Exide Industries Ltd (EXIDEIND) Q1 FY27 Earnings Call: Solar Revenue Crosses Rs.400 Cr, Automotive OEM Volumes Up 25% YoY

Exide Industries Ltd held its Q1 FY27 earnings call on July 30, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Strong Revenue & Margin Performance

• Standalone revenue grew 17.6% YoY in Q1 FY 2026-2027, driven by broad-based volume growth across automotive, solar, and export segments.
• EBITDA of Rs.655 cr in Q1 FY 2026-2027, up 19.5% YoY, with margin of 12.4% — expanded 20 bps YoY and 70 bps QoQ.
• Automotive OEM business posted 25% YoY growth for the third consecutive quarter in Q1 FY 2026-2027, on a low base.
• Solar segment achieved its highest-ever quarterly revenue of Rs.400 cr+ in Q1 FY 2026-2027; home inverter and solar together grew >20% YoY.
• Exports grew 20%+ YoY in Q1 FY 2026-2027, recovering from five consecutive quarters of decline.
• Company maintained a debt-free balance sheet; input cost headwinds (lead LME, rupee depreciation) were partially offset by calibrated price adjustments and cost excellence programmes.

Broad-Based Volume Gains Across Categories

• Four-wheeler replacement volumes grew 10% YoY in Q1 FY 2026-2027; four-wheeler OEM volumes rose 21% YoY.
• Two-wheeler OEM volumes up 20% YoY in Q1 FY 2026-2027; solar volumes grew 12-14% YoY.
• Inverter business accounts for 15-25% of revenue, varying by season; Q1 FY 2026-2027 benefited from peak inverter battery season, unlike last year's early monsoon.
• Management declined to provide full-year FY 2026-2027 revenue guidance, citing base effects from the automotive OEM boom that began in Q3 FY 2025-2026 post-GST rationalisation (passenger vehicle volumes rose from 1.2 million to 1.4 million per month).
• Q1 is historically the strongest quarter; management noted the period benefitted from seasonal tailwinds.

Capacity Ramp, Customer Sampling & Technology Roadmap

• Phase-1 capacity of 6 GW (3 GW NMC + 3 GW LFP); provision to expand to 12 GW; cumulative equity investment in Exide Energy stood at Rs.4,902 cr as of 31 July 2026.
• 25-30% total factory utilisation targeted for FY 2026-2027, using two of four lines partially; LFP line expected to ramp faster than the two-wheeler NMC line.
• NCM cylindrical line commenced customer sample shipments; LFP prismatic line started sample supplies for three-wheeler and telecom; revenue contribution expected to commence during FY 2026-2027.
• Two-wheeler commercial production planned in FY 2026-2027; management is engaging with three major OEMs covering 80% of India's EV volume, currently in homologation.
• Four-wheeler LFP production line under commissioning, expected operational by end of FY 2026-2027; management is in talks with at least one major four-wheeler OEM.
• In-house pack-making capacity at 1.5 GWh, with additional capacity being added through a partner ecosystem model.
• Management confirmed they are working on LMC and LFP chemistries but are not currently pursuing sodium-ion, citing the need to first master lithium technology in India.

Price Hikes, Raw Material Sourcing & Localisation Push

• Price hikes of 4% to 6% across categories in Q1 FY 2026-2027 on a YoY basis; no further hikes decided for Q2 FY 2026-2027, with incremental steps (e.g., 2%, 1%, 2%) to be taken as needed.
• Input cost headwinds from lead LME and rupee depreciation were partially offset by calibrated price adjustments and cost excellence programmes; management will monitor input costs for Q2 FY 2026-2027.
• Raw material for lithium-ion batteries currently sourced from China; management expects Indian domestic sourcing to take 3 to 5 years (from FY 2026-2027) to develop via pilots with listed Indian companies.
• Localisation target of 52-60% of Bill of Materials within two to three years (from July 2026), covering electrolyte, cathode, anode, and separators; management is in talks with multiple suppliers.
• Chinese government export controls on raw materials — management cited "controls are deferred to November 2026" (Q3 FY 2026-2027); they are not yet a ban but require additional approvals, and management may increase inventory levels to manage potential delays.

PLI, Import Duties & Government Tender Outlook

• Government opened 10 GWh for PLI re-application in Q1 FY 2026-2027; Exide is studying conditions but not disclosing strategy; the company's first-phase 6 GWh facility was set up without any PLI support.
• Basic import duty on cells reduced from 9% to 6% (a 3% cut), but will be eliminated from 1 January 2027 (within FY 2026-2027), impacting landed cost of imported cells.
• Import duty on lithium-ion cells currently at 5% as of Q1 FY 2026-2027; management stated that if 2-3 players ramp to 15-18 GWh local cell capacity, they expect the government to consider an approved list of manufacturers, similar to solar, to impose barriers.
• Government tenders remained muted in Q1 FY 2026-2027; management expects a pick-up in H2 FY 2026-2027.
• Chinese EV factories operating at high utilisation due to domestic demand, reducing their appetite for export dumping — management sees this as a potential tailwind for Exide.

Investment Plan, BESS Strategy & Technology Independence

• Board approved Rs.1,400 cr capex for FY 2026-2027; Rs.100 cr was spent in July 2026, with the remainder to be deployed over the coming months; ~Rs.500 cr annually is allocated for lead-acid business capex.
• Original Rs.7,000 cr total investment plan for 12 GWh may change due to currency fluctuations on imported machinery; Phase 2 will require less capex as utilities and land were already provisioned for the full 12 GWh in Phase 1.
• Hyundai-Kia co-investment discussion ongoing but will not conclude in FY 2026-2027; it may involve a half-line customisation and is subject to delays.
• BESS line (Line 4) is the next target after commissioning Line 1 and Line 3; company plans to produce large format LFP cells (300+ Ah) under its licensed technology; management noted BESS has a lower gestation period than OEM homologation but the segment is becoming overhyped.
• Exide completed tech tie-ups before Chinese government embargoes, licensing four or five products; a 100+ R&D engineer team in Bangalore with a pilot plant expected by end of calendar year 2026 (within FY 2026-2027).
• If future technology licenses from China are blocked, management will continue manufacturing existing licensed products and develop its own know-how on the pilot line; alternative technology partners (Korean, Japanese) are available but costlier than Chinese options.
• Lithium battery assembly revenue for FY 2025-2026 was Rs.100-200 cr and was not profitable — management noted low value addition on imported cells makes the assembly business long-term unviable without in-house cell production.