This article first appeared on GuruFocus .
Release Date: February 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Amara Raja Energy & Mobility Ltd ( BOM:500008 ) reported a consolidated revenue growth of 4.2% year-over-year, reaching 3,410 crores.
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The company achieved a significant milestone in its new energy business, crossing the 200 crore revenue mark for the first time, with a growth of almost 2 times compared to the previous year.
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Domestic automotive four-wheeler volumes grew by 7%, with OEM volumes showing robust growth of around 25%.
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The company is focusing on battery energy storage solutions, with plans to set up a 5 gigawatt integrated solution plant to cater to grid and commercial industry energy storage needs.
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Amara Raja Energy & Mobility Ltd ( BOM:500008 ) maintained operating margins of about 12% in the lead acid battery business despite cost pressures from raw materials.
Negative Points
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The lead acid business reported a muted topline of around 3,174 crore due to a decline in industrial telecom lead acid volumes and a 15% decline in automotive export volumes.
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The company faced challenges with raw material costs, particularly in thin alloys, sulfuric acid, and antimony alloys, which impacted margins.
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There was a significant decline in telecom volumes by more than 45%, with the overall telecom share in revenue dropping to less than 5%.
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The two-wheeler segment experienced flat growth, with only a marginal increase of around 1% due to a high base effect from the previous year.
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Export volumes declined by 15% due to tariff issues and geopolitical uncertainties, particularly affecting the US market.
Q & A Highlights
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Q: Can you provide insights into the growth within the four-wheeler segment, specifically OEM, replacement, and export volumes? A: In the four-wheeler segment, OEM volumes grew by around 25%, while the aftermarket segment saw a growth of approximately 3%. However, exports declined by about 15% due to geopolitical issues. - Respondent: Unidentified_3
Q: How did the two-wheeler segment perform in terms of OEM and replacement growth? A: The two-wheeler segment experienced marginal growth of around 1% in both OEM and aftermarket segments. This was due to a high base effect from the previous year and some OEM factory shutdowns. - Respondent: Unidentified_3
Q: What is the current status of the telecom segment, and how has the shift from lead-acid to lithium impacted it? A: Telecom volumes declined by more than 45% during the quarter, and the share of telecom in overall revenue is now less than 5% due to the transition to lithium. - Respondent: Unidentified_3
Q: With the recent 2% price increase, are all cost-related pressures covered, or are further price increases anticipated? A: The recent price increase covers some cost pressures, but raw material costs, particularly acid, continue to rise. If raw material prices stabilize, the current increase should suffice, but further adjustments may be needed depending on market conditions. - Respondent: Unidentified_5
Q: What are the plans for CapEx in the lead-acid and new energy businesses for the next financial year? A: For the next financial year, CapEx for the lead-acid business is expected to be around 300 to 400 crores, while the new energy side may see an investment of around 1,000 crores. - Respondent: Unidentified_3
Q: How is Amara Raja approaching the battery energy storage solutions market, and what is the expected revenue potential? A: The company is focusing on commercial, industrial, and grid-level battery energy storage solutions. The market demand is expected to reach 25 to 30 gigawatt hours by FY31. The company plans to set up a 5-gigawatt integrated solution plant with an estimated CapEx of around 280 crores. - Respondent: Unidentified_5
Q: What competitive advantages does Amara Raja have in the battery energy storage solutions market? A: Amara Raja leverages its experience in the telecom pack business and its involvement in solar EPC projects. The company aims to capture about 15% of the market share with its 5-gigawatt hour capacity, focusing on both commercial and grid-level solutions. - Respondent: Unidentified_5
Q: How is Amara Raja addressing the challenges in the export market, particularly with tariffs affecting the US market? A: The company is exploring the formation of a subsidiary to stabilize and improve its business in the US. It is also monitoring trade announcements and potential tariff reviews to mitigate these challenges. - Respondent: Unidentified_5
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
