 "Q1 results review: How do analysts view Amara Raja Energy post Q1 results")
Amara Raja Energy & Mobility, automotive batteries and allied products manufacturer, shares rose 4.8 per cent Tuesday, August 19, 2025, logging an intra-day high at ₹1,004 per share on BSE. However, at 11:10 AM, Amara Raja Energy shares were trading 4.07 per cent higher at ₹996.55 per share. The buying on the counter came after the company held its earnings call on Monday, August 18, 2025, after market hours. Amara Raja Energy released its Q1FY26 results on Friday. Post Q1, brokerages have maintained their rating on the stock; however, few have cut the target price.
Amara Raja Energy & Mobility Q1 results recap
In the quarter ended June 2025, the company posted a consolidated net profit of ₹164.8 crore, as compared to a net profit of ₹249.12 crore a year ago, down 92 per cent.
Its revenue from operations rose 4.2 per cent to ₹3,40108 crore, as against ₹706.97 crore a year ago. CATCH STOCK MARKET LIVE UPDATES TODAY
Amara Raja Energy & Mobility Q1 earnings call highlights
-Management expects the industrial UPS segment to grow at 5–6 per cent year-on-year (Y-o-Y). In the auto replacement market, 4W demand is expected to rise by 6–7 per cent and 2W by 10–11 per cent. Export growth is likely to remain subdued in FY26. In the telecom segment, management aims to sustain market share.
-Margin is expected to improve going forward due to: i) reduced trading share with the reinstatement of the tubular plant; ii) resolution of power cost-related issues; and iii) commencement of recycling at the new recycling plant. ALSO READ | Top stocks to buy today: Analyst bets on Aadhar Housing, Amber Ent
Amara Raja Energy & Mobility Q1 results analysis: Brokerages view
Nuvama Institutional Equities | Buy | Target cut to 1,120 from ₹1,180
The brokerage cut the target based on 15x Sep-27E earnings per share (EPS) (earlier Mar-27E) for the lead acid battery business, ₹169 per share for the lithium business at 1x P/B, and ₹ 42 per share for other investments. It added: Factoring in lower growth in industrials/exports, higher traded mix and cost pressures, we are cutting FY26E/27E Earnings before interest, tax, depreciation and amortisation (Ebitda) by 10 per cent/6 per cent.
“We are building in FY25–28E revenue/EPS compound annual growth rate (CAGR) of 7 per cent/10 per cent,” Nuvama’s report read.
Motilal Oswal | Neutral | Target: ₹1,030
Analysts reckon that while the market is optimistic about the company’s Li-ion initiative, they are cautious about its potential returns. The company's venture into the lithium-ion business is strategically sound, given the opportunities in the segment and risks facing its core business. However, there are notable challenges: market opportunities are limited by existing OEM partnerships; the low-margin nature of the lithium-ion business is likely to dilute returns; and the long-term viability of the technology remains uncertain despite the large capital investment. Thus, the brokerage has cut its FY26/FY27 EPS estimates by 8 per cent/2 per cent to factor in a weaker-than-expected performance in Q1.
Additionally, the company’s stock is trading around 21.1x FY26E /17.2x FY27E EPS, which appears fairly valued. Thus, no change in rating or target.