Key Financial Figures (Standalone Q2 FY27)

  • Revenue: INR5,026 crores, up 20.3% year-on-year
  • Half-yearly revenue: INR10,331 crores (first time crossing INR10,000 crores in half year), up 18.9% YoY
  • EBITDA: INR606 crores, up 53.6% year-on-year
  • EBITDA Margin: 12.1% (vs. 9.4% in Q2 FY26), expansion of 270 basis points
  • Half-year EBITDA margin: 12.2%, up 130 basis points year-on-year
  • Half-year pre-tax profits: grew by 46.5% year-on-year

Business Performance Highlights (Q2 FY27)

  • Automotive OEM business: Grew by over 25% for the fourth consecutive quarter
  • Gained high share across key upcoming OEM launches including MG Hector Tomahawk and Tata Aeris
  • Two-wheeler and four-wheeler replacement business: Fourth consecutive quarter of double-digit growth
  • Home inverters: Grew by 20% year-on-year
  • Solar business: Grew by 40%+ year-on-year
  • Exports: Grew by over 20% year-on-year for the second consecutive quarter
  • Industrial infrastructure (excluding telecom): Grew by high-single digit
  • Government tenders (railways and power sector): Remained muted during the quarter

Lithium-ion Business Update (Exide Energy Solutions Ltd)

  • Commissioned 6 GWh lithium-ion cell plant in Bengaluru on 23rd September 2026
  • Cumulative equity investment in EESL: INR5,352 crores (including INR550 crores invested in current FY)
  • Customer qualification progressing with approvals expected from few OEMs and telecom players in near term
  • NMC cells: Performance testing completed for leading two-wheeler OEMs, lifecycle testing ongoing
  • LFP cells: 102 Ah LFP cells already being produced and supplied for validation to telecom operators and used in e-rickshaw packs
  • Initial revenue generation: Started with LFP cells from October 2026 (not in Q2)
  • Expected timeline: Major OEM approvals for NMC expected from beginning of Q4 FY27 or February 2027

Market Context and Demand Environment

  • Vehicle registrations (Vahan data): Two-wheelers rose by 1.3 million YoY (+32%), passenger vehicles rose by 0.3 million YoY (+27%)
  • Electric two-wheelers: Reached 11.6% of two-wheeler retail in September 2026
  • Input costs: Remained elevated due to prolonged geopolitical challenges and weaker rupee
  • Crude oil prices: Went up significantly, creating overall inflationary environment
  • Rupee impact: Continuous weakening against US dollar affected realization of benefits from softer LME lead and antimony prices

Strategic Initiatives

  • 'One Exide' operating model: Sharing assets across businesses, combining lead-acid market reach with lithium-ion capabilities, building common digital engine
  • Benefits: Unlocked additional four-wheeler battery capacity, accelerated lithium-ion last-mile solutions scale-up, improved productivity
  • Long-term strategic cooperation agreement signed with ExCom Energy Solutions GmbH, Germany (September 2026) to expand industrial battery and energy storage business across European Economic Area

Capital Allocation Strategy

Three key elements beyond dividend payout:

1. Protecting the core: Annual investment of INR400-500 crores (approx. depreciation amount) focused on:

  • Manufacturing technology improvements for productivity and cost reduction
  • Debottlenecking existing lead-acid capacity to cater to growing market demand
  • Potential additional capacity for automotive OEM expansions

2. Factory automation: Continuous digitization and automation of operations

3. Advanced Chemistry Cell funding: Equity investment for lithium-ion subsidiary working capital and organization building

Balance Sheet and Cash Flow

  • Company remains debt-free
  • Continues to generate healthy operating cash flows
  • Mark-to-market loss on HDFC Life investment: Approximately INR600 crores in first six months of FY27

Outlook and Guidance

  • Margin guidance: Target to remain within 12%-12.5% EBITDA margin corridor for lead-acid business
  • H2 FY27 outlook: OEM growth percentages may moderate but absolute values remain high; aftermarket expected to maintain H1 levels
  • Lithium-ion business: Target to make cash neutral in 2-3 years; phase 2 capex decision at ~80% utilization of current 6 GWh capacity
  • Raw material localization: Target 50%-60% BOM localization in India in 2-3 years; working with 20+ local suppliers at various validation stages

Persons Present

Management: Mr. Avik Roy (MD and CEO), Mr. Manoj Kumar Agarwal (Director Finance and CFO), Mr. Jitendra Kumar (President Legal and Corporate Affairs and Company Secretary), Mr. Prashant Saraswat (Head of Investor Relations), Mr. Pravin Saraf (MD and CEO for Lithium-Ion Project)

Moderator: Mr. Raghunandhan from Nuvama Wealth Management