Amara Raja Energy & Mobility Ltd logo

Amara Raja Energy & Mobility Ltd

ARE&M NSE

Key Fundamentals

SmallcapAuto ComponentsAutomobiles
Market Cap
₹17,141 Cr
Volatility
Moderate
P/E Ratio
17.47
EBITDA
₹1,603 Cr
Return on Equity
11.06%
Debt to Equity
0.05
Book Value
₹442.5
EPS
₹53.17
52W High
₹1,057.85
52W Low
₹670

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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53 extracted metrics + investor summaries across FY11–FY26.

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Tapetide Score

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Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 20.0%

Weaknesses

1
  • Company has a low return on equity of 11.1% over last 3 years.

Growth Rate

Revenue Growth
7.39% ↘
Net Income Growth
-5.18% ↗
Cash Flow Change
-17.24% ↘
ROE
-13.46% ↗
ROCE
-14.19% ↗
EBITDA Margin (Avg.)
-13.77% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
AI opinion · based on fundamentals
Risk medium

Amara Raja Energy & Mobility trades at a market cap of ₹17,409 Cr with a PE of 18.9x and is nearly debt-free. Revenue has compounded at 11% over 10 years but profit growth has stagnated at 0% CAGR over 5 years, while the company commits ₹9,500 Cr toward a 16 GWh lithium-ion gigafactory that is still in early qualification stage.

Bull Case 8
  • Company is almost debt-free, providing financial flexibility for its ₹9,500 Cr gigafactory investment without immediate balance sheet stress
  • Q4 FY26 net profit surged 95% YoY to ₹314.3 Cr with revenue up 16% to ₹3,460 Cr, showing strong recent momentum
  • 10-year compounded sales CAGR of 11% and TTM sales growth of 13% demonstrate consistent top-line expansion
  • Lithium-ion Customer Qualification Plant (60 MWh) commissioned in July 2026, with cells being supplied to OEMs for testing from August 2026, de-risking the gigafactory path
  • Healthy dividend payout ratio of 20% with a current dividend yield of 1.12%, providing income while the new energy business scales
  • PE of 18.9x is reasonable for a company transitioning from lead-acid to lithium-ion with a large addressable market in EVs and energy storage
  • Q1 FY27 revenue reached ₹4,215 Cr, reflecting 23.9% YoY growth, indicating acceleration in the business
  • FY27 capex guidance of ₹1,700 Cr with 70% allocated to new energy shows management commitment to the lithium-ion transition
Bear Case 8
  • Compounded profit CAGR is 0% over 5 years and negative 6% TTM, indicating persistent margin or cost pressures despite revenue growth
  • Return on equity has declined from 14% (10-year average) to just 8% last year, showing deteriorating capital efficiency
  • 3-year ROE of only 11.1% is low for a manufacturing business and may not justify the PE multiple of 18.9x
  • ₹9,500 Cr gigafactory investment carries significant execution risk with returns unlikely for several years as cells enter qualification only in 2026
  • Stock CAGR of 0% over 10 years and 0% over 1 year shows the market has not rewarded long-term shareholders despite revenue growth
  • Management acknowledged the 16 GWh target could change depending on demand, introducing uncertainty around eventual scale and returns on the large capex
  • Heavy capex cycle of ₹1,700 Cr in FY27 alone will suppress free cash flow in the near term and may pressure ROE further
  • Lead-acid battery business faces structural headwinds as the EV transition accelerates, while the lithium-ion business is pre-revenue at scale

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 17h ago
Headwinds 2
  • International sales down 20% in Q1 Aug 12

    Automotive international sales declined 20% in Q1 driven by Middle East market challenges. Recovery is anticipated but timeline remains uncertain.

  • GST demand of Rs 1.27 Cr upheld Aug 3

    Appellate Authority upheld Rs 1.27 Cr GST demand on the company. Amara Raja cites no material financial impact and plans to appeal to GST Tribunal.

Positives 5
  • INR 1,700 Cr capex planned FY27 Aug 12

    Total capex of INR 1,700 crores planned for FY27, with INR 1,300 crores directed toward new energy initiatives and the balance for lead-acid segment including recycling.

  • Giga-1 plant launch H1 FY28 Aug 12

    Giga-1 plant scheduled for launch in H1 FY28, while BESS project targets 10 GWh capacity with operating margins aimed at 5-7%, potentially rising to 7-8% with local production.

  • Rs 5 billion subsidiary investment approved Aug 10

    Board approved additional investment of 5 billion rupees in its subsidiary unit, signaling commitment to strengthening subsidiary operations.

  • Lead-acid business 9-10% growth outlook Aug 12

    Lead-acid battery business projected to grow 9-10%, supported by domestic aftermarket gains in both two-wheeler and four-wheeler segments.

  • Analyst plant visit for new facility Jul 27

    Company hosted analysts at its subsidiary's new Customer Qualification plant on July 30, 2026, showcasing operational capabilities ahead of commercial production.

Neutral 2
  • Q1FY27 earnings call on Aug 11 Aug 6

    Investor call held on August 11, 2026 to discuss Q1FY27 results, featuring CFO Y. Delli Babu and Head of Corporate Finance Swajitha Rapeti.

  • Rs 13.30 lakh GST penalty paid Jul 27

    Paid penalty of Rs 13.30 lakhs after truck detained in Kanpur due to E-Waybill address mismatch. Company plans to appeal the order.

TL;DR: Amara Raja is executing an aggressive new energy transition strategy with INR 1,700 Cr capex in FY27 and a Giga-1 plant launch in H1 FY28, while its core lead-acid business remains healthy at 9-10% projected growth. The key risk is a 20% decline in international sales due to Middle East disruptions, though management expects recovery. GST-related issues are immaterial. The trend is constructive as the company builds out its lithium-ion and BESS capabilities, but near-term international headwinds and execution on large capex projects warrant monitoring.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
2,771
2,811
2,882
2,797
3,131
3,136
3,164
2,974
3,350
3,388
3,351
3,460
4,041
Expenses
2,402
2,401
2,447
2,389
2,701
2,695
2,748
2,632
2,963
2,982
2,976
3,083
3,634
Operating Profit
369
410
435
408
430
441
416
342
387
406
374
377
407
OPM %
13%
15%
15%
15%
14%
14%
13%
12%
12%
12%
11%
11%
10%
Other Income
22
28
24
28
26
18
140
20
14
146
-17
209
16
Interest
8
8
8
10
9
13
11
9
10
8
9
13
11
Depreciation
117
121
120
121
118
122
123
128
129
138
141
140
140
PBT
266
309
331
305
329
324
422
224
261
406
207
433
272
Tax %
25%
27%
24%
25%
26%
26%
26%
26%
26%
25%
27%
26%
26%
Net Profit
199
226
253
228
245
241
312
167
194
302
152
322
203
EPS in Rs
11.63
13.25
14.8
12.46
13.36
13.15
17.04
9.11
10.6
16.52
8.29
17.61
11.08
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
4,211
4,618
5,317
6,059
6,793
6,839
7,150
8,696
10,390
11,260
12,405
13,549
14,240
Expenses
3,507
3,793
4,465
5,174
5,838
5,741
6,033
7,666
8,939
9,635
10,771
11,998
12,675
Operating Profit
704
825
853
885
955
1,099
1,117
1,030
1,450
1,625
1,634
1,551
1,565
OPM %
17%
18%
16%
15%
14%
16%
16%
12%
14%
14%
13%
11%
11%
Other Income
41
44
47
65
43
55
86
71
27
98
199
344
353
Interest
0
6
6
5
7
12
11
15
30
33
42
41
41
Depreciation
134
141
191
230
261
301
319
396
450
479
492
548
559
PBT
610
723
702
714
730
841
873
690
997
1,211
1,299
1,307
1,318
Tax %
33%
32%
32%
34%
34%
21%
26%
26%
27%
25%
26%
26%
—
Net Profit
411
492
478
471
483
661
647
511
731
906
964
970
979
EPS in Rs
24.05
28.78
28.01
27.59
28.31
38.69
37.87
29.93
42.78
49.49
52.66
53.02
53.5
Div. Payout %
15%
15%
15%
15%
25%
28%
29%
15%
14%
20%
20%
20%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
17
17
17
17
17
17
17
17
17
18
18
18
Reserves
1,682
2,099
2,576
2,920
3,318
3,639
4,193
4,534
5,989
6,750
7,360
8,142
Borrowings
76
74
72
64
58
84
92
126
201
153
258
373
Other Liabilities
611
761
919
1,168
1,102
1,261
1,494
1,699
1,730
1,913
2,356
2,592
Total Liabilities
2,386
2,951
3,585
4,169
4,496
5,001
5,797
6,376
7,937
8,834
9,993
11,125
Fixed Assets
944
1,352
1,492
1,703
1,813
1,829
2,455
2,492
3,688
3,550
3,475
3,929
CWIP
86
123
240
226
315
827
399
830
234
322
844
588
Investments
16
20
147
35
20
156
281
78
486
1,479
1,998
2,585
Other Assets
1,340
1,456
1,706
2,204
2,348
2,188
2,662
2,976
3,529
3,483
3,676
4,023
Total Assets
2,386
2,951
3,585
4,169
4,496
5,001
5,797
6,376
7,937
8,834
9,993
11,125
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
395
555
553
322
541
1,177
802
633
956
1,314
1,375
1,340
Investing
-294
-387
-529
-236
-448
-831
-616
-482
-789
-1,072
-1,155
-1,265
Financing
-75
-164
-2
-138
-92
-364
-122
-213
-112
-242
-157
-126
Net Cash Flow
26
4
22
-52
1
-18
64
-62
55
0
64
-51
Free Cash Flow
-11
64
122
-64
13
477
306
-127
492
874
631
588
CFO/OP
83
94
89
64
82
129
90
81
84
101
104
106
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
48
47
39
47
41
34
40
33
27
33
34
31
Inventory Days
55
75
85
93
83
94
111
108
87
88
88
89
Days Payable
34
44
44
53
40
50
57
48
39
41
45
47
Cash Conversion Cycle
69
78
81
88
85
77
93
93
76
80
77
74
Working Capital Days
45
49
48
62
66
48
53
51
60
49
34
34
ROCE %
38%
36%
29%
25%
23%
23%
22%
16%
20%
19%
17%
13%

Shareholding Pattern

As of Jun 2026
Promoters 32.86%
Public 28.96%
FIIs 17.34%
DIIs 15.30%
Others 5.54%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
28.06%
32.86%
32.86%
32.86%
32.86%
32.86%
32.86%
32.86%
32.86%
32.86%
32.86%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
14.00%
14.00%
14.00%
24.64%
0.00%
24.45%
23.84%
22.34%
21.82%
20.70%
19.39%
17.97%
17.37%
17.31%
17.34%
DIIs
12.54%
15.06%
14.44%
11.59%
11.30%
10.74%
2.20%
9.25%
9.21%
10.47%
16.81%
17.50%
15.35%
14.55%
15.36%
14.81%
14.58%
14.00%
16.23%
17.13%
16.95%
15.30%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.61%
14.65%
16.36%
20.06%
21.91%
22.54%
23.99%
21.09%
21.10%
20.78%
24.28%
23.38%
21.33%
22.57%
23.50%
24.78%
25.98%
27.79%
27.20%
27.02%
27.30%
28.96%
Others
50.79%
42.22%
41.14%
40.29%
38.73%
38.66%
45.75%
27.60%
27.63%
26.69%
6.21%
31.06%
6.00%
6.17%
5.94%
5.73%
5.87%
5.96%
5.74%
5.62%
5.58%
5.54%
No. of Shareholders
1,49,574
3,25,733
3,89,322
4,74,662
5,42,133
5,49,006
5,48,433
4,79,962
4,71,435
4,64,529
5,60,987
5,52,894
5,63,871
6,62,428
7,34,151
8,07,657
8,62,059
8,71,584
8,49,222
8,20,460
8,09,144
8,18,619

Documents

Frequently Asked Questions about Amara Raja Energy & Mobility Ltd

What does Amara Raja Energy & Mobility Ltd do?
Amara Raja Batteries Limited [1] (ARBL), the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. ARBL has prestigious OEMs as its c...
Where is Amara Raja Energy & Mobility Ltd (ARE&M) listed?
Amara Raja Energy & Mobility Ltd is listed on the Indian stock exchanges. It is listed on NSE: ARE&M and BSE: 500008. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Amara Raja Energy & Mobility Ltd belong to?
Amara Raja Energy & Mobility Ltd operates in the Automobiles sector within the Auto Components industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Amara Raja Energy & Mobility Ltd?
Amara Raja Energy & Mobility Ltd has a market capitalisation of approximately ₹17141.24 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Amara Raja Energy & Mobility Ltd?
The Price-to-Earnings (PE) ratio of Amara Raja Energy & Mobility Ltd is 17.47. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Amara Raja Energy & Mobility Ltd?
Over the past 52 weeks, Amara Raja Energy & Mobility Ltd has traded between a low of ₹670 and a high of ₹1,057.85. This range helps investors understand the stock's price volatility and recent trading levels.
Does Amara Raja Energy & Mobility Ltd pay dividends?
Yes, Amara Raja Energy & Mobility Ltd has a dividend yield of 1.12%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Amara Raja Energy & Mobility Ltd?
Amara Raja Energy & Mobility Ltd has a Return on Equity (ROE) of 11.06%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Amara Raja Energy & Mobility Ltd on Tapetide?
On Tapetide, you can view Amara Raja Energy & Mobility Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Amara Raja Batteries Limited [1] (ARBL), the flagship company of the Amara Raja Group, is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. ARBL has prestigious OEMs as its clients. The Company's Industrial and Automotive batteries are exported to over 50 countries across the globe. In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas among other industry segments. Termination of Shareholders Agreement (tie up) with Johnson Control [2]

Website amararajabatteries.com
CEO Mr. Jayadev Galla
Employees 10,196
Listed 2003-09-05
Face Value ₹ 1
Issued Size 18,30,25,364

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