninterrupted power supplies. Leveraging a well-established distribution network, Exide ensures nationwide reach and service, maintaining a formidable presence across urban and rural landscapes.
Exide's business model is robustly underpinned by its commitment to technological advancement and sustainability. Continuous investment in research and development is evidenced by their state-of-the-art facilities fostering innovations like advanced maintenance-free batteries and eco-friendly manufacturing processes. Supplementing its core operations, Exide extends its revenue streams beyond battery sales through comprehensive after-sales services, including battery maintenance, warranty services, and recycling programs. This cyclical approach not only enhances customer loyalty but also aligns with global shifts towards sustainable and environmentally friendly business practices. As it deftly navigates the challenges and opportunities in the rapidly evolving energy landscape, Exide Industries remains a compelling player dedicated to powering life with reliability and innovation.
Sales Growth: Exide Industries reported 5% year-on-year sales growth in Q3, with 92% of the business growing around 12% on the top line, but overall growth was dragged down by declines in telecom and export segments.
Gross Margin: Gross margin improved by 175 basis points sequentially, and EBITDA margin expanded 220 basis points to 11.7% in Q3, supported by cost excellence initiatives and better product mix.
Commodity Headwinds: The company faced significant cost pressures from high prices of key raw materials (tin, silver, copper, sulfur), and currency depreciation, but offset some impacts through cost savings; a 2% price hike was taken in January.
Lithium-Ion Business: Exide made substantial investments in lithium-ion cell manufacturing, with product validation underway and first commercial revenues expected around March or April; total equity investment in Exide Energy has reached INR 4,252 crores.
Segment Dynamics: Telecom is now just 1% of revenue, having bottomed out, while solar and inverter segments have returned to growth and are expected to benefit from seasonal tailwinds.
Guidance & Outlook: Management expects double-digit top line growth next year if declining businesses recover, and targets another 100–150 basis points improvement in margins, dependent on commodity movements.
Capital Allocation: INR 1,400 crores equity is planned for lithium, and around INR 500 crores for the lead acid business in the upcoming year.
