More Stories

Informist, Monday, Aug. 3, 2026

By Anand JC and Gopika Balasubramanium

MUMBAI – Exide Industries Ltd. Monday said it is in talks with all major original equipment manufacturers to sell lithium-ion cell batteries from its manufacturing plant in Bengaluru, which is expected to contribute to the company's revenue in financial year 2026-27 (Apr-Mar). Of these potential customers, around three companies contribute to around 80% of electric vehicles sold in India, the company told investors in a post-earnings analyst call.

These potential customers are currently undergoing homologation, a process which certifies that a vehicle or its components are safe, roadworthy, and compliant with government environmental and technical standards before they can be legally sold or registered. "Of course, we'll not get 100% volume to start with. We will be another supplier, possibly," a top company official said. "Even if they give us a share, a portion of their demand, I think we'll be through," he added.

Kolkata-based Exide's subsidiary Exide Energy Solutions Ltd. has set up a major lithium-ion cell gigafactory in Bengaluru, where it intends to make lithium-ion cells, modules, and packs for electric vehicles and stationary applications. Equipment across all four production lines here has been delivered and installed, and utilities there are fully operational.

"Our first NMC (nickel manganese cobalt) cylindrical line commenced customer sample deliveries during the quarter. These are the first locally manufactured cells out of the facility," the official said. Samples from the production line for lithium iron phosphate cells, or LFP prismatic cells for three-wheeler and telecom applications, have also started. As of Jul. 31, the company had invested INR 49.02 billion, including an investment of INR 1 billion made in July.

Exide had disclosed its June quarter earnings Thursday. The company had reported a net profit of INR 4.07 billion on revenues of INR 53.05 billion. Exide's management lamented cost pressures faced in the reporting quarter, spurred by the war in West Asia, terming it a "challenging" situation.

"While lead LME prices in US$ terms remained largely range-bound, adverse movement in the rupee against US$ continued to put pressure on input costs," the executive said. Exide took calibrated price increases to the tune of 4-6% across categories in the quarter ended June. While the battery maker has currently not decided if it would hike prices in the September quarter, its strategy is to do so on a calibrated basis.

Exide reported broad-based growth across segments in the June quarter, which is traditionally its strongest in any given financial year. This is because of its presence in the home inverters business, which sees higher demand in the quarter ended June. "Home inverters and solar also delivered growth of over 20% year-on-year, aided by a strong summer season demand and focused market initiatives," the company said.

The inverter business also benefited from a low base because of the early onset of monsoon in the year-ago quarter. "Last year, our Q2 level, the base was low (for the inverter business). So, we should be getting the advantage out of that in percentage terms (in the September quarter)," the official said.

The home inverter business contributes around 15-25% to Exide's revenues, based on the season.

In the June quarter, the company's solar business reported a record-high revenue of INR 4 billion. "Industrial infrastructure, excluding telecom, maintained its double-digit growth trajectory, supported by industrial UPS (uninterruptible power supply) and traction business," the company said.

Growth in tenders issued by the government remained muted in this period; the company expects it to pick up in the second half of FY27. Exide's industrial batteries division relies on tenders from public sector undertakings and government bodies.

The Ministry of Heavy Industries recently invited bids to establish advanced chemistry cell manufacturing facilities with a cumulative capacity of 10 gigawatt-hours. This is the final tender part of the production-linked incentive scheme which was approved in 2021, with an outlay of INR 181 billion. Exide did not reveal if it will bid for this tender in order to keep its strategy under wraps. "We are serious players. We are studying all the fine prints of the condition, and then we will take a call," the company said. The official added the company has set up the first phase of its plant in Bengaluru with a 6-gigawatt-hour capacity without any incentive support.

Given the high demand and competition from countries like China and South Korea, the company said India needs about two to three more "serious" players in the lithium-ion cell manufacturing industry. "Today, the whole demand of the electric vehicle battery is around 20-25 gigawatt-hour in India. We have a local cell capacity at Exide, and a few small guys," the official said, adding that given the low supply in India, companies are forced to import cells.

"But at some point in time, if two, three people significantly ramp up their plans, the quicker the better," the official said. 

Speaking about its investments, the company said it usually keeps around INR 5 billion in reserve for its lead-acid battery business, manufacturing technology, automation, and capacity expansion. For its lead-acid manufacturing business, the company has to work on unclogging bottlenecks, rather than investing in a production line. Overall, it sees headroom for brownfield expansion in all of its factories.

At 1454 IST, shares of Exide traded nearly 1% lower at INR 445.50 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Himanshi Gupta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.