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Exide Industries reported strong Q1 FY27 results on July 31, but its shares traded lower during the day. The stock fell nearly 1.4% to Rs. 446.55 despite improved profit and revenue.
Investors are cautious as increasing raw material costs are pressuring margins, while brokerage Citi stayed positive on the company's overall business growth.
The company posted a net profit of Rs. 407 crore in the April to June quarter, up 27.2% from Rs. 320 crore a year ago. Revenue increased 17.6% to Rs. 5,305 crore from Rs. 4,510 crore. EBITDA also rose 19.3% to Rs. 655 crore, while the EBITDA margin remained almost flat at 12.3%.
Citi said the quarterly performance was better than expected and pointed to healthy revenue growth across major business segments.
Exide Industries recorded strong demand in almost every business. The Auto OEM segment grew more than 25% for the third straight quarter. Battery replacement sales for two-wheelers and four-wheelers also reported double-digit growth.
The industrial infrastructure business continued to grow at a steady pace, while inverter and solar businesses expanded by more than 20%. Export sales also grew over 20% after a spike in demand from overseas markets.
Citi kept its ‘Buy’ rating on Exide Industries and said price increases, a better product mix, and improved operating efficiency helped reduce the impact of higher commodity costs. The brokerage also said the company's management remains confident about demand across automotive, industrial, and renewable energy businesses.
Even with strong earnings, investors remained focused on margin pressure and rising input costs. Exide expects its Bengaluru Gigafactory to add revenue during FY27, which could support future growth as the company expands its new energy business.
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