Archive · 19 Nov 2025
Exide's Struggling Core Business and Lithium-Ion Gambit
Exide Industries is having trouble with its main lead-acid battery business and is trying to make its lithium-ion battery venture successful.
Their recent earnings were not good because of less demand and higher costs.
They are hoping that their new lithium-ion batteries will help them in the future, but there are many other companies making these batteries too.
Exide Industries Ltd's core lead-acid business is struggling
Lithium-ion venture is a potential second growth engine
Q2FY26 earnings were soft due to channel destocking and weak demand
Operating margin slipped due to weak revenue and higher input costs
Lithium-ion business progress is crucial for future growth
- Who
- Exide Industries Ltd
- What
- Struggling with core business, betting on lithium-ion venture
- When
- Q2FY26 earnings released, lithium-ion plant trials in end-FY26
- Where
- India
- Why
- To diversify revenue streams and ensure future growth
Pessimistic View
Optimistic View
Core Business Performance
Pessimistic View
Weak earnings and margin pressure indicate a struggling core business
Optimistic View
Rebound expected in H2FY26 with restocking and price hikes
Lithium-Ion Business Prospects
Pessimistic View
Slow scaling, low margins, and intense competition pose risks
Optimistic View
Early customer wins and potential demand growth offer promise
- Revenue (Q2FY26)
- ₹4,178 crore (-2% YoY)
- Operating Margin (Q2FY26)
- 9.4% (-1.8% YoY)
- Capex for Lithium-Ion Plant
- ₹6,500 crore
- Capex Invested So Far
- ₹3,950 crore
- Estimated Lithium-Ion Utilization in FY27
- 25-30%