210 GWh demand, 1.4 GWh capacity: The massive battery opportunity 2 industry giants are chasing

To give domestic manufacturing a greater push, the government also launched the Production Linked Incentive scheme in May 2021 with a total outlay of ₹18,100 crore. The scheme aims to support companies in establishing 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity.

However, domestic manufacturing is yet to catch up. The country has installed only 1.4 GWh of capacity. This leaves a huge vacuum to fill.

Bridging India’s 208 GWh Lithium Deficit

According to the Ministry of Commerce and Industry, India’s lithium-ion imports have increased more than 10X, from ₹3,532 crore in FY18 to ₹37,624.6 crore during the eleven-month period ending February FY26. Imports stood at ₹25,458.6 crore in FY25 and have already risen by another 48% in the first 11 months of FY26.

The widening gap between demand and local production is only increasing reliance on imports. At the same time, it is creating a significant opportunity for companies investing in the country’s battery manufacturing ecosystem.

Against this backdrop, here’s a snapshot of how these two companies are expanding their lithium-ion manufacturing capabilities.

Metric	Amara Raja	Exide Industries
Total Planned Investment	₹9,500 crore	₹6,000-6,500 crore
Cell Manufacturing Capacity	16 GWh by FY30	6 GW
Current Battery Pack Capacity	2.7 GWh	Module & Pack Business Operational
Commercial Cell Production	Q2FY28	FY27
Key Chemistries	NMC 811, LFP	NMC, LFP
Technology Partner	Gotion (Complicated)	SVOLT
Key Focus	EVs+BESS	EVs, Telecom, BESS
Long-term Strategy	Integrated Battery Ecosystem	Import Substitution, Localisation
Source: Annual Report and Investor Presentation

Now, let’s dig deeper…

#1 Amara Raja: Inside the ₹9,500-Cr Bet to Pivot from Lead-Acid to Lithium Giga Corridor

Amara Raja & Energy (Amara Raja) is heavily expanding into the lithium-ion battery space through its New Energy Business. Amara Raja currently operates two main lithium-ion pack assembly facilities with a total capacity of 2.7 GWh. The lithium-ion segment is currently operational and growing rapidly.

New Energy Segment: Assessing the Q4 Revenue Scaling and Margin Drag

In Q4FY26, the New Energy business generated around ₹280 crore from the sale of battery packs and chargers. The segment is seeing strong momentum, with Q4 performance nearly 1.5 times the previous year’s revenue. This accounted for about 8% of its Q4FY26 revenue.

The Giga Corridor Pipeline: Scaling to 16 GWh by FY30

Amara Raja is building a Giga Corridor in Telangana with a capital expenditure of ₹9,500 crore. The ultimate goal is to establish a 16 GWh cell manufacturing capacity by FY30. The first phase (2 GWh) production line is currently on track for commercialisation in June 2027 (Q2FY28).

Giga 1 will initially produce India’s first 21,700 cylindrical cells using NMC 811 chemistry. The company considers this cell highly relevant to the domestic 2-wheeler market. Additional capacity using Lithium Iron Phosphate chemistry will be introduced in phases by 2028.

Captive Demand & Market Targets: The Strategic Value-Chain Integration

To support the adoption of renewable energy, Amara Raja is also building a Battery Energy Storage System (BESS) integration facility in Divitipally. The facility will start with an initial capacity of 5 GWh and a target of expanding to 10 GWh. The company plans to invest ₹280 crore with commercialisation expected in Q4FY27.

Management expects initial operating margins of around 6-7% for this business. However, as it scales up to 8-10 GWh and eventually begins manufacturing its own ESS cells, it expects the EBITDA margins to expand to 10% to 11% range.

Source: Amara Raja Investor Presentation

Engineering and Chemistry Pivots: The Long-term Revenue Play

To ensure the success of mass manufacturing and develop proprietary technology, Amara Raja is investing in pre-production infrastructure. A research and development center in Hyderabad is expected to commence operations in Q2FY27. Amara Raja is deploying 200+ engineers to develop Nickel Manganese Cobalt and Lithium Iron Phosphate battery chemistries.

The ultimate revenue potential is tied to the projected growth of the Indian lithium-ion market. By 2031, the company estimates the annual domestic demand of roughly 100 GWh for electric vehicles and 25-30 GWh for stationary/BESS applications.

Amara Raja intends to capture a significant portion of this market through its manufacturing capacity. Amara Raja’s strategy is to secure revenue by becoming its own customer. The company plans to use the cells manufactured to directly supply its 5 GWh BESS integration facility.

Financial Performance: Balancing Legacy Volume with New Energy Capex Drag

From a financial perspective, revenue rose 7.5% year-on-year to ₹13,814 crore in FY26, driven by a 20% volume increase in the automotive segment. EBITDA declined by 7.4% to ₹1,497.1 crore, as margins contracted 175 bps to 10.8%. Margins were impacted by the ongoing ramp-up of production in the new energy business. Net profit fell 5.2% to ₹895.8 crore.

Amara Raja Share Price

#2 Exide Industries: Building India’s ₹6,500 Crore Battery Bet

Exide Industries is making a major push into the new energy segment, specifically lithium-ion battery manufacturing. The company’s goal is to transition from relying on imported cells to offering a fully localized Make in India battery ecosystem.

Capital Allocation: Tracking the ₹6,500 Crore Lithium Subsidiary Pipeline

Exide is setting up an advanced chemistry cell manufacturing platform in Bengaluru and a multi-line plant for pack and module manufacturing in Gujarat. In FY26, it has invested ₹1,500 crore in its lithium-ion venture, and the total equity investment in Exide Energy (its subsidiary) stands at ₹4,802 crore as of March 2026.

It aims to invest ₹1,400 crore in FY27, covering both capital expenditure and working capital requirements for Phase I. This brings the overall expected investment near ₹6,000-6,500 crore. The investment roughly matches the proceeds from the sale of its life insurance business to HDFC Life.

Gigafactory Architecture: Phase I Form Factors and Chemistry Focus

The Gigafactory is nearing completion, with over 95% of utilities ready across all four lines. This manufacturing plant is capable of handling multiple chemistries and form factors to serve diverse end-markets. The first phase of the cell manufacturing project has a planned capacity of 6 GW.

Of this, 3 GW is for cylindrical cells (focused on Nickel Manganese Cobalt chemistry) and 3 GW for prismatic cells (focused on Lithium Iron Phosphate chemistry). Cylindrical cells will cater to two-wheelers. Prismatic cells will serve four-wheelers, buses, and stationary applications such as the telecom sector and BESS.

Validation Timelines: The Import Substitution and Cost-Parity Targets

Exide is already generating ₹100-200 crore in revenue from its module and pack business using imported cells, but it is now moving towards manufacturing its own cells. For the cylindrical cells, the processes and internal validations are complete.

And sample deliveries to customers are expected to begin around May or June 2026. However, these cylindrical cells will undergo extensive customer validation and homologation, which will take 2-3 months or even longer, depending on the customer.

Operational Timelines vs. Customer Onboarding Realities

On the other hand, for the prismatic cells, trials for customer samples are currently underway, with deliveries targeted by July 2026. Because these are targeted at institutional customers (automotive, telecom, and BESS) and trade channels, they do not require the lengthy 2-3-month validation process.

As a result, revenue generation from prismatic cells is expected to commence sooner than that from cylindrical cells.

The Chinese Parity

Notably, Exide aims to match the production yield and cost of its cells to those imported from China. Exide’s goal is to achieve an operational yield of 90% and a plant capacity utilization of more than 85%. Exide aims to successfully match the landed price of imported Chinese cells by optimizing yields and localizing raw materials.

Furthermore, to strengthen its lithium-ion capabilities, Exide relies on technology support from SVOLT, a global lithium-ion cell player. Furthermore, Exide has secured a separate contract and co-investment with Hyundai Kia. This partnership is independent of the initial 6 GW capacity.

FY26 Financial Metrics: Stable Core Operations Leverage Strategic Joint Ventures

From a financial perspective, standalone revenue rose 4.1% year-on-year to ₹17,269 crore in FY26, driven by 7.5% growth in domestic business. EBITDA grew by 2.6% to ₹1,943 crore, with margins at 11.3%. Net profit (PAT) increased by 3.2% to Rs. 1,111 crore.

Exide Share Price

Comparative Valuations: Return Profiles Underpinning the Trading Multiples

Amara Raja’s Return on Capital Employed (ROCE) and Return on Equity (ROE) are higher than Exide’s, indicating superior capital efficiency.

From a valuation perspective, Amara Raja’s stock trades at a high discount to the industry median, though at a slight premium to its own 5-year historical median. In contrast, Exide’s stock trades at a premium relative to both its historical and the industry median.

Valuation Comparison (X)
	Price-to-Earnings Multiple		Return Ratios
Company	P/E	5Y Median	ROCE (%)	ROE (%)
Amara Raja	19.9	18.0	13.5	10.0
Exide	37.6	28.9	8.8	6.2
Industry	27.8	–	15.9	13.5
Source: Screener.in (Data as of 19 June 2026)

India’s lithium-ion battery demand is projected to rise from 40 GWh in 2025 to 210 GWh by 2030, yet the country has installed only 1.4 GWh of domestic cell manufacturing capacity so far.

As this gap continues to widen, companies investing early in local battery production could play a key role in reducing dependence on imports. But the long-term opportunity will lie not only in capacity expansion but also in execution, technology adoption, and the ability to compete with low-cost global manufacturers.

Nonetheless, these names could be kept in your watchlist to track their execution.

Disclaimer:

Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were not available have we used an alternative, widely used, and accepted source of information.

The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Madhvendra has over seven years of experience in the equity markets, combining his expertise in financial writing with a deep interest in investing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.

A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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