Exide Industries has outlined plans to start production at its lithium-ion cell facility before the close of the 2026 financial year. Company leaders say installation and commissioning of the machinery are nearing completion. Exide is already in advanced talks with major two-wheeler manufacturers, with two of them likely to be its first customers.
The initial production line will manufacture cylindrical nickel–manganese–cobalt (NMC) cells geared for two-wheeler use. After that, the company intends to roll out a prismatic lithium-iron-phosphate (LFP) line aimed at stationary energy-storage markets. As of October, its fully owned unit, Exide Energy, has received ₹3,947 crore in total equity infusion — ₹580 crore during the first half of FY26 and another ₹65 crore last month. The plant’s initial utilisation target is 60 per cent, with plans to increase it to 90 per cent over time. Once the facility stabilises at 80–90 per cent utilisation, the company expects profitability to match its existing lead-acid business, based on global benchmarks.
Exide is preparing to negotiate cell prices using a combination of import-parity and cost-plus methods. It expects locally made cells to secure a premium because of uncertainties in global supply chains and tighter quality oversight by domestic OEMs. A second phase — adding 12 GWh of extra capacity — is planned but will proceed only after clearer signs of demand, particularly from the stationary-storage segment.
The company recorded softer sales and profits in the second quarter of FY26. Inverter and solar battery sales dipped, with solar revenue dropping from 35 per cent growth in Q1 to a 5 per cent decline in Q2. Nonetheless, demand in the domestic automotive replacement market held firm, delivering high single-digit to double-digit growth across both two- and four-wheelers. Exide expects a strong rebound in the third quarter as postponed purchases resume, and is aiming for operating margins of 12–13 per cent, supported by cost-reduction measures and manufacturing improvements.
Exide’s plan to begin cell output by the end of FY26 is being monitored closely across the battery and mobility ecosystem. Its step-by-step strategy — NMC cells for two-wheelers first, LFP cells for stationary storage next — reflects a shift towards serving multiple end-use segments rather than depending on one. The company’s focus on utilisation rates, domestic pricing models, and expandability underlines how cost discipline and scalability will shape competition as more firms build cell-production capacity in India. Exide’s progress is likely to influence how OEMs plan their sourcing in the years ahead, especially as supply-chain reliability becomes a bigger factor.
Exide Industries Limited is a leading Indian multinational company specializing in the manufacture and storage of energy solutions, with a legacy spanning over seven decades. Headquartered in Kolkata, it is one of India’s largest producers of lead-acid batteries for automotive, industrial, and submarine applications, as well as a significant player in lithium-ion battery technology.
Exide’s products are widely used in vehicles, power backup systems, renewable energy solutions, and other critical sectors. The company is known for its robust manufacturing infrastructure, cutting-edge research and development facilities, and a vast distribution network across India and global markets. Committed to sustainability and innovation, Exide is actively investing in green energy technologies, including advanced battery solutions for electric vehicles, to align with the evolving needs of a cleaner and energy-efficient future.
