Amara Raja Energy & Mobility Limited (ARE&M)
📢 Recent Corporate Announcements
Amara Raja Energy & Mobility Limited has scheduled an in-person meeting with Sumitomo Mitsui DS Asset Management (Hong Kong) Limited on September 15, 2026, at 10:00 AM IST. The meeting will take place at the company's Hyderabad office. The company confirmed that no presentation will be made and no Unpublished Price Sensitive Information (UPSI) will be shared.
- In-person meeting scheduled for September 15, 2026, at 10:00 AM IST
- Meeting arranged with Sumitomo Mitsui DS Asset Management (Hong Kong) Limited
- Venue confirmed as the company's Hyderabad office
- No investor presentation or Unpublished Price Sensitive Information to be shared
Amara Raja Energy & Mobility Limited has informed the exchanges regarding a scheduled virtual investor meeting with Tata Mutual Fund. The meeting is set to take place on September 11, 2026, at 03:30 PM IST. The company stated that no presentation will be made and no unpublished price sensitive information (UPSI) will be discussed.
- Virtual meeting scheduled with Tata Mutual Fund on September 11, 2026
- Meeting timing confirmed for 03:30 PM IST
- No formal presentation will be delivered during the session
- Company affirmed that no Unpublished Price Sensitive Information (UPSI) will be shared
Amara Raja Energy & Mobility Limited has informed the exchanges regarding its scheduled participation in an investor conference. The company will participate in-person at 'Ashwamedh - Elara India Dialogue 2026', organised by Elara Capital, in Mumbai on September 3, 2026, at 10:00 AM IST. The company confirmed that no separate presentation will be made and no unpublished price-sensitive information will be shared during the interactions.
- Participating in-person at 'Ashwamedh - Elara India Dialogue 2026' organised by Elara Capital
- Scheduled date and time: September 03, 2026, at 10:00 A.M. IST in Mumbai
- No presentation will be made and no UPSI will be shared during the meeting
Amara Raja Energy & Mobility Limited has notified stock exchanges regarding a scheduled virtual meeting with institutional investor OysterRock Capital. The meeting is set to take place on August 28, 2026, at 04:00 PM IST. The company confirmed that no presentation will be made and no unpublished price-sensitive information (UPSI) will be discussed.
- Virtual investor meeting scheduled with OysterRock Capital on August 28, 2026
- Meeting timing confirmed for 04:00 PM IST
- No formal corporate presentation will be made during the session
- No Unpublished Price Sensitive Information (UPSI) will be shared
Amara Raja Energy & Mobility reported a 24% YoY increase in Q1 consolidated revenue to ₹4,215 crore, supported by a 22% expansion in the core lead-acid business and a 70% surge in the new energy segment to ₹209 crore. Consolidated EBITDA margin stood at 9.6%, moderated by raw material inflation (sulfuric acid, poly, alloys) and strategic spending, prompting a 3% price hike in June with another 2-3% hike underway. The company reaffirmed an FY27 capex plan of ₹1,700 crore (₹450 crore incurred in Q1), predominantly allocated toward its Giga 1 and BESS projects. In a key regulatory clearance, the Andhra Pradesh Pollution Control Board revoked its April 2021 closure order on July 18, 2026.
- Q1 consolidated revenue rose 24% YoY to ₹4,215 crore, led by a 70% growth in the New Energy segment to ₹209 crore.
- Consolidated EBITDA margin stood at 9.6% (standalone at 10.1%), impacted by ~0.9% due to brand/pilot investments and elevated raw material costs.
- Management implemented a 3% price hike in June 2026 and announced an additional 2% to 3% hike across segments.
- Total FY27 capex guided at ₹1,700 crore (11.6% of TTM revenue), with ₹1,300 crore dedicated to New Energy projects and ₹450 crore spent in Q1 FY27.
- APPCB revoked the April 30, 2021 closure order on July 18, 2026, leading to the withdrawal of the writ petition before the AP High Court.
Amara Raja Energy & Mobility (ARE&M) has released the audio recording of its earnings call held on August 11, 2026. This follows the company's TTM performance showing revenue of Rs 13,814 Cr and a PAT of Rs 895 Cr. The call provides management's qualitative commentary on the massive Rs 9,500 Cr Li-ion giga factory investment, which is central to their transition into the EV battery space. Investors can access the recording to understand the roadmap for the New Energy segment, which is targeted to contribute 7-8% of revenue by FY27.
- Audio recording of the earnings call held on August 11, 2026, is now publicly available.
- Company is currently executing a Rs 9,500 Cr investment plan for a Lithium-ion giga factory.
- TTM Revenue stands at Rs 13,814 Cr with an operating profit margin of 10.8%.
- New Energy segment is projected to reach 7-8% of total revenue by FY27.
- Promoter holding remains stable at 32.86% as of June 2026.
Amara Raja Energy & Mobility Limited (ARE&M) concluded its 41st Annual General Meeting on August 10, 2026, with shareholders approving all eight resolutions. A final dividend of ₹5.20 per share for FY26 was ratified, following the record date of August 3, 2026. Notably, while all resolutions passed, there was significant institutional dissent (~37.1%) regarding the re-appointment and remuneration of Executive Directors Harshavardhana and Vikramadithya Gourineni. The company reported a total shareholder base of 8,30,789 as of the cut-off date.
- Final dividend of ₹5.20 per share approved for the financial year ended March 31, 2026
- Institutional investors cast 37.14% of their votes against the re-appointment of Executive Director Harshavardhana Gourineni
- Total of 8 resolutions passed, including adoption of FY26 financial statements and cost auditor ratification
- 8,30,789 shareholders were on record as of the August 3, 2026 cut-off date
- 63 shareholders attended the meeting via video conferencing, including 1 from the promoter group
Amara Raja Energy & Mobility (ARE&M) concluded its 41st AGM on August 10, 2026, where shareholders approved all eight resolutions, including a final dividend of ₹5.20 per share. While all resolutions passed with the requisite majority, there was significant institutional pushback regarding the re-appointment and remuneration of Executive Directors Harshavardhana and Vikramadithya Gourineni, with approximately 37.1% of institutional votes cast against these proposals. The company continues its strategic pivot toward New Energy, backed by a planned ₹9,500 Cr investment in a Li-ion giga factory.
- Final dividend of ₹5.20 per share approved for the financial year ended March 31, 2026.
- Significant institutional opposition recorded on executive remuneration resolutions (Nos. 4, 5, 6, and 7), with ~37.1% of institutional votes cast against.
- Total of 8,30,789 shareholders were on record as of the August 3, 2026, cut-off date.
- Promoter group, holding 32.86% of the company, voted 100% in favor of all resolutions.
- Adoption of FY26 audited financial statements (TTM Revenue of ₹13,814 Cr) was approved with 99.74% total favorable votes.
ARE&M reported a consolidated revenue of Rs 4,214.5 Cr for Q1 FY27, showing strong volume growth in domestic aftermarket and OEM segments. However, EBITDA margins compressed to 9.6% from 10.8% in FY26 due to elevated raw material costs and strategic brand spending. The company has infused Rs 1,900 Cr into its advanced cell technology subsidiary (ARACT) as part of its massive Rs 9,500 Cr New Energy capex plan. Construction has officially commenced on the 10GWh BESS Giga factory, while the New Energy segment revenue grew by over 50%.
- Consolidated Q1 FY27 revenue reached Rs 4,214.5 Cr, representing ~30% of TTM revenue in a single quarter.
- EBITDA margins moderated to 9.6% in Q1 FY27, down from 12.6% in FY25, impacted by raw material costs.
- Rs 1,900 Cr total capital infused into ARACT subsidiary to date for the Li-ion Giga Corridor project.
- New Energy segment revenue grew by >50% YoY, supported by telecom and EV battery pack supplies.
- Lead recycling capacity currently stands at 100,000 MT/annum with plans to expand to 150,000 MT/annum.
Amara Raja Energy & Mobility (ARE&M) has approved an additional investment of Rs 500 Cr in its subsidiary, Amara Raja Advanced Cell Technologies (ARACT), raising the total approved limit for Gigafactory development to Rs 2,500 Cr. Additionally, Rs 50 Cr was approved for Amara Raja Power Systems Ltd to support operational and manufacturing needs. This combined incremental commitment of Rs 550 Cr represents approximately 6.7% of the company's current Net Worth (Rs 8,160 Cr). The move reinforces the company's stated strategy to invest Rs 9,500 Cr in Lithium-ion cell manufacturing.
- Additional Rs 500 Cr approved for Amara Raja Advanced Cell Technologies (ARACT) for Gigafactories.
- Total approved investment for ARACT now stands at Rs 2,500 Cr, up from the previous Rs 2,000 Cr.
- Additional Rs 50 Cr approved for Amara Raja Power Systems Limited, doubling the previous Rs 50 Cr limit.
- Total incremental investment of Rs 550 Cr approved by the Board on August 10, 2026.
Amara Raja Energy & Mobility (ARE&M) reported a strong 20.6% YoY revenue growth for Q1 FY27, reaching Rs 4,041 Cr. While the top line was robust, Profit Before Tax (PBT) grew more modestly by 4.2% YoY to Rs 272 Cr, suggesting margin pressure. Growth was broad-based across domestic segments, with Home Energy up >30% and Automotive domestic up >20%. The company is progressing on its massive Rs 9,500 Cr Li-ion giga factory investment, having recently commissioned its Customer Qualification Plant.
- Revenue from operations increased 20.6% YoY to Rs 4,041 Cr in Q1 FY27.
- Profit Before Tax (PBT) stood at Rs 272 Cr, up from Rs 261 Cr in Q1 FY26.
- Home Energy segment recorded the highest growth at over 30% YoY.
- Automotive domestic business revenue grew by more than 20% YoY driven by OEM and aftermarket demand.
- Company is executing a Rs 9,500 Cr investment plan for a Lithium-ion giga factory.
ARE&M delivered a strong top-line performance in Q1 FY27, with consolidated revenue rising 23.9% YoY to ₹4,214.54 Cr. A critical regulatory overhang was resolved as the APPCB revoked closure orders for the company's primary manufacturing plants in Andhra Pradesh, following the withdrawal of writ petitions. While the New Energy segment saw a 72.5% revenue jump to ₹209.30 Cr, it remains loss-making with a segment loss of ₹22.05 Cr. The company continues its aggressive pivot, having now invested ₹1,650.01 Cr (approx. 20% of net worth) into its Li-ion cell subsidiary, ARACT.
- Consolidated revenue grew 23.9% YoY to ₹4,214.54 Cr in Q1 FY27 compared to ₹3,401.08 Cr in Q1 FY26
- APPCB revoked closure orders for Tirupati and Chittoor plants on July 18, 2026, resolving a major regulatory risk
- New Energy segment revenue surged 72.5% YoY to ₹209.30 Cr from ₹121.29 Cr
- Company infused ₹150 Cr into its Li-ion subsidiary ARACT during the quarter, bringing total investment to ₹1,650.01 Cr
- Consolidated EPS improved to ₹10.43 for the quarter from ₹9.00 in the previous year's corresponding period
Amara Raja Energy & Mobility (ARE&M) has withdrawn its writ petitions from the Andhra Pradesh High Court following the formal revocation of closure orders by the Andhra Pradesh Pollution Control Board (APPCB). This concludes a regulatory dispute that began in April 2021, which previously threatened the company's entire manufacturing output concentrated in Andhra Pradesh. The company stated there is no financial loss associated with this specific disclosure. This resolution removes a significant long-term regulatory tail risk for the company's core lead-acid battery operations.
- Withdrawal of writ petitions filed before the Hon'ble High Court of Andhra Pradesh.
- Resolution of a regulatory dispute dating back to the initial intimation on April 30, 2021.
- Revocation of Closure Orders received from the Andhra Pradesh Pollution Control Board (APPCB).
- Confirmation of no financial loss on account of this specific disclosure.
- Secures the operational status of plants that contribute to 100% of the company's manufacturing output.
Amara Raja Energy & Mobility Limited (ARE&M) has scheduled its Q1 FY27 earnings conference call for August 11, 2026, at 4:00 PM IST. The call will feature the CFO and Head of Corporate Finance discussing the company's performance for the quarter ended June 2026. This follows a fiscal year (FY26) where the company achieved a TTM revenue of ₹13,814 Cr and a PAT of ₹895 Cr. Investors will be looking for updates on the ₹9,500 Cr Li-ion giga factory investment and the progress of the New Energy segment.
- Earnings conference call scheduled for August 11, 2026, at 4:00 PM IST
- Management representation includes CFO Mr. Y. Delli Babu and Head of Corporate Finance Ms. Swajitha Rapeti
- Call will focus on Q1 FY27 financial results following a TTM revenue of ₹13,814 Cr
- Dial-in numbers provided for universal access (+91 22 6280 1146) and international locations
The Appellate Authority has upheld a GST demand of Rs 1.27 Cr and a penalty of Rs 0.13 Cr against Amara Raja Energy & Mobility Limited. The order, dated July 31, 2026, relates to discrepancies in Input Tax Credit (ITC) and tax payments for FY 2018-19 and FY 2019-20. The total demand is approximately 0.16% of the company's TTM PAT of Rs 895 Cr, making it financially immaterial. The company intends to contest the order before the GST Tribunal and has already disclosed this as a contingent liability.
- Tax demand of Rs 1,27,17,341 upheld by the Additional Commissioner (Appeals), Guntur
- Penalty of Rs 12,71,734 imposed under Section 107 of the CGST/APGST Act, 2017
- Discrepancies involve excess ITC claims and short-paid tax during FY 2018-19 and FY 2019-20
- Total demand represents approximately 0.01% of the company's TTM revenue of Rs 13,814 Cr
- Company will file an appeal before the GST Tribunal by paying the required pre-deposit
Financial Performance
Revenue Growth by Segment
Overall revenue grew 19% YoY in fiscal 2023 to INR 10,398 Cr, driven by double-digit volume growth in automotive and industrial battery divisions which contribute over 90% of total revenue. H1 FY24 revenue reached INR 5,755 Cr, a 8.1% increase from INR 5,321 Cr in H1 FY23.
Geographic Revenue Split
Not disclosed in available documents, though the company notes demand is spread across India while exports are being expanded into newer geographies to reduce domestic sector vulnerability.
Profitability Margins
Profit After Tax (PAT) margin improved from 5.9% in FY22 to 6.6% in FY23. Net profit for FY25 was INR 963.90 Cr compared to INR 905.86 Cr in FY24, representing a 6.4% YoY increase.
EBITDA Margin
Operating profitability improved to 13.6% in fiscal 2023 from 12.3% in fiscal 2022. Management targets a near-term EBITDA margin of 13% and a long-term goal of 14% as internal efficiency projects and recycling initiatives scale.
Capital Expenditure
Planned total expansion of INR 9,500 Cr for the ARACT giga factory over 10 years. Near-term annual capex is projected at INR 1,100-1,200 Cr for the next 2-3 years, including INR 400 Cr for lead recycling and up to INR 1,500 Cr for Phase-I of the Li-ion giga factory.
Credit Rating & Borrowing
Maintains a 'Stable' outlook from CRISIL with robust debt metrics; interest coverage was 65.4 times in FY23. Borrowing costs are low as the company maintains a gearing of 0.01 to 0.02 times, relying primarily on internal accruals.
Operational Drivers
Raw Materials
Lead and Lead Alloys are the primary raw materials, accounting for over 80% of total input material value.
Key Suppliers
Not disclosed in available documents; however, 50% of critical suppliers were assessed on environmental impacts in FY23.
Capacity Expansion
Expanding into Lithium-ion cell manufacturing with a planned giga factory (ARACT). Lead recycling capacity is being expanded via a INR 400 Cr Phase-I facility at ARCSPL. Tubular battery manufacturing is being restored following a fire accident in FY23.
Raw Material Costs
Lead prices are currently elevated at approximately INR 210,000 per metric ton. Raw material costs are a significant driver, with the company aiming to increase lead recycling to 80%+ to mitigate price volatility.
Manufacturing Efficiency
Capacity utilization for the tubular plant is expected to reach full capacity in Q4 FY24. The company is focusing on internal efficiency projects to return to a 14% EBITDA margin.
Logistics & Distribution
Geographic concentration in Andhra Pradesh restricts distribution logistics, increasing the cost of reaching demand centers spread across the country.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be driven by a INR 9,500 Cr investment in a Li-ion giga factory, expanding the New Energy segment to 7-8% of revenue by FY27, and the acquisition of the plastic component division from Mangal Industries Ltd to capture operational synergies.
Products & Services
Lead-acid batteries (VRLA), Lithium-ion battery packs, EV chargers, automotive aftermarket batteries, industrial batteries for telecom/UPS, and plastic components.
Brand Portfolio
Amaron, PowerStack, Quanta.
New Products/Services
Lithium-ion cells and battery packs for EVs, and EV charging infrastructure, with New Energy expected to contribute 5% of revenue by end of FY25.
Market Expansion
Targeting export growth in newer geographies and increasing market share in the automotive aftermarket and 5G telecom infrastructure segments.
Market Share & Ranking
Established market leader in the domestic battery segment, particularly in automotive and industrial VRLA batteries.
Strategic Alliances
Acquisition of Amara Raja Power Systems Ltd (ARPSL) and the plastic component division of Mangal Industries Ltd (MIL) to integrate the supply chain.
External Factors
Industry Trends
The industry is shifting toward green energy and e-mobility. ARE&M is positioning itself by transitioning from a lead-acid battery player to an 'Energy & Mobility' company through its Li-ion giga factory and EV charger business.
Competitive Landscape
Intense competition in the telecom segment from infrastructure players and in the automotive aftermarket from small-to-mid-sized organized players offering competitive pricing.
Competitive Moat
Strong brand equity (Amaron), a dominant position in the replacement market, and a robust financial profile with near-zero debt (0.01 gearing) provide a sustainable competitive advantage over smaller organized and unorganized players.
Macro Economic Sensitivity
Highly sensitive to the domestic automotive cycle and industrial growth; however, diversified segments (UPS, Telecom, Exports) provide a buffer against specific sector downturns.
Consumer Behavior
Increasing consumer preference for maintenance-free batteries and the gradual shift toward electric vehicles (EVs) impacting long-term lead-acid demand.
Geopolitical Risks
Exposure to global lead price volatility and potential trade barriers affecting export growth in new geographies.
Regulatory & Governance
Industry Regulations
Subject to Battery Waste Management Rules (BWMR) 2022, requiring 80%+ lead recycling and 50% collection rates. Operations are also subject to environmental pollution norms in Andhra Pradesh.
Environmental Compliance
The company is investing INR 400 Cr in lead recycling to comply with Battery Waste Management Rules (BWMR) 2022 and has a goal to reduce LTIFR by 60% by FY24.
Taxation Policy Impact
Effective tax expense for FY25 was INR 335.25 Cr on a profit before tax of INR 1,299.15 Cr, representing an effective tax rate of approximately 25.8%.
Legal Contingencies
Pending litigation regarding the operation of two plants in Andhra Pradesh; any adverse ruling impacting these plants is a key monitorable. Leasehold land in Chittoor involves a value of INR 25.85 Cr.
Risk Analysis
Key Uncertainties
Potential for material time or cost overruns in the INR 9,500 Cr giga factory project and volatility in lead prices impacting the 13-14% EBITDA margin target.
Geographic Concentration Risk
100% of manufacturing operations are concentrated in Andhra Pradesh, exposing the company to state-specific regulatory and logistical risks.
Third Party Dependencies
Significant dependency on lead suppliers, though the company is mitigating this by increasing in-house recycling to 80%.
Technology Obsolescence Risk
High risk of lead-acid technology being superseded by Lithium-ion; the company is mitigating this via its 'New Energy' strategic pivot and giga factory investment.
Credit & Counterparty Risk
Maintains high-quality receivables; the company has been sanctioned working capital limits in excess of INR 5 Cr based on the security of current assets.
