While benchmark indices remain well below their 52-week highs, Exide Industries’ stock has bucked the trend and hit a new 52-week high.
The stock touched a fresh 52-week high of ₹436.4 on 17 July 2026, driven by several factors. The question now is whether Exide Industries can continue to deliver strong returns to investors.
In this editorial, we examine the company's prospects over the next three years. This is not a recommendation to buy or sell the stock.
Before we look at the company's future prospects, here's a brief overview of Exide Industries.
About Exide Industries
Exide Industries is India's largest manufacturer of lead-acid storage batteries and one of the country's best-known battery brands.
Headquartered in Kolkata, the company supplies batteries for automobiles, two-wheelers, commercial vehicles, industrial applications, telecom, UPS systems, solar power, railways and defence.
The company also exports to more than 60 countries and has an extensive nationwide distribution network.
Factors That Could Support Exide Industries' Stock
Growth plans
Exide Industries has invested ₹48.02 billion to date in its lithium-ion cell manufacturing project. According to the management, the cylindrical line is expected to start customer sampling shortly, followed by product trials on the prismatic line.
The start of production at the plant could support earnings growth in the years ahead.
The company is also engaging with OEMs across the two-wheeler, three-wheeler and four-wheeler segments, as well as stationary energy providers, to build offtake across key end-user markets.
Improving efficiencies
In FY25, Exide Industries moved from a strategic business unit-led model to a 'One-Exide' operating model. The aim was to recalibrate its go-to-market approach across business verticals.
During FY26, the new model helped the company become more agile and customer-focused while generating synergies across the organisation. The benefits were reflected in its performance.
Solar vertical returns to double-digit growth
Exide Industries' solar vertical returned to double-digit growth in FY26.
The company has spent the last few years incubating and building the business, which crossed the ₹10 billion revenue mark in FY26. The segment is expected to remain a growth driver.
Outlook for the core business
The management has guided for high single-digit to double-digit growth in its established lead-acid battery business.
Demand remains healthy across automotive replacement batteries, industrial batteries, telecom, UPS and renewable energy storage.
Battery Energy Storage Systems (BESS)
India's push towards grid-scale battery storage has improved sentiment across the battery industry.
Government initiatives supporting battery manufacturing and energy storage could provide a tailwind for Exide Industries.
Challenges for the Stock
While Exide Industries has several long-term growth drivers, investors should also consider the risks. Many of these are industry-related.
Raw material price volatility
Prices of lead, lithium, nickel and other battery materials can be highly volatile.
Although Exide Industries can pass on some cost increases, margins could come under pressure during periods of sharp commodity inflation.
Dependence on automotive demand
A slowdown in vehicle sales or replacement battery demand could affect the company's core lead-acid battery business, which still accounts for the majority of its revenue.
Technology risk
Battery technology is evolving rapidly.
If newer chemistries such as sodium-ion or solid-state batteries become commercially viable faster than expected, Exide Industries may need to make additional investments to remain competitive.
Exide Industries vs Amara Raja Energy
On a price-to-book and price-to-earnings basis, Amara Raja Energy appears cheaper than Exide Industries.
That said, valuations are only one factor to consider when evaluating a stock. Investors must also assess a company's growth prospects, execution and other fundamental factors.
Where Will Exide Industries' Stock Be in the Next 3 Years?
The answer will depend on a few key factors.
The first is the successful execution of Exide Industries' lithium-ion cell manufacturing facilities. The company's ability to ramp up production and build offtake will be critical to its future growth.
Demand from the automotive sector will be another important factor, given its significance to the company's business. At the same time, sustained raw material price volatility could weigh on performance.
Finally, investors must consider the stock's current valuation. Exide Industries is trading at a new 52-week high even as benchmark markets have remained largely range-bound over the past year. This leaves limited room for disappointment in the stock's near-term performance.
Investors should evaluate the company's fundamentals, corporate governance and valuation as part of their due diligence before making any investment decision.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated fromEquitymaster.com