Amara Raja Energy & Mobility Ltd (ARE&M) AI Stock Analysis

• Market Cap: ₹133.07B
• Dividend Yield: 6.72%
• Average Volume (3M): 25.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 5.90%
• EPS Growth: -8.73%
• Country: IN
• Employees: 8,280
• Sector: Energy
• Sector Strength: 52
• Industry: Electrical Equipment & Parts
• EPS (TTM): 10.70
• Shares Outstanding: 183,025,360
• 10 Day Avg. Volume: 21,379
• 30 Day Avg. Volume: 25,516
• PEG Ratio: 0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 42.3
• Revenue Forecast (FY): ₹134.01B

• Rating: 77 Outperform
• Price Target: ₹824.00 ▼(-10.62% Downside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

Amara Raja Energy & Mobility Ltd's strong financial performance and attractive valuation are key strengths, though technical analysis is limited due to missing data. The company's stable balance sheet and high dividend yield enhance its appeal, but attention to cash flow management is necessary.

Positive Factors

Revenue & Margin Strength

Consistent revenue expansion combined with robust gross, EBIT and net margins indicates durable operating leverage and effective cost control. This underpins sustainable earnings generation, funds reinvestment and dividends, and provides resilience across demand cycles over the medium term.

Balance Sheet Strength

A low debt-to-equity ratio and improved ROE signal prudent capital structure and effective capital deployment. Strong equity ratios enhance financial flexibility to fund capex, absorb shocks, and pursue strategic initiatives without immediate reliance on external financing.

Operating Cash Generation

Consistent positive operating cash flow shows the core battery and energy business converts earnings into cash, supporting working capital, capex and distributions. Reliable cash generation reduces dependence on markets for funding and supports medium-term strategic investments.

Negative Factors

Free Cash Flow Volatility

Volatile and recently declining free cash flow limits the company's ability to consistently fund growth projects, deliver stable dividend increases or quickly de-lever. Over a 2-6 month horizon this raises execution risk for capital-intensive initiatives and strategic flexibility.

EPS Contraction

A sharp year-over-year EPS decline implies pressure on per-share profitability which may reflect cost headwinds, margin squeeze or one-off items. Sustained EPS contraction can hinder reinvestment capacity, shareholder returns and confidence in earnings trajectory.

Rising Total Debt

An uptick in aggregate debt reduces financial headroom and raises interest and refinancing exposure. If the trend continues, leverage could constrain spending on R&D, capacity expansion or M&A and heighten sensitivity to rate moves and cash flow variability.

Amara Raja Energy & Mobility Ltd Business Overview & Revenue Model

Company Description

Amara Raja Energy & Mobility Limited manufactures and sells lead-acid storage batteries for industrial and automotive applications in India. The company also provides installation, commissioning, and maintenance services. It sells its batteries under the Amaron, PowerZone, Power Stack, AmaronVolt, and Quanta brands. The company exports its products to various countries in the Indian Ocean Rim. It supplies its batteries to various customer groups, such as telecom, railways, solar, power control, and UPS; and automobile OEMs, replacement markets, and private label customers. The company was formerly known as Amara Raja Batteries Limited and changed its name to Amara Raja Energy & Mobility Limited in September 2023. The company was incorporated in 1985 and is based in Hyderabad, India.

How the Company Makes Money

ARE&M primarily makes money by selling batteries and related energy-storage products across automotive and industrial channels. Key revenue streams typically include: (1) Automotive batteries supplied to vehicle manufacturers (OEM channel) under supply agreements, where revenue is earned per unit delivered for fitment in new vehicles; (2) Automotive replacement batteries sold through a wide dealer/distributor network, where volume is driven by the installed base of vehicles and replacement cycles; and (3) Industrial/stationary batteries and energy storage solutions supplied to sectors such as telecom, data centers/UPS and other industrial users, often through institutional sales and project-based procurement. Revenue is generally realized from product sales (battery units and associated components), with profitability influenced by product mix, manufacturing scale, distribution reach, and input costs (notably lead and other commodities). Specific quantitative splits by segment, named partnerships, or contract terms: null.

Amara Raja Energy & Mobility Ltd Financial Statement Overview

Summary

Amara Raja Energy & Mobility Ltd shows strong financial health with consistent revenue growth and profitability. The balance sheet is stable with manageable leverage, but fluctuations in free cash flow require attention.

Income Statement

Amara Raja Energy & Mobility Ltd has demonstrated strong revenue growth over the years, with a notable increase in total revenue from 2020 to 2025. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. The EBIT and EBITDA margins are solid, reflecting robust operational performance. However, the slight decline in EBIT from 2024 to 2025 suggests potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet shows a stable financial position with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity has improved over the years, showcasing effective use of shareholders' funds. The equity ratio remains strong, reflecting a solid capital structure. However, the increase in total debt from 2024 to 2025 could pose a risk if not managed carefully.

Cash Flow

Amara Raja Energy & Mobility Ltd has shown positive operating cash flow, supporting its net income effectively. The free cash flow has fluctuated, with a decline in recent years, which could impact future investments and growth opportunities. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio has been inconsistent, suggesting potential volatility in cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	132.01B	128.46B	117.08B	103.39B	86.55B	71.33B
Gross Profit	38.73B	41.67B	36.96B	31.89B	24.06B	22.91B
EBITDA	18.24B	18.43B	17.60B	14.71B	11.01B	11.96B
Net Income	9.01B	9.45B	9.34B	7.31B	5.13B	6.47B
Balance Sheet
Total Assets	108.47B	101.68B	89.78B	79.62B	63.76B	57.97B
Cash, Cash Equivalents and Short-Term Investments	3.31B	4.91B	4.56B	2.67B	748.00M	4.45B
Total Debt	3.10B	2.61B	1.57B	2.01B	1.26B	923.20M
Total Liabilities	31.10B	27.79B	21.79B	19.55B	18.24B	15.87B
Stockholders Equity	77.37B	73.89B	67.99B	60.07B	45.52B	42.10B
Cash Flow
Free Cash Flow	391.30M	1.51B	3.95B	4.34B	-1.28B	3.06B
Operating Cash Flow	18.81B	13.51B	12.66B	9.45B	6.33B	8.02B
Investing Cash Flow	-16.98B	-11.32B	-10.20B	-7.73B	-4.82B	-6.35B
Financing Cash Flow	-2.40B	-1.60B	-2.42B	-1.12B	-2.13B	-1.22B

Amara Raja Energy & Mobility Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARE&M	77 Outperform	₹133.07B	-5.83	―	6.72%	5.90%	-8.73%
TDPOWERSYS	70 Outperform	₹128.11B	48.62	―	0.23%	40.14%	53.51%
KPIGREEN	66 Neutral	₹70.71B	22.48	―	0.20%	70.67%	59.54%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
WAAREERTL	62 Neutral	₹84.33B	21.02	―	―	63.07%	74.37%
BORORENEW	49 Neutral	₹55.84B	18.86	―	―	7.68%	-114.23%
SWSOLAR	43 Neutral	₹37.05B	-446.21	―	―	112.24%	-474.43%