Exide Industries, one of India’s most recognised battery manufacturers, has released its Q2 Results for FY 2025–26, and the numbers have sparked significant discussion across the stock market. Investors, traders, and analysts closely track Exide because the company plays a crucial role in automotive, industrial, and energy-storage battery solutions. However, this quarter’s performance delivered a surprising deviation from market expectations.

We analyse Exide Industries Q2 results, compare the performance with the previous year and previous quarter, explore profitability trends, examine operational costs, evaluate EPS and margin changes, and contrast the results with its key competitor Amara Raja Batteries. The analysis also includes insights into market implications and the road ahead for Exide in the evolving battery and EV ecosystem.

Understanding Exide Industries’ Q2 2026 Performance

Exide Industries disclosed a set of numbers that were below analysts’ estimates, triggering concern among investors. Despite being a dominant company in the battery sector with a strong distribution network, the Q2 performance showed weaknesses in revenue growth, profit generation, and overall margins.

The company registered a noticeable drop in both revenue and profit, raising questions about demand patterns, cost management, and competitive pressure from rival brands.

Let’s break down each key metric in detail.

Exide Industries Q2 Revenue 2026: A Surprising Decline

Revenue remains the strongest indicator of operational performance, and for Exide Industries, this quarter’s numbers were unexpectedly weak.

Exide reported revenue of ₹4,364 crore in Q2 2026, compared to:

• ₹4,695 crore in the previous quarter (Q1 2026)
• ₹4,450 crore in the same quarter last year (Q2 2025)

This shows:

• Year-on-Year (YoY) decline: ~2%
• Quarter-on-Quarter (QoQ) decline: ~7%

The market had expected revenue of approximately ₹4,700 crore, making the actual performance significantly below estimates.

Why is this decline important?

Because Exide typically maintains stable revenue growth due to:

• Its leadership in automotive batteries
• Strong industrial battery demand
• Geographic diversification
• Long-term institutional clients

A revenue decline—particularly when the industry is expanding—signals a potential loss of market share or operational inefficiencies.

Comparing With Amara Raja: A Sharp Contrast in Growth

One of the most striking insights this quarter is the performance gap between Exide and its competitor Amara Raja Batteries.

• Amara Raja reported a 6% revenue growth in the same quarter.
• Exide reported a 2% revenue decline.

This 8% differential between two companies in the same industry reflects important market signals:

1. Competitive challenges

Amara Raja is expanding aggressively, especially in automotive and industrial batteries. Its ability to grow during the same period suggests that demand remained strong in the sector—but Exide failed to capture it.

2. Market share shift

The contrasting revenue figures hint that Exide may have lost some ground to competitors.

3. Operational efficiency issues

While Amara Raja scaled revenue, Exide struggled, indicating potential logistical or distribution-related obstacles.

Exide Industries Q2 Expenses 2026: Flat But Still High

Even though Exide failed to grow its revenue, its expenses remained relatively high.

The company spent:

• ₹4,338 crore in the previous quarter
• ₹4,157 crore in the same quarter last year
• ₹4,164 crore this quarter

The expenses remained almost flat, which means Exide did not significantly reduce costs even when revenues declined.

Impact of flat expenses with falling revenue:

• Profit margins shrink
• Operational efficiency gets questioned
• Cash flow tightens
• Overall profitability worsens

In simple terms, Exide is spending nearly the same amount as earlier but earning less money—creating a direct and negative impact on profitability.

Exide Industries Q2 Profit 2026: Major Decline Raises Concerns

Profit figures highlighted the most worrying trend for Exide.

Exide reported a net profit of ₹173 crore, compared to:

• ₹274 crore in the previous quarter
• ₹233 crore in the same quarter last year

This reflects:

• YoY profit decline: ~26–27%
• QoQ profit decline: ~37%

These numbers clearly show substantial pressure on the company’s bottom line.

Profit Below Estimates

While the market expected a profit of around ₹290 crore, Exide delivered only ₹173 crore, missing expectations by more than 40%. Such a sharp deviation can impact investor sentiment and affect short-term stock price trends.

Contrast With Amara Raja Profit Growth

Adding to the concern:

• Amara Raja reported a 19% jump in profit this quarter.
• Exide reported a ~26% fall in profit.

Two companies operating in the same sector, with similar product ranges, producing opposite results, highlights deeper internal issues within Exide.

Exide Industries Q2 EPS 2026: Earnings Per Share Takes a Hit

Earnings Per Share (EPS) reflects the profitability per unit of shareholder investment.

Exide’s EPS figures:

• ₹3.21 last quarter
• ₹2.72 last year
• ₹2.20 in Q2 2026

This steep drop in EPS is a red flag for investors, indicating:

• Declining profitability
• Reduced shareholder value
• Earnings pressure due to stagnant revenue and flat expenses

EPS is particularly important because it directly influences valuation ratios and stock market sentiment.

Exide Industries Q2 EBITDA Margin 2026: Margin Compression Continues

Profit margin is a key measure of financial strength. Unfortunately for Exide, margins also weakened this quarter.

EBITDA Margin Comparison:

• Last year: 5.25%
• Previous quarter: 5.83%
• This quarter: 3.96%

A margin drop from 5.83% to 3.96% is significant, especially in a manufacturing business where margins are already thin.

What does this margin drop indicate?

• Higher raw material or input costs
• Pricing pressure due to competition
• Reduced operating efficiency
• Lower demand in certain segments
• Inventory management challenges

Margin compression is often one of the first signs of structural stress in a company.

Overall Analysis: Exide Industries Q2 Results 2026 Are Weak

Based on revenue, profit, EPS, and margin data, Exide’s Q2 performance can be summarised as:

• Revenue: Down
• Profit: Down significantly
• Expenses: Flat, not optimised
• Margins: Declined sharply
• Estimates: Missed across all major expectations
• Competitor Comparison: Underperformed vs Amara Raja

This paints a picture of a quarter where Exide failed to align with industry trends and market expectations.

Why Did Exide Underperform? Key Possible Factors

Although the company has not publicly disclosed detailed reasons behind the weak results, several factors might have contributed:

1. Increased Competitive Pressure

Amara Raja’s strong performance suggests that Exide may be losing market share.

2. Sluggish Automotive Battery Demand

Certain segments of the auto industry experienced slower growth, impacting battery replacement cycles.

3. Higher Input Costs

Lead prices and other raw materials may have increased, reducing profitability.

4. Weakness in Industrial Battery Demand

If industrial and inverter battery demand slowed, revenue would be affected.

5. EV Transition Challenges

As Exide invests heavily in EV battery technology, the traditional battery business may be facing pressure.

Market Reaction: What Investors Should Watch Next

While the immediate numbers are weak, long-term investors should consider the following aspects:

1. Exide’s EV Battery Strategy

The company is investing heavily in lithium-ion battery plants and EV energy solutions. Long-term success depends on how quickly these investments start generating revenue.

2. Cost Rationalisation

Investors must watch whether Exide takes measures to reduce operational costs.

3. Demand Recovery in Automotive Sector

A recovery in automotive production and replacement cycles will support future revenue.

4. Competitive Actions

Market share movements between Exide and Amara Raja will determine long-term positioning.

5. Margin Recovery

A rebound in margins will be essential to rebuild investor confidence.

Future Outlook: Will Exide Recover?

The battery industry is undergoing significant transformation:

• EV adoption is growing
• Industrial power backup is expanding
• Renewable energy storage is increasing

Exide has strong brand equity and distribution reach. If the company manages to stabilise revenue, control costs, and accelerate its EV strategy, recovery is possible.

However, the Q2 2026 results indicate that Exide must address internal challenges urgently to remain competitive in the fast-changing energy storage landscape.

Conclusion: Exide Industries Q2 Results 2026 Indicate a Challenging Quarter

The second quarter of FY 2025–26 has been a difficult one for Exide Industries. With a decline in revenue, a significant fall in profit, lower EPS, reduced margins, and results falling short of market expectations, the company faces a tough road ahead. The comparison with Amara Raja further emphasises the need for strategic recalibration.

Still, with the battery and EV market growing rapidly, Exide has the potential to rebound if it takes timely steps to improve cost efficiency, enhance product innovation, and strengthen distribution channels.

Frequently Asked Questions (FAQs)

1. What was Exide Industries’ revenue in Q2 2026?

Exide reported ₹4,364 crore in revenue for Q2 2026, which is lower than both the previous quarter and the same quarter last year.

2. Did Exide meet market expectations?

No. Revenue and profit were below estimates. Analysts expected higher performance.

3. Why did Exide’s profit drop so sharply?

Due to declining revenue, flat expenses, margin pressure, and increased competition.

4. How did Amara Raja perform in comparison?

Amara Raja reported 6% revenue growth and 19% profit growth, outperforming Exide significantly.

5. Is Exide focusing on EV batteries?

Yes. The company is investing heavily in lithium-ion and EV battery manufacturing.

6. Is Exide still a good long-term investment?

It depends on the company’s ability to improve margins, grow revenue, and execute its EV strategy. Investors must monitor upcoming quarters.