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Informist, Monday, Feb. 9, 2026

 

By Nandini Sinha

 

MUMBAI – Amara Raja Energy and Mobility Ltd. is expected to post a strong on-year rise in its net profit for the December quarter, according to brokerages. The company is also expected to report a healthy on-year growth in its revenue for the quarter under review primarily led by an increase in replacement volumes, brokerages said.

 

The company is expected to post a standalone net profit of INR 2.42 billion for the December quarter, up more than 20% on year and nearly 34% sequentially, according to the average of estimates from five brokerages. 

 

Amara Raja is expected to post net sales of INR 34.58 billion for the reporting quarter, up over 9% on year and 2% sequentially, according to the average of estimates. The company will declare its December quarter earnings on Wednesday.

 

The highest estimate for net profit is INR 3.03 billion by Elara Securities while lowest estimate is INR 2.17 billion by Motilal Oswal Financial Services Ltd. The highest estimate for the company's net sales is INR 35.24 billion by Nuvama Wealth Management Ltd., while the lowest estimate is INR 33.92 billion by Elara Securities (India) Pvt. Ltd.

 

Kotak Securities Ltd. expects the rise in on-year net sales to be driven by an increase in replacement segment volumes, double-digit revenue growth in the automotive original equipment manufacturers segment, and subdued growth in industrial and export segments.

 

Amara Raja is one of India's largest manufacturers of lead-acid and lithium battery technologies, and serves automotive, industrial, and emerging new-energy applications. The lead acid business contributes to around 95% of its consolidated revenue while the rest comes from new energy business. The new energy business comprises lithium-ion battery packs, chargers, and other allied products.

 

The company's aftermarket sales volumes had remained stable in the trailing quarter and original equipment manufacturer volumes had seen a healthy growth, the company had said in its post-earnings call after the September quarter earnings.

 

Amara Raja's earnings before interest, tax, depreciation, and amortisation are expected at INR 4.35 billion, according to the average of estimates. This is a rise of nearly 5% on year and over 7% on quarter. The highest estimate for the company's EBITDA is INR 4.55 billion from Nuvama while the lowest estimate is INR 4.25 billion from Kotak Securities.

 

The company's EBITDA margin is expected to fall 24-90 bps on year, according to brokerages. The on-year contraction in EBITDA margin is due to input cost pressure, according to Nuvama. However, sequentially, analysts expect the EBITDA margin to improve 20-93 basis points from 12% in the September quarter.

 

Kotak expects the EBITDA margin to rise due to cost-reduction measures and reversal of a few-one off items related to provisions and power cost in the trailing quarter. The company had earlier said that it expects to return to the original 14?ITDA margin over a period of time.

 

For auto ancillary companies, Nomura expects near-term pressure on EBITDA margin due to a sharp jump in prices of some commodities such as copper.

 

Key factors to watch out for the company are progress on its lithium-ion manufacturing facility and customer tie-ups, according to Nuvama.

 

Amara Raja's shares are down over 8% since its September quarter earnings were announced. Shares of the company closed at INR 897.25 a piece on the National Stock Exchange Monday, up nearly 4%.

 

Of the four brokerage reports on the company available with Informist, two have a 'buy' recommendation on the stock with an average target price of INR 1,094 per share. This is nearly 22% higher than the current market price. Two brokerages have a 'hold' recommendation with an average target price of INR 1,030 per share.

 

Following are the December quarter earnings estimates of Amara Raja from five brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGE NAME	NET SALES	NET PROFIT	EBITDA
Elara Securities (India) Pvt. Ltd.	33.92	3.03	4.38
Nuvama Wealth Management Ltd.	35.24	2.50	4.55
Nomura Equity Research	34.44	2.20	4.29
Kotak Securities Ltd.	34.17	2.18	4.25
Motilal Oswal Financial Services Ltd.	35.12	2.17	4.29
Average	34.58	2.42	4.35

 

End

 

Edited by Deepshikha Bhardwaj

 

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