Exide Industries falls 5%. Is the battery running low?

The numbers are in, and Exide Industries isn't exactly sparking joy this quarter.

The battery maker reported a 10 per cent drop in Q4 profit, with margins under pressure and cost inflation creeping in. While revenue ticked up modestly, the market wasn't impressed—the stock slipped nearly 5 per cent today, closing at Rs 352 (April 30, 2025).

It's a reminder that topline growth isn't enough when the bottom line feels squeezed.

Margins took a hit thanks to rising costs, especially key inputs like antimony. While the replacement battery market held steady and industrial demand showed signs of life, the automotive OEM segment remained soft.

What's worrying the market

• It's not the revenue—it's the profitability. Even though the top line held up, operational efficiency slipped, and there's no major demand catalyst visible in the near term.
• Input costs haven't coole,d and the company's guidance didn't exactly fire up investor confidence.

The EV wildcard

Exide's real long game lies in lithium-ion. The company has already committed Rs 1,200 crore to Exide Energy Solutions, its wholly owned subsidiary, building a multi-gigawatt lithium cell plant. That could eventually shift the narrative, but execution risk remains, and commercial ramp-up will take time.

Right now, the market's still viewing Exide through the lens of lead-acid.

Value Research Online Ratings

Value Research Stock Rating gives Exide Industries an overall rating of 3 stars out of 5. The company's specific scores are as follows:

• Quality Score: 7/10
  
• Growth Score: 6/10
  
• Valuation Score: 4/10
  
• Momentum Score: 2/10

- Compare Exide's fundamentals with other battery players using our Stock Screener.
- Or check its Stock Card for a one-page view.

The final word

Exide currently trades at a P/E (price-to-earnings ratio) of 38 (data as of April 30, 2025). That's a steep premium, especially when Amara Raja Energy , its closest listed peer, trades at just 18 times earnings. For that kind of multiple, the market expects not just steady growth, but standout execution and future-proofing.

This Q4 didn't quite deliver on that front.

The EV transition offers long-term potential, but in the short term, Exide has some heavy lifting to do.

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