Q1 2027 Exide Industries Ltd Earnings Call Transcript
Key Points
- Exide Industries Ltd (BOM:500086) delivered a strong Q1 FY27 with standalone revenue growth of 17.6% year-on-year, driven by double-digit growth across all major business segments.
- EBITDA grew 19.5% year-on-year to INR655 crore, with margin expansion of 20 basis points year-on-year and 70 basis points sequentially, despite cost and currency headwinds.
- The company's Lithium-ion Gigafactory in Bangalore achieved a key milestone by commencing customer sample deliveries for its first NCM cylindrical line, marking the first locally manufactured cells from the facility.
- The LFP Prismatic line has started sample supplies for 3-wheeler and telecom applications, and the company expects revenue contribution from the Bangalore plant to commence during FY27.
- Exide Industries Ltd (BOM:500086) maintains a strong balance sheet, remaining debt-free with healthy operating cash flows, and has secured engagements with major OEMs covering about 80-85% of the Indian EV market for its lithium-ion cells.
- The company's home UPS and solar business delivered over 20% year-on-year growth, with solar achieving its highest-ever quarterly revenue of INR400 crore, aided by strong summer season demand.
- Input costs remained elevated during the quarter due to disruptions in West Asia and adverse currency movements, with the rupee's depreciation against the US dollar putting pressure on input costs.
- Government tenders for industrial infrastructure remained muted during the quarter, though the company expects a pickup in the second half of the fiscal year.
- The company faces uncertainty regarding the full-year outlook, as the automotive OEM business will face a high base in the second half, potentially impacting percentage growth rates.
- The lithium-ion cell manufacturing business is not yet profitable, and the company acknowledged that the pack business with imported cells is not long-term viable due to low value addition.
- Raw material sourcing for lithium-ion cells is currently dependent on China, with potential export control restrictions from November posing a risk, requiring the company to maintain higher inventory levels.
- The company's second phase of lithium-ion capacity expansion may exceed initial investment estimates due to currency rate changes, as most machinery is imported.
Ladies and gentlemen, a very good afternoon and welcome to the Q1 '27 earnings call of Exide Industries Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Aditya Jhawar from Investec Capital. Thank you and over to you sir.
Yeah, thank you. Good afternoon, everyone. From Exide Industries, we have with us MD and CEO, Mr. Avik Roy, Director of Finance and CFO; Mr. Manoj Kumar Agarwal, President and Legal Corporate Affairs Company Secretary; Mr. Jitendra Kumar; and Prashant Saraswat, Head of Investor Relations. Before we proceed, there's a disclaimer for the call. A few statements made by the company's management in the call may be forward-looking in nature, and we request you to refer to the disclaimer in the running presentation for further details.
We will start the call with a brief opening remark from the management, followed by Q&A session. I would now like to invite Mr. Avik Roy for opening remarks. Over to you, sir
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