SYNOPSIS: India’s battery majors delivered mixed Q3 FY26 results. While one reported a sharp profit decline despite stable revenue, the other posted steady earnings growth, backed by OEM strength and industrial demand momentum.
Battery energy storage installations in India are projected to surge nearly tenfold in 2026, marking a decisive turning point for the country’s energy storage sector. According to the India Energy Storage Alliance, capacity additions are expected to rise sharply from about 507 MWh in 2025 to nearly 5 GWh in 2026. This acceleration follows multiple years of tender activity that have now translated into a robust project execution pipeline.
This anticipated surge in energy storage capacity could play a pivotal role in meeting rising power demand and advancing India’s decarbonisation goals, particularly as renewable energy penetration deepens and grid stability becomes increasingly critical.
Within this evolving industry landscape, Amara Raja Energy & Mobility Limited and Exide Industries Limited have emerged as two key players shaping India’s domestic batteries market. This article takes a closer look at how both companies performed in Q3 FY26, along with other key business updates.
Company Overview & Stock Movement
With a market cap of Rs. 15,576 crores, shares of Amara Raja Energy & Mobility Limited surged nearly 1 percent to hit an intraday high at Rs. 860 on BSE. Amara Raja Energy & Mobility Limited is one of the largest manufacturers of lead-acid storage batteries for industrial and automotive applications in India. It is also engaged in the development and manufacturing of energy storage & management products, solutions and technologies related to lithium cells or such other Advanced Cell Chemistries (ACC), battery packs and components like chargers, etc.
Meanwhile, shares of Exide Industries Limited moved down by nearly 1 percent on BSE to hit an intraday low at Rs. 339.45 on Thursday, with a market cap of Rs. 28,866 crores.
Exide Industries Limited is primarily engaged in the business of manufacturing storage batteries and allied products in India, and is the only battery manufacturer to have three large lead recycling plants. The company serves end consumers through its portfolio that spans across mobility (2W, 3W, 4W), home energy storage, solar applications and last-mile connectivity like e-rickshaws.
Financial Performance
For Q3 FY26, Amara Raja reported a consolidated revenue from operations of Rs. 3,410 crores, reflecting around 2 percent QoQ decline compared to Rs. 3,467 crores in Q2 FY26, but a year-on-year increase of around 4 percent from Rs. 3,272 crores recorded in Q3 FY25.
Net profit stood at Rs. 140 crore, indicating a decrease of more than 49 percent QoQ from Rs. 276 crores in Q2 FY26, while on a year-on-year basis, the profit moved down by nearly 53 percent from Rs. 298 crores reported in Q3 FY25.
Meanwhile, for Q3 FY26, Exide Industries reported a revenue from operations of Rs. 4,201 crores, reflecting a sequential decline of around 4 percent QoQ compared to Rs. 4,365 crores in Q2 FY26, but an increase of around 5 percent YoY from Rs. 4,017 crores recorded in Q3 FY25.
Net profit stood at Rs. 195 crores, rising by around 12 percent QoQ from Rs. 174 crores in Q2 FY26, while on a year-on-year basis, the profit moved up by over 23 percent from Rs. 158 crores reported in Q3 FY25.
Business Highlights
Amara Raja delivered a healthy performance across its core segments during the quarter. Strong growth in the automotive business was led by rising OEM volumes, particularly in the domestic four-wheeler and allied segments. The Industrial battery segment maintained steady momentum, supported by stable demand in the UPS segment, while telecom customers continued transitioning toward advanced lithium-ion battery solutions. Export performance, however, remained under pressure due to geopolitical disruptions affecting global trade.
The New Energy Business marked a key milestone during the quarter, generating over Rs. 200 crore in revenue, driven by robust domestic demand for Telecom battery packs.
For Exide Industries, the Auto OEM segment emerged as the fastest-growing vertical, achieving its highest-ever quarterly revenue with growth exceeding 25 percent YoY. The two-wheeler and four-wheeler replacement segment also recorded its highest quarterly revenue, sustaining double-digit YoY growth.
The Industrial Infrastructure business (excluding Telecom) posted double-digit growth on a YoY basis, aided by improved order inflows and execution across sectors such as railways and traction. The Inverters and Solar business rebounded following a monsoon-led slowdown, with a positive outlook ahead of the peak season. However, exports witnessed a decline due to tariff-related challenges.
Meanwhile, Exide Energy Solutions Limited (EESL) continues to make steady progress on its project site. The company invested Rs. 320 crore during Q3 FY26 and an additional Rs. 50 crore in January 2026. With this, total equity investment in EESL has reached Rs. 4,252.23 crore, including investments made in the erstwhile merged entity EEPL.
Conclusion
Overall, Q3 FY26 reflected contrasting performance trends for the two battery majors. While one company reported stable revenue but significant pressure on profitability, the other demonstrated relatively resilient earnings supported by strong OEM and replacement demand.
Both players continue to benefit from steady domestic automotive activity and improving traction in industrial applications, even as export markets remain affected by external challenges. Importantly, investments in advanced chemistry cells and lithium-ion capabilities signal a long-term strategic shift toward new energy opportunities.
As India’s energy storage ecosystem evolves, execution discipline, margin management, and the pace of capacity ramp-up in new energy businesses will remain key monitorables for both companies in the coming quarters.
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