Amara Raja Energy & Mobility (ARE&M) held an investor call on May 30, 2025, to discuss Q4 FY25 and full-year results.
Consolidated revenue for Q4 FY25 stood at ₹3,060 crore, a 5% increase YoY, with 95% from the lead-acid business.
Lead Acid Battery business revenue was approximately ₹2,900 crore, reflecting a 4% growth.
4-wheeler domestic aftermarket volumes increased by 9%, and OEM volumes showed a strong growth of 15%.
2-wheeler volumes grew by 13%, driven by both aftermarket and OEM segments; home inverter batteries saw a double-digit growth of about 17%.
Lube business generated ₹40 crore in revenue for the quarter.
Industrial volumes saw healthy growth in the UPS business, but telecom experienced a 15% degrowth.
New Energy Business grew by 35%, including chargers and battery packs for EV and ESS segments.
Profitability and operating margins were negatively affected by material costs (antimony alloys) and power costs, resulting in roughly 1.5% to 2% impact.
Full year consolidated revenue grew by 10%, with the lead-acid business posting double-digit growth.
FY25 capex spend was approximately ₹1,200 crore, with a significant portion allocated to the lead-acid business, including tubular battery reinstatement (₹400 crore).
₹200 crore to ₹300 crore was invested in the New Energy Business for a customer qualification plant, research lab, and land development for the first gigafactory.
Lead acid recycling plant commenced commercial operations in Q4.
For FY26, a similar capex spend is expected, primarily directed towards the New Energy Business.
Amazon brand continues to be the number 1 brand in the markets of Singapore, Malaysia, Cambodia, number 2 in the GCC.
The company has expanded into the U.K., Greece and the Benelux region of Belgium, Netherlands and Luxembourg.
Recycling unit has come online in Q4 with a starting capacity of about 50,000 metric tons per annum, scaling to 100,000.
Vikramadithya G mentioned that Amara Raja remains a strong number 1 in the market, especially for light electric mobility for electric 2 and 3-wheelers.
The R&D facility in Hyderabad should be operational by the end of the calendar year, along with the customer qualification plant; the first gigafactory is expected to have capacity online in the first half of 2027.
LFP prices, the ranges could drastically vary based on quality.
Delli Babu mentioned the cost of some of the alloys as well as power-related costs will continue into the next quarter as well.
Management aims to reach the originally stated position of 14% margin and also mentioned an internal target of 13% kind of margin.
Tubular battery plant reinstatement is underway with commercial production starting in June, allowing the company to put its own manufactured products into the market with less reliance on trading.