New Delhi: Exide Industries is positioning itself for India's energy transition with a calibrated push into lithium-ion cell manufacturing, even as it remains confident about the long-term relevance of its core lead-acid battery business, the company's latest annual report shows.
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In his message to shareholders, Chairman Sridhar Gorthi said the company's investment in its wholly-owned subsidiary, Exide Energy Solutions Ltd (EESL), should be seen 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.
"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.
He said the company would keep its focus on product quality, customer validation, localisation, operating discipline and return on capital, while balancing the need to preserve the cash-generating strength of its core business with selective investment in future growth.
On 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 allowed it to fund strategic investments through internal accruals.
Managing Director and CEO Avik Roy described FY26 as a year of "disciplined execution" amid geopolitical uncertainty, commodity and currency volatility, technology shifts and uneven demand.
"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.
Roy said replacement demand stayed healthy and original equipment manufacturer (OEM) demand improved on the back of higher vehicle production. The infrastructure and industrial businesses saw healthy momentum, driven by demand from power backup, railways, traction and solar applications.
The telecom segment, however, continued to face industry-wide headwinds, while exports remained subdued amid geopolitical challenges.
The management discussion and analysis (MD&A) report said Exide's solar business crossed Rs 1,000 crore in revenue during FY26, reflecting growing opportunities in renewable energy solutions.
On the lithium-ion front, the report said EESL is engaging with OEMs across the two-wheeler, three-wheeler, passenger vehicle and stationary energy storage segments.
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Citing industry estimates, the company said India's lithium-ion battery demand could climb to 140-150 GWh by 2030 from the current level of around 20 GWh, with electric vehicles expected to account for 60-70 percent of that demand.
