Any current/future new fundraising through debt or equity?

The company indicated that the first phase of the New Energy Business would require close to INR 2,000 to 2,500 crores. This initial funding is expected to be supported mainly through cash flow generated from the existing lead acid business, with possibly some leverage taken on the holding company's balance sheet. Further capacity expansions beyond the first phase will require additional financing, at which point the company will consider other means of raising funds, including possibly equity or debt, depending on market conditions. They aim to stabilize initial gigafactory capacity and

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

INR 850 crores invested so far in New Energy Business, including customer qualification plant, research lab, and gigafactory land development. Lead acid recycling plant commenced commercial operations in Q4, with ramp-up expected in the current year. FY '26 planned capex around INR 1,000 crores, mostly focused on completing three New Energy Business projects under construction. Tubular battery plant reinstatement underway with commercial production starting in June, reducing trading reliance. Industry 4.0 initiatives enabling capacity unlock without significant additional capex. Firs

Future growth expectations in sales/revenue/volumes?

Lead Acid business expects continued double-digit growth aided by robust domestic aftermarket demand and export market expansion, including new European geographies. Overall revenue growth for FY '25 was about 10% consolidated, with lead acid business posting double-digit growth. New Energy Business revenue remained flat in FY '25 but is poised for growth with capacity expansions and new product launches (e.g., localized chargers, battery packs). Anticipated uptick in 4-wheeler OEM volumes in Q2 after a flat Q1; 2-wheeler OEM demand expected to improve in next quarter. Industrial UPS segment t

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

The company targets improving lead acid battery margins back to 14% aided by tubular battery plant ramp-up and lead recycling operations. New Energy Business capex for FY 2026 is planned at around INR 1,000 crores, focusing on scaling lithium-ion cell production to 8-10 GWh to improve margins and profitability. Once scale efficiencies are achieved and supply chains optimized, EBITDA of $4-5 per kWh is targeted in the New Energy segment. Revenue growth in lead acid business is expected to continue in double digits, driven by domestic aftermarket and exports, despite some near-term demand softne

Current/ Expected Orderbook/ Pending Orders?

The management shared that OEMs generally share their production plans on a monthly or quarterly basis. Current four-wheeler OEM volume projections are relatively flat, with an expected uptick in Q2. Two-wheeler OEM demand declined in Q1 but is anticipated to improve in the next quarter. Export OEM demand and order flows are in flux due to tariff uncertainties; the company is monitoring trade agreement outcomes. New Energy Business expects to ramp up with ongoing discussions and customer qualification, especially in the light electric mobility segment. The company is focused on growing new cus

Amara Raja Energy & Mobility LtdQ1 FY26Auto Components

Amara Raja Energy & Mobility Ltd Q1 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 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Lead Acid business expects continued double-digit growth aided by robust domestic aftermarket demand and export market expansion, including new European geographies.
→Overall revenue growth for FY '25 was about 10% consolidated, with lead acid business posting double-digit growth.
→New Energy Business revenue remained flat in FY '25 but is poised for growth with capacity expansions and new product launches (e.g., localized chargers, battery packs).
→Anticipated uptick in 4-wheeler OEM volumes in Q2 after a flat Q1; 2-wheeler OEM demand expected to improve in next quarter.
→Industrial UPS segment to grow, compensating for telecom segment degrowth.
→The Indian lead acid battery market projected to grow from $4.6B to $5.8B over five years (~5% CAGR), which is conservative; company expects higher overall growth considering global opportunities.
→New Energy Business capex planned around INR1,000 crores for FY '26 to ramp up gigafactory capacity aiming for 8-10 GWh capacity for better benchmarks.

Margin guidance

Category 3

→The company targets improving lead acid battery margins back to 14% aided by tubular battery plant ramp-up and lead recycling operations.
→New Energy Business capex for FY 2026 is planned at around INR 1,000 crores, focusing on scaling lithium-ion cell production to 8-10 GWh to improve margins and profitability.
→Once scale efficiencies are achieved and supply chains optimized, EBITDA of $4-5 per kWh is targeted in the New Energy segment.
→Revenue growth in lead acid business is expected to continue in double digits, driven by domestic aftermarket and exports, despite some near-term demand softness.
→New Energy Business aims for strategic long-term growth; cash flow supported by lead acid profits with potential leverage for further expansion.
→Overall margins are expected to improve as cost pressures (antimony, power) ease and new capacity utilization increases.
→Conservative market growth estimates signal steady but moderate CAGR, with expansion into international markets and energy storage expected to contribute.

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Fundraise plans

Yes

→The company indicated that the first phase of the New Energy Business would require close to INR 2,000 to 2,500 crores.
→This initial funding is expected to be supported mainly through cash flow generated from the existing lead acid business, with possibly some leverage taken on the holding company's balance sheet.
→Further capacity expansions beyond the first phase will require additional financing, at which point the company will consider other means of raising funds, including possibly equity or debt, depending on market conditions.
→They aim to stabilize initial gigafactory capacity and establish customer accounts before seeking external funding to ensure appropriate valuation.
→No specific new fundraising through debt or equity is currently announced; future raising plans depend on capacity expansion needs and market conditions.

Order book

→The management shared that OEMs generally share their production plans on a monthly or quarterly basis.
→Current four-wheeler OEM volume projections are relatively flat, with an expected uptick in Q2.
→Two-wheeler OEM demand declined in Q1 but is anticipated to improve in the next quarter.
→Export OEM demand and order flows are in flux due to tariff uncertainties; the company is monitoring trade agreement outcomes.
→New Energy Business expects to ramp up with ongoing discussions and customer qualification, especially in the light electric mobility segment.
→The company is focused on growing new customer accounts while leaving some lower-margin segments.
→The first gigafactory plant capacity ramp-up is on track, and future capacity additions will depend on firm customer contracts.
→Overall, the order book outlook is cautiously optimistic but subject to market and regulatory developments.

Capex plans

Yes

→INR 850 crores invested so far in New Energy Business, including customer qualification plant, research lab, and gigafactory land development.
→Lead acid recycling plant commenced commercial operations in Q4, with ramp-up expected in the current year.
→FY '26 planned capex around INR 1,000 crores, mostly focused on completing three New Energy Business projects under construction.
→Tubular battery plant reinstatement underway with commercial production starting in June, reducing trading reliance.
→Industry 4.0 initiatives enabling capacity unlock without significant additional capex.
→First gigafactory (lithium-ion) capacity expected online by H1 2027 for light electric mobility; further capacity tied to firm customer contracts.
→INR 2,000 - 2,500 crores estimated for first phase of New Energy Business capex, funded by lead acid business cash flows and possible leverage.
→New R&D and customer qualification facilities to be operational by end 2025 to accelerate New Energy Business capabilities.

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