Exide Industries Q1 Results: Stock Rises 4% as Auto OEM Business Grows Over 25% for Third Consecutive Quarter
Key Takeaways
- •Exide Industries' automotive OEM business has grown more than 25% for three straight quarters, driven by robust passenger and commercial vehicle sales across India.
- •The company's stock rose approximately 4% following the release of its first-quarter financial results.
- •CEO Avik Roy identified input cost volatility and currency movements as primary risks facing the business going forward.
- •Exide expects its Bengaluru gigafactory to begin generating revenue during FY27, marking its entry into lithium-ion cell production.
- •The gigafactory initiative aligns with government PLI schemes aimed at boosting domestic ACC battery manufacturing and reducing reliance on imported cells.
Exide Industries Q1 Results: Stock Rises 4% as Auto OEM Business Grows Over 25% for Third Consecutive Quarter
Exide Industries shares climbed approximately 4% following the release of its first-quarter financial results, which showed the company's automotive original equipment manufacturer (OEM) business growing at a rate exceeding 25% for the third straight quarter. The sustained OEM growth comes against the backdrop of robust passenger vehicle and commercial vehicle sales in India, which have been supporting demand for automotive batteries across manufacturers.
The Kolkata-headquartered company, India's largest manufacturer of lead-acid storage batteries, has been seeing sustained momentum in its automotive OEM segment, which supplies batteries to major vehicle manufacturers across the country. Exide operates in a domestic battery market where it competes with Amara Raja Batteries, and both companies have been leveraging strong automotive demand while simultaneously investing in next-generation energy storage technologies.
Management Commentary
Managing Director and Chief Executive Officer Avik Roy highlighted the company's strategic priorities while flagging ongoing challenges. Roy said that input cost volatility and currency movements remain key watchpoints for the business going forward.
Bengaluru Gigafactory Milestone
Roy also provided an update on the company's new energy initiatives, stating that Exide expects its Bengaluru gigafactory to begin generating revenue during FY27. The executive described this as a significant milestone in the company's new energy business, marking Exide's transition into advanced cell manufacturing for electric vehicles and energy storage applications.
The Bengaluru facility represents Exide's entry into lithium-ion cell production, diversifying its portfolio beyond its traditional lead-acid battery operations. The move aligns with India's broader push to build domestic cell manufacturing capacity, driven by government incentives such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, as the country seeks to reduce reliance on imported cells for its growing electric vehicle and renewable energy sectors.
Source: CNBC-TV18