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Informist, Wednesday, Aug. 13, 2025

By Adhithya Aji

MUMBAI – Amara Raja Energy and Mobility Ltd. is likely to post modest year-on-year growth in revenue and a decline in profit in the June quarter. The increase in sales volume of the replacement and industrial segments is expected to be the key driver of revenue growth for the battery manufacturing company, according to the brokerages tracking the company.

The company is expected to post a net profit of INR 2.36 billion during the quarter, down nearly 4% on year but up 41% on quarter, according to the average of estimates from five brokerages. The highest estimate for net profit is INR 2.70 billion by Nuvama Wealth Management Ltd. and the lowest is INR 2.09 billion by Motilal Oswal Financial Services Ltd.

The company is expected to post a top line of INR 33.79 billion in Apr-Jun, up 8% on year and 14% on quarter, according to the average of estimates. The estimates for revenue range from INR 34.49 billion by Nuvama to INR 32.56 billion by Motilal Oswal.

The increase in volumes of replacement batteries and demand from industrial segments such as telecom, railways, power control, solar, and uninterruptible power supply systems are expected to be the drivers of revenue growth for Amara Raja. The revenue is expected to be driven by mid-single digit growth in replacement volumes and double-digit revenue growth in exports and select industrial segments, Kotak Institutional Equities said.

The automotive battery manufacturer is expected to report a modest growth in revenue primarily due to weak demand from original equipment manufacturers and from the telecom segment, according to Motilal Oswal. Amara Raja is a major supplier of lithium-ion batteries to telecom tower installations across the country. The brokerage expects lead prices to be stable in this quarter, but rising cost of non-lead alloys and higher power costs are likely to keep the company's margins under pressure.

The company is expected to post earnings before interest, tax, depreciation, and amortisation of INR 4.30 billion, according to the average of estimates from four brokerages. The highest estimate for EBITDA is INR 4.78 billion by Nuvama and the lowest is INR 3.91 billion by Motilal Oswal.

Amara Raja's EBITDA margin is expected to improve by 100 basis points, driven by cost reduction measures by the company and reversal of provisions and power costs, which were exceptional from the previous quarter, Kotak Institutional Equities said. However, Nuvama said the EBITDA margin is likely to improve only marginally while Motilal Oswal expects it to fall 170 bps on year to 12%.

Wednesday, shares of Amara Raja ended at INR 957.95 on the National Stock Exchange, up 0.3% from the previous close. The stock of the company is down 7% since the announcement of its March quarter earnings.

The company will announce its June quarter earnings Thursday. The progress in the lithium-ion manufacturing facility in Telangana and customer partnerships will be key metrics to watch, according to analysts.

Of the 11 brokerage reports available on the company with Informist, six have a 'buy' rating for the stock with an average target price of INR 1,354. Three brokerages have a 'hold' rating and two have a ‘sell' rating for the stock.

Following are the Apr-Jun estimates for Amara Raja, in INR million, based on five broking firms in descending order of net profit:

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Edited by Saji George Titus

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