Kolkata-based storage battery giant Exide Industries has announced robust financial results for the third quarter of the fiscal year 2025-26, showcasing a significant uptick in profitability and operational revenue. The company's performance highlights the positive impact of recent tax reforms and a resilient automotive sector in India.
Financial Performance Overview
Exide Industries reported a net profit of Rs 258 crore for the third quarter, marking a notable 5.3% increase compared to the Rs 245 crore recorded in the same period last fiscal year. This growth underscores the company's ability to navigate market challenges and capitalize on emerging opportunities.
Revenue from operations also saw a healthy rise, climbing 4.7% to Rs 4,030 crore from Rs 3,849 crore in the corresponding quarter of the previous fiscal. This upward trajectory reflects strong demand across key business segments and effective strategic initiatives.
Key Drivers of Growth
The company attributed much of its success to the implementation of GST 2.0 reforms, which came into effect towards the end of the second quarter. These reforms have provided a major boost to the battery industry, streamlining tax processes and enhancing operational efficiency.
Avik Roy, Managing Director and CEO of Exide Industries, commented on the results, stating, "Q3 FY26 revenues showed a strong recovery post slowdown in Q2. GST 2.0 resulted in overall growth in the automotive sector, which Exide capitalised on."
Sectoral Performance and Business Segments
The automotive industry's production volume growth across various segments was in the mid to high teens range on a year-on-year basis, creating a favourable environment for battery manufacturers. Exide's auto OEM business grew over 25% on a YoY basis, demonstrating strong partnerships and market penetration.
In the replacement market, the two-wheeler and four-wheeler segments achieved their highest quarterly revenue, continuing to grow in double digits on a YoY basis. This indicates sustained consumer demand and brand loyalty in the aftermarket space.
Overall domestic business growth, excluding telecom, during Q3 was 10%, highlighting the company's strong foothold in the Indian market. However, the export business continued to face significant challenges due to tariff-linked issues, impacting its performance.
Recovery in Inverters and Solar Business
After a monsoon-led slowdown, the inverters and solar business returned to a growth trajectory in Q3. This recovery is crucial for Exide's diversification strategy and aligns with India's push towards renewable energy solutions.
Macroeconomic Factors and Cost Pressures
Avik Roy also highlighted the broader economic context, noting, "Macroeconomic conditions in India continue to be favourable, with low inflation, lower income tax rates, lower repo rates and positive consumer sentiment." These factors have supported consumer spending and industrial activity.
However, he cautioned about rising cost pressures, adding, "Metals such as silver, copper, sulphur and tin are at or near all-time high rates, contributing to increased cost pressures." This presents a challenge for the company in managing input costs while maintaining profitability.
Future Outlook
Exide Industries' Q3 performance sets a positive tone for the remainder of the fiscal year. With GST 2.0 reforms expected to continue benefiting the automotive sector and favourable macroeconomic conditions, the company is well-positioned to sustain its growth momentum. However, managing metal price volatility and export market challenges will be key focus areas moving forward.
The strong results from Kolkata-headquartered Exide Industries reflect not only the company's strategic acumen but also the resilience of India's manufacturing and automotive sectors in a dynamic economic landscape.
