Tag: profit surge

  • Exide Industries Q1 Profit Surges 27% but Stock Falls on Margin Concerns

    Exide Industries Q1 Profit Surges 27% but Stock Falls on Margin Concerns

    Exide Industries reported strong Q1 FY27 results on July 31, but its shares traded lower during the day. The stock fell nearly 1.4% to Rs. 446.55 despite improved profit and revenue. Investors are cautious as increasing raw material costs are pressuring margins, while brokerage Citi stayed positive on the company’s overall business growth.

    The company posted a net profit of Rs. 407 crore in the April to June quarter, up 27.2% from Rs. 320 crore a year ago. Revenue increased 17.6% to Rs. 5,305 crore from Rs. 4,510 crore. EBITDA also rose 19.3% to Rs. 655 crore, while the EBITDA margin remained almost flat at 12.3%. Citi said the quarterly performance was better than expected and pointed to healthy revenue growth across major business segments.

    Exide Industries recorded strong demand in almost every business. The Auto OEM segment grew more than 25% for the third straight quarter. Battery replacement sales for two-wheelers and four-wheelers also reported double-digit growth. The industrial infrastructure business continued to grow at a steady pace, while inverter and solar businesses expanded by more than 20%. Export sales also grew over 20% after a spike in demand from overseas markets.

    Citi kept its ‘Buy’ rating on Exide Industries and said price increases, a better product mix, and improved operating efficiency helped reduce the impact of higher commodity costs. The brokerage also said the company’s management remains confident about demand across automotive, industrial, and renewable energy businesses.

    Even with strong earnings, investors remained focused on margin pressure and rising input costs. Exide expects its Bengaluru Gigafactory to add revenue during FY27, which could support future growth as the company expands its new energy business.

  • Samsung Reports 1,800% Profit Surge Driven by AI Memory Chip Boom

    Samsung Reports 1,800% Profit Surge Driven by AI Memory Chip Boom

    Samsung Electronics has announced a staggering 1,800% jump in operating profit for the first half of 2026, fueled by explosive demand for its advanced memory chips used in artificial intelligence systems. The South Korean tech giant estimates an operating profit of 89.4 trillion won (approximately $58.4 billion) for the period, compared to the same timeframe last year.

    Revenue also soared, with the company projecting sales of 171 trillion won in the quarter—a 129% increase year-over-year. Samsung plans to publish its full results later this month.

    The earnings highlight a dramatic shift in the semiconductor landscape driven by the global AI boom. Data centers and AI systems require high-performance memory chips, and supply remains tight, enabling Samsung and rival SK Hynix to raise prices and boost margins.

    Marc Einstein of Counterpoint Research called the estimate “among the best quarterly performances ever,” attributing the surge entirely to AI demand. Samsung is one of the world’s largest memory chip makers and supplies key players like NVIDIA and Google.

    According to IDC, the memory industry is experiencing a unique demand cycle concentrated in data center and AI infrastructure, which is expected to keep chip supplies tight for the next year. IDC analyst Bryan Ma noted that strong AI-related demand will continue to pressure supply.

    Despite the robust earnings forecast, Samsung’s shares fell 7% to 8% in Seoul trading, as some investors had anticipated even higher profits. However, the company’s market value has doubled since the start of the year, and SK Hynix has surged over 200%.

    South Korea’s Kospi index has risen more than 80% in 2026, driven by chip makers. The government recently announced plans to invest at least $880 billion in Samsung and SK Hynix-related projects to expand chip production. Analysts caution that the key risk is whether AI memory demand will sustain beyond next year.

    For now, Samsung remains a top beneficiary of the global AI infrastructure race.