Exide Industries is pursuing a balanced growth strategy that combines the cash-generating strength of its lead-acid battery business with long-term investments in lithium-ion technology, as the energy storage industry undergoes a gradual technological transition.
In his message to shareholders in the company’s Annual Report 2026, Exide Industries Chairman Sridhar Gorthi said lead-acid batteries will continue to play a vital role across several established applications, even as lithium-ion technologies gain traction in mobility and energy storage segments.
Balancing present strengths with future opportunities
Gorthi said the Board views the company’s investment in Exide Energy Solutions Ltd (EESL) as a measured long-term capital allocation decision aimed at building domestic lithium-ion cell manufacturing capabilities.
“The battery industry is clearly moving through a technology transition, although the pace of change differs by application,” he said.
According to Gorthi, Exide will continue to advance its lithium-ion business in a disciplined manner, focusing on product quality, customer validation, localisation, operational excellence and return on capital.
Maintaining a balance between preserving the profitability of the core business and selectively investing in future growth opportunities remains central to the company’s capital allocation strategy, he added.
Lead-acid business remains a strong foundation
Exide’s lead-acid battery business continues to serve as a diversified and cash-generative platform, catering to a broad range of sectors including automotive replacement, original equipment manufacturers (OEMs), home power solutions, industrial UPS systems, railways, traction, solar energy, infrastructure and defence.
Gorthi said this diversified portfolio remains one of the company’s key strengths as it reduces dependence on any single end-market and provides resilience across economic cycles.
From the Board’s perspective, the lead-acid business is not viewed as a legacy operation but as a strategic asset that continues to offer significant growth opportunities.
Focus on operational excellence
The company plans to further strengthen its leadership position by continuously improving product relevance, manufacturing efficiency, distribution reach, service quality and market competitiveness.
Exide believes that sustained investments in innovation and operational excellence will help the core business remain relevant even as newer battery technologies gain adoption.
The company is also focused on enhancing capital productivity while maintaining strong governance standards and balance sheet discipline.
Infrastructure growth to support demand
Looking ahead to FY2026-27, Exide sees a favourable demand environment across its core markets despite ongoing global uncertainties.
The company expects continued investments in infrastructure, railways, data centres, renewable energy and electric mobility to create broad-based growth opportunities over the medium term.
These sectors are likely to reinforce long-term demand for energy storage solutions and support the relevance of Exide’s diverse product portfolio.
Positioned for India’s energy storage future
While geopolitical developments, commodity price fluctuations, currency movements and technology shifts remain key risks, Exide believes its strong market position provides a solid foundation for future growth.
Gorthi said the company remains focused on strengthening its core business, progressing future-ready investments with discipline and maintaining financial prudence.
With its established brand, extensive distribution network, manufacturing capabilities, service infrastructure and cautious approach to capital allocation, Exide believes it is well-positioned to participate in India’s evolving energy storage landscape and long-term economic growth story.