Shares approach a 52-week high after robust buying interest, with analysts optimistic about steady growth in the lead-acid battery business and the upcoming commercialization of Exide's lithium-ion manufacturing facility.

Exide Industries shares rallied more than 7% in Thursday's trading session, emerging among the top gainers in the market as investors responded positively to the company's strong business outlook and long-term growth strategy. The rally was accompanied by a sharp rise in trading volumes, indicating renewed institutional and retail interest in the battery manufacturer.

The stock climbed to an intraday high of ₹415.85 on the BSE, moving closer to its 52-week high of ₹430.85. From its 52-week low of ₹286.35 touched in March 2026, the stock has rebounded by nearly 45%, highlighting the improving sentiment surrounding the company.

The strong rally significantly outpaced the broader market, with Exide Industries outperforming benchmark indices as investors continued to accumulate shares on expectations of sustained earnings growth and future opportunities in India's electric vehicle (EV) ecosystem.

Heavy Trading Volumes Reflect Strong Investor Participation

The surge in Exide Industries was supported by unusually high trading activity.

Combined trading volumes across the NSE and BSE crossed 8.8 million shares, nearly three times the stock's average daily volume. Such a sharp increase in volumes typically indicates strong participation from institutional investors alongside active buying by retail participants.

Market experts believe investors are increasingly recognising Exide's ability to generate stable earnings from its traditional battery business while simultaneously investing in future technologies that could unlock long-term value.

Core Lead-Acid Battery Business Remains a Key Growth Driver

While much of the market's attention is focused on lithium-ion batteries, Exide's conventional lead-acid battery business continues to deliver consistent performance.

The company remains one of India's largest organised battery manufacturers, enjoying a dominant position across automotive and industrial battery segments.

Its product portfolio serves multiple industries, including passenger and commercial vehicles, two-wheelers, railways, telecom infrastructure, industrial UPS systems, solar power storage, home inverters, motive power applications and defence.

According to the company's latest annual report, over 90% of its existing businesses are currently recording double-digit growth, reflecting healthy demand across both automotive and industrial segments.

The automotive replacement market continues to remain the company's largest revenue contributor, supported by India's growing vehicle population and rising replacement demand.

Lithium-Ion Manufacturing Enters an Important Phase

The biggest long-term growth catalyst for Exide Industries is its expansion into lithium-ion battery manufacturing.

The company has invested nearly ₹4,800 crore in developing a greenfield lithium-ion cell manufacturing facility in Bengaluru. Commercial sampling has already commenced, indicating that the project is gradually moving toward commercial production.

Exide currently operates in the lithium-ion segment through two businesses:

• Nexcharge, which manufactures lithium-ion battery packs with an installed capacity of approximately 1.5 GWh.

• Exide Energy Solutions, which is establishing a large-scale lithium-ion cell manufacturing plant with a planned capacity of 12 GWh.

The first phase, comprising around 6 GWh of production capacity, is expected to be commercialised in the near future and is likely to become an important contributor to future earnings.

Positioned to Benefit from India's EV Revolution

India's rapid transition toward electric mobility is expected to create significant demand for domestically manufactured battery cells.

Government initiatives encouraging localisation of battery manufacturing, combined with increasing electric vehicle adoption, are creating a favourable environment for companies investing in advanced energy storage technologies.

Automobile manufacturers are increasingly looking for reliable domestic suppliers to reduce dependence on imported battery cells, particularly from China.

Strengthening its presence in the EV ecosystem, Exide recently entered into a strategic Memorandum of Understanding (MoU) with Hyundai Motor and Kia to collaborate on battery solutions for India's electric vehicle market.

This partnership is expected to enhance Exide's visibility within the rapidly expanding EV supply chain.

Legacy Business Provides Financial Stability

One of Exide's biggest competitive strengths is its ability to fund future growth through strong cash generation from its established businesses.

Management believes the lead-acid battery segment can continue delivering high single-digit to low double-digit growth over the coming years, supported by healthy demand across automotive OEMs, replacement batteries, industrial power backup, renewable energy storage, railways and infrastructure projects.

Growth opportunities also remain strong in specialised applications such as submarine batteries, defence equipment, telecom infrastructure and data centre backup systems.

This diversified revenue base reduces business risk while supporting continued investments in next-generation battery technologies.

Analysts Remain Bullish on Long-Term Prospects

Brokerage firm ICICI Securities continues to maintain a positive outlook on Exide Industries, citing the company's balanced growth strategy and improving business fundamentals.

According to the brokerage, the company's core lead-acid battery operations continue to generate stable earnings while the lithium-ion manufacturing project is steadily progressing toward commercialisation.

Given the limited financial visibility during the initial phase of production, ICICI Securities currently values the lithium-ion business based on the capital invested rather than projected earnings.

The brokerage has maintained its 'Buy' recommendation with a Sum-of-the-Parts (SOTP)-based target price of ₹480 per share.

Its valuation incorporates the company's traditional battery business, investments in subsidiaries, and the long-term value creation potential of its lithium-ion manufacturing venture.

Risks Investors Should Monitor

While Exide's long-term outlook remains favourable, investors should monitor a few key risks.

The pace of commercialisation at the lithium-ion manufacturing facility, competitive intensity in the battery industry, fluctuations in raw material prices such as lithium and lead, and the speed of electric vehicle adoption in India could all influence future earnings.

Additionally, execution risks during the scaling-up phase of lithium-ion production remain an important factor to watch.

Outlook

Exide Industries appears well-positioned to benefit from India's evolving energy storage landscape. The company's dominant presence in the lead-acid battery market provides stable cash flows, while its ambitious investments in lithium-ion technology offer meaningful long-term growth opportunities.

With healthy demand across legacy businesses, strong balance sheet support, strategic partnerships in the EV ecosystem, and the upcoming commercialisation of its lithium-ion facility, Exide Industries is steadily transforming into a diversified energy storage company. If execution remains on track, the company could play a significant role in India's transition toward electric mobility and clean energy solutions over the coming decade.