Exide Industries Ltd Management Discussions

Economic Environment

Global Economic Overview1

The global economy demonstrated remarkable resilience in CY 2024, recording a growth rate of 3.3% despite facing various macroeconomic headwinds. Moderation in inflation, technological advancements and global structural economic shifts, supported economic growth. Further, global headline inflation remained at 5.7% in 2024, down from 6.6% in 2023. This decline is driven by large economies moving closer to their inflation targets, enabling central governments to announce policies that support growth. However, growth remains below the historical average (2000-19) of 3.7% due to lower global trade from rising geopolitical tensions, lower investments and weaker productivity compared to historical averages.

Both advanced economies and Emerging Markets and Developing Economies (EMDEs) demonstrated steady growth rates of 1.8% and 4.3% respectively. The US economy grew at 2.8%, driven by an improving labour market and strong underlying demand. Further, the US Federal Reserve reduced interest rates by 100 basis points to inject liquidity into the economy. Meanwhile, the European economy remained subdued as the Russia-Ukraine war had heightened energy costs in Europe and placed significant pressure on key industries. Currency depreciation, lack of innovation and competition from international counterparts all have contributed to the downturn recorded in major European countries.

Within EMDEs, China and India continue to be the fastest growing economies. However, growth rates are much lower thanpreviousyearsasindustrialactivityandinvestmentshave slowed. Additionally, ongoing geo-economic uncertainties have adversely impacted global trade and global investor sentiment, as indicated by rising term premiums on long-term government bond yields in most countries.

Outlook

Global GDP growth is expected to moderate to 2.8% in CY2025, with a slight recovery to 3% in CY2026. While advanced economies may see their growth rate increasing to 1.4% in CY2025, EMDEs are expected to grow at 3.7% in 2025. Global headline inflation is expected to decline to 4.3% in 2025 and to 3.6% in 2026, with inflation converging back to target earlier in advanced economies than in EMDEs.

Global trade volume estimates have been revised downwards due to increasing geo-economic fragmentation. The newly formed US government has implemented policies and tariffs that could impact international trade and bilateral relations, although deregulation and corporate tax cuts might cause a brief uptick in economic activity. Meanwhile, Europes economic recovery will depend on its strong industrial base in fundamental sectors and post-pandemic consumption growth. Emerging economies will need to capitalise on their large workforce and shifting global supply chains to drive economic growth.

The overall outlook remains cautiously positive, with ongoing geopolitical tensions and global economic challenges influencing growth projections. Government initiatives and fiscal consolidation efforts could boost investor confidence and support medium-term growth.

Indian Economic Overview2

Indias economy grew at 6.5% in FY 2025, reflecting resilience and stability amid global economic challenges and geo-political tensions. Headline consumer price inflation averaged at 4.6% during the year, within the Reserve Bank of Indias (RBI) target band of 2-6%. However, this growth rate is lower than the 9.2% recorded in the previous year, mainly due to sustained monetary tightening at the start of FY 2024-25, weak manufacturing sector, subdued consumer demand and private investment, as well as geo-political issues impacting the nations export potential.

Withinthecomponentsofgrowth,Indiasprivateconsumption expenditure has grown by 7.6% in FY 2024-25. While consumption in urban areas has remained subdued, rural demand stayed positive, supported by favourable agricultural conditions. Investment activity which gained momentum in Q1, supported by high-capacity utilisation, declined as the year progressed. This is evident by the Gross Fixed Capital Formation moderating to 6.1% during the fiscal year as compared to 8.8% in previous fiscal5. Industrial output also weakened, as witnessed by the Index of Industrial Production declining to 3% in March 2025 as compared to 5% during the same period last year.

India is expected to remain one of the fastest-growing economies, with GDP projected to grow at 6.5% in FY 2025-26.

The second half of FY 2024-25 was marked by slower growth, declining investor sentiments amid global uncertainties and reduced investment activity. This is also reflected in volatility in Indian stock market, declining IIP numbers and a depreciating currency. The Indian Rupee, which had opened at H 83.35 against the US Dollar on 1st April 2024, ended the financial year at H 85.46 against the US Dollar.

Outlook

India is expected to remain one of the fastest-growing economies, with GDP projected to grow at 6.5% in FY 2025-26. This can be primarily driven by lower inflation, ascending FDI and stronger consumption. However, the growth rate projections are lower than the growth rates recorded in the previous years.

Potential upside risks such as easing food inflation, indicate a probable rise in activity. Currency depreciation vis-?-vis the US dollar will provide a competitive edge to Indian exports. Further, proactive governmental policies may encourage FDI, while heightened public capital expenditure will spur domestic production. A reduction in geopolitical tensions and lower inflation will augment trade and local demand. Additionally, upward mobilisation in tier 3 and tier 4 cities may enhance domestic demand and consumer confidence. Accommodative policies and income tax relief for salaried individuals may further support economic momentum.

Downside risks stem from global uncertainties regarding the US trade policy, geo-political instability, supply disruptions and crude oil price volatility. Adverse weather conditions affecting crop yield could also weigh on rural demand. Further, alterations in core CPI inflation and reduced investments due to a weaker rupee pose potential risks.

The silver lining comes in the form of governments strategic initiatives such as the Production Linked Incentive (PLI) scheme and increased outlay of H 10.2 trillion announced in the Union Budget 2025-26, which are designed to stimulate business activity across the country6. India managed to keep its fiscal deficit at 4.4%-4.5% of GDP, providing the government more room to increase spending and stimulate demand. The RBIs careful monetary measures are expected to relieve liquidity strains in the banking system, supported by a H 1.5 trillion liquidity boost.7 The RBIs decision to cut interest rates will further improve liquidity and encourage private sector investment.

Despite challenges, the Indian economy is likely to sustain its growth momentum, fuelled by strong demand, heightened investments, global disinflationary trends and positive economic sentiments.

Industry Overview

Industry Structure and Development

Driven by rising demand of automobiles and energy storage systems, the Indian battery manufacturing industry has emerged as a crucial growth driver of Indias industrial landscape. The industry is also committed to contribute to the nations journey towards energy independence and sustainable development.

Lead, with a recyclability of more than 99%, is one of the most recycled consumer product and a role model for responsible sourcing, re-use and life cycle material management leading to robust circularity and environmental responsibility.

Indias battery manufacturing sector has advanced significantly in the past decade, marked by technological innovation. The industry features a wide spectrum of players, ranging from well-established national brands, such as your Company, to smaller, unorganized participants. The rising demand for eco-friendly and high-performance energy solutions is placing great emphasis on tech-driven development. This shift benefits larger companies that have the financial and technical strength to drive research and stay ahead technologically. Organised firms also benefit from economies of scale, expansive distribution reach and superior after-sales service across the country.

The lead acid battery manufacturers cater to a wide range of applications, spanning automotive batteries (cars, commercial vehicles, motorcycles, tractors, among others.), industrial uses like backup power, telecom batteries and renewable energy storage for solar and wind systems. While large players cover a broad spectrum of battery applications, regional and mid-sized firms often concentrate on specific applications only.

Production costs account for approximately 65%–70% of sales, making the availability and pricing of raw materials crucial for sustaining healthy and profitable growth. Among the raw materials, lead is a key component in the manufacturing of lead-acid batteries. Given its significance, fluctuations in lead prices are closely tracked as they directly influence your Companys performance. Lead pricing is primarily driven by global demand-supply dynamics and is benchmarked on the London Metal Exchange (LME). While changes in lead prices are typically passed on, there is often a time lag that maintains profitability over the medium term. Ensuring the safe and proper handling of used batteries is another crucial factor that has become a key differentiator. Lead, with a recyclability of more than 99%, is one of the most recycled consumer product and stands as a role model for responsible sourcing, re-use and life cycle material management leading to robust circularity and environmental responsibility.

Company Overview

At Exide, we cater to multiple sectors across both domestic and international markets through our innovative products and solutions. To serve our customers more efficiently, we have realigned our businesses into trade business (catering to B2C customers), institutional business (catering to B2B customers) and international verticals.

Business Division-wise Performance

Trade Division (Catering to the B2C market)

To better align with evolving customer requirements, the trade business is now structured into three business units: Mobility, Reserve Power and last mile solutions. The Mobility division offers batteries for four-wheelers (4Ws), two-wheelers (2Ws), three-wheelers (3Ws) and commercial vehicles (CVs) in the replacement market. The Reserve Power division offers comprehensive energy storage solutions, including home inverter batteries, home UPS systems, institutional UPS batteries and a solar portfolio that includes Rooftop Solar Systems (RTSS), solar batteries, inverters and photovoltaic (PV). The Last Mile Solutions team addresses the growing demand for sustainable urban mobility with its range of E-Rickshaw batteries and E-Rickshaw Vehicles (ERV) marketed under the Exide Neo brand.

Mobility

The replacement or aftermarket demand for the automotive batteries (for four-wheelers (4Ws), two-wheelers (2Ws), three-wheelers (3Ws) and commercial vehicles) is a derived demand, based on the vehicle production in the past couple of years. Rising urbanisation, increasing disposable income and improving rural demand have supported automobile production over the years, thereby creating a positive demand scenario for the automotive batteries. During the current year, overall replacement demand was buoyant both in the 2Ws and 4Ws replacement markets.

Your Company enjoyed a strong demand for its products and has registered double-digit growth. Embracing automotive innovation, your Company has diversified its product portfolio to include Enhanced Flooded Batteries (EFB) for vehicles with integrated start-stop systems and advanced Absorbent Glass Mat (AGM) technology for the domestic replacement market, supporting modern vehicles with energy-efficient features.

We have exceptional market coverage through an extensive network spanning over 1,20,000+ channel partners (dealers and distributors), establishing a comprehensive national presence built over decades. We deliver premium customer experiences through dedicated Exide Cares counters. Recent market expansion efforts included rural wing dealer appointments and commercial vehicle fleet owner registrations at trucking centres to strengthen market reach.

Reserve Power

The Reserve Power division provides standby power solutions that meet Indias growing energy demands through its technologically advanced products and solutions under the Home-UPS, Industrial-UPS and Solar divisions.

Home UPS: Your Companys inverter batteries and Home UPS (HUPS) systems continue to be a trusted option for residential power backup solutions across India. Through its delivery of high-performance power storage products, your Company has made significant contributions to ensuring consistent and uninterrupted electricity for millions of households nationwide, enhancing convenience and lifestyle. We have also effectively improved the value propositions of our inverter and home UPS products through internal value engineering initiatives in the previous year which has helped the Company to offer latest products in the market.

During the financial year, demand for Home UPS was impacted by an early onset of monsoon. Moving forward, your Company forecasts demand to rebound, driven by the governments initiatives to boost rural infrastructure and declining inflation.

Industrial UPS: This market is experiencing double-digit growth, with projections for substantial expansion in the coming years, driven by factors like rising demand for critical power back up in industries like financial

The Union budget has significantly increased the PM Surya Ghar scheme allocation by 80%, from H 11,100 crore to H 20,000 crore to promote solar energy adoption across India

services, and hospitals. A rapidly expanding internet user base, exponential data growth and a supportive policy environment under the governments Digital India mission have positioned India as one of the fastest-growing data center hubs. This creates huge opportunity for our power backup solutions across multiple applications.

During the year, Exide has clocked double-digit growth in the Industrial-UPS trade vertical. The ‘Exide NXT+ UPS battery series has established itself as the favoured choice for critical power backup in essential facilities including hospitals, financial institutions and other vital segments. Your Company also introduced the innovative EP battery range featuring fire-resistant containers, specifically designed to provide superior reliability and enhanced safety.

Solar: The expansion of the segment is primarily driven by supportive government initiatives, ascending energy requirements and heightened public awareness of the economic benefits and environmental advantages of solar technology utilisation. The Union Budget 2025-26 has significantly increased financial support for the PM Surya Ghar scheme, upholding the governments commitment to promote solar energy adoption across India. The budget has raised the schemes allocation by 80%, from H 11,100 crore to H 20,000 crore, with the aim of accelerating installation of rooftop solar systems and meet the countrys renewable energy targets.

Through its fully digital platform ‘Exide Sunday, your Company offers streamlined, user-centric solar solutions tailored to consumer needs. Strategic industry partnerships and efficient installation processes have positioned the brand as a trusted provider of comprehensive solar energy solutions. During the year, Your Company enjoyed strong demand for its products and solar solutions, witnessing a strong up-tick in volumes and with double-digit growth.

Last Mile

Electric rickshaws are battery-operated three-wheelers that offer better fuel economy and lower operational and maintenance costs than traditional auto-rickshaws. They are also eco-friendly as they do not emit toxic pollutants into the air during operation. As of 2024, the India electric rickshaw market was valued at USD 1.4 Billion, with an expected CAGR of 7.90% during 2025-33.8 The market can be categorised into li-ion battery and lead acid battery with the latter accounting for the majority of the total market share currently.

Our Last Mile Solutions team continues to respond to growing demand for sustainable urban mobility through our range of e-rickshaw batteries and electric rickshaw vehicles (ERVs), marketed under the Exide Neo brand. With enhanced safety and first-in-class features, the brand is quickly gaining appeal among customers looking for a

Digital First Approach

Your Company has strategically embraced technology to ensure swift and adaptive market responses, significantly contributing to successful implementation of strategies. Capitalising on Indias ubiquitous usage of mobile devices, Exide has progressively equipped its distribution network with digital tools including the Exide Access App, Exide Humsafar App, Dealer Management Portal and Exide Fleet Smart App, creating comprehensive primary and secondary digital channels, which are aligned with Digital India initiatives.

Your Company further augments the visibility of its partners through targeted digital marketing strategies such as Google listings and hyperlocal campaigns, maximising reach and visibility for its distribution partners. Under the digitalisation initiatives, your Company reached significant forecast accuracy at SKU-depot level, augmenting stock replenishment and leading to higher availability and lower obsolescence cost. Exides Procurement planning solution optimises procurement of metals, which contributes a significant portion of the material cost in battery manufacturing. By achieving accuracy in procurement planning, your Company thereby mitigates risks associated with supply chain disruptions and market fluctuations. Currently, testing is also underway for advanced analytics models for lead price prediction.

After-Sales Services

The competitive battery marketplace demands an exceptional service infrastructure for ensuring optimal product functionality, elevating customer experience and strengthening brand loyalty. We deliver prompt on-site support through its comprehensive network of authorised dealers and mobile service units-known as Exide Batmobile-effectively minimising operational disruptions. The Company also offers an innovative WhatsApp service channel where customers can simply message a dedicated number (700440 00000) to receive immediate assistance, guidance on troubleshooting and service scheduling. Implementation of the upcountry service model has successfully reduced response times nationwide. The Company has deployed numerous service enhancement programs focused on minimising response times and maximising customer satisfaction, including Annual Maintenance Contracts (AMC) for inverter batteries and home UPS systems, comprehensive dealer capability programs and Automated Customer Reference Number (Auto CRN) systems. Together, these efforts deliver exceptional after-sales support and enhance overall customer experience.

Opportunities

Large Headroom for Growth

India continues to have significant headroom for growth in ICE vehicles which will be further supported by rising urbanization, declining inflation and increasing discretionary income, thereby creating demand in replacement market. Across categories, growth will be supported by various drivers:

Passenger vehicles: Urbanisation, increasing discretionary income due to income tax reliefs, favourable demography and accessible financing options can drive car sales.

Commercial vehicles: Government initiatives geared toward infrastructure development and business-friendly policy will increase intra-state and inter-state connectivity, driving the growth of commercial vehicles.

Two-wheelers: Enhanced rural demand combined with growing middle-class will continue to support two-wheeler demand.

Cost Efficiency

Lead-acid batteries offer significant cost advantages compared to newer battery technologies, offering competitive advantage while finding applications across diverse sectors.

Auxiliary Battery Requirement

While electric vehicles market in India shows tremendous promise for future growth, the lead-acid battery industry maintains its relevance, as most EVs continue to utilise these batteries for auxiliary systems like lighting and entertainment features. Hybrid vehicles also incorporate lead-acid batteries alongside lithium-ion technology, thereby sustaining demand.

Technological improvement

The market actively seeks innovation from lead-acid battery manufacturers to overcome traditional limitations such as heavy weight and slow charging capabilities. The Company has actively worked to capitalise on these evolving market conditions through strategic product development.

Exides multi-faceted approach demonstrates their proactive stance toward identifying emerging threats and implementing strategic countermeasures to ensure business continuity and competitiveness.

Market Intelligence

The Company has implemented comprehensive risk identification and mitigation strategies, leveraging its extensive market reach and intelligence. By partnering with leading market research and analytics firms, the Company accesses and maintains insights into evolving consumer preferences and industry trends.

The need for integrating advanced technology in customer acquisition and relationship management presents sustained challenges. To address these issues, the Company has established key strategic partnerships and implemented digital lead generation programs that enhance market responsiveness and customer engagement.

Competitive pressures

Through consistent field activities and outreach programs, the sales and marketing teams maintain high brand visibility across diverse consumer segments to maintain competitive advantage. Digital marketing campaigns and brand-building initiatives ensure strong consumer awareness and preference. Plans to expand the ExideCare service network will further enhance market visibility and customer support across the nation. The robust digital channel infrastructure supports efficient distribution while facilitating productive relationships with channel partners. Regular product portfolio reviews help in prompt identification and addressal of market gaps.

In response to heightened competition in the inverter business, the Company has enhanced its product value propositions through internal engineering initiatives rather than solely competing on price.

EV disruption

While acknowledging the growing electric vehicle market, the Company has positioned itself strategically by

Business Outlook

Product innovation, combined with strong brand equity and unparalleled distribution reach has helped the business achieve steady growth across its business verticals. Exide delivers on the brand promise of ‘India Moves on Exide, reinforcing our position as a true Indian brand with deep-rooted presence in the country, long-standing legacy and significant role in shaping Indias battery industry.

We remain future-focused, working to enhance product availability and strengthen our service network to build deeper consumer trust. Exides Trade Business delivered steady growth in FY 2024-25, fuelled by ever-expanding demand in automotive replacement battery segments and strong performance in solar and institutional power storage markets.

Lead-acid batteries offer significant cost advantages compared to newer battery technologies, offering competitive advantage while finding applications across diverse sectors.

supplying lead-acid auxiliary batteries to four-wheeler EV manufacturers, maintaining relevance despite market shifts.

These batteries are used for auxiliary systems like lighting, entertainment and other on-board electronics. Your Company has successfully developed and deployed 12-volt lead-acid auxiliary batteries specifically designed for EV application. These products now cater to all major electric vehicle manufacturers in India, providing a competitive edge in this growing market segment.

Geopolitical and economic risk

To mitigate geopolitical and commercial export risks, your Company is actively diversifying their customer base by expanding into European and North American markets with technologically advanced products tailored to these regions.

Their supply chain risk management strategy focuses on reducing single-provider dependency by cultivating relationships with multiple logistics partners and enhancing warehouse infrastructure to accommodate growth while maintaining operational efficiency.

Institutional Division (Catering to the B2B Market)

The institutional business of Exide includes supplying batteries and energy storage solutions to institutional clients operating in various sectors. Advanced automotive batteries are supplied to Original Equipment Manufacturers (OEMs) of four-wheelers (4Ws), two-wheelers (2Ws), three-wheelers (3Ws) and commercial vehicles (CVs). Industrial UPS (I-UPS) solutions are provided for energy storage across multiple sectors such as IT data centres, financial services, hospitality, commercial buildings tec). Your Company also provides solutions for infrastructure sectors, including railways, telecom and power. Traction and standby batteries are used for material handling equipment (MHE) in warehousing, logistics and manufacturing sectors. Further, your Company manufacturers submarine batteries for Indian Navy and export markets.

Vehicular OEMs

India remains the third-largest passenger vehicles market, following China and the US. With Indias relatively low car penetration rate of only 38 vehicles per 1,000 people, the industry holds significant growth potential in the medium-to-long term. The markets growth in the recent years has been driven by rising demand from an aspirational domestic population, low production costs, improving infrastructure connectivity and rising rural income. However, FY 2024-25 witnessed divergent growth trajectories across automotive segments. Segments such as 2W, 3W, PV and tractors saw growth, while CV faced a slight decline. Two-wheeler sales strong demand was driven by a rise in the scooter sales. Passenger vehicle sales, on the other hand, experienced moderated growth due to a high base effect and elevated channel inventory. Tractor sales also experienced double-digit growth supported by increased rural consumption. The automotive OEM sales of your Company witnessed modest growth during the year due to inventory challenges faced by the vehicle manufacturer. Moderation of the post-pandemic surge in demand caused the inventory at automotive dealerships to accumulate, leading to decline in demand for new vehicles. Despite the challenges, your Company was able to maintain its market share across major automakers.

OEM customers now seek sophisticated batteries offering greater efficiency, reduced emissions, and extended durability due to launch of hybrid vehicles. In response, the Company has developed advanced Idle-Start-Stop (ISS) and Enhanced Flooded Battery (EFB) products through international collaborations. We are associated with the OEMs from the Drawing board stage and work closely with them till the launch of the vehicle. Engaging with all relevant departments to ensure first-mover advantage for any changes.

Recognising industry trends toward cutting-edge technology, the Company is also introducing the Absorbent Glass Mat (AGM) batteries across both domestic and global markets.

India remains the third-largest passenger vehicles market.

Industrial UPS

Your Company continues to be the preferred choice by customers for industrial UPS applications and has successfully maintained its market share. During the year, the Industrial UPS sales were impacted by the tough market environment. Overall demand was impacted by moderate business activity, lower capex and increasing shift to lithium-ion solutions.

However, your Companys competitive pricing and strong product positioning solidified its position among customers, including both multinational corporations and Indian manufacturers.

Data Centres

Indias data centre revolution is accelerating affordable data access, widespread internet adoption and digital platform proliferation across social media, e-commerce, gaming and streaming services. The market is projected to grow at a double-digit rate in the medium-term, strengthened by growing demand and government initiatives including the draft Digital Personal Data Protection Bill and infrastructure status granted to the sector.9

Recognizing the potential of data centres your Company has formed a dedicated vertical for data centres under the Utilities and Industries business. The latest range of front terminal and top terminal batteries has been well-received by the market and has secured the approval of key consultants, Co-Location (Co-Lo) players and Enterprise DC integrators. With the approvals and first orders for EHP Front-Terminal (FT) battery from a prominent player in place, Exide is in a good position to capitalize on the growing demand in the data centre sector.

Telecom

During the year under review, the country witnessed the fastest 5G rollout in telecom in the world, covering more than 99% districts and reaching saturation levels. This led to a decline in the Indian telecom market, which has also reflected in the performance of your Companys telecom lead-acid batteries and solutions business, despite securing major orders and new cost-effective designs. Additionally, lithium-ion prices declined, making it more attractive for telecom tower companies to transition from traditional VRLA batteries to lithium-ion batteries.

Recognizing the industrys shift toward lithium-ion, your Company is strategically positioning itself by providing both lead-acid battery solution and lithium-ion battery packs and solutions (through the wholly owned subsidiary Exide Energy Solutions Ltd) to the telecom sector. This has enabled your Company in maintaining its market share in the industry.

The country witnessed the fastest 5G rollout in telecom in the world, covering more than 99% districts

During the year, your Company has registered growth in the traction batteries business, even on a high base. While the aftermarket traction business grew substantially, driven by training programs and new product introductions, Traction

OE business experienced a momentary decline. Our strong market position in this vertical stems from continued customer engagement through on-site training, floor-level workshops using our Tract Mobile Van, and support from a knowledgeable channel partner network. Traction business benefits frome-commerce and automation, driving demand for Material Handling Equipment in medium-to long term. Increased investments coupled with government programs such as PM Gati Shakti and National Logistics Policy, is set to accelerate development in the logistics and warehousing sectors. With our new product lines, Mega Charge and THORR batteries, launched across various industrial cities of India, your Company is well-placed to capitalise on the growth momentum.

Infrastructure

Your Company continues to lead the market with another year of strong performance achieving double-digit growth. The business is directly linked to nation-building and has played in a vital role in key infrastructure projects, such as Mumbai Metro, Mumbai coastal road project, NRCTC, 5x800 MW Yadadri thermal power plant among others. Your Company offers widest range of products (including Plante, Tubular & VRLA) to cater to the requirements of power, industry and infra customers.

The power market is expanding, with increased investment in transmission and distribution along with a rise power generation. Simultaneously, Nationwide metro expansions are also underway, with major projects like Delhi Metro Phase 4, Bengaluru Metro Phase 3, Thane Integral Ring Metro and Pune Metro extensions progressing steadily

Battery Energy Storage Solutions (BESS)

Indias energy storage capacity is projected to expand twelvefold to 60 GW by FY 2031-32, predominantly on support of Battery Energy Storage Systems. BESS capacity is projected to surge to 42 GW, enabling renewable energy utilisation during non-generation periods.

Recognizing the potential of Battery Energy Storage as next growth area, your Company has developed advanced lead acid batteries for BESS applications. BESS systems have been increasingly gaining traction in the Diesel Genset (DG) offset space, providing for a cleaner and more efficient alternative solution. Your Company has also developed complete solution for BESS, including the container, PCS and BMS. We commissioned three BESS projects in 2025. Building on this experience, we have started reaching out to the potential customers. The focus area for acid-based BESS will be the C&I (Commercial & Industrial) market segment and capacities below 2MW/4MWh.

During the year, your Company participated in Elecrama, the largest standalone show in the electrical show industry, where its stall attracted an unprecedented number of visitors and generated significant interest in its BESS products.

Indias energy storage capacity is projected to expand twelvefold to 60 GW by FY 2032

Submarine

During FY 2024-25, we manufactured six sets of submarine batteries. Of these, two sets were supplied to Indian Navy, . two set of batteries were exported to a foreign Navy with

Government of Indias permission and the remaining two battery sets will be exported in first half of FY 2025-26.

During the year, your Company secured new orders from the Indian Navy and submitted offers for additional sets, while also anticipating new export orders. Exides advanced tubular and Copper Stretched Metal (CSM) technologies continue to deliver excellent performance. Exide is also looking for new future opportunities to export submarine batteries and is engaged in active discussions with potential customers to supply them in FY 2025-26. The outlook for the upcoming financial year remains positive and your Company anticipates maintaining its strong momentum.

Opportunities, Threats, Risks and Risk Mitigation

Opportunities

Your Companys operational outlook in institutional division appears robust for the medium-to-long term, with favourable projections in both the automobile sector and emerging market segments. The Indian automotive lead-acid battery market is expected to maintain strong growth in the foreseeable future aligning with your Companys strategic positioning in high-demand segments.

Automotive Sector Momentum

The automotive industry approaches FY 2025-26 with cautious optimism. Two-wheeler sales may rise with rural economic improvements, while commercial vehicles hinge on infrastructure execution. Passenger vehicles could record growth from new models and seasonal demand, despite price adjustments. Advanced battery solutions, such as ISS, EFB and AGM are gaining OEM traction, accelerating market consolidation. Union Budget tax reliefs may further boost vehicle demand.

Shift towards Advanced Battery Technologies

The market is witnessing an augmented demand for technologically sophisticated battery solutions. ISS batteries, EFB and AGM batteries are also gaining favour among Original Equipment Manufacturers (OEMs). These advanced products require specialised manufacturing capabilities, expediting the transition of unorganised players into organised players. This shift presents significant opportunities for established manufacturers with technical expertise and quality assurance systems.

Growth in Emerging Segments

The Company is focusing on the emerging market segments in infrastructure including railway electrification, data centres and battery energy storage systems, unlocking significant growth opportunities. The Traction business is set to grow steadily as demand for material-handling equipment used in industries such as retail, e-commerce, manufacturing, modern warehousing and logistics rises. The Company is also increasing its capacity to facilitate entry into the market segments of warehousing and logistics, e-commerce and aviation.

Strategic Readiness

With a comprehensive product range, strong brand recognition and extensive sales and service network across the nation, the Company is strategically positioned to meet the growing market demands. Sustained investments in manufacturing facilities, distribution infrastructure, warehouses and logistical capabilities have significantly enhanced the entire supply chains capacity to accommodate heightened production volumes in anticipation of continued business expansion. Exides strategic vision aligns perfectly with the national focus on sustainability, infrastructure enhancement and digital transformation, strategically positioning Company for sustained expansion.

Government Initiatives

The governments sustained capital expenditure through FY 2024-25 is expected to create a multiplier effect, attracting private sector investments and accelerating the Companys industrial growth trajectory. The power generation and transportation sectors present significant opportunities through large-scale infrastructure projects. Under the Atma Nirbhar Bharat initiative, BSNL plans to install 100,000 4G sites nationwide, with equipment that can upgrade to 5G technology. These opportunities are further amplified by initiatives such as Make in India and increasing demand for specialised industrial battery solutions. Exides diverse product portfolio is well-positioned to deliver superior customer value, reinforcing its market standing.

Positive Industrial Outlook

The BESS market shows significant potential, with capacity expected to surge to 42 GW by FY 2031-32. Meanwhile, Indias rapidly expanding data centre market is expected to grow at 10.98%, reaching $11.6 billion by 2032. The outlook for the traction segment remains strong, driven by rising demand for material-handling equipment across retail, e-commerce, manufacturing, warehousing and logistics. With capacity expansion in place, the Company is well positioned to support growth in emerging areas such as warehousing, logistics, e-commerce and aviation, aligned with broader shifts in supply chain automation and infrastructure development.

Risk detection

In its regular business operations, the Company continuously assesses emerging threats and risks while implementing targeted countermeasures. Recent years have witnessed strategic investments in digital transformation across all business functions. The digital transformation has provided the Company with immediate access to operational data, helping it to optimise processes, enable fact-based decisions, lower operational costs and generate automatic warnings. These alerts ensure business risks are spotted early and are addressed promptly.

Heightened Competition

The market is witnessing a heightened adoption of electric vehicles, particularly in two-wheeler and three-wheeler categories. Yet internal combustion engine variants in these segments have recently demonstrated signs of recovery. Four-wheeler electric vehicles continue to require lead-acid auxiliary batteries. The Company capitalises on this demand and directly supplies to the vehicle manufacturers. Exides strategic position ensures sustained viability of its lead-acid battery business without facing immediate competitive threats.

Supply chain risk

Exides approach to the management of supply chain risks involves diversification and establishing strategic partnerships. The Company deliberately works with multiple logistics providers to reduce dependency on any single partner. Years of relationship-building with transporters and warehouse operators have helped us create dependable business connections that maintain operational continuity. Exide has significantly enhanced its warehouse infrastructure, augmenting both efficiency and throughput capacity and allowing seamless business growth from existing facilities as volumes increase.

Our proactive policies help us reduce the impact of uncertainties while staying on track to achieve our planned businessgoals.Byanticipatingchallengesandimplementing forward-looking solutions, Exide demonstrates resilience in an evolving marketplace.

Lithium-ion shift

The telecom sector is experiencing a notable shift towards lithium-ion technology, driven by declining lithium battery prices, superior recharging capabilities and the flexibility to add or remove modules as needed. This transition has been accelerated by a significant consumer base moving away from lead-acid solutions, which has affected the Companys demand in this segment. While the Company is actively diversifying into alternative sectors, the path to full recovery remains in underway.

Encouragingly, a major telecom player continues to utilise lead-acid batteries, where Exide maintains its competitive edge. Exides power transmission segment has delivered impressive growth results. The governments heightened focus on nuclear power generation is expected to generate positive demand in the coming periods.

In the railways segment, the Company has successfully positioned its MET70 and MET120 batteries for the LHB coaches that are replacing conventional rolling stock. The Company secured significant orders from all major rail coach factories across the country during the year under review. However, the Company anticipates the traditional battery market will gradually contract as new train models such as the Vande Bharat Express adopt lithium-ion technology.

Similar to the trends in telecom and railways, the traction segment is increasingly favouring lithium solutions due to their declining costs. This will likely expedite the market shift to lithium-ion solutions in the upcoming years. For its IUPS OEM business, despite overall market expansion, the industrys transition toward lithium technology has kept Exides market share and growth relatively stable.

Exide is moving forward with momentum into the new fiscal year while remaining vigilant about potential challenges from geopolitical developments, interest rate fluctuations, limited technological disruption and input cost pressures. The outlook on overall demand remains positive as the Company reaffirms its dedication to maintaining industry leadership

Business outlook

Indias economy offers strong industrial growth prospects, supported by strategic government reforms across multiple sectors. The downturn in investments seen in FY2024-25 is expected to rebound amid government initiatives like Production Linked Incentive and business-friendly policies. Your Companys vision aligns perfectly with national priorities on sustainability and digitalisation, positioning it advantageously as government capital expenditure creates a multiplier effect through FY 2024-25.

Your Company is intensifying focus on high-potential infrastructure segments, such as railway electrification, data centres, and battery storage systems, providing substantial growth headroom. The emerging connectivity expansion promises unprecedented data proliferation, with India projected to reach 300 million subscribers by March 2025. Your Company stands future-ready as significant opportunities emerge.

The BESS market shows exceptional promise, projected to grow over 375 times by FY 2031-32. Concurrently, Indias data centre market advances at 21% CAGR toward 3,400 MW capacity by 2030, driven by digitalisation and favourable government policies. Your Companys expanded capacity positions it to penetrate warehousing, logistics, e-commerce, and aviation markets within the growing traction segment.

Despite promising horizons, your Company remains vigilant regarding potential challenges. The infrastructure

International Business

Exide has a global presence spanning over 60 countries. Your Company offers automotive batteries, traction batteries and reserve power solutions (I-UPS and Solar) to a diverse base of international clientele. We are now focused on staying closer to our international markets by leveraging the strengths of its subsidiaries, stationing employees in the key global locations and engaging product specialist commercial representatives in specific markets.

60+countries Global presence

Global industry dynamics

Major Automotive, Motive Power and Reserve Power markets were affected by protectionist environment, geopolitical issues such as conflicts, sanctions, increased logistics costs, disruptions in the supply chain, fluctuations in exchange rates, anti-dumping duties and non-tariff barriers imposed by various countries. All these factors have contributed to the complexity in global markets in FY 2024-25.

Demand was strong for automotive batteries in the international markets including USA followed by Asia Pacific and Middle Eastern countries. However, for the traction and standby batteries, European and GCC countries, which are the largest markets, saw a modest demand scenario.

Automotive Batteries

Exide has seen high double-digit growth in the international automotive batteries sales. The Company introduced AGM range of automotive batteries in Egypt, Gulf Cooperation sector faces execution delays and materials volatility. In telecom, the shift toward lithium-ion technology has affected traditional lead-acid demand, prompting Exides expansion into alternative sectors. Similarly, railways are transitioning from conventional to lithium-powered systems, though your Company has successfully secured orders for its MET70/MET120 batteries for LHB coaches.

Your Company maintains cautious optimism while monitoring geopolitical developments, interest rates, and input costs. With active discussions underway for submarine battery exports in FY 2025-26, it is strategically positioned to capitalise on emerging opportunities while reinforcing its leadership in the dynamic industry landscape.

Council (GCC) and Association of Southeast Asian Nations (ASEAN) markets. Additionally, the Company entered new regions to increase its geographical reach.

For the Company, strong production capabilities, extensive product range, shorter lead times, varied technologies, customised product offerings, start stop technologies in EFB and AGM, and advantages in exports logistic supply chain continue to play a key role in business expansion.

Traction and standby batteries

For the traction batteries, your Company has introduced new product Japanese Industrial Standard (JIS) traction cells in multiple countries, and the product has gained customer acceptance. Extensive range of JIS and DIN (Deutsche Industries Normen) traction batteries offer a diverse portfolio for customers to explore. Although traction and standby were impacted by the downturn in demand from the Middle-East due to prevailing geopolitical conflicts, your Company entered new geographies to increase its global presence and market share. We have successfully developed new channel partners across European and Asian regions, which has helped us secure ongoing business from these markets and supported our overall business expansion.

Opportunities, Threats, Risks and Risk Mitigation

Opportunities

Geographical Expansion and brand awareness

The Company has undertaken all possible efforts to increase presence in multiple regions such as Commonwealth of Independent States (CIS), both for automotive batteries and traction batteries. This will enable the Company to increase its geographical reach and reduce dependence on existing countries.

To increase our brand presence and customer connect, we also participated in multiple exhibitions across countries to showcase our range of innovative products and solutions. This provides an incredible opportunity to connect with industry leaders and global innovators.

Strengthening global teams

During FY 2024-25, we have invested more in fortifying our team by deploying additional manpower and independent commercial representatives in key geographies. Despite the challenges and uncertainties prevalent in global markets, our team has demonstrated resilience by adeptly managing the expectations of international channel partners. Our personnel in foreign markets keep in touch with customers and swiftly deliver on-site solutions when needed.

Risks and Concerns

Government policies can shift business dynamics in global markets. Any country or group of countries can impose anti-dumping duties over global suppliers making it very difficult for overseas suppliers to export to that country. Sanctions imposed over any country may change the business equation overnight since financial transactions with that particular country becomes difficult.

Increasing demand for EV and alternative energy sources pose threat to any lead-acid battery manufacturer. However, Exide is still looking forward to significant growth in sales volume in the coming years by leveraging its competitive advantages and growth drivers as mentioned above.

Outlook

Some global lead-acid battery manufacturers in both the Mobility and Industrial segments are strategically pulling back from further investments in the lead-acid storage business. In contrast, we at Exide India continue to invest in this segment, guided by our ‘last man standing mindset and the synergies created through our ‘One Exide approach, while also expanding our sales in international markets.

Research and Development

Your Company has made impressive headway in Research and Development (R&D), focused on innovation, sustainability and cutting-edge battery technology. Its R&D efforts are centred on meeting the evolving demands in mobility, reserve power and motive power applications, while staying aligned with the global trends in energy efficiency and carbon neutrality. Key notable developments are as below:

In the automotive sector, your Company is the only fully compliant manufacturer in the nation for the premium M3 rated EFB product. Regular shipments have been made to significant foreign OEMs in the nation. Your Company has also developed EFB and AGM VRLA batteries to facilitate the integration of features, such as, start-stop systems and regenerative braking in micro-hybrid vehicles. Additionally, it has introduced auxiliary batteries for two-wheelers and four-wheelers and specialised products for heavy mining machinery.

The EFB/ISS battery is quickly replacing the traditional starter battery and several OEMs have already made the decision to switch to SLI AGM to achieve the best recharge ability and longest lifespan. Our R&D team has been working closely with leading global technology partners such as East Penn Manufacturing (EPM) for introducing SLI AGM ranges. We are also rapidly converting our entire two-wheeler range to jar-formed, punched plate technology, which is helping us enhance product performance and drive cost efficiencies.

On the industrial front, your Companys R&D team has focused on BESS and data centres. They have developed AGM VRLA and T-Gel batteries for BESS applications and Front Terminal Planished Grid (FTPG) batteries for data centres. Your Companys containerised BESS solutions, ranging from 40 kWh to 1500 kWh, support renewable energy integration.

Sustainability is a key aspect of your Companys R&D initiatives. Your Company has introduced recycled Polypropylene Copolymer (PPCP) in battery manufacturing, transitioned to eco-conscious processes such as slurry filling for tubular plates and has integrated LNG-powered trucking into its logistics to reduce emissions. To further minimise environmental impact, your Company has integrated the utilisation of wet glass mats instead of dry ones.

Your Companys R&D efforts also include advancements in material science and robust manufacturing technologies. We have introduced Con-Cast technology for negative plates in tubular batteries, adopted 3D printing for rapid prototyping and developed foamable hot melt adhesives to reduce material consumption. These innovations optimise product performance while minimising costs.

Your Company plans to further invest in R&D to improve lead-acid battery technologies while exploring hybrid solutions that combine lead-acid with lithium-ion capabilities. Through international collaborations with key partners, it aims to sustain its leadership position in providing sustainable energy storage solutions.

Digitalisation Initiatives

During the year, your Company has implemented various digital initiatives to enhance efficiency and augment growth across verticals.

We introduced digital warranty registration to make post-sales experience seamless and paperless. With over 500,000 registrations every month, consumers no longer need to retain physical invoices or warranty cards. This initiative also reduces our carbon footprint and connect directly with consumers, strengthening our long-term brand loyalty.

We scaled up our hyperlocal marketing through Google My Business (GMB) listings. Today, over 1,700 ExideCare dealers receive 25,000+ qualified leads monthly, boosting footfalls and conversions. This effort enables stronger visibility and relevance in local markets.

Our channel partner apps have evolved into key engagement and relationship platforms. The Humsafar app now enables milestone tracking, rewards visibility and consistent communication across the network.

We launched our unified loyalty app for mechanics, fleet operators, and 2W garages. It provides a single digital interface for all influencer groups.

To deepen our rural penetration, we launched the Rural Wing app. This initiative enhances reach and service quality in underserved regions.

We simplified the warranty claims process with an integrated digital platform that coordinates smoothly between consumers, channel partners and Exide service team. This has resulted in faster resolution times, higher customer satisfaction and improved partner alignment.

We have expanded the utilization of Industry 4.0 tools in our factories to enhance yield, traceability and quality. A new warehouse management system (WMS) is being implemented to improve FIFO adherence, and reduce inventory ageing. In our solar business, we introduced the Exide Sunday Remote Monitoring System, which allows rooftop solar customers to track their systems performance in real time. This feature reflects our commitment to clean energy adoption and brings data-backed reliability to sustainable power.

Moving forward, your Company plans to focus on achieving incremental growth through digital channels, improving logistics and supply chain efficiency, transforming accounts and finance processes and enhancing IT resilience and cyber-

Technology Excellence Awards 2024 security. Through these initiatives, your Company aims to leverage digital technologies to drive growth, improve efficiency and enhance customer experience across its operations.

Highlights of Performance

Standalone Financial Results

Financial Results	FY 2024-25	FY 2023-24
Revenue from operations	16,588.11	16,029.19
Other income	96.16	84.54
Total Income	16,684.27	16,113.73
Earnings before depreciation,	1,893.14	1,871.38
finance cost, tax expenses &
exceptional item
Profit Before Tax	1,441.48	1,409.88
Profit After Tax	1,076.93	1,052.96
EPS (H Per share)	12.67	12.39

Key financial ratios

The key financial ratios for standalone financials are as per the below table

Particulars	FY2024-25	FY 2023-24
Debtors Turnover Ratio	12.02	12.59
Inventory Turnover Ratio	3.84	4.20
Interest Coverage Ratio	27.66	26.63
Current Ratio	1.51	1.63
Debt Equity Ratio	0.03	0.03
Operating Profit Margin (%)	11.41%	11.67%
Net Profit Margin (%)	6.49%	6.57%
Return on Net worth (%)	7.81%	8.65%

The formulae used for the computation of key financial ratios are as follows

Debtors Turnover Ratio	Net Sales / Average Trade Receivable
Inventory Turnover Ratio	Cost of Goods Sold / Average Inventory
Interest Coverage Ratio	Profit Before Interest and Taxes / Finance Costs
Current Ratio	Current Assets / Current Liabilities
Debt Equity Ratio	Total Debt / Shareholders Equity
Operating Profit Margin (%)	Profit Before Interest and Taxes / Net Sales
Net Profit Margin (%)	Profit After Tax / Net Sales
Return on Net worth (%)	Profit After Tax / Average of Total Equity

Under the SEBI (Listing Obligations & Disclosure Requirements) (Amendment) Regulations, 2018, the Company is required to give details of significant changes (i.e. change of 25 per cent or more as compared with the immediately previous financial year) in key sector-specific financial ratios, including debtors turnover, inventory turnover, interest coverage ratio, current ratio, debt-equity ratio, operating profit margin ( per cent ) and net profit margin ( per cent ) and details of any change in Return on Net Worth as compared with the immediately previous financial year along with a detailed explanation thereof.

Return on Net Worth for FY 2024-25 was 7.81%, compared with 8.65% in the previous year. The decrease in the ratio is due to increase in shareholders equity on account of OCI during the last two years.

All the above ratios have been disclosed in the notes to financial statements, as required by amendment notification dated 24th March 2021, in Division II of Schedule III to the Companies Act, 2013 and Companies (Audit & Auditor) Amendment Rules, 2021.

Internal Controls

IT Controls

Your Company has integrated IoT-enabled smart systems for real-time monitoring and control, AI-driven predictive maintenance to reduce equipment failures and costs and automation technologies such as Robotic Process Automation (RPA), Digital Twin and Drone to enhance operational efficiency. Your Company has recently implemented its AI systems in dealerships, which include advanced machine learning for better demand forecasting and inventory management and customer analytics tools to understand consumer behaviour and preferences.

We are supporting our business expansion by improving its IT framework by scaling cloud infrastructure, investing in advanced cyber security and integrating agile methodologies and DevOps practices. Additionally, we are implementing data management and analytics platforms to gather actionable insights and adopting AI and machine learning technologies to strengthen its IT capabilities.

Cyber Security

We made significant strides in strengthening our cybersecurity framework through the adoption of advanced technologies and industry best practices. Key initiatives included the enhanced Multi-Factor Authentication, and the integration of Managed Security Services (MSS) and SOC for 24/7 threat monitoring and rapid incident response. We also achieved TISAX certification, demonstrating our commitment to stringent information security standards, especially for our automotive sector clients. To further protect our network, we enforced comprehensive posture check management for all employees and vendors connecting to our systems, ensuring that only secure and compliant devices could access organizational resources. Our ongoing focus on employee cybersecurity awareness, accelerated vulnerability management and rigorous third-party risk assessments has resulted in measurable improvements across all major security metrics.

As a result of these collective efforts, we saw notable reductions in incident detection and resolution times, a substantial decrease in the number of systems with known vulnerabilities, and a marked increase in both policy compliance and vendor security standards. These achievements reflect our proactive approach to managing cyber risks and our unwavering commitment to safeguarding our digital assets and stakeholder interests.

Human Resources

During the year under review, your Company shifted its primary focus towards driving an organisational transformation through a unified ‘One EIL mind-set. To achieve this unity, your Company has realigned its leadership and teams, transitioning from a SBU-based model to a customer-centric one. The HR function has also been reorganised into Centres of Excellence (COEs) and Vertical Business HRs to optimise cross-functional operations and enhance collaboration. We aim to accelerate our growth, becoming agile, cohesive and more customer-focused through this transformational journey.

Leadership Development

Your Company has introduced a new set of eight leadership competencies—Exide Leadership Competencies (ELCs) to drive growth prospects. A ‘360-degree ELC Survey was implemented for senior leadership, offering insightful feedback on leadership style and work behaviour through input from peers, superiors, subordinates and self-evaluation. Through strong leadership development mechanism, we have integrated top-tier leadership talent across key functions.

Workplace Safety

Your Company is committed to providing equal opportunities to all employees, irrespective of their race, caste, sex, religion, colour, nationality, disability or any other distinguishing characteristic. We maintain a zero-tolerance policy towards sexual harassment in the workplace. In accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, we have established an Internal Complaints Committee (ICC) to address complaints and ensure compliance. Accordingly, it has implemented a comprehensive Policy on Prevention of Sexual Harassment which includes awareness-building initiatives and mechanisms for complaint redressal. The Apex and Regional Committees participated in workshops to enhance their understanding of roles and responsibilities under the Act. Additionally, employees have access to online e-learning modules covering key aspects of prevention, prohibition and addressing sexual harassment in the workplace.

Talent Management

During the financial year, your Company introduced People Committees across various functions as part of its talent review process. These committees consist of team leaders from each function, along with the respective business HR representatives. The objective of these committees is to assess each employee and categorise them within a 9-box talent matrix based on their performance and potential. This evaluation will provide key insights affecting future decisions on career development, job rotations and other talent management strategies.

Your Company introduced the ‘Exide Elevate Program to augment professional development. This includes Individual Development Plans (IDPs), upskilling, special assignments and mentorship for critical talent. During the year, an Organisational Health Index (OHI) survey was also conducted to assess employee engagement, culture and overall organisational effectiveness. Your Company has established a platform called ‘You Did It that publicly recognizes and rewards top performers.

Industrial relations at all the plants remained harmonious throughout the year, with successful wage settlements. We have adopted industry best practices and transformed our work culture through the implementation of measures such as Total Quality Management (TQM), flexible manufacturing, productivity enhancements, workmen engagement, plant trainee schemes and quality circles. Through these initiatives your Company aims to strengthen its leadership position in India and other key global markets.

As of 31 March 2025, the Company employed a total of 5,135 people. We sincerely thank all our employees for their dedicated contributions to the Companys performance and growth.

Cautionary Statement

The Management Discussion and Analysis Report may contain ‘Forward-Looking Statements, describing your Companys outlook, projections, estimates, expectations and predictions, within the meaning of applicable securities laws and regulations. Actual performance may materially differ from that expressed or implied.