Exide Industries Ltd

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.

Financial results approved

• Unaudited standalone Q1 FY27: Revenue 5,305 crore; EBITDA 655; PBT 543; PAT 407; EPS 4.79.
• Standalone EBITDA margin 12.4%; liquidity robust; zero debt.
• Unaudited consolidated Q1 FY27: total income 5,555.25 crore; PBT 487.03; PAT 351.30; EPS 4.12.
• Consolidated total comprehensive income 234.77.

Capital and strategic actions

• Rs 100 crore equity infused into Exide Energy Solutions Limited in July 2026; cumulative equity Rs 4,902 crore.
• Bengaluru gigafactory: 100% equipment installed; utilities operational; first cell samples dispatched; revenue start expected FY27.
• EESL certifications achieved: BIS IS 16046, IS 16893, IS 16085; UN 38.3 ready.

Governance and regulatory notes

• Audit Committee reviewed results; Board approved on 30 July 2026.
• Limited Review Reports by B S R & Co. LLP: no material misstatement.

EESL investment details

• Target: Exide Energy Solutions Limited (EESL), a wholly owned Exide subsidiary.
• EESL manufactures and sells lithium-ion battery cells, modules, and packs for EVs and stationary uses.
• India-focused operations for lithium-ion battery products.
• Paid-up equity capital Rs 1,532.78 crore.
• Turnover Rs 157.56 crore; net worth Rs 3,991.06 crore.
• EESL is a wholly owned subsidiary of Exide Industries.
• Related party transaction; EESL is 100% owned by Exide Industries.
• Rights-based cash infusion to fund Bengaluru green-field Li-ion plant.
• Total investment in EESL, including premium, stands at Rs 4,902.23 crore.
• Equity shares allotted on 15 July 2026; number: 2,85,71,428.
• Cash consideration: Rs 99,99,99,980.
• Holding in EESL remains 100% post-investment.
• EESL incorporated on 24 March 2022.
• FY2025-26 turnover Rs 157.56 crore.
• FY2024-25 turnover Rs 116.89 crore.
• FY2023-24 turnover Rs 239.14 crore.

Dematerialisation processing status

• Securities for dematerialisation during the quarter ended 30 June 2026 were confirmed to depositories and listed on exchanges.
• Physical certificates for dematerialisation were mutilated and cancelled after verification; depository name updated as registered owner.

AGM Details

• Held on 10 July 2026 at 10:30 AM via VC/OAVM.
• Remote e-voting window: 7 July 2026 9:00 AM to 9 July 2026 5:00 PM.
• Cut-off date for voting: 3 July 2026.
• Quorum met; 97 members attended; meeting concluded at 1:14 PM IST.

Key Resolutions

• Adoption of audited financial statements for the year ended 31 March 2026.
• Declaration of final dividend of Rs 2 per equity share.
• Re-appointment of Manoj Kumar Agarwal by rotation.
• Ratification of remuneration payable to Mani & Co., Cost Accountants.
• Revision in terms of remuneration of Manoj Kumar Agarwal, Director-Finance and CFO.

Voting Results

• All resolutions passed with the requisite majority; no significant dissent reported.

Dividend

• Final dividend of Rs 2 per equity share approved.

Director Changes

• Re-appointment of Manoj Kumar Agarwal by rotation approved.

Auditor Appointments

• No change in statutory auditors reported.

Material Related Party Transactions

• No material related party transactions disclosed.

Other Material Approvals

• No additional material approvals beyond listed resolutions.