Amara Raja Energy & Mobility Ltd logo

Amara Raja Energy & Mobility Ltd

ARE%26M NSE

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]

AI Verdict: HOLD Confidence: 5%

Amara Raja trades at a reasonable PE of 17.4x with a debt-free balance sheet, but declining profitability (TTM profit growth of -11%) and weak stock returns (-13% over 1 year) warrant caution. The EV transition poses both opportunity and risk for this legacy lead-acid battery maker.

Key Fundamentals

SmallcapAuto ComponentsAutomobiles
Market Cap
₹15,475 Cr
Volatility
Moderate
P/E Ratio
15.75
EBITDA
₹1,497 Cr
Return on Equity
13.74%
Debt to Equity
0.03
Book Value
₹442.5
EPS
₹53.17
52W High
₹1,057.85
52W Low
₹670

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 12.0% over last 3 years.

Growth Rate

Revenue Growth
6.57% ↘
Net Income Growth
-6.25% ↘
Cash Flow Change
6.74% ↗
ROE
-6.99% ↘
ROCE
-5.31% ↘
EBITDA Margin (Avg.)
-20.96% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Amara Raja trades at a reasonable PE of 17.4x with a debt-free balance sheet, but declining profitability (TTM profit growth of -11%) and weak stock returns (-13% over 1 year) warrant caution. The EV transition poses both opportunity and risk for this legacy lead-acid battery maker.

Bull Case 7
  • Company is almost debt-free, providing strong financial flexibility and low interest burden in a capital-intensive industry
  • Reasonable valuation at PE of 17.4x, below the consumer discretionary sector average, offering margin of safety
  • Consistent revenue growth with 10-year sales CAGR of 11% and TTM sales growth of 9%, indicating steady demand for battery products
  • Healthy dividend payout of 20% with current yield of 1.24%, providing income support during sideways price action
  • Price-to-book of 1.92x is undemanding for a market leader in the organized battery segment with Rs 15,490 Cr market cap
  • 5-year sales CAGR of 14% demonstrates ability to grow through cycles including the COVID period
  • Established brand and distribution network in automotive and industrial battery segments provides a durable competitive moat
Bear Case 8
  • TTM profit growth is -11%, indicating margin compression and deteriorating earnings quality despite revenue growth
  • 3-year compounded profit growth is 0%, showing complete earnings stagnation over a meaningful period
  • Stock has delivered -13% returns over 1 year, significantly underperforming broader indices
  • ROE has declined from 14% (10-year average) to 10% (last year), signaling deteriorating capital efficiency
  • 10-year stock CAGR of 0% means the stock has created zero wealth for long-term investors over a decade
  • Low 3-year ROE of 12% fails to adequately compensate shareholders for equity risk in a cyclical business
  • Analyst consensus is split with only 28.57% recommending Buy versus 28.57% recommending Sell, reflecting high uncertainty
  • 5-year stock CAGR of only 2% lags fixed deposit returns, suggesting persistent structural de-rating

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

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Neutral 3
  • Investor call with ICICI Pru Jun 12

    Amara Raja Energy & Mobility scheduled a virtual meeting with ICICI Prudential Life Insurance on June 18, 2026 at 3:30 PM IST. No UPSI to be shared.

  • Meets with HDFC MF, Anantnath Jun 8

    Company held investor meetings with HDFC Mutual Fund and Anantnath Skycon on June 11, 2026. No unpublished price sensitive information shared.

  • Q4 earnings call audio posted May 26

    Amara Raja released the audio recording of its earnings call held on May 26, 2026, accessible on its official website.

TL;DR: A quiet period for Amara Raja Energy & Mobility with no material positive or negative catalysts in recent news. The company is maintaining routine institutional engagement through scheduled investor meetings with HDFC MF and ICICI Prudential Life. No new business developments, order wins, or risk factors have surfaced. Investors should watch the upcoming earnings call details and any strategic updates from these institutional interactions.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,433
2,771
2,811
2,882
2,797
3,131
3,136
3,164
2,974
3,350
3,388
3,351
3,460
Expenses
2,080
2,402
2,401
2,447
2,389
2,701
2,695
2,748
2,632
2,963
2,982
2,976
3,083
Operating Profit
353
369
410
435
408
430
441
416
342
387
406
374
377
OPM %
15%
13%
15%
15%
15%
14%
14%
13%
12%
12%
12%
11%
11%
Other Income
-25
22
28
24
28
26
18
140
20
14
146
-17
209
Interest
8
8
8
8
10
9
13
11
9
10
8
9
13
Depreciation
124
117
121
120
121
118
122
123
128
129
138
141
140
PBT
196
266
309
331
305
329
324
422
224
261
406
207
433
Tax %
28%
25%
27%
24%
25%
26%
26%
26%
26%
26%
25%
27%
26%
Net Profit
141
199
226
253
228
245
241
312
167
194
302
152
322
EPS in Rs
8.25
11.63
13.25
14.8
12.46
13.36
13.15
17.04
9.11
10.6
16.52
8.29
17.61
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
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
Expenses
3,507
3,793
4,465
5,174
5,838
5,741
6,033
7,666
8,939
9,635
10,771
12,005
Operating Profit
704
825
853
885
955
1,099
1,117
1,030
1,450
1,625
1,634
1,544
OPM %
17%
18%
16%
15%
14%
16%
16%
12%
14%
14%
13%
11%
Other Income
41
44
47
65
43
55
86
71
27
98
199
351
Interest
0
6
6
5
7
12
11
15
30
33
42
41
Depreciation
134
141
191
230
261
301
319
396
450
479
492
548
PBT
610
723
702
714
730
841
873
690
997
1,211
1,299
1,307
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
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
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
3,975
CWIP
86
123
240
226
315
827
399
830
234
322
844
542
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
-1,264
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
-50
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 Mar 2026
Promoters 32.86%
Public 27.30%
FIIs 17.31%
DIIs 16.95%
Others 5.58%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 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%
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%
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%
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%
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%
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%
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

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%26M 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 Consumer Discretionary 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 ₹15474.79 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 15.75. 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 1.25%. 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 13.74%. 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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