Exide Industries (500086) Q2 25/26 earnings summary

Executive summary

• Over 75 years of profitable operations with a diversified battery portfolio and global presence in 60+ countries.

• Two new executive directors were inducted, strengthening leadership for future growth.

• Lithium-ion cell manufacturing plant is nearing production, supporting expansion into green technology.

• GST 2.0 reforms, including a reduction in battery GST from 28% to 18%, are expected to boost industry demand, though short-term sales were impacted by distributor destocking.

• Maintains a debt-free status, strong credit ratings, and a robust dealer/distributor network exceeding 100,000.

Financial highlights

• H1 FY26 standalone revenue grew 1.3% YoY to ₹8,688 crore, with Q1 up 5% and Q2 down 2.1%; consolidated H1 revenue was ₹9,060 crore.

• Q2 FY26 standalone revenue was ₹4,178 crore, PAT at ₹221 crore; H1 FY26 PAT at ₹541 crore.

• EBITDA margin for H1 FY26 was 10.9%, with Q2 at 9.4%, impacted by input cost pressures and lower production.

• Inventory reduction and cash management led to incremental cash flow of over INR 500 crore; net cash from operating activities for H1 FY26 was ₹1,172 crore standalone and ₹1,423 crore consolidated.

• Balance sheet remains strong with zero debt and high cash flow generation.

Outlook and guidance

• Management expects stronger growth in Q3 FY26, especially in trade and Auto OEM segments, driven by GST rate cut benefits.

• Lead-acid business outlook is positive, with expected demand uptick in auto OEMs due to GST cuts.

• Solar segment expected to rebound in Q3, supported by GST cuts and government incentives.

• Production at the lithium-ion cell manufacturing project is expected to commence by end of FY26.

• Margins are expected to return to 12-13% as volumes recover and cost initiatives take effect.