Exide Industries shares rallied 7.45% to ₹419.45 on the NSE as of latest trading, marking the fourth consecutive session of gains for the stock. According to Moneycontrol, the stock climbed as much as 8.29% to an intraday high of ₹422.70 before paring some gains amid profit booking. The stock has demonstrated strong recovery momentum, bouncing back 40% from its 52-week low of ₹286.35 touched on March 30, 2026. The positive sentiment was driven by heavy trading volumes, with average trading volumes jumping three-fold as a combined 8.83 million equity shares changed hands on the NSE and BSE.
The latest rally was primarily driven by lead prices falling to their lowest level of 2026, which is seen as positive for battery manufacturers due to lower input costs. As reported by Moneycontrol, lead prices are down 11% from their January 2026 high and nearly 9% over the past month, with the decline continuing their downward trend. Lead prices have now reached their lowest level since January 15, 2026. For Exide Industries, lead accounts for around 65-70% of raw material costs and 50-55% of production costs, making the price decline particularly beneficial. A 10% decline in lead prices is estimated to reduce the manufacturing cost of a lead-acid battery by around 6-7%, significantly improving profitability margins.
Exide Industries significantly outperformed broader market indices, gaining 9.13% over the past year compared to a 5.02% drop in NIFTY and a 12.22% decline in the Nifty Auto index. As reported by Business Standard, the stock has risen 4.74% in the last one month while the Nifty Auto index gained 3.24% during the same period. The benchmark July futures contract for the stock is quoting at ₹418.55, up 7.21% on the day, reflecting strong institutional interest. The stock's PE ratio stands at 30.45 based on TTM earnings ending March 26, indicating premium valuation amid strong fundamentals.
As reported by Business Standard, Exide Industries maintains a positive outlook supported by steady demand prospects at its base lead acid business. The company operates in a duopolistic organised Indian lead acid battery market with presence across automotive and industrial applications. More than 90% of the business is currently growing at double-digit rates, with strength visible across automotive original equipment manufacturers (OEMs), replacement demand, solar, home UPS, railways, industrial UPS, and motive power applications. The automotive replacement business is expected to remain a key growth driver, while OEM demand is likely to benefit from improving vehicle production and rising need for advanced battery solutions.
According to Business Standard, Exide Industries continues to make meaningful progress in its transition to next-generation energy solutions with its Greenfield lithium-ion cell manufacturing facility in Bengaluru. The company has invested nearly ₹4,800 crore in this project and commercial sampling has begun, moving from the investment phase to near-term commissioning. The lithium-ion project is nearing commercialization of the first phase with 6 GWh capacity, positioning the company to enter the market at a time when India increasingly seeks supply-chain localization. Notably, Exide has entered into a MoU with Hyundai Motors & Kia for strategic cooperation in India's EV market.
As reported by Business Standard, ICICI Securities maintains a positive outlook on Exide Industries given steady demand prospects at its base lead acid business and nearing commercialization of the first phase of lithium-ion capacity. The brokerage firm maintains a BUY rating on the stock and values Exide Industries at a SOTP-based target price of ₹480. The valuation includes ₹325 for base business at 18x PE on FY28E, ₹95 for investments & stake in other subsidiary, and ₹60 as 1x Invested Capital-Li-On Cell Plant. Since the initial commercial operations timeline and margin profile is uncertain for the lithium-ion venture, analysts continue to value this business on CWIP basis and report just standalone numbers.
