Exide Industries releases Q4 FY26 Earnings Call Transcript
Exide Industries reported strong Q4 FY26 performance with 9.4% YoY revenue growth and highest-ever quarterly revenue. Domestic business grew 12.5% YoY. EBITDA margin was maintained at 11.7%. The company invested ₹1,500 crore in its lithium-ion subsidiary in FY26, totaling ₹4,802 crore. Price hikes of 5-6% were implemented due to commodity inflation.
The announcement provides a detailed update on financial performance, strategic investments in new energy, and responses to market challenges like commodity inflation. This information is material for investors and stakeholders.
The company reported strong revenue growth, highest-ever quarterly revenue, and maintained EBITDA margins despite commodity cost pressures. Investments in the new energy business were highlighted positively.
Exide Industries Limited has released the transcript of its earnings call for the fourth quarter and full year of FY2025-26, held on May 6, 2026. The call, hosted by Investec Capital Services, featured insights from MD and CEO Mr. Avik Roy, Director of Finance and CFO Mr. Manoj Kumar Agarwal, and other management members.
During the call, management discussed macro-economic factors impacting the business, including global geopolitical tensions and commodity price volatility, particularly for LPG, sulfuric acid, and plastics, exacerbated by rupee depreciation. Despite these challenges, domestic demand remained strong, driven by low inflation, low interest rates, and GST 2.0 reforms, leading to increased consumer affordability and a revival in rural India.
Exide Industries reported a 9.4% year-on-year revenue growth for Q4 FY26, achieving its highest-ever quarterly revenue. The domestic business saw a 12.5% year-on-year increase. For the full year FY26, revenue grew by 4.1% year-on-year, with domestic business up by 7.5%. The company maintained an EBITDA margin of 11.7% sequentially, aided by strong volume growth, improved product mix, and manufacturing excellence initiatives, resulting in a 50 basis point year-on-year EBITDA margin expansion.
Key business verticals like 2-wheeler and 4-wheeler OEM, home UPS, solar, and industrial infrastructure (excluding Telecom) showed robust double-digit growth. The solar vertical crossed the ₹1,000 crore mark for the full year. Exports, however, were subdued due to geopolitical situations, and Telecom and E-Rickshaw segments are witnessing a shift towards lithium-ion technology.
Regarding the lithium-ion cell manufacturing project, Exide invested ₹600 crore in Q4 and ₹1,500 crore in FY26, bringing the total equity investment in Exide Energy to ₹4,802 crore. Cylindrical lines are expected to start customer sample delivery soon, with the prismatic line to follow. The company is engaging with OEMs for offtake across various segments.
Management also addressed concerns about commodity cost inflation, noting a net impact of ₹150 crore in Q4 and a sequential decline in gross margin from 31.6% to 30.1%. Price increases of approximately 5-6% were implemented in tranches from January to April 2026 to offset rising material costs. Further price hikes are anticipated due to significant commodity price increases, particularly for steel and sulfuric acid.
The company is actively negotiating with OEM customers for price adjustments to cover commodity inflation, with a typical lag of about a quarter. For the lithium-ion business, Exide has an approved investment of ₹1,400 crore for FY27. The company aims to achieve target pricing comparable to imported cells through high plant utilization, improved yields (targeting 90%), and localization efforts, supported by potential government incentives and a shift in China's VAT structure.
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