Amara Raja Energy & Mobility Limited (ARE&M) share price

₹813.90 on NSE as of 2026-09-11. -0.65% on the day. market cap ₹14,896 Cr. P/E 16.2. 52-week range ₹672.45 to ₹1051.70. Automobile and Auto Components.

Amara Raja Energy & Mobility Q1 FY27: Revenue Up 20.6% to ₹4,041 Cr, a Revoked Closure Order, and ₹1,650 Cr Parked in a Cell Subsidiary

At a glance

Revenue for the June 2026 quarter came in at ₹4,041.44 crore, up 20.6% year-on-year — the first time the company's standalone topline has cleared ₹4,000 crore in a single quarter. Operating profit was ₹407.39 crore against ₹386.66 crore a year earlier. Net profit was ₹202.80 crore, up 4.53%. So revenue sprinted and profit strolled, which is what happens when a battery maker's raw material bill decides to grow up alongside it.

Operating margin for the quarter worked out to 10.1% of revenue, against 11.5% in the June 2025 quarter. Management attributed the moderation to higher costs in alloy, sulphuric acid and poly, elevated spending on brand promotions, the Amaron Assist pilot and Factory of the Future initiatives, and higher warranty provisioning — quantifying the strategic-initiative portion at around 0.9% of margin.

Away from the P&L, the quarter's headline event arrived from a pollution control board rather than a customer. The Andhra Pradesh Pollution Control Board revoked, on July 18, 2026, the closure orders it had issued on April 30, 2021 for the Karakambadi and Nunegundlapalli plants — orders that had spent five years suspended by the High Court while the plants carried on making batteries throughout. The company withdrew its writ petitions; they were disposed on August 6, 2026.

Also in the quarter: ₹150 crore infused into the lithium cell subsidiary, taking the total there to ₹1,650.01 crore, and a Customer Qualification Plant commissioned in Telangana in July.

Introduction

Amara Raja Energy & Mobility Limited was promoted by Mr Ramachandra Galla in 1985, and began life at Karakambadi in Tirupati making standby valve-regulated lead acid batteries — a product category whose name alone explains why the company later invented the brand "Amaron."

It was called Amara Raja Batteries Limited until 2023. The rename, per the company, reflects a broader vision to lead India's energy transition in the energy and mobility space. Renaming yourself away from your best-selling product is a confident move; the batteries, mercifully, kept their old names.

The other structural change of recent years was the termination of the shareholders agreement with Johnson Controls, ending the tie-up that shaped the company's earlier decades.

Since 2022 the story has had two tracks running at different speeds. The lead-acid business does the earning. The New Energy Business does the spending. The company forayed into New Energy in 2022 to offer lithium-ion cells, battery pack solutions and EV charging products, and has since developed what it describes as India's first 21700 cylindrical cell in NMC 811 chemistry. It has signed an MoU with the Telangana government for a Giga Corridor project at Divitipally, with planned capex of ₹9,500 crore and eventual capacity up to 16 GWh of cells and 5 GWh of pack assembly.

The near-term milestones are physical and dated. The Customer Qualification Plant — a multi-chemistry, multi-form-factor pilot facility — was inaugurated on July 15, 2026. Management describes the E Positive research facility as commencing operations in Q2 FY27, and construction has commenced on a 10 GWh BESS giga factory. Giga cell Phase 1, at 2 GWh on NMC chemistry, is guided to commence in Q2 CY27.

Meanwhile a lead recycling facility at Cheyyar, Tamil Nadu, commenced operations in FY25 and now carries 100,000 MT per annum of refining capacity, headed for 150,000. The company is, in a very literal sense, in the business of buying back its own history.

Business model

They make the box under the bonnet that everyone ignores until the morning it refuses.

The lead-acid business splits in two. Automotive covers 2W, 3W, 4W and commercial vehicles under Amaron, PowerZone and Elito, sold to Maruti Suzuki, Tata Motors, Hyundai, Honda, Eicher, Mahindra and Ashok Leyland among others, and into an aftermarket where Amaron is the country's largest-selling brand. Industrial covers VRLA batteries for UPS, telecom, railways and power control, under Power Stack, Amaron Sleek, Amaron Volt, Amaron Brute and Amaron Quanta — a naming convention that suggests somebody in marketing was handed a thesaurus and told to describe electricity aggressively.

Stated market shares: 33–34% in the automotive aftermarket, 35–36% in 2W aftermarket, 57–58% in industrial, 42–43% in UPS, 25% in 2W OEM, and 10–11% in inverters.

The distribution machine is the part that's genuinely hard to copy. Seventeen branches, 40 distribution points, 1,500+ direct partners and over 1,00,000 points of sale in India, plus exports to 70+ countries and a product range spanning JIS, DIN, BCI, AGM, EFB, deep cycle and L&G formats — because a battery that fits a Japanese sedan does not fit a German one, and the industry has quietly maintained this incompatibility for a century.

Manufacturing sits in Andhra Pradesh: seven lead-acid plants across two locations, roughly 70 million units of automotive capacity, ~2.4 billion Ah of industrial, ~1.8 million tubular, plus pack assembly at Divitipally at 1.5 GWh mobility and 1.2 GWh stationary. There are also two captive plastic component plants, which is a polite way of saying they manufacture their own boxes so nobody can hold the boxes hostage.

The segment split in the June quarter: lead acid and allied products ₹4,005.24 crore of consolidated revenue, New Energy ₹209.30 crore. Geographically, Q1 FY27 consolidated revenue ran 93% domestic and 7% export.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Amara Raja Energy & Mobility Limited.

Companies in the same industry as Amara Raja Energy & Mobility Limited

Auto Components & Equipments

All listed companies