Amara Raja Energy & Mobility posts strong Q3 performance with 10% revenue growth

Amara Raja Energy & Mobility Limited, formerly known as Amara Raja Batteries Limited, has reported a robust 10% year-on-year revenue growth for the third quarter of the financial year 2024–25, highlighting its resilience amid operational challenges. The company’s revenue from operations reached ₹3,164.02 crore, reflecting consistent performance supported by strong demand across domestic and international markets.

The company’s profit before tax (PBT) surged by 27%, amounting to ₹422.16 crore, compared to ₹330.72 crore in the corresponding quarter of the previous year. Amara Raja Energy & Mobility’s earnings per share (EPS) also rose to ₹17.04, marking a 23% increase from ₹13.81 in Q3 FY24. Despite rising operational costs due to fluctuating power expenses, the company maintained steady growth, driven by its strategic focus on diversified energy solutions and strong export performance.

What drove Amara Raja Energy & Mobility’s Q3 revenue growth?

Amara Raja’s revenue growth was underpinned by strong volumes in the automotive aftermarket, uninterruptible power supply (UPS) segment, and exports, demonstrating the company’s ability to adapt to evolving market demands. The company recorded an 11.4% increase in nine-month revenue, reaching ₹9,431.04 crore, compared to the same period last year. This growth was supported by a 6.4% rise in PBT, which grew from ₹905.69 crore to ₹963.72 crore.

A significant contributor to this performance was the company’s expanding footprint in international markets. Harshavardhana Gourineni, Executive Director for Automotive & Industrial, highlighted the company’s strategic efforts to strengthen its presence in Europe. The introduction of the Amaron brand in seven new countries fueled demand in both the automotive and industrial battery segments. Gourineni emphasised that Amara Raja’s focus on operational efficiency, product quality, and customer satisfaction has been instrumental in maintaining business momentum, even amid global economic uncertainties.

How is Amara Raja Energy & Mobility navigating operational challenges?

While the company delivered strong financial results, it faced operational headwinds related to the Fuel and Power Purchase Cost Adjustment (FPPCA) approved by the Andhra Pradesh Electricity Regulatory Commission. This adjustment led to higher electricity expenses, impacting operating margins. However, Amara Raja’s diversified portfolio and strategic cost management initiatives helped offset these challenges.

According to Vikramadithya Gourineni, Executive Director for New Energy Business, the company remains committed to long-term growth through continued investments in new energy technologies. Amara Raja is advancing its Giga Corridor investments, including the development of a research and engineering centre and a customer qualification plant, both of which are expected to become operational within the next few quarters. Additionally, the company operates two battery pack facilities in Tirupati and Telangana and is preparing to commence construction of its first giga-scale cell manufacturing plant.

Despite facing industry-wide headwinds, Amara Raja remains optimistic about the growth potential in the energy storage sector. The company’s focus on technology commercialisation and securing new business accounts underscores its proactive approach to navigating market fluctuations.

What role does sustainability play in Amara Raja’s growth strategy?

Sustainability is at the core of Amara Raja’s growth strategy, with the company recently achieving the #1 ranking in India’s electrical components and equipment sector in the Dow Jones Sustainability Index (DJSI). This recognition reflects Amara Raja’s commitment to environmental, social, and governance (ESG) principles, as well as its focus on delivering sustainable energy solutions.

Jayadev Galla, Chairman and Managing Director, highlighted the company’s strides toward sustainable growth, noting that its traditional lead-acid battery business continues to deliver strong results in both domestic and international markets. He also pointed to the company’s rapid progress in the lithium-ion battery and chargers segment, positioning Amara Raja as a key player in India’s clean energy transition.

The company aims to become one of the first to introduce an indigenously manufactured lithium-ion cell in India, a milestone that aligns with the government’s push for localisation in energy storage technologies. This initiative not only supports India’s renewable energy goals but also strengthens Amara Raja’s competitive position in the global battery market.

What’s next for Amara Raja Energy & Mobility?

Looking ahead, Amara Raja Energy & Mobility plans to capitalise on emerging opportunities in the electric vehicle (EV) ecosystem, energy storage solutions, and lithium-ion cell manufacturing. The company’s diversified product portfolio—including EV chargers, automotive and industrial lubricants, and advanced battery technologies—positions it for continued growth in the evolving energy landscape.

Amara Raja’s strategic partnerships with major original equipment manufacturers (OEMs), including Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors, further solidify its market presence. The company’s industrial and automotive batteries are exported to over 50 countries, reflecting its strong global footprint.

Despite potential challenges such as currency fluctuations, regulatory changes, and competitive pressures, Amara Raja’s focus on innovation, operational excellence, and customer-centric strategies ensures it remains well-positioned for sustainable growth in the coming years.