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Exide Industries invests Rs 450 crore in subsidiary for EV battery expansion

27-Mar-26 10:26 Hrs IST

Following this infusion, Exide's total investment in EESL has increased to Rs 4,802.23 crore. The company clarified that its shareholding in the subsidiary remains unchanged at 100%.

EESL, incorporated in March 2022, is focused on manufacturing and selling lithium-ion battery cells, modules, and packs for India's electric vehicle (EV) market as well as stationary energy storage applications. As of 31 March 2025, the company reported a net worth of Rs 2,738.06 crore and a turnover of Rs 116.89 crore, while posting a net loss of Rs 209.12 crore for the year.

The reason for investment is EESL is in the process of setting up a greenfield plant at Bengaluru for manufacturing & selling lithium-ion battery cells, modules and pack business. The equity investment in EESl on a rights basis is to fund the above greenfield project and meet its various funding requirements. With the current investment, Ell shareholding in EESL remains unchanged at 100%.

EESL allotted 11.25 crore equity shares of face value Rs 10 each at a premium of Rs 30 per share to Exide Industries on a rights basis, aggregating to Rs 450 crore. The shares were allotted on 25 March 2026.

Exide noted that the transaction qualifies as a related-party deal since EESL is its wholly owned subsidiary. However, the company stated that the investment has been carried out at arm's length, and apart from this relationship, no promoter or group entity has any additional interest in the transaction.

Exide Industries is primarily engaged in the manufacturing of storage batteries and allied products in India.

The company's consolidated net profit jumped 23.7% to Rs 194.01 crore in Q3 FY26, compared with Rs 156.81 crore in Q3 FY25. Revenue from operations rose 4.6% YoY to Rs 4,200.59 crore in Q3 FY26.

The counter slipped 1.77% to Rs 301.80 on the BSE.

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