Exide Industries shares surged nearly 6% following the company's strong Q3FY26 results and positive sentiment from the India-US trade deal. As of 11:50 am, the stock was up 3.1% or ₹10 at ₹337.95, after hitting an intraday high of ₹345.85, reflecting an upside of 5.8% from the previous close of ₹327.95. Major brokerage Citi has maintained a Buy rating on Exide Industries with a target price of ₹480, highlighting that the company's Q3FY26 results exceeded estimates and the management's outlook remains positive. The strong market response reflects investor confidence in the company's export growth strategy and operational improvements.
According to reports from Upstox, Exide Industries Managing Director and CEO Avik Roy announced that the battery maker expects to garner additional exports of ₹400-500 crore from the next fiscal year, driven by an exclusive tie-up with a European partner and benefits of the India-US trade deal. The company has entered into an exclusive arrangement with a European entity as part of its global exports expansion strategy, though the partner and collaboration structure details were not disclosed. Roy stated that the company, which is a leader in battery usage in forklift, material handling equipment, and high-end car segments in India, aims to focus on these spaces in Europe, though exports will be in private label format. The strategic pivot towards international markets is underpinned by substantial optimism derived from recent bilateral trade agreements, with these pacts expected to re-establish Exide's export contribution to previous levels of 8-9% of total turnover, a significant jump from the current 5%.
As reported by Upstox, Roy indicated that the India-US trade deal, along with the India-EU trade agreement, is expected to lift exports' contribution to about 8-9% of its overall revenue by the next fiscal year. Exports had declined to around 5% in FY'26 due to geopolitical headwinds, according to the company's management. The Indian government's proactive trade diplomacy, including agreements that reduce tariffs on automotive components to as low as 18% from 50% in the US market, provides a direct tailwind for such export ambitions. Similarly, the EU-India Free Trade Agreement is poised to progressively reduce tariffs on automotive components, some of which currently range between 15% and 28%, creating substantial new opportunities for EU exports into India and strengthening industrial ties. The recent trade agreements, particularly the US-India pact slashing auto component tariffs, are expected to significantly boost the competitiveness of Indian auto ancillaries in global markets, with Exide positioned to benefit from this trend.
According to ET Now, Exide Industries reported a 23% rise in consolidated profit after tax (PAT) at ₹194.97 crore for the third quarter ended December 31, 2025, compared to ₹158.44 crore in the same quarter of the previous fiscal year. Consolidated revenue from operations was at ₹4,200.59 crore compared to ₹4,016.72 crore in the year-ago period. The company demonstrated improved operational efficiency with its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin increasing by 221 basis points sequentially in the third quarter. This margin expansion, achieved despite pressures on raw material prices, was attributed to strong volume growth, an improved product mix, and enhanced realisations, supported by cost excellence initiatives. The company has set ambitious financial targets, aiming for a turnover of ₹20,000 crore within the next three years and ₹25,000 crore by 2030, driven by the full benefits of its lithium-ion battery business.
According to Upstox, Pravin Saraf, Managing Director and CEO of Exide Energy Solutions Ltd (EESL), the company's wholly owned subsidiary for lithium-ion batteries, confirmed that the validation process for batteries for two-wheelers and three-wheelers is currently underway. At least for two-wheelers, production will begin by March-April 2026, Saraf stated, adding that lithium-ion batteries for four-wheelers would take another one to two years. The company plans to invest another ₹1,400 crore in its lithium-ion battery business in FY'27, with ₹500 crore to be invested in the fourth quarter of the current fiscal year, taking the total investment in the lithium-ion segment to about ₹4,800 crore. The first line of Exide's Li-ion cell plant is expected to be operational by March 2026, and pricing actions are underway to offset pressure from rising commodity costs.
