Exide Industries (500086) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 4.7% year-over-year to ₹4,030 crore, driven by strong auto OEM and replacement market growth, while telecom and exports declined sharply, resulting in a 5% YoY sales drop for Q3 in some segments.

• Over 75 years of operations with a diversified battery portfolio, presence in 60+ countries, and 13 manufacturing plants.

• Profitable since inception, debt-free, and listed since 1979, with strong liquidity and robust cash flow generation.

• Cost pressures from high raw material prices and rupee depreciation were offset by cost excellence projects, improving gross margin sequentially.

• Lithium-ion investments and product launches, including AGM batteries and new inverter ranges, position the company for future growth.

Financial highlights

• Q3 FY26 revenue rose 4.7% YoY to ₹4,030 crore; EBITDA at ₹449 crore with 11.7% margin; PAT at ₹258 crore, margin steady at 6.4%.

• 9M FY26 revenue up 2.3% to ₹12,718 crore; EBITDA at ₹1,412 crore, margin at 11.1%; PAT at ₹799 crore, down 2.9% YoY.

• Standalone EBITDA margin for Q3 FY26: 11.7%, up 220–221 bps sequentially.

• Exceptional items: Q3 and 9M FY26 PBT include a ~₹9 crore loss due to labor code revision.

• Data center revenues for the quarter were INR 75–100 crore, with a strong pipeline.

Outlook and guidance

• Positive market trends and outlook for Q4 FY26 across automotive, solar, telecom, and industrial segments.

• Lead-acid business outlook remains positive, driven by automotive OEM, aftermarket, solar, and power backup demand.

• Export business expected to recover due to easing tariff barriers and new partnerships.

• Management expects high single-digit to early double-digit top-line growth next year if declining segments recover.

• Lithium-ion cell manufacturing plant nearing production, supporting future growth.