Amara Raja Energy & Mobility Limited (formerly Amara Raja Batteries) is one of India’s leading battery

Strengths Strong position in lead-acid battery market, part of duopoly with Exide Industries Limited. Well-known brands like Amaron with strong customer recall and distribution network (40,000+ dealers). Large presence in automotive OEM + replacement market, ensuring steady demand. Weaknesses Heavy dependence on lead-acid battery segment (~90–95% revenue), limiting diversification. Exposure to cyclical sectors like automobile, telecom and industrial demand. Opportunities Strong growth in EV batteries, energy storage systems (ESS) and lithium-ion segment. Government push for EV adoption, renewable energy and PLI schemes. Expansion into new energy ecosystem (cells, packs, recycling). Threats Increasing competition from players like Exide and new entrants (Reliance, Tata-backed ventures). Global players (CATL, BYD) entering Indian battery market. Rapid technological shift from lead-acid to lithium-ion, risking legacy business. Volatility in raw material prices (lead, lithium, nickel). Amara Raja Energy & Mobility is a strong legacy battery player with solid cash flows and market leadership in lead-acid batteries. The key investment story lies in its transition toward EV and new energy solutions. However, it is currently in a transition phase, with risks from technological disruption and competition. Suitable for investors looking at energy transition + cyclical auto exposure, but requires close tracking of execution in lithium-ion and new energy segments. SEBI Registered Research Analyst Disclaimer (INH000013174): This analysis is prepared only for educational and informational purposes and should not be considered as investment advice, buy recommendation or sell recommendation. Investors should do their own research and consult their financial advisor before taking any investment decision. Registration No.: INH000013174.