Exide Industries: Management Shares Future Growth Plans, Must Read for Shareholders

Synopsis: A storage battery manufacturer with a Rs 28,500 crore market cap has guided for gross margin expansion and announced several major growth bets. The company in context has seen its stock give a compounded return of 23 percent in the last 3 years

A small cap stock where the company is in the business of manufacturing of storage batteries and allied products has been in the spotlight after the company guides for a 150 bps expansion along with stating other plans such as expanding into other geographic areas and begin shipping lithium-ion cells to passenger vehicles and two-wheelers.

With a market cap of more than Rs 28,500 Cr, Exide Industries Ltd saw its stock hit an intraday high of Rs 340 which is less than 1 percent higher than the previous close of Rs 337. The company stock has given a compounded return of 23 percent in the last three years.

The Guidance

Exide Industries aims to enhance its profitability by improving gross margins by 150 basis points, driven by cost optimization initiatives, operational efficiencies, better product mix, and disciplined pricing strategies to support sustainable earnings growth.

The company is targeting robust export growth in the coming year, backed by expansion into new geographies, improving global demand, and a favorable base effect, which together are expected to strengthen revenue contribution from international markets.

Exide Industries anticipates its growth momentum from the third quarter to carry into the fourth quarter, supported by steady demand trends and a positive outlook for its core lead-acid battery segment.

Growth is being fueled by healthy demand across automotive, solar energy, and power backup segments, enabling the company to benefit from diversified revenue streams while reducing dependence on any single end-market.

The company plans to begin shipping lithium-ion cells to passenger vehicle and two-wheeler OEMs either within this financial year or early next year, marking a significant step toward strengthening its advanced battery portfolio. The company has invested Rs 320 Crores and an additional RS 50 Cr in January 2026.

Three-wheelers and e-rickshaws are expected to become the initial revenue drivers for Exide’s lithium-ion battery business, as rising electrification in last-mile mobility creates strong demand for reliable energy storage solutions.

This development represents Exide’s strategic expansion into the electric vehicle battery market, positioning the company to capture emerging opportunities across multiple automotive segments while aligning with the long-term shift toward cleaner mobility solutions.

Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 4 percent YoY, from Rs 4,017 Cr in Q3FY25 to Rs 4,201 Cr in Q3FY26, while the QoQ decreased by 4 percent from Rs 4,365 Cr. The net profits grew by 23 percent going from Rs 158 Cr in Q3FY25 to Rs 195 Cr in Q3FY26, while the QoQ increased by 12 percent from Q2FY26’s Rs 174 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 3 percent YoY, from Rs 12,902 Cr in 9MFY25 to Rs 13,260 Cr in 9MFY26. The net profits for the same period grew by 5 percent going from Rs 612 Cr to Rs 643 Cr.

The company has a 3 year sales CAGR of 10 percent, while the TTM is at 3 percent. The company’s 3 year profit CAGR is at negative 44 percent, while the TTM number is at 5 percent. The company also has a ROCE of 8 percent and a ROE of 6 percent.

Revenue Growth Drivers

The company has seen growth in its automotive segment, supported by GST reduction from 28 percent to 18 percent, improving rural sentiment, and deeper market penetration. Low domestic PV ownership and rising vehicle exports have benefited Exide through stronger OEM and replacement battery demand.

Exide has benefited from strong momentum in solar power, driven by GST reduction from 12 percent to 5 percent, the 500 GW renewable target by 2030, and MNRE’s 40 GW goal by 2026. Financial support under the PM Surya Ghar scheme has boosted battery demand.

The company has seen growth in industrial infrastructure, aided by 100 percent railway electrification by FY26, increasing electrification of material handling equipment, and nearly 20 percent medium-term CAGR in data centres. These trends have supported rising demand for Exide’s industrial and backup power solutions.

Exide Industries Ltd, incorporated in 1947, is one of India’s leading storage battery manufacturers. Headquartered in Kolkata, West Bengal, the company operates across automotive, industrial, and renewable energy segments. It supplies batteries for vehicles, railways, telecom, power, and solar applications in India and international markets, with strong brands and extensive manufacturing footprint.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Exide Industries: Management Shares Future Growth Plans, Must Read for Shareholders appeared first on Trade Brains.