Amara Raja Energy Share: How It’s Preparing for India’s EV and Energy Storage Opportunity

Synopsis: Reporting FY26 revenue of Rs.13,814 crore and Q4 revenue of Rs.3,535.7 crore, the company is accelerating its shift beyond lead-acid batteries through aggressive investments in lithium-ion cells, EV charging, battery storage, and recycling. Crossing 1 GWh in telecom lithium pack supplies and targeting 16 GWh of gigacell capacity by FY30 underline the scale of its expansion ambitions.  

Shares of the battery maker gained sharply after its FY26 results highlighted not just steady revenue growth but a much larger expansion story unfolding underneath. While margins remained under pressure in the legacy lead-acid business, investors focused on the company’s rapid push into lithium-ion cells, energy storage, EV infrastructure, and giga-cell manufacturing capacity expansion.

With a market capitalization of approximately Rs. 16,527 crore, the shares of Amara Raja Energy & Mobility Limited were trading at around Rs. 903 per share, with a 52-week range of Rs. 1,094 to Rs. 670. It is trading at a P/E of approximately 21x.

Q4FY26 Performance:

On a quarterly consolidated basis, revenue from operations came in at Rs.3,535.7 crore, a 15.5 percent jump over Q4FY25’s Rs.3,060.1 crore and about 3.7 percent above Q3FY26. EBITDA for the quarter stood at Rs.385.5 crore at a margin of 10.9 percent, a modest compression of 24 basis points year-on-year. The lead acid business held its EBITDA margin at 12.3 percent in Q4, flat with Q3FY26 and up from 11.8 percent in Q4FY25, aided partly by cost efficiencies from the captive recycling plant at Cheyyar.

PAT for Q4 came in at Rs.314.3 crore, up 94.5 percent year-on-year, though a large portion of that is attributable to an exceptional income of Rs.181.2 crore related to an insurance claim on the tubular plant. Adjusted for that, the operating performance was steadier than the headline number suggests. Diluted EPS for the quarter was Rs.17.17.

FY26 Full-Year Picture

For the full year, consolidated revenue grew 7.5 percent to Rs.13,814 crore from Rs.12,846.3 crore in FY25. EBITDA, however, declined 7.4 percent to Rs.1,497.1 crore, pulling the margin down 175 basis points to 10.8 percent. The pressure came from rising raw material costs and the growing weight of the new energy business, which runs at structurally lower margins while still scaling. Full-year PAT was Rs.895.8 crore, down 5.2 percent, with diluted EPS at Rs.48.95.

Building the New Energy Backbone

The larger investment trigger for Amara Raja lies beyond near-term earnings and into its aggressive expansion into the new energy ecosystem. During Q4FY26, the company crossed a major milestone as cumulative telecom lithium pack supplies exceeded 1 GWh, with over 300 MWh delivered in the quarter alone, its highest-ever quarterly telecom deployment. 

This indicates that the business is moving from early-stage scaling into meaningful commercial execution. To support this transition, Amara Raja infused nearly Rs.1,500 crore into its advanced cell subsidiary, ARACT, by March 2026. The Customer Qualification Plant at Divitipally is currently under commissioning and is expected to become operational soon, enabling validation and qualification of advanced battery technologies for large-scale customers.

Expanding Beyond Lead-Acid Batteries

Amara Raja is steadily transforming from a conventional lead-acid battery manufacturer into a diversified energy solutions company. Its Telangana giga-cell corridor remains the centerpiece of this strategy, with Phase-1 capacity of 2 GWh expected to commence operations in Q2 CY27 and long-term expansion plans targeting 16 GWh capacity by FY ’30. Alongside lithium-ion cell manufacturing, the company is also building a 5 GWh Battery Energy Storage System (BESS) facility, targeted to begin production in Q4 FY27. 

What differentiates the strategy is the integrated ecosystem approach spanning lithium cells, battery packs, EV charging infrastructure, recycling, and stationary energy storage solutions. This positions the company to benefit from India’s accelerating EV adoption, telecom lithium conversion, renewable energy expansion, and rising demand for grid-scale energy storage over the coming decade.

Conclusion:

The company’s FY26 performance reflects a business in transition. While the legacy battery segment continues to face margin pressures, the aggressive buildout across lithium-ion cells, energy storage, EV infrastructure, and recycling signals a much larger long-term ambition. The scale and pace of these investments suggest the company is positioning itself not just as a battery manufacturer but as a broader player in India’s evolving clean energy ecosystem. 

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