Exide profit drops sequentially as margin, interest and tax rate worsen
Year-on-year growth remained strong, but higher interest and a 4.37-point rise in the tax rate weighed on the latest quarter.
Filed 04 Nov 2026, 13:19 IST · Exide Industries Ltd (EXIDEIND)
Key takeaways
- Consolidated net profit rose 65.37% year on year as revenue grew 21.25%, ahead of the 19.06% increase in expenses.
- Sequential net profit fell 18.26% as costs declined more slowly than revenue, narrowing operating margin by 0.63 percentage points to 10.61%.
- Exide commissioned its 6 GWh plant in September 2026, while its operating margin remained 1.56 percentage points below the sector median.
Price around the results
Strong year-on-year growth, weaker sequential momentum
All figures are consolidated. Revenue rose 21.25% year on year and net profit increased 65.37%, helped by expenses growing more slowly than sales and operating margin expanding by 1.64 percentage points. Sequentially, revenue fell 4.28% and net profit declined 18.26%, with the operating profit drop exceeding the revenue decline.
Higher interest and tax rate cut into sequential profit
The sequential margin contraction followed a 4.28% revenue decline while expenses fell only 3.60%, indicating that costs reduced more slowly than sales. Interest expense rose 56.59% and the tax rate increased 4.37 percentage points, further reducing pre-tax and net profit. Other income contributed 10.04% of pre-tax profit, so reported earnings also included a meaningful non-operating component.
Margin sits below the Consumer Discretionary peer median
Exide's 10.61% operating margin was 1.56 percentage points below the 12.17% median for the 196 Consumer Discretionary companies that had reported the quarter. The margin improved from 10.32% in Q4FY26 to 11.24% in Q1FY27 before retreating in Q2FY27, so the recent pattern is a pullback after a prior recovery rather than a straight three-quarter decline.
6 GWh plant has started commercial production
Management said the 6 GWh plant was commissioned in September 2026 and that commercial production has started. The company said its Bengaluru facility is an India-made advanced lithium-ion cell plant, with packs and modules manufactured at Prantij in Gujarat. Management also said current EV and stationary-application demand is largely supplied by imports, while cell validation and qualification with leading 2W EV OEMs and telecom players is in progress.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,292 cr | ₹5,528 cr | -4.28% | +21.25% |
| Other income | ₹43 cr | ₹27 cr | +55.09% | -20.86% |
| Expenses | ₹4,730 cr | ₹4,907 cr | -3.60% | +19.06% |
| Operating profit | ₹562 cr | ₹621 cr | -9.65% | +43.45% |
| Operating margin (%) | 10.61% | 11.24% | — | — |
| Interest | ₹31 cr | ₹20 cr | +56.59% | -21.94% |
| Depreciation | ₹149 cr | ₹142 cr | +5.09% | -1.84% |
| Profit before tax | ₹424 cr | ₹487 cr | -13.00% | +67.26% |
| Tax | ₹137 cr | ₹136 cr | +0.63% | +71.40% |
| Net profit | ₹287 cr | ₹351 cr | -18.26% | +65.37% |
| EPS (₹) | ₹3.37 | ₹4.12 | -18.20% | +66.83% |
Operating margin of 10.61% compares with a Consumer Discretionary sector median of 12.17% across 196 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Exide won 100% of the auxiliary battery business for the MG Hector on both EV and PHEV variants.
- Exide won 100% of the business for Tata Aeris CNG models.
Expansion
- The company commissioned its 6 GWh plant in September 2026.
- The new energy business includes an India-made advanced lithium-ion cell plant in Bengaluru.
- Packs and modules manufacturing is located at Prantij, Gujarat.
New orders
- Exide secured 100% share of the auxiliary battery business for the MG Hector on EV and PHEV variants.
New products
- Exide launched DARE, described as India’s first SUV-ready battery.
New initiatives
- Commercial production has started at the 6 GWh plant.
- The company is validating and qualifying its cells with leading 2W EV OEMs and telecom players.
- The company has supplied cell samples to leading OEMs and telecom players.
- The company ran the Bharose Ki Ride 2W campaign in key markets.
Problems & risks
- The company says current EV and stationary application demand is largely supplied by imports.
What to watch
- Whether operating margin recovers from 10.61% after the 0.63-percentage-point sequential decline.
- Whether interest expense moderates after rising 56.59% sequentially.
- Progress in commercial production and customer qualification at the 6 GWh plant.