Any current/future new fundraising through debt or equity?

Amara Raja plans to infuse an additional INR 1,200 crores into its New Energy subsidiary for completing the research lab, customer qualification plant, and first gigafactory. The funding will be used not only for capex but also for some working capital requirements. No explicit mention was made in the transcript about raising funds through new debt or equity. The investment appears to be through internal infusion into the subsidiary rather than external fundraising. Overall, the company is focused on capital expenditure mainly on New Energy projects and Lead Acid Battery side, projecting INR 1

Any current/future capex/capital investment/strategic investment?

Amara Raja plans a total capex of about INR 1,200 to 1,300 crores for the current fiscal year. Around INR 800 to 900 crores of this will be invested in New Energy projects, including: - Completion of research lab and customer qualification plant. - Establishment of the first gigafactory with 1 gigawatt-hour lithium-ion battery capacity. The remaining capex will be spent on Lead Acid Battery business enhancements. Additional infusion of about INR 1,200 crores is anticipated to complete the research lab, customer qualification plant, and first gigafactory. Construction of the gigafactory has

Future growth expectations in sales/revenue/volumes?

Lead Acid Battery business expected to grow around 10% annually for a reasonable period. Non-auto segments like UPS expected to grow 5%-6% annually. Automotive aftermarket: 4-wheeler expected growth ~6%-7%, 2-wheeler around 10%-11%. Industrial segment: Telecom Lead Acid batteries expected to decline (~30% last year), but UPS growing around 5%-6%; overall industrial volumes may see slight degrowth (~3%-4%). Exports expected to grow ~15%, but likely subdued this year due to supply chain challenges and tariffs; growth to revive in coming quarters. New Energy business revenues (lithium packs) grow

Future growth expectations in earnings/operating earnings/profits/EPS?

Margins are expected to improve from Q2 FY26 onwards as power cost issues stabilize and trading mix normalizes. Lead Acid battery business growth projected at around 10% for a reasonable period, supported by international market expansion. Automotive aftermarket growth expected: 4-wheeler at 6%-7%, 2-wheeler at 10%-11%, UPS segment growing at 5%-6%. Export growth uncertain in near term due to supply chain challenges but expected to revive in the second half of FY26. New Energy battery business ramp-up with gigafactory operations expected by FY27, indicating medium-term earnings growth. Capital

Amara Raja Energy & Mobility LtdQ2 FY26Auto Components

Amara Raja Energy & Mobility Ltd Q2 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹949P/E: 26.8Market Cap: ₹17.2K CrSector: Auto Components

Management growth scorecard

Revenue

Category 4

Margin

Category 2

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

→Lead Acid Battery business expected to grow around 10% annually for a reasonable period.
→Non-auto segments like UPS expected to grow 5%-6% annually.
→Automotive aftermarket: 4-wheeler expected growth ~6%-7%, 2-wheeler around 10%-11%.
→Industrial segment: Telecom Lead Acid batteries expected to decline (~30% last year), but UPS growing around 5%-6%; overall industrial volumes may see slight degrowth (~3%-4%).
→Exports expected to grow ~15%, but likely subdued this year due to supply chain challenges and tariffs; growth to revive in coming quarters.
→New Energy business revenues (lithium packs) growing, but EV demand slowed recently with expected revival.
→Tubular battery capacity ramp-up planned, reducing reliance on trading, aiding margin and volume growth.
→Battery manufacturing capacity expected operational by end FY '27.

Margin guidance

Category 2

→Margins are expected to improve from Q2 FY26 onwards as power cost issues stabilize and trading mix normalizes.
→Lead Acid battery business growth projected at around 10% for a reasonable period, supported by international market expansion.
→Automotive aftermarket growth expected: 4-wheeler at 6%-7%, 2-wheeler at 10%-11%, UPS segment growing at 5%-6%.
→Export growth uncertain in near term due to supply chain challenges but expected to revive in the second half of FY26.
→New Energy battery business ramp-up with gigafactory operations expected by FY27, indicating medium-term earnings growth.
→Capital expenditure of INR1,200-1,300 crores focused on New Energy and Lead Acid projects will support future capacity and revenue growth.
→Improvement in margins towards the typical 13% range anticipated as tubular manufacturing scales up and raw material prices stabilize.
→Lithium cell pricing may witness upward movement, impacting New Energy segment margins positively or negatively.

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Fundraise plans

Yes

→Amara Raja plans to infuse an additional INR 1,200 crores into its New Energy subsidiary for completing the research lab, customer qualification plant, and first gigafactory.
→The funding will be used not only for capex but also for some working capital requirements.
→No explicit mention was made in the transcript about raising funds through new debt or equity.
→The investment appears to be through internal infusion into the subsidiary rather than external fundraising.
→Overall, the company is focused on capital expenditure mainly on New Energy projects and Lead Acid Battery side, projecting INR 1,200 to INR 1,300 crores capex for the current fiscal.

Order book

The transcript does not explicitly mention the current or expected order book or pending orders for Amara Raja Energy & Mobility Limited. However, some relevant points related to demand outlook and customer engagements are: - Discussions are ongoing with customers both on low voltage and high voltage projects, but no specific new customer additions were disclosed. - Demand from OEMs in the EV segment has slowed down recently but is expected to revive in upcoming quarters. - The lithium cell factory and research lab are under development, with the first gigafactory expected operational by end of FY 2027. - Expansion into new export markets is expected to revive volume momentum after near-term challenges. - Market penetration activities are underway to grow export volumes and other segments. - No direct figures or timelines on order book or pending orders were provided. Thus, while the company is actively developing capabilities and engaging customers, no quantified order book details are available in the transcript.

Capex plans

Yes

→Amara Raja plans a total capex of about INR 1,200 to 1,300 crores for the current fiscal year.
→Around INR 800 to 900 crores of this will be invested in New Energy projects, including:
→ - Completion of research lab and customer qualification plant.
→ - Establishment of the first gigafactory with 1 gigawatt-hour lithium-ion battery capacity.
→The remaining capex will be spent on Lead Acid Battery business enhancements.
→Additional infusion of about INR 1,200 crores is anticipated to complete the research lab, customer qualification plant, and first gigafactory.
→Construction of the gigafactory has started, with building work underway and equipment orders being finalized.
→The research lab and customer qualification plant are expected to be functional by the end of the current financial year/calendar year.
→Manufacturing capacity for lithium batteries expected to commence around the end of FY 2027.

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