Shares of Exide Industries traded in red today, July 31, even as global brokerage Citi remained primarily positive on the company's April to June quarter earnings for fiscal 2027.
Exide Industries share price dropped as much as 1.36% to Rs 446.55 apiece. The scrip was trading 81% lower by 11:09 am, while the benchmark Nifty 50 index was up 11%.
The company's net profit jumped 27.2% to Rs 407 crore in the quarter from Rs 320 crore in the corresponding period last year. Revenue rose 17.6% to Rs 5,305 crore in the quarter from Rs 4,510 crore in the same quarter previous year.
In terms of operations, EBITDA advanced 19.3% to Rs 655 crore in the quarter under review from Rs 549 crore in Q1FY26. EBITDA margin remained largely flat at 12.3% year-on-year.
Citi maintained 'Buy' on Exide stock at target price of Rs 410, marking a downside of 9.4% from its closing price of Rs 452.7. According to the brokerage, Exide's April to June quarter results were significantly above estimates, along with healthy revenue growth across segments. Price-hikes and better product mix helped offset the impact of higher commodity costs on gross margin. Meanwhile, healthy operating leverage boosted EBITDA margin. It further highlighted management's optimism on strong demand across segments, driven by GST cuts, while commodity cost pressures remain high.
Segment wise breakdown
All major business segments saw double digit growth on a YoY basis, with Auto OEM business posting over 25% year-on-year growth. Two wheeler and four wheeler replacement business also reported double-digit revenue growth, while Industrial Infrastructure. excluding telecom maintained low double-digit growth, driven by demand from infrastructure-linked and industrial applications. Additionally, inverters and solar businesses surged more than 20% YoY, aided by strong seasonal demand and ongoing business initiatives and exports returned to growth with a 20% YoY increase on a low base, supported by geographic expansion efforts and improved shipping access to key international markets.
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