Amara Raja Ener.

Consolidated EBITDA margins have continued to decline, reaching 10.7% in Q1 FY26 compared to 14.2% in FY24. (4 missed, 1 in progress across 5 tracked commitments)

Export volumes remained subdued during the quarter due to global trade and tariff uncertainties, failing to show the expected recovery. (1 missed across 1 tracked commitment)

The company expects to commence scrap recycling battery breaking operations in January. — target: Commencement of operations (+2 more commitments)

The company expects the automotive aftermarket to grow by 6% to 7% for 4-wheelers and 10% to 11% for 2-wheelers on an annualized basis. — target: 6-7% (4W), 10-11% (2W)

Management expects New Energy to contribute 5% of overall revenue by the end of the current financial year and 7% to 8% in the next year. — target: 5% (FY26) and 7-8% (FY27)

The company is deepening its vertical integration with the commencement of refining operations at the Cheyyar recycling plant, though battery breaking is still in trial runs. (4 expanding)

The lead acid business remains the dominant engine, contributing 95% of consolidated revenue in Q4 FY25, up from 93% previously. While overall revenue grew 5% YoY, the telecom segment saw a 15% degrowth, which was offset by strong 15% growth in OEM volumes and 9% in domestic aftermarket. (1 expanding, 1 stable)

The New Energy segment (reported as 'Other Business') continues its rapid expansion, growing nearly 69% YoY as it scales EV charger and battery pack assembly. (4 expanding, 1 contracting across 1 engine)

The company's vertical integration strategy is expanding with the lead recycling plant commencing commercial operations in Q4. This is expected to improve margins by reducing reliance on external lead and alloy sourcing. (3 expanding, 2 contracting across 1 engine)

Export revenue grew by 8.5% year-on-year, although its share of total revenue remained stable at roughly 12.4%. The company is targeting presence in 80+ countries by FY30. (2 expanding, 3 contracting)

The lubricants business is gaining traction, contributing Rs. 40 crores in the current quarter and showing significant bottom-line contribution. (3 steady across 3 signals)

OEM volumes for both 4-wheelers and 2-wheelers grew by approximately 30% YoY in Q2, though management expects this to normalize in subsequent quarters following the festive ramp-up. (2 accelerating, 2 decelerating, 1 steady across 5 signals)

The tubular battery plant reinstatement is on track with commercial production starting in June 2025, which will replace traded goods with higher-margin in-house products. (1 new trend across 1 signal)

The lubricants business is showing rapid expansion, with volumes doubling compared to the previous year. (1 accelerating, 2 steady across 3 signals, 1 leading indicator)

The company is planning to set up a small subsidiary in the United States to help stabilize and grow its business there despite current trade and tariff challenges.

The risk is stable at a lower level; ROCE is reported at ~16% as of FY25 end, down from previous highs, reflecting the heavy investment phase in New Energy. (1 stable)

The risk remains high but is transitioning into an execution phase with construction commenced on the first 4 GWh phase of the Giga-Cell factory and the Customer Qualification Plant expected to commence operations in Q3/Q4-FY26. (1 stable, 1 easing)

The risk is easing as the refinery portion of the Cheyyar plant is already operational, and the 'battery breaking' phase is now scheduled for Q3-FY26. (3 easing, 2 emerging)

OEM mix remained high (4-wheeler OEM growth at 25% vs 3% aftermarket), which moderates margin expansion due to lower pricing power compared to the aftermarket. (1 stable)

OEM demand grew by a massive 30%, which is typically margin-dilutive. However, margins were supported by a favorable product mix in the aftermarket and lower raw material costs, keeping the risk stable. (1 stable)