Exide profit jumps 75% as margins expand

Exide Industries Limited (NSE: EXIDEIND) reported a strong Q2 FY27 performance, with standalone revenue increasing 20.3% YoY to ₹5,026 crore. Net profit surged 75.1% to ₹386 crore, compared with ₹221 crore in the corresponding quarter last year. Key Highlights • Revenue increased 20.3% YoY to ₹5,026 crore. • EBITDA rose 53.6% to ₹606 crore. • EBITDA margin expanded to 12.1% from 9.4%, an improvement of 270 basis points. • Profit before tax increased 75.5% to ₹522 crore. • Automotive OEM business recorded over 25% growth for the fourth consecutive quarter. • Replacement battery business maintained double-digit growth. • Home Inverters and Solar business grew over 20%. • The company commissioned its 6 GWh lithium-ion cell gigafactory in Bengaluru. My View Exide delivered a strong quarter, with growth across its automotive, replacement, home inverter and solar businesses. The improvement in EBITDA margin is particularly encouraging. Cost optimisation, calibrated price increases and operating leverage helped the company improve profitability despite elevated input costs. The commissioning of the 6 GWh lithium-ion cell facility is another important milestone. However, commissioning a plant is only the first step. Stabilising production, improving yields and completing customer qualifications will determine how quickly this investment contributes to revenue. What I'm Watching Next I will monitor battery demand across automotive and replacement markets, margin sustainability and the progress of the lithium-ion cell business. The key question is how quickly Exide can convert its new manufacturing capacity into commercial production and meaningful revenue. Stance: Positive on the core battery business and margin improvement, while keeping a close watch on execution of the lithium-ion expansion. Disclosure: I do not have any holding or position in the stock mentioned above. EXIDEIND