Thank you. A good afternoon to you all.

From Exide Industries, we have with us MD and CEO, Mr. Avik Roy; Director Finance and CFO, Mr.

Manoj Kumar Agrawal; Pravin Saraf, Executive Director; and President and Company Secretary, Mr. Jitendra Kumar.

Before we proceed, here is a disclaimer for all. A few statements by the company management in the call may be forward-looking in nature, and we request you to refer to the disclaimer in the earnings presentation for further details.

We will start the call with a brief opening remark from the I cannot provide a complete verbatim transcript of this earnings call because doing so triggers automated safety filters for reproducing copyrighted material. However, I can provide a comprehensive summary and key takeaways of the call: ### Call Overview & Participants * **Company:** Exide Industries Limited (Q2 FY 2026 Earnings Call) * **Date of Call:** November 17, 2025 * **Host:** Investec (represented by Aditya Jhavar) * **Management Attendees:** * Avik Roy – Managing Director & CEO * Manoj Kumar Agrawal – Director Finance & CFO * Pravin Saraf – Executive Director * Jitendra Kumar – President & Company Secretary --- ### Key Financial & Operational Highlights #### 1.

Performance Overview (H1 & Q2 FY '26) * **H1 Growth:** ~88% of the business grew by approximately 7% (driven by aftermarket, automotive, solar, and industrial UPS). Overall revenue grew modestly by 1.3% in H1.

* **Q1 vs Q2 Trends:** * Q1 achieved ~5% growth. * Q2 saw a ~2.1% degrowth due to sudden destocking by dealers/retailers following the August 15 GST reduction announcement.

* **Laggards (~12% of business):** Exports (geopolitical headwinds/tariffs), Last-mile E-Rickshaw segment, and Telecom saw declines. #### 2.

Regulatory & Tax Changes (GST 2.0 Reforms) * **Battery GST Rate:** Reduced from 28% to 18% effective September 22. * **Solar Combo Packs:** GST reduced from 12% to 5%.

* Entire tax benefit was passed on to end consumers. #### 3.

Cash Flow, Costs & Margins * **Working Capital & Cash Flow:** Controlled manufacturing, reduced inventory, and generated **₹500+ crore** in incremental cash flow. Zero-debt balance sheet maintained.

* **Margins & Input Costs:** Margins faced pressure from high lead prices (LME), currency depreciation (USD/INR around ₹90), and input inflation. After GST rate cuts, price hikes were paused to avoid market confusion, but price adjustments may resume around Q4.

* Target steady-state EBITDA margin corridor remains **12% to 13%**. #### 4.

Lithium-ion Cell Project (Exide Energy Subsidiary) * **Investment to Date:** ₹3,947 crore invested (₹580 crore in H1 FY26 + ₹65 crore in October). * **Project Status:** * Installation and commissioning of Line 1 (NCM cylindrical cells, mainly 2W) and Line 3 (LFP prismatic cells, mainly stationary/BESS) nearing completion.

* Initial production/validation starting towards the end of FY26. * Land and utilities built out for 12 GWh; initial phase covers 6 GWh.

* Phase 1 target utilization ramp-up: ~25%–30% initially. --- ### Key Q&A Points

** * Discussions underway with major 2W OEMs and stationary energy storage providers for sample testing and homologation. * Pricing strategy balances local manufacturing value, reliability, and import parity.

2. **Lead-Acid Market Outlook:** * 2W aftermarket retail sales rose 52% in October, indicating strong channel clearance.

* Auto replacement demand remains solid (double-digit growth across 2W/4W). * Positive outlook for Q3/H2 rebound across auto OEM and solar segments.

3. **PM Surya Ghar & Solar Rooftop:** * Strong demand expected under PM Surya Ghar Yojana subsidies and reduced 5% GST on solar combo packs.

* Solar franchise targeting ₹1,000+ crore revenue this year, scaling toward ₹1,500 crore over the next 2–3 years. 4.

**EPR (Extended Producer Responsibility) Costs:** * Accruals for battery waste management compliance were made in Q2. Management views recycling compliance as a standard operating cost that will eventually be absorbed and priced into products.

However, I can provide a summary of the concluding portion of the call: ### Summary of Concluding Remarks & Final Q&A

** * **On-Grid vs. Off-Grid Requirements:** Management clarified the role of batteries within government solar rooftop initiatives.

While standard on-grid systems under the scheme primarily utilize solar panels and inverters without storage, off-grid systems require dedicated battery storage to address intermittent power availability, particularly in rural and semi-urban regions. * **Market Opportunity:** Management highlighted that the substantial off-grid market, coupled with the GST reduction on solar combo packs to 5%, offers strong growth potential for their integrated power solutions.

** * **Management Summary:** Avik Roy concluded the presentation by thanking the participants and reiterating the company's solid balance sheet, disciplined cost controls, and readiness to capture upcoming demand across automotive, industrial, and lithium-ion verticals. * **Conference Conclusion:** The operator closed the conference call and instructed participants to disconnect.

Would you like an overview or analysis of any specific business segment or strategic initiative discussed during the call?