Amara Raja Energy & Mobility Limited has informed the Exchange about Transcript
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Amara Raja reported Q4 FY25 consolidated revenue of about INR3,060 crores, up 5% year-on-year, with full-year growth of 10%. The lead acid business, which still makes up 95% of revenue, grew in double digits for the full year but saw margins pressured by 1.5-2% due to higher antimony alloy costs, fuel purchase cost adjustments, and delayed solar power settlements. The company took a 2% price hike in April and is working to return margins to its 14% target through tubular battery reinstatement (starting June 2025), a new lead recycling plant (operational in Q4), and throughput enhancement without major capex. FY25 capex was about INR1,200 crores, with a similar amount planned for FY26, mostly directed toward the New Energy Business. The first gigafactory broke ground and is expected to be operational in H1 2027. Geographic expansion continued with new markets in UK, Greece, and Benelux. The CFO indicated LFP cell prices are around $50-55/kWh and noted a 15-20% cost penalty for local Indian manufacturing initially.
Margin headwinds from alloy and power costs are likely to persist for a couple of quarters, but management expects operational improvements from the tubular plant and recycling facility to drive margins back toward the 14% target. The New Energy Business remains in investment mode with significant capex and no near-term payback clarity, which may keep the stock under pressure until gigafactory commissioning in 2027 provides visible returns.