Financial Performance Overview
Amara Raja Energy & Mobility Limited reported strong financial results for FY 2025-26 with revenue of ₹13,549 crore (compared to ₹12,405 crore in FY25) and profit after tax of ₹970 crore (₹964 crore in FY25). The company declared total dividend of ₹10.60 per share comprising interim dividend of ₹5.40 paid in November 2025 and recommended final dividend of ₹5.20 subject to shareholder approval at the 41st AGM scheduled for August 10, 2026. The company maintained robust equity position at ₹8,160.75 crore with minimal gearing ratio of 0.02.
Business Segment Performance
The automotive battery business recorded 12% revenue growth supported by strong demand across OEM and replacement segments, while the industrial battery business maintained leadership in telecom with over 40% market share. The New Energy business showed significant progress with cumulative lithium installation base reaching 1 GWh powering 50,000+ telecom towers. The Customer Qualification Plant is nearing completion with multi-chemistry capability, and the Amara Raja Giga Corridor project is advancing toward 16 GWh cell manufacturing capacity with cumulative investments in ARACT reaching approximately ₹1,500 crore.
Sustainability and ESG Performance
The company published its comprehensive Business Responsibility and Sustainability Report identifying 10 material sustainability issues with financial implications. Key achievements include maintaining 12x water positivity, 99% waste recycling with Platinum Zero Waste to Landfill certification, 88.27% recycled lead usage, and 67 MW captive renewable energy capacity avoiding 72,790 tonnes of CO2 emissions. The company improved its S&P Global CSA score to 76, ranking #1 in India, #2 in Asia-Pacific, and #5 globally in its sector, while targeting Net Zero by 2050.
Manufacturing and Operational Excellence
The company operates 10 manufacturing facilities across India with 3.96 million sq. ft. footprint and annualized capacity of 25 million 4W batteries, 45 million 2W batteries, and 2.4 Bn AH VRLA batteries. The Factory of Future program advanced with Industry 4.0 technologies and automation, maintaining Zero Liquid Discharge across all locations. Safety performance improved with LTIFR reduced to 0.42 from 0.46 and zero fatalities.
Corporate Governance and Regulatory Compliance
The Board comprises 6 Directors (3 Executive, 3 Independent including 1 woman director) with comprehensive evaluation conducted. The company maintained all statutory compliances with SEBI, Companies Act, and other regulations, with secretarial audit report confirming compliance without qualifications. CRISIL rating was reaffirmed at AA+/Stable for long-term and A1+ for short-term facilities.
Risk Management and Financial Position
The company faced foreign exchange net liability of ₹40.88 crore and provided ₹468.16 crore for warranty obligations with ₹24.24 crore for extended producer responsibilities. Current ratio stood at 1.57 with inventory turnover ratio of 4.33 and trade receivables turnover ratio of 11.68. Return on equity was 12.49% while return on capital employed was 13.17%.
Future Outlook and Strategy
The company focuses on expanding geographical reach, deepening technology leadership, and building stronger core operations while continuing investments in New Energy business. Sustainability remains central to strategy with commitments to deeper integration of renewable energy, value chain decarbonization, and digitalization to strengthen operational efficiency and safety performance.