Any current/future new fundraising through debt or equity?

The company mentioned an increase in investment in ARCSPL (recycling battery venture) with board approval for an additional Rs. 200 crore depending on project progress. For Amara Raja Power Systems (charger manufacturing), there is an unsecured loan approval of about Rs. 50 crore planned. There is no equity investment proposed at this point in time. Future funding could depend on project requirements but no immediate equity fundraising is suggested. Debt funding through unsecured loans is planned for some business segments. Overall, current focus is on calibrated CAPEX and investments rather t

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

Current year CAPEX: Around Rs. 400 crores (excluding tubular plant restatement), plus Rs. 200-300 crores for new energy business. Next year CAPEX: Estimated Rs. 300-400 crores for lead acid business and Rs. 500-600 crores for new energy business, totaling around Rs. 1000 crores. Additional investment approved: Rs. 200 crore for phase two of ARCSPL (recycling battery venture) depending on project progress. Amara Raja Power Systems received unsecured loan approval of Rs. 50 crores for charger manufacturing business. CAPEX includes capacity additions in 4-wheeler segment and automation/digitaliza

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

Lead acid battery business expects ~11-12% revenue growth supported by 8-9% growth in 4W segment, 11-13% growth in 2W segment, ~6-7% in UPS, and 13-14% in exports next year. Lithium-ion (NMC) plant to start commercial production by end CY26 or early 2027, reaching breakeven and positive EBITDA only after 2-3 years due to ramp-up. New energy business pack segment expected to grow at double digits; revenue was ~Rs. 500 crores last year with 10% YoY expected growth this year. Tubular battery manufacture plant to start in Q1 FY26, anticipated to add 20% revenue but initial volumes may be limited.

Current/ Expected Orderbook/ Pending Orders?

No specific current or expected orderbook value was disclosed. The company mentioned existing agreements with OEMs for NMC cells, including a prior announcement for 21,700 cells with a couple of OEMs. Discussions are ongoing with several other OEMs, particularly for two-wheeler and three-wheeler applications. Exact details or numbers about new orders or pending orders in the lithium-ion cell business were not shared. The company is cautiously optimistic about ramping up revenue in the lithium-ion business with localized chargers and DC fast chargers contributing to growth. Amara Raja expects g

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Amara Raja Energy & Mobility LtdQ4 FY26Auto Components

Amara Raja Energy & Mobility Ltd Q4 FY26 Earnings Call Analysis

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

Price: ₹835P/E: 20.0Market Cap: ₹15.1K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

Future growth expectations for Amara Raja Energy & Mobility Limited as per the transcript are: - Lead Acid Battery Business: - Four-wheeler segment expected to grow around 8-9% in volume. - Two-wheeler segment expected to grow around 11-13% in volume. - UPS segment (industrial side) expected to grow 6-7%. - Export market projected to grow 13-14%. - Overall revenue momentum on lead acid battery side expected at approximately 11-12% growth going forward. - New Energy Business: - Lithium-ion pack and charger business grew to about Rs. 500 crores last year; expecting 10% growth this year. - Cell manufacturing plant to start in FY26 (Q1), expected to contribute Rs. 1,100 - 1,200 crores annualized revenue once operational. - Manufacturing capacity ramp-up may increase trading revenue by at least 20%. - Longer-term, lithium-ion business expected to take 2-3 years to stabilize and reach EBITDA breakeven. - Telecom segment revenue expected to decline on lead acid but partly offset by lithium conversion. Overall, the company expects continued double-digit revenue growth driven by automotive, industrial, export, and new energy segments.

Margin guidance

Category 3

→Lead acid battery business expects ~11-12% revenue growth supported by 8-9% growth in 4W segment, 11-13% growth in 2W segment, ~6-7% in UPS, and 13-14% in exports next year.
→Lithium-ion (NMC) plant to start commercial production by end CY26 or early 2027, reaching breakeven and positive EBITDA only after 2-3 years due to ramp-up.
→New energy business pack segment expected to grow at double digits; revenue was ~Rs. 500 crores last year with 10% YoY expected growth this year.
→Tubular battery manufacture plant to start in Q1 FY26, anticipated to add 20% revenue but initial volumes may be limited.
→Overall CAPEX for FY26 expected to be around Rs. 1000 crores with focus on both lead-acid and new energy capacity expansions.
→Earnings growth tempered initially by ramp-up costs and raw material price pressures but expected to stabilize with scale and localization.

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Fundraise plans

Yes

→The company mentioned an increase in investment in ARCSPL (recycling battery venture) with board approval for an additional Rs. 200 crore depending on project progress.
→For Amara Raja Power Systems (charger manufacturing), there is an unsecured loan approval of about Rs. 50 crore planned.
→There is no equity investment proposed at this point in time.
→Future funding could depend on project requirements but no immediate equity fundraising is suggested.
→Debt funding through unsecured loans is planned for some business segments.
→Overall, current focus is on calibrated CAPEX and investments rather than fresh equity issuance.

Order book

→No specific current or expected orderbook value was disclosed.
→The company mentioned existing agreements with OEMs for NMC cells, including a prior announcement for 21,700 cells with a couple of OEMs.
→Discussions are ongoing with several other OEMs, particularly for two-wheeler and three-wheeler applications.
→Exact details or numbers about new orders or pending orders in the lithium-ion cell business were not shared.
→The company is cautiously optimistic about ramping up revenue in the lithium-ion business with localized chargers and DC fast chargers contributing to growth.
→Amara Raja expects growth in the new energy business but did not specify hard figures for the orderbook or pending orders during the call.

Capex plans

Yes

→Current year CAPEX: Around Rs. 400 crores (excluding tubular plant restatement), plus Rs. 200-300 crores for new energy business.
→Next year CAPEX: Estimated Rs. 300-400 crores for lead acid business and Rs. 500-600 crores for new energy business, totaling around Rs. 1000 crores.
→Additional investment approved: Rs. 200 crore for phase two of ARCSPL (recycling battery venture) depending on project progress.
→Amara Raja Power Systems received unsecured loan approval of Rs. 50 crores for charger manufacturing business.
→CAPEX includes capacity additions in 4-wheeler segment and automation/digitalization in lead acid battery factories.
→Lithium-ion NMC plant expected commercialization by FY27-end/early FY28, with LFP plant licensing about 12 months afterward.
→Investments are timed carefully due to high capital intensity and market uncertainties to avoid financial burden.

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