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Informist, Wednesday, Nov. 5, 2025

MUMBAI – Amara Raja Energy and Mobility Ltd. is expected to report moderate on-year growth in revenue in the September quarter, led by an increase in replacement volumes. However, the company's net profit is expected to fall on year due to higher input costs, according to brokerages tracking the company.  

The battery maker is expected to post a standalone net profit of INR 2.12 billion for the September quarter, down nearly 12% on year but up over 9% sequentially, according to the average of estimates from four brokerages. The highest estimate for net profit is INR 2.21 billion from Nuvama Wealth Management Ltd. and the lowest is INR 2.05 billion from Anand Rathi Share and Stock Brokers Ltd.

The company's net sales for the reporting quarter are estimated at INR 33.77 billion, up 8% on year and just marginally higher on quarter, according to the average of four estimates. The estimates for revenue were in a tight range – from a high of INR 33.87 billion by Kotak Securities Ltd. to a low of INR 33.55 billion by Motilal Oswal Financial Services Ltd.   

Brokerages expect the revenue of the company to rise on year, led by growth in replacement volumes. The company's revenue is expected to increase 8% on year due to single-digit increase in replacement segment volumes and double-digit growth in revenue from exports and select industrial segments, according to Kotak. In the June quarter, exports contributed 11% of the company's revenue and domestic sales contributed nearly 90%.

The Tirupathi-based company sells its products to various industries such as telecom, railways, power control, and solar. Majority of the company's revenue comes from the lead acid battery segment, which had reported revenue of INR 32.80 billion in the June quarter, which was 96% of the total revenue from operations.      

"We expect battery demand to largely remain stable QoQ (quarter-on-quarter) both in OE (original equipment) and replacement segments, and hence expect Amara to post 7% YoY (year-on-year) growth in revenue," Motilal Oswal said. Lead prices were largely stable during the quarter but higher power costs are likely to keep the margins under pressure, the brokerage said.

Amara Raja's earnings before interest, tax, depreciation, and amortisation are expected at INR 4.10 billion, according to the average of estimates from three brokerages. The highest estimate for the company's EBITDA is INR 4.21 billion from Nuvama Wealth Management and the lowest estimate is INR 4.02 billion from Motilal Oswal Financial Services.

The company's EBITDA margin is expected to improve by 100 basis points sequentially, owing to cost-reduction measures. This would be aided by reversal of a few one-time costs such as provisions and power costs reported in the previous quarter, Kotak said. However, Nuvama expects the EBITDA margin to contract due to lower gross margin owing to higher input costs.

The company will detail its September quarter earnings on Thursday. Progress in the lithium-ion manufacturing facility in Telangana and customer partnerships will be key variables to monitor, Nuvama said. 

Of the 12 brokerage reports available on the company with Informist, seven have a 'buy' call and three have 'hold' rating. The average target price for 'buy' calls is INR 1,317.

On Tuesday, shares of the company closed nearly 2% lower at INR 990.10 on the National Stock Exchange. The stock is up nearly 4% since the announcement of its June quarter earnings on Aug. 14.

Following are the Jul-Sept earnings estimates for Amara Raja Energy and Mobility from four brokerages in descending order of the estimate of net profit in INR million:

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Edited by Avishek Dutta

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