Amara Raja Energy & Mobility (500008) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated revenue reached INR 3,060 crore, up 5% year-over-year, with 95% from lead-acid batteries and the remainder from new energy business.

• Four decades of experience with 12 manufacturing facilities, including new energy plants, and a strong presence in both automotive and industrial battery markets.

• Name change in 2023 to reflect a broader vision in energy and mobility, with exports to over 60 countries and a focus on comprehensive energy solutions.

• Forayed into the New Energy business in 2022 with a capex plan of INR 95 Bn over five years for a Giga Corridor in Telangana.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved, with auditors issuing an unmodified opinion.

Financial highlights

• FY25 consolidated revenue grew 9.7% year-over-year to INR 128,463 Mn; EBITDA at INR 16,165 Mn with a margin of 12.6%.

• Q4 margins were negatively impacted by higher material (notably antimony alloys) and power costs, reducing margins by 1.5-2%.

• PAT for FY25 was INR 9,447 Mn, up 1.1% year-over-year; diluted EPS at INR 51.62.

• Total dividend for FY 2024-25 is ₹10.50 per share, up from ₹9.90 in FY 2023-24, including a final dividend of ₹5.20 per share recommended.

• Trading revenue accounted for 15% of Q4 revenue.

Outlook and guidance

• Margin target remains at 14%, with expectations of improvement as new manufacturing (tubular battery and recycling) ramps up.

• Ambitious expansion in new energy with a 16 GWh Giga cell plant targeted by FY30.

• Cost headwinds from alloys and power expected to persist for a couple of quarters; further price hikes under consideration.

• New energy business CapEx for FY26 projected at INR 1,000 crore, with continued focus on scaling and capability development.

• The Board remains confident in the company’s growth trajectory, as reflected in increased dividend payouts and continued investment in capacity and new energy businesses.