Exide Industries has invested an additional ₹450 crore into its EV subsidiary, Exide Energy Solutions Ltd, as its lithium-ion gigafactory in Bengaluru moves into the final stage of commissioning. The investment, made through a rights issue of shares, takes Exide’s total commitment to ₹4,802 crore while maintaining full ownership.
The new funds will be used for last-mile requirements such as equipment calibration, trial runs, and working capital. The company expects to begin commercial production in the first half of FY26. In its initial phase, the plant will have a capacity of 6 GWh annually, producing both NMC cells for high-performance electric vehicles and LFP cells for mass-market EVs and energy storage.
In the near term, the project will weigh on profitability. EESL reported a loss of ₹209 crore in FY25, and costs related to depreciation and operations are expected to remain high during the ramp-up period. Analysts estimate that the business may break even only by FY27 or early FY28, once utilization reaches around 40–50%.
Despite this, Exide remains financially comfortable, supported by steady cash flows from its core lead-acid battery business, which continues to grow at 7–9%. This allows the company to sustain its investment cycle without straining its balance sheet.
Looking ahead, Exide expects its lithium-ion business to start contributing meaningfully to revenues by FY27. The company is targeting overall revenues of ₹20,000 crore by FY28 and ₹25,000 crore by 2030.
Importantly, Exide has already secured demand through partnerships with Hyundai Motor Company and Kia Corporation, which will source locally manufactured LFP batteries for their upcoming EV models in India. The company is also in discussions with domestic electric two-wheeler manufacturers, particularly in the e-scooter segment.
This positions Exide strongly in an increasingly competitive market, alongside players like Amara Raja Energy & Mobility and Ola Electric. Its early demand visibility gives it an advantage by reducing the risk of underutilised capacity as it enters the EV battery space.
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