Exide to balance lead-acid strength with lithium-ion push

Kolkata: Exide Industries is positioning itself for India's energy transition through a calibrated expansion into lithium-ion cell manufacturing while retaining confidence in the long-term relevance of its core lead-acid battery business.

In his message to shareholders in the latest annual report, Chairman Sridhar Gorthi said the battery maker's investment in wholly-owned subsidiary Exide Energy Solutions Ltd (EESL) should be viewed as a long-term strategic move to build domestic lithium-ion manufacturing capability.

"Lead-acid technologies will remain relevant across several established and critical use cases, while lithium-ion technologies are expected to gain share in mobility and energy storage segments where their performance characteristics are best suited," he said.


Also read: Exide Industries to grow exports by taking advantage of trade deals

"It is in this context that the Board views Exide's investment in Exide Energy Solutions Limited as a measured, long-term capital allocation decision to build domestic lithium-ion cell manufacturing capability," Gorthi said.

The chairman said Exide would continue focusing on product quality, customer validation, localisation, operating discipline and return on capital while maintaining a balance between preserving the cash-generating strength of the core business and selectively investing for future growth.

Highlighting the company's financial position, Gorthi said Exide remained debt-free despite continued investments in future technologies, supported by strong liquidity and cash generation that enabled strategic investments through internal accruals.

Managing Director & CEO Avik Roy said FY'26 was marked by "disciplined execution" despite geopolitical uncertainty, commodity and currency volatility, technology shifts and uneven demand conditions.

"Our priorities during the year were clear - deliver steady performance in core businesses, sharpen execution, and continue building capabilities for long-term growth," Roy said.

He said replacement demand remained healthy, OEM demand improved with higher vehicle production, and infrastructure and industrial businesses witnessed healthy momentum driven by demand from power backup, railways, traction and solar applications.

Telecom, however, continued to face industry-wide headwinds while exports remained subdued amid geopolitical challenges.

The management discussion and analysis report said Exide's solar business crossed Rs 1,000 crore in revenue during FY26, reflecting growing opportunities in renewable energy solutions.

The report also outlined the company's lithium-ion ambitions, noting that EESL is engaging with original equipment manufacturers across two-wheeler, three-wheeler, passenger vehicle and stationary energy storage segments.

The company cited industry estimates indicating India's lithium-ion battery demand could rise to 140-150 GWh by 2030 from the current level of around 20 GWh, with electric vehicles expected to account for 60-70 per cent of demand.