From mint · Ashish Agrawal · · 1m
Exide beats Amara in Q2, lithium-ion returns decide winner
Exide's Q2 profit surge outpaces Amara despite heavy lithium-ion investments.
In brief
Exide's Q2 profit surge outpaces Amara despite heavy lithium-ion investments. Exide's 54% Ebitda growth beats Amara's 5% decline in Q2 as lithium-ion returns determine future success. Originally reported by mint.
Q2 results contrast
Exide's Ebitda rose 54% year-on-year to ₹ 606 crore while Amara's fell 5% to ₹ 386 crore.
Price hikes and margins
Exide raised four-wheelers by 10% and two-wheelers by 5% while Amara increased prices only 2% in Q2.
Lithium-ion investments
Exide began commercial production at LFP battery plant while Amara plans Q4FY27 commercial production for energy storage.
Investment scale
Exide invested ₹ 5,352 crore in EESL while Amara invested ₹ 2,320 crore in new energy facilities.
Market risks
Both face risks from high capital costs and unproven lithium-ion technology viability.
Profitability challenges
Amara's higher procurement costs and interest expenses threaten profitability while Exide faces limited market access.
Stock performance
Exide down 3% this year vs Amara Raja's 22% drop despite both correcting 29% from 52-week highs.
At a glance
Exide's 54% Ebitda growth beats Amara's 5% decline in Q2 as lithium-ion returns determine future success.
