Amara Raja Energy & Mobility Limited — Investor Meet, 04-06-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Amara Raja Energy & Mobility reported Q4 consolidated revenue of INR3,060 Cr, up 5% YoY, driven mainly by lead acid batteries. Domestic 4-wheeler aftermarket and OEM volumes grew, while exports declined. New Energy segment revenue surged 35%, led by ESS and EV batteries. Margins contracted 1.5%-2% due to rising material and power costs.

Management is ramping up tubular battery and recycling capacity to improve margins without heavy capex. FY25 revenue grew ~10%, supported by lead acid and steady New Energy growth. Capex totaled ~INR1,200 Cr, including a gigafactory expected by mid-2027. The New Energy focus is on localization, cell-pack integration, and R&D.

OEM demand is cautiously flat for 4-wheelers, with some H2FY26 recovery expected; 2-wheeler OEM demand shows early softness. Export aftermarket faces competition and tariff challenges. Growth confidence relies on market share gains, innovation, and digitalization, with margin recovery tied to cost control and recycling. Cash flows from lead acid will support New Energy investments. Investor stance remains steady but cautious amid cost pressures and global competition.