Exide Industries Q1 results preview: Can it recharge growth?

After a year of margin pressure and sluggish profits, can Exide Industries finally bounce back? The battery maker is gearing up to announce its Q1 FY25-26 results—and early signs suggest a potential recovery in high-margin segments, along with easing input costs.

But will that be enough to spark a turnaround in earnings and sentiment?

Exide Industries will announce its standalone Q1 FY25-26 results on August 5, 2025, at a time when investors are seeking signs of revival after recent margin headwinds and profit slippage. India’s leading battery manufacturer enters the quarter with hopes pinned on demand recovery across replacement, OEM, and industrial battery segments, along with easing raw material costs.

Recent Performance: Margin Pain, Mixed Demand

In Q4 FY24-25, Exide’s revenue rose 3.7 per cent YoY to Rs 4,159 crore, but PAT declined ~10 per cent YoY to Rs 255 crore, weighed down by a surge in antimony prices and general input cost inflation. This resulted in an EBITDA margin of 11.2 per cent, down from 12.4 per cent in the previous quarter. The profit decline had already begun in Q3, with a 22 per cent YoY PAT fall to Rs 158 crore, despite flat revenue.

Yet, not all was bleak. The automotive replacement battery segment experienced double-digit growth, while industrial batteries—particularly those used in UPS and solar applications—performed well. However, demand for home inverter batteries dipped, and OEM sales remained sluggish due to inventory corrections at auto manufacturers.

Q1 FY25-26: What to Watch

Revenue Trajectory

Expectations are modest: mid-single-digit growth driven by healthy aftermarket battery sales. Any signs of acceleration—especially in the industrial vertical—would be a positive surprise.

OEM Battery Sales

A rebound in OEM demand will be critical. Investors will look for signs of normalisation as car and two-wheeler makers adjust production volumes post-inventory realignments.

Margins Under Pressure or Recovering?

All eyes are on whether Exide managed to offset high antimony and lead prices with better pricing and cost control. A margin recovery above Q4’s 11.2 per cent would suggest early success.

Profit Growth vs Base Quarter

In Q1 FY24-25, Exide posted Rs 280 crore PAT. Matching or beating that figure under current cost pressures will indicate stronger operational resilience.

Segmental Recovery

Can industrial and solar batteries sustain momentum? Will home-UPS demand recover this summer? Broader segmental improvement will point to a more durable recovery.

Lithium-Ion Project Updates

Exide’s greenfield Li-ion cell plant under Exide Energy Solutions is vital for its EV strategy. Any update on commissioning timelines or capex rollout will matter for long-term investors.

Stock Rating and Investment Outlook

According to Value Research Stock Advisor:

• Stock Rating: 2/5
• Growth Score: 5/10
• Quality Score: 6/10
• Valuation Score: 4/10
• Momentum Score: 2/10

Exide’s fundamentals are stable but unexciting. The company’s strengths—strong brand, large distribution, debt-free balance sheet—are offset by weak ROE (~6 per cent), modest profit growth, and premium valuations (trailing P/E ~40x). The recent 30–35 per cent correction in the stock reflects these realities.

Bottom Line: A Crucial Quarter for Sentiment

A solid Q1 print could help Exide regain investor confidence. Improvement in margins, demand revival across segments, and progress on the lithium-ion front could signal that the battery giant is finally recharging. If not, the market may remain sceptical—particularly with high valuations and weak price momentum acting as headwinds.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a grain of salt and conduct your own research or consult a financial advisor before making any investment decisions