Exide Industries eyes ₹400–₹500 crore export boost from Europe, Indo-US deal; shares surge over 5%

The CEO said the company has entered into an exclusive arrangement with a European entity as part of its global exports expansion strategy.

The details of the partner and the structure of the collaboration were not disclosed.

Roy said the company, which is a leader in battery usage in the forklift, material handling equipment, and high-end car segments in India, aims to focus on these spaces in Europe, though exports will be in private label.

Roy said the India-US trade deal, along with the India-EU trade agreement, is expected to lift exports' contribution to about 8-9% of its overall revenue by the next fiscal year.

Exports had declined to around 5% in FY'26 due to geopolitical headwinds, he added.

On the electric mobility front, Pravin Saraf, Managing Director and CEO of Exide Energy Solutions Ltd (EESL), the company's wholly owned subsidiary for lithium-ion batteries, said the validation process for batteries for two-wheelers and three-wheelers is currently underway.

"At least for two-wheelers, production will begin by March-April 2026," Saraf said, adding that lithium-ion batteries for four-wheelers would take another one to two years.

Other key updates

Roy said Exide is well-positioned to cater to demand for both lithium-ion and lead-acid batteries, as two-wheeler launches are taking place in almost equal numbers across electric and internal combustion engine models.

The company plans to invest another ₹1,400 crore in its lithium-ion battery business in FY'27, he said, adding that ₹500 crore will be invested in the fourth quarter of the current fiscal year, taking the total investment in the lithium-ion segment to about ₹4,800 crore.

Firm to remain debt-free in FY27

Roy said Exide expects to remain debt-free in FY'27, with the planned capital expenditure to be funded entirely through internal accruals.

The CEO added that the demand outlook remains robust, with the company targeting high single-digit to double-digit growth.

Apart from the lithium-ion business, Exide continues to invest around ₹500 crore annually in its existing operations.

The company expects its topline to reach ₹20,000 crore over the next three years and ₹25,000 crore by 2030, driven by the full benefits of its lithium-ion battery business.

Exide Industries Q3 FY26 Earnings

The company reported a 23% rise in consolidated profit after tax (PAT) at ₹194.97 crore for the third quarter ended December 31, 2025, on the back of a demand boost after GST rate cuts.

The company posted a consolidated profit after tax (PAT) of ₹158.44 crore in the same quarter of the previous fiscal year, Exide Industries said in a regulatory filing.

Consolidated revenue from operations in the quarter under review was at ₹4,200.59 crore, as compared to ₹4,016.72 crore in the year-ago period.

Total expenses were ₹3,922.81 crore in the reported quarter, compared with ₹3,791.49 crore in the same quarter a year ago, the company said.

What Citi and Nomura say on Exide Industries

Analysts at Nomura said Exide Industries’ Q3 EBITDA was largely in line with their estimates, with auto segment growth remaining healthy and industrial business expected to recover. They added that valuations have turned attractive at around 10x FY28F core EPS, supported by a 17% EPS CAGR over FY26–28F.

Citi noted that Exide’s Q3 FY26 results came in above estimates, with management maintaining a positive outlook. The global investment firm highlighted strong demand across auto OEM replacement, railways, and solar segments, while expecting industrial batteries momentum to continue into Q4.

Citi also pointed out that the first line of the company’s Li-ion cell plant is expected to become operational by March 2026, with pricing actions underway to offset commodity cost pressures.