Exide Industries Accelerates Lithium-Ion Cell Expansion with ₹200 Crore Infusion
Exide Industries Ltd has invested ₹200 crore in its wholly owned subsidiary Exide Energy Solutions Ltd (EESL) to support its greenfield multi-gigawatt lithium-ion cell manufacturing project in Bengaluru, taking its total investment in EESL to ₹5,102.23 crore while retaining 100% ownership. The company has also approved an additional infusion of up to ₹1,400 crore, highlighting its long-term commitment to the EV and energy storage opportunity.
EESL, incorporated in March 2022, reported FY26 turnover of ₹157.56 crore, net worth of ₹3,991.06 crore and a loss after tax of ₹248.16 crore, while Exide had earlier invested ₹99.99 crore in July. At the parent level, Q1 FY27 EBITDA margin improved to 12.4%, up 20 bps YoY and 70 bps sequentially, supported by better revenue, cost controls and supply-chain efficiencies.
However, the lithium-ion business remains unprofitable due to dependence on imported cells, while potential pricing pressure after China’s export VAT rebate removal from January 1, 2027 remains a key factor to watch. Overall, the investment strengthens Exide’s positioning in domestic battery manufacturing, with execution and eventual profitability of the lithium-ion business likely to remain the key focus areas.