Exide Industries Ltd

Target overview and rationale

• Target: Exide Energy Solutions Limited (EESL), a wholly owned Exide subsidiary manufacturing lithium-ion cells, modules, packs in India.
• Paid-up capital Rs 1,618.50 crore; Net worth Rs 3,991.06 crore; turnover Rs 157.56 crore.
• Related party: EESL is 100% subsidiary; rights basis allotment to Exide Industries.
• Industry: Battery cell and module manufacturing for EVs and stationary storage.
• Purpose: fund Bengaluru greenfield Li-ion plant; maintain 100% EIL ownership.
• Regulatory approvals: None required.
• Timeline: equity shares allotted on 29 September 2026.
• Consideration: cash subscription.
• Cost: Rs 99.99 crore.
• Shareholding: 100% ownership unchanged.
• Background: EESL incorporated 24 Mar 2022; turnover 2025-26 Rs 157.56 crore.

Meeting Details

• Board meeting on 4 November 2026 to consider unaudited results for Q2 FY2026-27.

Key Agenda Items

• Consider unaudited quarterly and half-year results for the quarter and half year ended 30 September 2026.

Other Notes

• Trading window closed; reopens on Saturday, 7 November 2026.

Phase-I commissioning update

• Phase-I commissioning of a 6 GWh Li-ion cell facility at Devanahalli, Bengaluru, completed on 23 September 2026.
• Facility will manufacture advanced Li-ion cells across multiple chemistries and form factors.
• Exide Energy Solutions Limited is a material subsidiary of Exide Industries Ltd.

Agreement highlights

• Exide India and ExCom Energy Solutions GmbH signed a long-term strategic cooperation on 15 September 2026.
• Cooperation covers the European Economic Area; ExCom will act as central interface for customers.
• Initial focus on traction and motive-power batteries and stationary energy storage for industrial applications.

Strategic rationale and scope

• Combines Exide India's manufacturing scale with ExCom's market access and local support.
• Aims to deliver a comprehensive portfolio including battery systems, charging, integration, and lifecycle services.
• Targets meeting technical, regulatory, and operational requirements across the EEA.

Outlook

• Plans to extend into advanced chemistry solutions in the future.
• Partnership aims to accelerate growth of Exide India's industrial battery business in Europe.

Exide Industries Limited trading window closure from Tuesday, pt September 2026 till the second trading day after the declaration of unaudited financial results for the quarter and half year ending 30th September 2026.

Target overview

• Target: Exide Energy Solutions Limited (EESL), India-based, manufactures Li-ion cells, modules and packs.
• Incorporated on 24 March 2022.
• Wholly owned subsidiary of Exide Industries Limited.

Financial size

• Turnover (FY2025-26): Rs 157.56 crore.
• Net worth as of 31.03.2026: Rs 3,991.06 crore.
• Paid-up equity share capital: Rs 1,589.93 crore.
• Total EIL investment in EESL: Rs 5,102.23 crore.

Transaction terms & relation

• Related party: EESL is 100% owned by EIL.
• Form of consideration: cash for equity rights in EESL.
• Price: 5,71,42,857 equity shares of Rs 10 with Rs 25 premium.
• Shares allotted on rights basis on 18 August 2026.
• Ownership remains 100% after investment.
• Regulatory approvals: None required.
• Strategic rationale: fund Bengaluru green-field Li-ion plant while maintaining control.
• Industry: battery cells, modules and packs.
• Background: EESL is India-based Li-ion cells, modules and packs manufacturer.

Background & turnover history

• Turnover history: FY23-24 Rs 239.14 crore; FY24-25 Rs 116.89 crore; FY25-26 Rs 157.56 crore.
• Investment includes erstwhile EEPL merger.

Financial performance

• Q1 FY27 standalone revenue grew 17.6% year-on-year.
• EBITDA ₹655 crores, up 19.5% YoY; EBITDA margin at 12.4%.
• EBITDA margin expanded 20 bps YoY and about 70 bps QoQ.
• Balance sheet remained debt-free with healthy operating cash flows.
• Auto OEM growth was 25% YoY for the quarter.
• Home inverter and solar grew over 20% YoY; solar revenue exceeded ₹400 crores.

Operational update and lithium-ion progress

• Bangalore giga factory: four lines delivered; utility fully operational.
• First NCM cylindrical line began customer samples; locally manufactured cells.
• LFP prismatic line started samples for 3-wheeler and telecom.
• Cumulative Exide Energy Solutions investment ₹4,902 crores as of 31 July, including ₹100 crores in July.
• Phase 1 lithium: 6 GWh; potential to reach 12 GWh in coming years.
• Utilization target 25–30% for lithium lines in FY27.
• Phase 2 expected to be largely LFP; Hyundai co-investment talks ongoing.

Capex and capacity expansion

• Board approved ₹1,400 crores capex for FY27; ₹100 crores spent in July.
• Annual core lead-acid capex around ₹500 crores for bottlenecks and automation.
• 6 GWh Phase 1; potential to reach 12 GWh in coming years.
• Phase 2 to be largely LFP; Hyundai co-investment discussed.
• Localization aims 50–60% BOM within 2–3 years.
• Raw material localization strategy: domestic electrolyte supply under discussion; initially imported.
• PLI: pursuing opportunities; first six gigawatt hours achieved without PLI support.
• Export VAT on cells currently 6%; revert to 9% from Jan 1, 2027.

Guidance and outlook

• Management did not provide FY27 full-year guidance; base effects due to GST rationalization.
• Auto OEM volumes elevated; inverter season boosted Q1 demand.
• Government tenders muted in Q1; expected pickup in H2.
• Inverter revenue expected 15–25% of revenue, season dependent.
• Pricing: Q1 price corrections 4–6%; further hikes monitored.
• Export VAT change from 6% to 9% effective Jan 2027; impact on landed cost.
• Raw material sourcing remains import-heavy; domestic ecosystem development requires government handholding.

Meeting Details

• Earnings call for Q1 FY2026-27 held on 03 August 2026.
• Audio recording uploaded on the company's investor website.

Participants

• Key company participants not disclosed in the filing.

Purpose

• Earnings results discussion and investor interaction.

Additional Notes

• Recording announced as available; no unpublished price-sensitive information disclosed.