For three decades, Amara Raja was the quiet powerhouse of India’s energy grid. You’d find its batteries in your car, your telecom tower, and your UPS system. Reliable, no-fuss, and firmly lead-acid.
But 2024 marked a reset.
Because Amara Raja Batteries isn’t just a battery maker anymore. It’s now Amara Raja Energy & Mobility — with its sights set on something much bigger: lithium-ion cell manufacturing, EV powerpacks, battery recycling, and full-stack energy tech.
The company wants to build India’s own gigafactory. And the race has officially begun.
The EV push isn’t just PR — it’s concrete
In April 2025, Amara Raja struck a deal with Atul Greentech to supply LFP battery packs and chargers for electric three-wheelers. These aren’t speculative pilots. They’ll be built at the company’s ambitious Giga Corridor in Telangana — a 500-acre integrated facility for lithium cell manufacturing, R&D, and end-of-life recycling.
And this isn’t a one-off either.
The company already has two operational battery pack units, and ground is set to be broken for its first giga-scale cell plant. If it pulls this off, it will be among the first Indian players to produce lithium-ion cells at industrial scale — a space currently dominated by China and Korea.
But the old engine is still running strong
While the headlines are about lithium, the real cash comes from lead.
In Q3 FY25, the company posted ₹3,164 crore in revenue and ₹312 crore in net profit, a 23% jump year-on-year. FY24 ended with ₹11,819 crore in revenue and ₹934 crore in profit. Margins dipped slightly to 13.3% due to rising power costs, but remained stable. The company remains debt-light, with a zero promoter pledge, 13.7% ROE, and strong working capital discipline.
Its brands — Amaron, PowerZone, Quanta — are still the default in many OEM supply chains, with clients like Tata Motors, Hyundai, and Maruti Suzuki on board.
The company isn’t abandoning its core — it’s bankrolling the future with it.
Capital is going where the pivot is
The board has greenlit deeper investments into Amara Raja Power Systems and its recycling arm ARCS. Battery recycling is shaping up to be the next big moat in clean tech — and Amara Raja wants to own it end-to-end.
Think of it as a circular loop: it makes the battery, collects the used cells, and recycles them for materials that go back into its own cell plant. A model similar to what Gravita India is building — only with a much broader product footprint.
And while it’s early days, these assets could offer long-term margin upside — especially if regulatory tailwinds on extended producer responsibility kick in.
So what’s holding back the stock?
Despite the transformation, investors are cautious.
Amara Raja’s share price has underperformed the Sensex and the sector over the past six months. Institutional holding dipped slightly from 36.6% to 35.3%. And there’s some reason for that.
Its 5-year profit CAGR is just 8%, modest for a company trying to rebrand itself as a clean tech disruptor. Exide Energy is doubling down on its own lithium pivot. And global battery giants are circling the Indian market with deeper IP and deeper pockets.
So while the ambition is real, the execution clock has started.
Final pour: Amara Raja isn’t just changing its logo. It’s rewriting its business model.
It’s trying to go from a reliable battery vendor to India’s first clean energy platform — spanning cells, packs, grid storage, and recycling. The Giga Corridor is funded. The capex is planned. The partnerships are in place.
Now, it’s about delivery.
For investors, the bet isn’t on batteries. It’s on whether Amara Raja can become India’s energy tech backbone — and turn legacy into leadership.
