Synopsis: Amara Raja Energy is in focus post Q2 as it ramps in new energy & lithium-ion, with revenue up 8% YoY, net profit up by 25% to Rs. 302 cr , supported by strong NEB traction & expansion pipeline.
This company 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 is now in focus after reporting Q2 results.
With market capitalization of Rs. 17,944 cr, the shares of Amara Raja Energy & Mobility Ltd are currently trading at Rs. 980 per share, down by 2% in today’s market session, making a low of Rs. 970.10, from its previous close of Rs. 987.45 per share.
QoQ view:
Revenue was slightly higher at Rs. 3,388 Cr compared to Rs. 3,350 Cr in Q1FY26. EBITDA also rose 5% QoQ to Rs. 406 Cr from Rs. 387 Cr, indicating margin recovery. Net profit surged 56% to Rs. 302 Cr from Rs. 194 Cr, while EPS increased to Rs. 16.52 from Rs. 10.60 QoQ.
YoY view:
In Q2 Sep 2025, Amara Raja Energy posted 8% YoY revenue growth to Rs. 3,388 Cr from Rs. 3,136 Cr in Q1FY25. EBITDA, however, declined 8% YoY to Rs. 406 Cr from Rs. 441 Cr and net profit increased by 25% to Rs. 302 Cr from Rs. 241 Cr. EPS however improved YoY to Rs. 16.52 from Rs. 13.15.
Business Highlights
Amara Raja is making strategic progress in its new energy business with key capex projects underway at Divitipally and Hyderabad. The Customer Qualification Plant in Divitipally, whose foundation was laid in August 2024, is set to begin operations by the last quarter of FY26 and is designed to support diverse battery form factors and cell chemistries.
A separate Giga-Cell Factory at Divitipally began construction in March 2025, targeting a total capacity of 16 GWh by FY30 with Phase 1 (2 GWh) already underway. Additionally, the E-Hub facility in Hyderabad is expected to commence operations between Q3 and Q4 of FY26, and is positioned to develop solutions for both EV and stationary products solutions.
Operational Highlights
In Q2FY26, the New Energy Business (NEB) segment delivered strong operational traction. In mobility, offtake for EV off-board chargers remained healthy, while the AC and DC chargers order book crossed 5,000 units.
The company also began commercial supplies of 3-wheeler battery packs using LFP cells. Within stationary applications, telecom volumes exceeded 150 MWh during the quarter, indicating increasing adoption and scale-up in energy storage deployment.
About the company
Amara Raja Energy & Mobility Ltd is one of India’s leading storage energy tech companies (earlier Amara Raja Batteries) with strong franchise in automotive batteries (Amaron) & industrial battery space. The company has an expanding focus towards advanced chemistries, Lithium cell / pack manufacturing & future energy storage solutions alongside its strong legacy lead-acid business.
The company has return ratios with ROCE of 16.8% and ROE of 12.3%. The company has been consistently shareholder return-focused with a healthy 18.3% dividend payout.
Promoters holding stands at 32.86% in Q2FY6. FII’s decreased their stake to 17.97% from 19.39% in Q1Y26. DII’s holding rose to 16.24% from 14%. Public holding slightly fell to 32.93% from 33.76%
Written by Manideep Appana
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