Amara Raja Energy & Mobility (500008) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue reached INR 3,272 crores (INR 32,725 Mn), up 7.5% year-over-year, with lead-acid batteries contributing 96% of revenue and new energy business the remainder.

• PAT for Q3 FY25 was INR 2,984 Mn, up 11.4% year-over-year; EBITDA margin for Q3 FY25 was 12.4%, down 256 bps year-over-year.

• Four-wheeler aftermarket volumes grew 11%, two-wheeler volumes (aftermarket and OEM) rose 15%-17%, and export volumes increased 8%-9% year-over-year.

• Lubes distribution business generated INR 100 crores in revenue for the quarter, showing good traction since its launch last year.

• Board approved increased investments in subsidiaries: INR 200 crores in Amara Raja Circular Solutions and INR 50 crores in Amara Raja Power Systems.

Financial highlights

• Gross margin diluted by 1%-1.2% due to higher alloy metal costs and a power cost adjustment from the AP government for FY23-24.

• Exceptional income of INR 111 crores (INR 1,111 Mn) recognized from insurance claims related to the tubular plant fire.

• Comprehensive income saw a negative impact of INR 132 crores due to fair value reassessment of startup investments.

• Trading business accounted for 10% of total revenue on a standalone basis this quarter.

• Interim dividend of INR 5.30 per share paid during the quarter.

Outlook and guidance

• Expectation of double-digit export volume growth by year-end despite current headwinds.

• New energy business revenue declined 20% year-over-year due to OEM uptake changes, but recovery is expected as charger localization completes.

• Power cost impact expected to reduce in future years with increased renewable procurement.

• Lead-acid battery revenue momentum projected at 11%-12% growth for the next year, with four-wheeler at 8%-9%, two-wheeler at 11%-12%, and exports at 13%-14%.

• NEB positioned as a future growth engine, with a planned 16 GWh cell capacity over the next 10 years and INR 9,500 crore capex for Giga Corridor in Telangana.