Exide Industries’ (EXID) Q1FY25 revenue increased by 5.9% YoY coming in-line with consensus and our estimates. Gross profit grew by 15% YoY, despite rise in prices of some of the key raw materials gross margin expanded by 243bps YoY to 30.7%. EBITDA grew by 14.4% YoY while margin expanded by 85bps YoY to 11.5%. Other expenses in proportion to sales increased by 126bps YoY which saw EBITDA margin come in 120bps lower than our expectations. PAT increased by 15.6% YoY. The demand outlook in both OEM and replacement market is expected to remain optimistic which will drive the growth. Additionally, increased capex in private as well as public sectors augurs well for its Industrial Division. Additionally, the commencement of its Lithium-Ion battery plant in the given timeline shall prove to be the next leg of growth as it has already signed a non-binding MoU with leading industry OEMs.
OutlookWe maintain our forecasts and estimate its revenue/EBITDA/PAT to grow at a CAGR of 13.7%/21.9%/29% over FY24-26E and retain ‘Hold’ rating with TP of Rs 559 on SoTP.
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