Amara Raja Batteries hits record high post strong Q1 nos

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26 Aug, 2025 12:21

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Shares of Amara Raja Batteries hit a record high of Rs 1,025 apiece, up more than 5 percent after reporting better than estimated earnings in the quarter ended June. Brokerages maintained buy rating on the stock post earnings.

Net profit in Q1 grew by 15 percent year-on-year to Rs 122 crore, driven by strong revenue growth in the automotive segment and favourable lead prices. Revenue increased by 11 percent to Rs 1,145 crore. Operating profit margin expanded by 100 basis points to 18.2 percent, the highest since Q4FY10.

The company, in its conference call, said the auto replacement market share has risen to 27 percent in Q1 from 25 percent in same quarter last year while telecom market share remained stable at 60 percent. Lead cost fell to Rs 129 per kg in Q1 compared to Rs 132/kg in Q4 and Rs 140/kg in Q3FY15, it added. However, it expects lead prices to rise Q2FY16 onwards.

Brokerage Nomura has retained buy rating on the stock. With capacity expansions in the automotive segment and with the recovery in the economy, it expects Amara Raja to continue to deliver healthy double-digit revenue growth.

Motilal Oswal, too, maintained its buy rating with target price of Rs 1,099. Stable competitive environment, significant free cash flow generation (Rs 700 crore over FY16-17) and improving return on equity (4 percentage points by FY17 to around 31 percent)—coupled with potential shift from unorganized to organized players due to GST—would continue to drive stock re-rating, it believes.

At 11:57 hours IST, the scrip of Amara Raja Batteries was quoting at Rs 1,021, up Rs 48.80, or 5.02 percent on the BSE.Posted by Sunil Shankar Matkar