⚡ At a glance:
Amara Raja Energy & Mobility Ltd (ARE&M) reported a 10.2% YoY revenue jump to ₹12,405 Cr in FY25. But profits didn’t charge up as much — PBT grew just 7.3% to ₹1,299 Cr, thanks to rising alloy and power costs. Meanwhile, they’ve gone all-in on lithium dreams — kicking off their Giga Factory construction and expanding their charger network. And yes, shareholders got a ₹5.20 dividend per share to soften the inflation blow.
🏭 About the Company
- Name: Amara Raja Energy & Mobility Ltd (Formerly Amara Raja Batteries)
- Listed on: NSE (ARE&M) & BSE (500008)
- HQ: Hyderabad/Tirupati
- Core Biz: Automotive + industrial batteries, Li-ion, EV charging, lubricants
- Customer base: OEMs like Maruti, Tata, Hyundai, Mahindra, Indian Railways
- Exports: Over 50 countries
🔑 FY25 Financial Highlights
| Metric | FY25 | FY24 | YoY % |
|---|---|---|---|
| Revenue | ₹12,405 Cr | ₹11,260 Cr | 🔼 10.2% |
| Profit Before Tax | ₹1,299 Cr | ₹1,211 Cr | 🔼 7.3% |
| EPS | ₹52.66 | Not disclosed | — |
| Q4 Revenue | ₹2,974 Cr | ₹2,797 Cr | 🔼 6.3% |
| Q4 PBT | ₹224 Cr | ₹305 Cr | 🔽 26.5% |
| Final Dividend | ₹5.20/share | ₹— | — |
- Auto volumes zoomed, while telecom segment shrunk
- UPS segment saved the industrial biz
- Allied businesses (lubricants, etc) continued slow but steady gains
🔋 New Energy Business: India’s Giga Gamble
- Commenced construction of Giga Factory-1 in Telangana
- R&D + Customer Qualification Plant close to completion
- Actively deploying EV pack and charger infrastructure
- Executing roadmap for Li-ion cell manufacturing + EV infra
🧠 Translation:
They’re not just selling batteries anymore — they’re trying to own the entire electric ecosystem, from R&D to road.
🏗️ Segment Commentary
🔧 Automotive:
- Strong across all categories (OEM + replacement)
- Volumes healthy despite input cost challenges
🔋 Industrial:
- Telecom weak, but UPS biz picked up slack
- Export orders stable
💧 Allied Businesses:
- Lubricants: slow but consistent
- EV Charging: still scaling, infra underway
🧪 New Energy:
- Giga plant construction ongoing
- R&D + CQP to go live in a few quarters
💸 Forward Value (FV) Calculation
| Metric | Value |
| EPS (FY25) | ₹52.66 |
| CMP (May 29, 2025) | ₹1,093 |
| Expected EPS CAGR (2Y) | 15% |
| Assumed P/E | 22x |
| FY27E EPS | ₹69.71 |
| Fair Value (FY27) | ₹1,533 |
| Upside | ~40% in 2 years |
🧠 EduInvesting Take:
“It’s not a cheap battery stock anymore. It’s a clean energy play with R&D edge, global ambition, and giga-sized vision. But margins need a recharge before it really outruns Exide & Co.”
⚠️ Risks
- Power cost volatility (solar surcharge drama)
- Slowdown in telecom segment
- Execution risk on Giga Factory timeline
- Competition in EV infra (from Tata Power, ChargeZone, etc)
🏁 EduInvesting Verdict
“This ain’t your dad’s inverter battery company anymore. Amara Raja is going from Amaron to Amazon of Energy. If they pull off Giga, CQP, and EV pack scaling, this stock might just give you a jolt you didn’t expect.”
Tags: Amara Raja, ARE&M, battery stock, lithium ion India, EV charging, FY25 results, Giga Factory, dividend stock
Author: Prashant Marathe
Date: May 29, 2025
