Exide Powers Ahead with Lithium-Ion Cell Venture Despite Cash Flow Challenges

Exide Industries is navigating a decrease in operating cash flows while forging ahead with its ambitious lithium-ion cell manufacturing venture. The company plans to fund the remaining capex for Phase I using predominantly internal accruals, even as it experienced a drop in operational cash from Rs 1,996.5 crore in FY24 to Rs 1,297.9 crore in FY25.

The decline is largely attributed to a significant rise in receivables and inventory, with receivables escalating to Rs 314 crore and inventory levels reaching Rs 578 crore. Despite these challenges, Exide's pre-working capital cash flow for FY25 was reportedly better than the previous year by Rs 55 crore, setting a solid foundation for future projects.

Exide's commitment to its lithium project is underscored by an additional Rs 300 crore investment in its subsidiary in April 2025, bringing the total equity investment in Exide Energy Solutions Ltd to Rs 3,602.23 crore. The company is estimating a capex of Rs 5,000 crore for the first phase, with commercial operations expected to commence in FY26 without relying heavily on debt.

(With inputs from agencies.)