Exide Industries Q2 Results | GST delays hit hard as all parameters miss estimates, Q3 rebound expected

Battery maker Exide Industries Ltd on Friday (November 14) reported a net profit of ₹221 crore for the September quarter, significantly below the CNBC-TV18 poll estimate of ₹319 crore. The figure also marked a 25.8% year-on-year decline from ₹298 crore in the same period last year.

Revenue stood at ₹4,178 crore, lower than the poll estimate of ₹4,459 crore and down 2.1% from ₹4,267 crore a year earlier.

EBITDA came in at ₹394.5 crore, missing the CNBC-TV18 expectation of ₹533 crore and falling 18.5% year-on-year from ₹484 crore. The EBITDA margin dropped to 9.4%, compared with the poll estimate of 12%, and 11.3% in the year-ago quarter.

Exide Industries said the quarter began on a strong footing with double-digit growth in the trade business, but momentum weakened after the GST rate cuts announced on August 15 prompted channel partners to defer purchases while waiting for new, lower-priced inventory.

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To align with this softer demand, the company cut production in August and September, which helped bring down inventory by the end of the quarter. However, reduced output led to under-recovery of fixed costs, weighing on profitability.

Despite these challenges, standalone revenue for H1FY26 stood at ₹8,688 crore, up 1.3% year-on-year. Domestic business grew 5% during the period, while exports remained under pressure due to weak demand in select markets and tariff-related issues. The EBITDA margin for H1FY26 came in at 10.9%, affected by higher input material costs. The company said it is pursuing cost-excellence initiatives to partially counter rising material costs.

Exide said it expects a strong rebound in Q3FY26, especially in the trade and auto OEM segments, which are already seeing benefits from the GST rate reduction. The company added that its liquidity position remains solid with zero debt and strong cash generation.

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Among business verticals, the solar segment was the fastest-growing, supported by government programmes. Overall trade mobility grew in double digits in the first half. The industrial infra business (excluding telecom) improved year-on-year as order inflows and execution picked up in power, railways, and traction.

The reserve power vertical was impacted by prolonged monsoon conditions across most parts of the country, resulting in a Q2 decline. Export performance weakened due to geopolitical tensions and tariff uncertainties.

Exide Energy Solutions Ltd (EESL) continued to make steady progress at its project site. Exide Industries invested ₹580 crore in H1FY26 and an additional ₹65 crore in October 2025, taking total equity investment in EESL to ₹3,947.23 crore, including past investments in the merged entity EEPL.

Also Read: Exide Industries Q4 Results: Profit down 11%; firm sees demand improving going ahead

Equipment installation and construction at EESL are nearing completion, with production expected to begin towards the end of FY26. Nearly all utility systems are close to commissioning, and product trials on one line are slated to start in November 2025.

Shares of Exide Industries Ltd ended at ₹381.20, up by ₹1.60, or 0.42%, on the BSE today, November 14.

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