🌐 Exide Expands Lithium-Ion Investment: Building for India’s EV Revolution

 Analyzing Exide Industries' Q3 FY25 Results: Opportunities and Challenges

Exide Industries has recently released its Q3 FY25 financial results, offering insights into its operational performance and strategic direction. Here, we dive into the highlights, challenges, and the road ahead for one of India's leading battery manufacturers.

Financial Overview

1. Revenue and Growth:

   • Standalone revenue for Q3 FY25 stood at ₹3,849 crores, showing minimal growth compared to Q3 FY24 (₹3,841 crores).
   • Consolidated revenue reached ₹4,016.72 crores, reflecting a modest increase from ₹3,979.83 crores in the same quarter last year.

2. Profitability:

   • Standalone EBITDA improved to ₹449 crores, with EBITDA margins rising to 11.7% (from 11.5% in Q3 FY24).
   • Standalone Net Profit was ₹245 crores, slightly higher than ₹240 crores in Q3 FY24, supported by cost optimization efforts.
   • Consolidated Net Profit declined to ₹158.44 crores, down from ₹202.69 crores in Q3 FY24, indicating challenges at the group level.

3. Nine-Month Trends:

   • Standalone revenue for the first nine months of FY25 rose by 3.4% to ₹12,429 crores.
   • Standalone PBT grew by 7% year-on-year, reaching ₹1,098 crores, underscoring operational efficiency despite muted top-line growth.

Key Business Insights

Positive Segments:

• The replacement market for two-wheeler and four-wheeler batteries showed double-digit growth, driven by strong demand in the automotive aftermarket.
• The solar segment also experienced robust growth, supported by government incentives and solarization initiatives.
• Exports in the automotive category continued to gain traction, benefiting from focused product strategies and market penetration.

Challenges:

• Demand from Automotive OEMs remained subdued, reflecting a broader market slowdown.
• Industrial battery demand was hampered by lower government infrastructure spending and muted private capital expenditure.

Strategic Investments and Future Plans

Exide’s commitment to future-ready technologies is evident in its investment in lithium-ion battery manufacturing. Through its subsidiary, Exide Energy Solutions Limited (EESL), the company invested an additional ₹400 crores in Q3 and ₹150 crores in January 2025. The lithium-ion cell manufacturing project, which includes a 12 GWh facility, is on track for commercialization by FY26. This positions Exide well for the burgeoning EV and renewable energy markets.

Market Outlook and Implications

Exide’s steady EBITDA margins and focus on operational efficiency offer stability amid challenging macroeconomic conditions. However, the flat revenue growth and declining consolidated profits underscore the need for stronger growth catalysts, particularly in industrial and OEM markets. The success of the lithium-ion project will be a key determinant of Exide’s long-term growth trajectory.

Conclusion

Exide Industries demonstrates resilience through its strategic focus on cost management and future growth areas like lithium-ion technology. While near-term challenges persist, particularly in the industrial and OEM segments, the company’s diversified product portfolio and investments in innovation set the stage for long-term success. Investors should closely watch demand trends, commodity prices, and progress on strategic initiatives for a clearer picture of Exide’s potential.