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Informist, Friday, May 22, 2026

 

By Prateem Rohanekar

 

MUMBAI – Amara Raja Energy & Mobility Ltd. is expected to report a steady March-quarter performance, with resilient demand in the automotive original equipment manufacturer and replacement battery segments supporting profit and revenue growth, according to analysts tracking the company.

 

The company's net profit for the March quarter is expected to rise by 7% on-year to INR 1.79 billion, according to the average of estimates from seven brokerages. Sequentially, the net profit is expected to fall 9%. The estimates for the company's net profit in the March quarter range from INR 1.60 billion by Elara Securities (India) Pvt. Ltd. to INR 2.09 billion by Nuvama Wealth Management Ltd.

 

Amara Raja Energy's revenue is expected to rise by 10% on-year to INR 32.79 billion in the March quarter, according to the average of estimates. Sequentially, the revenue is expected to fall by 2%. Motilal Oswal Financial Services Ltd. has the highest estimate for the company's revenue at INR 33.92 billion and Kotak Securities Ltd. has the lowest estimate at INR 31.78 billion.

 

Amara Raja Energy is one of the largest manufacturers of energy storage products for both industrial and automotive applications in the country.

 

Earnings before interest, taxes, depreciation, and amortisation is expected at INR 3.76 billion in the March quarter, up 10% on-year, according to the average of estimates from five brokerages. Nuvama has the highest estimate for the company's EBITDA at INR 4.02 billion and Elara Securities has the lowest at INR 3.40 billion.

 

According to Nuvama, the company's revenue growth will be driven by growth in both the automotive OEM and replacement segments. The brokerage expects the company's EBITDA margin to expand on better net pricing.

 

Motilal Oswal expects demand for batteries in the automotive OEM and replacement segments to remain resilient, although offtake from the company's global clients is likely to stay subdued. Motilal Oswal expects the company's EBITDA margin to be largely flat on a year-over-year and sequential basis at 11.3%. The company took a 2% price hike in January, which is expected to support profitability, Motilal Oswal said.

 

Kotak Securities expects the company's revenue to be driven by a high-single-digit increase in replacement-segment volumes and double-digit growth in revenue from the automotive OEM segment. However, growth in the industrial and export segments is expected to remain subdued during the quarter.

 

Kotak expects the company's EBITDA margin to improve by 90 basis points sequentially, driven by cost-reduction measures and the reversal of a few one-off costs related to provisions and power in the previous quarter.

 

Amara Raja Energy is scheduled to announce its earnings for the March quarter on Monday.

 

Investors will watch management's commentary on progress at the lithium-ion manufacturing facility and customer partnerships.

 

On Friday, shares of Amara Raja closed at INR 820.65 on the National Stock Exchange, down 0.1% from the previous close. Since announcing its December-quarter earnings on Feb. 11, the stock has fallen 10%.

 

Of the five brokerage reports available with Informist, three carry a 'buy' or equivalent recommendation on the stock with an average target price of INR 1,043, up over 27% from the current market price. Two brokerages have a 'hold' recommendation on the stock.

 

The following are the March quarter earnings estimates for Amara Raja Energy from seven brokerages in descending order of the estimate of net profit in INR billion:

 

Respondents	Net Sales	Net Profit	EBITDA
Nuvama Wealth Management Ltd	32.79	2.09	4.02
Motilal Oswal Financial Services Ltd	33.92	1.89	3.82
Anand Rathi Share and Stock Brokers Ltd	32.07	1.81	-
Batlivala & Karani Securities India Pvt Ltd	33.01	1.77	-
Equirus Securities Pvt Ltd	33.28	1.68	3.72
Kotak Securities Ltd	31.78	1.67	3.83
Elara Securities (India) Pvt Ltd	32.70	1.60	3.40
Average	32.79	1.79	3.76

 

End

 

Edited by Saji George Titus

 

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