Exide Industries Ltd Q2FY26 – From Lead Acid to Lithium Dreams: The Battery Behemoth’s Electrifying Reality Check

1.At a Glance

When India charges up for an electric future,Exide Industries Ltddoesn’t want to be left carrying the dead battery. This 77-year-old energy veteran, known for keeping cars, trucks, and even submarines alive, is now sprinting toward lithium-ion dominance like a student who just discovered the exam is tomorrow. With amarket cap of ₹31,913 croreand acurrent price of ₹375, Exide’s stock has been idling in neutral—down 9.6% over the last year—but investors are still keeping their engines running in anticipation of the lithium revolution.

The company reportedQ2FY26 revenue of ₹4,365 crore, a modestYoY decline of 1.9%, andPAT of ₹174 crore, down25.7%—perhaps proof that even batteries need recharging. Despite the dip, Exide remains India’slargest storage battery manufacturer, serving everything from e-rickshaws to submarines (yes, the literal underwater kind).

It’s also buildinga 12 GWh lithium-ion plant in Karnataka, with aninvestment of ₹3,600 crore, in partnership withSVOLT Energy Technology—because who doesn’t want to be the “Tesla of Kolkata”?

But let’s get one thing straight: Exide isn’t a newbie startup pretending to be green. It’s a profitable dinosaur trying to grow electric wings.

2.Introduction

Once upon a time, Exide batteries powered everything that moved—or refused to move without a jump-start. From Ambassadors to Altos, from inverters in small towns to submarines in the Indian Navy, Exide was India’s default energy backup before “EV” was even a word. But times have changed. The world now runs on lithium-ion dreams, and lead-acid kings like Exide must adapt or get recycled.

With10 manufacturing plants, over1 lakh dealers, and a7.6 billion Ah industrial capacity, Exide practically owns the Indian battery supply chain. Yet, despite this industrial muscle, its financial engine has sputtered in recent years—sales growth of just 3.56% over 5 years, andROE of only 5.74%. That’s like a Maruti 800 trying to win a Formula One race.

But wait—there’s a plot twist. Through its subsidiaryExide Energy Solutions Ltd (EESL), the company is building a12 GWh lithium-ion cell plant in Karnataka, with commercial production expected inFY26. It even signed an MoU withHyundai Motor Indiato supply cells for EVs. That’s right—Exide wants to electrify your next Hyundai.

The battery game isn’t just about chemistry anymore—it’s aboutalchemizing legacy into innovation.And if Exide gets its chemistry right, it might just shock its skeptics.

3.Business Model – WTF Do They Even Do?

Exide Industries’ business model is like a buffet—lead-acid today, lithium-ion tomorrow, and a side of inverter sales for dessert.

1. Automotive (69% of revenue):This is the bread and butter—or should we say, lead and acid—of Exide. It makes batteries for2-wheelers, 3-wheelers, cars, trucks, and e-rickshaws, sold under brands likeExide Mileage, Epiq, Drive, Xpress, and Xplore. The company dominates both OEM (B2B) and replacement (B2C) markets.
2. Industrial (31% of revenue):This segment powers telecom towers, railways, data centers, power projects, and even submarines. If it needs backup, Exide is probably inside. Industrial batteries—Powersafe, Solatron, GenX—keep India’s infrastructure literally alive.
3. International:With exports toover 60 countries, Exide earns ~8% of standalone revenue abroad. The company added14 new distributors for automotiveand28 for industrial batteriesin FY25. Basically, Exide batteries have better global reach than most Indian influencers.
4. New Frontiers:
   • Lithium-ion project (12 GWh)in Karnataka in partnership with SVOLT.
   • Battery pack assembly plant (1.5 GWh)in Gujarat.
   • White goods foraythrough inverter systems.
   • Asolar franchise businesstargeting ₹1,000–1,200 crore revenue by FY26.

It’s a power play: Exide wants to be the “everything energy” company of India—if lead doesn’t kill it first.

4.Financials Overview

Annualised EPS = ₹2.02 × 4 = ₹8.08At CMP ₹375 →P/E ≈ 46.4x

Commentary:That’s a luxury car valuation for