Exide Industries: Post 1Q call: Homologation process underway with three 2W EV OEMs

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Exide Industries: Post 1Q call: Homologation process underway with three 2W EV OEMs

s) 16.48 17.22 4.5%

with a revised PT of Rs514/sh. Adj. EBITDA - 27E (Rs mn) 21,779 22,824 4.8%

Adj. EBITDA - 28E (Rs mn) 23,564 24,130 2.4%

• Customer engagement: three 2W EV OEMs covering 80-85% of the

Indian market. 4Ws - in conversations with two major 4W OEMs. Style Exposure

Hyundai supply is seeing some delays. 3W market already exists. Exide is

currently doing the homologation process with three 2W EV OEMs which

cover 80-85% of the Indian market. The fourth line under installation would be

catering to 4Ws and Exide is seeing more conversations and visits from the 4W

OEMs. The 4W line is planned for commissioning at the end of FY27 and

BESS manufacturing also will happen subsequently. Management highlighted

that 70-75% of the 3W demand is from aftermarket (retrofitment of lead-acid

e-rickshaw with lithium-ion e-rickshaw) while ~25% will be new vehicles.

Exide already has its dealer network and entire channel network built.

• Li-ion yields are improving; Exide targeting capacity utilization of 25-

30% in FY27 (two out of four lines operational). Management highlighted

that yields are improving, however the real yield improvement will be visible

when the plant is running at a three-shift operation. Exide mentioned that

demand will not be an issue and that it can quickly utilize the two lines (NMC

and LFP) as the yields improve. Exide is also studying the fine print of the new

PLI scheme and will subsequently take a decision (10 GWH final allocation in

the PLI scheme). Management did not provide any guidance on margins.

Exide’s total capex for the 12GWh plant may slightly exceed the prior guidance

of Rs70bn (FX fluctuation) but the company will still fund it from operational