Kolkata, Nov 14 (PTI) Exide Industries Ltd on Friday reported a 26 per cent decline in consolidated net profit to Rs 173.64 crore for the quarter ended September, impacted by a transitional phase due to GST changes.

The company had posted a consolidated net profit of Rs 233.40 crore in the corresponding quarter a year ago, Exide Industries said in a regulatory filing.

Consolidated revenue from operations saw a marginal decline of 1.9 per cent to Rs 4,364.51 crore during the quarter, down from Rs 4,450.00 crore a year earlier.

For the half-year ended September 2025, consolidated net profit was 1.3 per cent lower at Rs 448.22 crore, compared to Rs 454.15 crore in H1 FY’25.

The company's performance in the quarter was impacted by the transition to the new GST regime, which saw tax rates on batteries reduced from 28 per cent to 18 per cent effective September 22, 2025, it said.

In a release, Exide Industries stated that the GST 2.0 reform was a "welcome move" expected to drive consumption, but it led to channel partners postponing purchases in anticipation of new stocks with updated prices, resulting in muted demand in the latter half of the quarter.

Commenting on the results, Avik Roy, MD & CEO, said, "We had a strong first half of the quarter until mid-August... The growth was muted in the second half, especially in trade business, driven by channel de-stocking. However, it is a welcome move by the government, as it will drive demand in H2 FY’26." The company also highlighted that its liquidity position remains comfortable with zero debt, and construction of its lithium-ion cell manufacturing project is progressing in full swing, with commercial operations expected to begin towards the end of FY’26. PTI BSM RBT

Exide Industries saw profit fall after GST rate cuts on batteries prompted channel de stocking and muted quarterly demand. The GST 2.0 reduction of battery tax from 28% to 18% produced channel de stocking and muted trade demand, leading the company to report a 26% YoY decline in consolidated quarterly net profit to Rs 173.64 crore and a 1.9% drop in quarterly revenue to Rs 4,364.51 crore; management highlighted the reform as demand supportive, confirmed zero debt, and stated that construction of a lithium ion cell plant is progressing with commercial operations expected toward year end.