Archive · 3 Oct 2025
Amara Raja's Future: Demand, GST, and Lithium-Ion Plans
Amara Raja, a battery maker, could see more sales because the government cut taxes on cars and parts.
Analysts predict Amara's performance will improve, especially in the two-wheeler and four-wheeler segments.
They are also making lithium-ion batteries, but that project is delayed.
However, the new lithium-ion plant is expected to start later than planned.
Despite challenges, Amara Raja is still projected to grow.
GST cuts are expected to boost demand for lead-acid batteries.
Demand for batteries from original equipment manufacturers has increased.
FY26 demand growth is projected at 6-7% for four-wheelers and 10-11% for two-wheelers.
EBITDA margin is expected to improve to 14% in FY27E.
Phase 1 of the lithium-ion cell plant is scheduled to start in H2FY27E.
- Who
- Amara Raja, Analysts, and the Automobile Industry
- What
- Amara Raja is potentially benefiting from GST cuts and faces challenges in the lithium-ion sector.
- When
- H2FY26
- Where
- India
- Why
- Demand for lead-acid batteries may increase due to tax cuts, while the lithium-ion plant faces delays.
Cautious View
Optimistic View
Lithium-Ion Battery Initiative
Cautious View
Cautious about potential returns.
Optimistic View
Market is optimistic about its lithium-ion initiative
- FY26 Demand Growth (4W)
- 6-7%
- FY26 Demand Growth (2W)
- 10-11%
- FY27E EBITDA Margin
- 14%
- Indian LAB Market (FY25)
- $4.6 billion
- Lithium Cell Plant Start
- H2FY27E
- Amara Raja Stock Performance
- Down 18% YTD
Sources
Amara Raja: Why Nuvama retained Buy rating after meeting CFO Delli Babu
Nuvama sees 13% upside for this battery maker: 4 factors fuelling the bullish call
Festive stocking, tax relief and GST cuts to drive auto demand in H2FY26; September sales show mixed trend