Business · Companies · 17 hrs ago
Exide outperforms Amara Raja as both invest in lithium-ion batteries
India’s Exide outperformed Amara Raja in Q2 of the financial year ending March 2027.
Exide’s standalone Ebitda, a measure of operating profit, rose 54% to ₹606 crore, helped by strong demand and price increases.
Amara Raja’s Ebitda fell 5% to ₹386 crore as higher costs for materials including metal alloys and sulphuric acid squeezed its margins.
Both companies make automotive batteries and are investing in lithium-ion technology as the industry moves beyond traditional lead-acid batteries.
Exide has started production at its lithium iron phosphate battery plant, and its subsidiary commissioned a 6 GWh lithium-ion cell facility in the quarter.
Amara Raja expects its 10 GWh battery storage plant to begin commercial production in the final quarter of FY27.
Returns on the investments remain uncertain because lithium-ion manufacturing can have low margins, and Exide’s battery yields may take one or two years to stabilise.
Exide Industries’ September-quarter earnings rose sharply, while Amara Raja Energy & Mobility’s earnings fell as higher input costs weighed on its results.
Exide’s standalone Ebitda increased nearly 54% year on year to ₹606 crore, while Amara Raja’s fell 5% to ₹386 crore.
Both companies are investing in lithium-ion batteries as the industry shifts from lead-acid technology.
Exide began commercial production at its LFP battery plant and commissioned a 6 GWh lithium-ion cell facility through its subsidiary.
Amara Raja plans a 5 GWh LFP battery facility and expects its 10 GWh battery energy storage solution plant to begin commercial production in Q4FY27.
The article says the commercial viability of lithium-ion technology remains uncertain and that both companies face risks from their substantial investments.
- Who
- Exide Industries and Amara Raja Energy & Mobility, automotive battery makers.
- What
- Exide’s Ebitda rose nearly 54% in the September quarter, while Amara Raja’s fell 5%. Both are investing in lithium-ion batteries.
- When
- The September quarter of FY27 (Q2FY27); Exide began recognising revenue from its LFP plant in October.
- Where
- Not stated.
- Why
- Both companies are investing to keep pace with the industry’s transition from lead-acid to lithium-ion technology.
This story does not have two clearly opposing sides.
Exide raised prices by about 10% for four-wheelers and 5% for two-wheelers.
Exide’s subsidiary commissioned a 6 GWh lithium-ion cell facility.
Exide began recognising revenue from its LFP battery plant.
Amara Raja’s 10 GWh battery energy storage solution plant is expected to start commercial production.
- Exide Q2FY27 Ebitda
- ₹606 crore, up nearly 54% year on year
- Amara Raja Q2FY27 Ebitda
- ₹386 crore, down 5% year on year
- Exide lithium-ion cell facility
- 6 GWh, commissioned by subsidiary EESL in Q2FY27
- Amara Raja battery storage plant
- 10 GWh, expected to start production in Q4FY27
- Amara Raja announced investment
- ₹2,320 crore for a 5 GWh LFP facility and lithium-ion factory capacity expansion
What people are saying
With EV inflection, Exide can gain significantly in the medium term if it executes well on Li-ion cell production, though it may take one or two years for yields to stabilise and to achieve the right scale
Monthly E2W sales have touched about 200,000 units this year, compared with 120,000 units last year