Core momentum solid, lithium sampling phase—capex not yet productive

Delivered ₹5,528.4 Cr, +17.7% YoY

Core margin expansion 20 bps YoY despite cost headwinds

Volume growth in 4W OEM 21%, 2W OEM 20%, 4W replacement 10%, solar 12–14%

Sequential margin leverage confirmed; pricing 4–6% + cost control offset input headwinds

Samples just started; commercial production timeline vague; still 25–30% utilization target

Q1 delivered 17.7% revenue growth on broad 2W/4W/solar/inverter strength; auto OEM now at 25% 3Q consecutive vs. low base FY26

Board reaffirmed ₹1,400 Cr investment for FY27; ₹100 Cr deployed in July; no upgrade or cut to ₹7,000 Cr phase 1–2 framework

Sampling commenced but only at pilot scale; 25–30% utilization target for FY27 is 1/4 of installed 6 GWh capacity; commercial traction still speculative

Chinese export controls on raw materials effective November; no embargo yet but added procurement friction; localization target 50–60% in 2–3 years (not immediate)

Acknowledged delays; no longer expected FY27; customization line will not launch this calendar year

Volume double-digit across most businesses (4W replacement 10%, 4W OEM 21%, 2W OEM 20%, solar 12–14%). Price benefit 4–6% YoY. No new contract wins, business as usual.

Cannot give FY guidance. H1 auto OEM base was very low; post-GST boom from Q3 FY26 onward, high base effect in H2. Passenger vehicles 1.2M→1.4M production levels. Q1 seasonally strong (inverter season). Last year early monsoon hurt inverter demand Q1.

Yields improving. Complex startup, process benchmarking ongoing. Real yield visible only at 3-shift full operation. Sample level hard to test full-scale yield. Technology partners helping (NMC and LFP sides).

Starting with 2 lines (1 NMC, 1 LFP). Can fairly quickly load if yields improve. Demand not an issue; 2W market exists (imported cells today). 3W, telecom, stationary—markets exist, just switching to Indian cells.

Not supposed to tell strategy yet. Good signal from government. We are a serious player studying fine prints. Set up 6 GWh without PLI support in phase 1.

Too early to comment on margins. Chinese export VAT reduced 9%→6%, reverting Jan 1. Chinese EV factories loaded; battery makers fully utilized. Overcapacity of last year now absorbed by domestic Chinese demand. These drivers should work in our favor.

15–25% range depending on season.

Cell import duty currently 5%. Need 2–3 more serious players to reach 15–18 GWh local capacity. Then government will likely implement approved cell manufacturers list (like solar). Have had conversations; depends on whether OEMs willing to accept higher EV prices or cut production.

Talking to all major OEMs (legacy and new). About 3 OEMs covering ~80% of EV volume. All 3 in homologation process. Will not get 100% volume initially, be another supplier. These customers cover 80–85% of Indian EV market share.

2 LFP lines: Line 1 for 3W/telecom/stationary. Line 4 (under commissioning) for 4W OEMs. Now seeing major interest from 4W OEMs. Talking to at least 1–2 major 4W OEMs. Will need Line 4 commissioned by end of FY27. No 100% volume, another supplier.

Q1 price correction 4–6% across categories. Q2 no decision yet, closely monitoring. Dynamic approach as before, stepping 2%, 1%, 2% as input costs warrant.

Very difficult to say in rupees (depends on commodity prices). 6 GWh capacity, provision for 12 GWh. Put a number around gigawatt hours and that should be revenue depending on commodity prices.

Not in public domain yet. Will apply for incentives after official production start declaration. Public disclosure will follow if applicable.

Not at this moment. India must learn lithium first. Zero knowledge in India on lithium. Must master this first, then think of other chemistries.

Allocate ~₹500 Cr annually to core lead-acid (manufacturing tech, automation, capacity). Debottlenecking approach, not full lines. 5 SLI factories, all have brownfield expansion headroom. Aware of 2.5–3 year replacement cycle from current auto production.

LFP format, large format cells 300+ Ah for BESS. Line 4 (second LFP line) next target. Lower gestation than OEMs (project-based, tender-based, no homologation required).

Yes, stand by it. Line 3 LFP will utilize faster than 2W line due to shorter time-to-market. Yield will be good enough to reach that utilization.

Board approved ₹1,400 Cr for this fiscal year. Will review if needed. ₹100 Cr deployed in July. Rest in upcoming months.

Might change +/– due to currency rates (imports). Phase 2 won't require as much (land/utilities already done). Might exceed plan due to changed business case. Will fund from operational cash flows.

Discussion ongoing in parallel. Won't come this calendar year or fiscal year. Co-investment, customization line. Delays being faced.

Very less, ₹100–200 Cr. Not profitable (low value add with imported cells; not long-term viable without own cell).

Supplied samples to OEMs. Homologation process time-consuming. Will then get back for serial production (normal process). Mainly 2W and 3W; not started 4W yet.

2W, 3W, telecom, stationary: 2 lines fully operational out of 4. Even with partial utilization of these 2 lines, reach 25–30% total factory utilization. Depends on yield how quickly reach capacity.

Raw material still from China (samples only at this stage). Talking to Indian companies with plans to invest; doing pilots. Takes 3–5 years for India to develop own sourcing.

No embargo yet. Export control announcement doesn't cover raw material yet (effective November). No embargo, only additional approvals (export control). From Nov, will need to monitor, possibly keep higher inventory. Operational topic.

Phase 2 mostly LFP, most likely.

Won't name others. That's analyst job to find out. If you get information, happy to know what others doing. Will see physical progress.

Currently importing (tech partners' established supply chain). Not using untested suppliers. Talking to large Indian manufacturer (listed company). Doing running pilot. First component to be localized likely electrolyte (large company, serious, has technology).

Target 50–60% BOM localized in 2–3 years. Talking to multiple companies for all components (electrolyte, positives, negatives). If reach 50–60% in 2–3 years, will be very happy.

Lucky to have completed tech tie-ups and factory setup before embargoes. Licensed 4–5 products. Invested in pilot line; 100+ R&D engineers in Bangalore. Pilot plant by end of calendar year. Main line came first (vs. others who did reverse, now facing machinery embargo delays). In case future no tech licenses, at least 4–5 products will continue; parallelly develop own know-how on pilot line.

Yes, Korean options available technologically. Only thing they are costlier than Chinese.

MD declined, citing visibility challenges and high H2 base effects post-GST boom Q3–Q4 FY26

Q1 17.7% achieved; H2 automotive OEM comparables high, replacement market supports longer term

Conditional on yield improvements, customer approvals. 2 lines (1 NMC, 1 LFP) to drive early ramp

MD said margins uncertain; dependent on competitive pricing, volumes, yields, commodity costs

EBITDA margin 12.4% Q1; Q2 price decisions pending based on cost evolution; cost excellence program ongoing

Total phase 1–2 capex ~₹7,000 Cr (±currency adjustment); phase 2 lighter than phase 1 (shared utilities)

5 SLI factories with headroom for expansion; no major new-line capex planned

Samples only at quarter-end; yields improving but unproven at scale; 2–3 major OEMs in homologation (lengthy process). Commercial revenue may slip beyond FY27.

₹4,902 Cr cumulative invested; ₹1,400 Cr FY27 approved. PAT only ₹351 Cr FY27. Payback depends on reaching 50–60%+ utilization within 3–5 years.

Chinese export controls on raw materials effective November 2026. Currently 100% import; no buffer. Localization target 50–60% takes 2–3 years. Interim inventory costs may compress margins.

Chinese cell manufacturers fully loaded (domestic demand high post Middle East disruptions); may not dump prices. But if capacity becomes available, price war risk high. VAT rebate reversal Jan 27 unknown. Exide early-stage, yields low, pricing power limited.

H1 FY26 auto OEM base was very low (pre-GST rationalization). Q1 FY27 saw 25% growth on that low base and peak season tailwind. H2 FY27 will face high comparables (Q3–Q4 FY26 boomed post-GST). Sequential growth likely to moderate significantly.

Lead LME range-bound in USD, but Rupee depreciation puts pressure. Q1 took 4–6% price correction. Further depreciation or input cost spikes may compress margins if pricing lags.