Exide Industries shares rally; analysts split on lithium upside

On Tuesday morning, shares of Exide Industries soared 0.67 per cent to ₹447.70, buoyed by the battery maker's impressive first-quarter financial results. The stock peaked at ₹457.45 and dipped to ₹441.60, with over 20.70 lakh shares traded, totaling ₹92.75 crore by 10.42 am. However, the market sentiment remained predominantly bearish, as sell orders outnumbered buy orders by 76.96 per cent. The company's market capitalization stood at ₹38,054.50 crore.

Exide Industries reported a revenue of ₹5,305 crore for Q1 FY27, a 17.6 per cent increase year-on-year. EBITDA grew by 19.5 per cent to ₹655 crore, with margins expanding to 12.4 per cent from the previous 12.2 per cent. Profit after tax (PAT) surged 27.1 per cent to ₹407 crore, maintaining a 7.7 per cent margin.

Analysts' opinions on Exide Industries' prospects were divided. Citi upgraded its rating to Buy, setting a target price of ₹510, citing strong earnings growth, healthy margins, and resilient profitability despite forex challenges. Nomura also maintained a Buy rating, projecting a target of ₹492, citing robust OEM growth and the upcoming lithium plant as potential upside.

However, Kotak Securities remained cautious, recommending a Sell with a revised target of ₹325, highlighting concerns over profitability, capital expenditure, and the commoditized nature of the lithium business. Exide Energy Solutions, the company's lithium subsidiary, has commenced sample deliveries from its 3GWh cylindrical NMC line, with lithium forecasts starting in FY27. The company's stock has risen 23.25 per cent year-to-date, trading at a P/E of 40.36.