Synopsis:
Exide Industries ramps up EV battery ambitions with lithium-ion investments, SVOLT partnership, and new manufacturing capacity, signaling growth potential.
India’s battery industry is entering a transformative phase as electric vehicle adoption accelerates, and traditional players are pivoting toward lithium-ion technology. Exide Industries, a leader in lead-acid batteries, announced today a significant equity investment in its EV-focused subsidiary, Exide Energy Solutions Limited, signaling its intent to scale in the lithium-ion segment.
Investors are watching closely as the stock reacts to these developments, with market enthusiasm reflecting optimism about Exide’s potential role in powering India’s EV future.
About the Company
Exide Industries Limited, a leading manufacturer of lead-acid batteries in India, commands a market cap of Rs. 33,718 crore. The stock opened at Rs. 392.25, reached a high of Rs. 399.95, up 1.64 percent from the previous close of Rs. 393.60, indicating strong intraday buying interest.
Established initially as Associated Battery Makers (Eastern) Ltd., a subsidiary of Chloride Overseas UK, the company was acquired by the Rajan Raheja Group in 1993 and rebranded as Exide Industries Limited in 1995.
In 1998, it expanded by acquiring Standard Batteries Limited (SBL) along with four of its factories and the Standard Furukawa brand. Today, Exide has one of the largest storage-battery manufacturing capacities in India, operates three major lead recycling plants, maintains five global technical collaborations, is debt-free, profitable since inception, and has a presence in over sixty countries.
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Expanding into the Lithium-Ion Battery Components Space
Exide is aggressively entering the lithium-ion battery segment through its wholly owned subsidiary, Exide Energy Solutions Limited (EESL), incorporated on 24th March 2022. EESL manufactures and sells lithium-ion cells, modules, and packs for India’s EV market and stationary applications. As of 31st March 2025, EESL had a net worth of Rs. 2,738.06 crore and a turnover of Rs. 116.89 crore, with a loss after tax of Rs. 209.12 crore for the year.
The subsidiary is setting up a 6-GWh Li-ion cell manufacturing facility in Bengaluru as part of phase-1, with plans to expand to 12 GWh based on market demand. Exide already operates in the Li-ion battery pack assembly segment, offering complete end-to-end solutions from cell to system, termed “molecule to megawatt.
” A technical collaboration with SVOLT Technology Solutions Ltd., a leading Li-ion cell manufacturer with approximately 3,000 employees and 500 R&D experts, supports multi-year technical know-how, turnkey plant setup, and capacity planning. Phase-1 will include four production lines for 6 GWh.
Additionally, EESL’s Lithium-ion Pack Plant in Prantij, Gujarat, has a 1.5 GWh capacity for pouch, prismatic, and cylindrical cell-to-pack assembly, along with cell testing labs and prototype/pilot lines.
Competitive Edge
Exide’s EV expansion is backed by a strong competitive framework. The company provides end-to-end product solutions across multiple chemistries and form factors, with customizable options and joint product development opportunities.
Its collaboration with SVOLT ensures world-class technology and quality assurance, automated robotic assembly lines, robust quality checks, and strategic raw material sourcing. Operations are designed to be scalable, supported by a state-of-the-art plant with multiple production lines and potential access to a strong dealer network for charging infrastructure and after-sales support.
Recent Developments
The company announced today that Exide Industries has invested Rs. 80 crore via rights issue in EESL, bringing its total investment in the subsidiary to Rs. 3,882.23 crore. The investment will fund the greenfield Bengaluru plant for Li-ion battery cells, modules, and packs. Importantly, Exide’s shareholding in EESL remains unchanged at 100 percent.
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According to a Report from ICRA
ICRA notes that while Exide has no binding ‘take-or-pay’ agreements with customers, it has signed a non-binding Memorandum of Understanding (MoU) with Hyundai Motor Company and Kia Corporation of South Korea.
The agency highlights that Exide’s established brand equity, loyal clientele, and extensive distribution network are likely to mitigate offtake risks. Moreover, although the planned capital expenditure is substantial, ICRA emphasizes the importance of capitalizing on EV opportunities for long-term growth.
Financial Snapshot
On a quarter-on-quarter (QoQ) basis, Exide Industries’ sales rose from Rs. 4,335 crore to Rs. 4,695 crore, an increase of 8.3 percent. Operating profit increased from Rs. 428 crore to Rs. 538 crore, up 25.7 percent. PBT jumped from Rs. 290 crore to Rs. 385 crore, a 32.8 percent rise, while net profit grew from Rs. 188 crore to Rs. 275 crore, up 46.3 percent.
On a year-on-year (YoY) basis, sales rose from Rs. 4,436 crore to Rs. 4,695 crore, up 5.8 percent. Operating profit increased from Rs. 473 crore to Rs. 538 crore, a 13.8 percent growth. PBT grew from Rs. 316 crore to Rs. 385 crore, up 21.8 percent, while net profit climbed from Rs. 221 crore to Rs. 275 crore, marking a 24.4 percent rise.
Outlook
Exide Industries is clearly positioning itself to play a meaningful role in India’s electric vehicle battery ecosystem, leveraging its strong legacy in lead-acid batteries, strategic partnerships, and substantial investments in lithium-ion technology.
While the company’s scale-up plans, advanced manufacturing capabilities, and collaboration with SVOLT provide a solid platform for growth, the EV battery sector remains competitive and capital-intensive, with demand dynamics evolving rapidly. Success will depend on execution, timely capacity expansion, and market adoption of EVs.
For investors, Exide’s proactive steps reflect a forward-looking strategy, but the ultimate leadership position will hinge on how effectively it navigates technological, supply chain, and market challenges in the coming years.
Written By Manan Gangwar
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