Amara Raja Energy & Mobility (ARE&M) shares extended their rally and rose 5% to ₹924.25 on the BSE in Tuesday's intra-day trade amid heavy volumes. According to reports from Business Standard, the stock has surged 12% over the past two trading days, demonstrating strong investor interest. The shares hit a 52-week high of ₹1,095.90 on May 29, 2025, indicating sustained momentum in the auto components and equipment company.
As reported by Business Standard, the average trading volumes at the counter jumped nearly three-fold with a combined 2.67 million shares changing hands in the first 15 minutes of trade on the NSE and BSE. At 09:30 AM, the stock price was up 3% at ₹910.35, outperforming the BSE Sensex which declined 0.03%. The heavy trading volumes suggest strong institutional and retail participation in the current rally.
According to Business Standard, on a standalone basis, ARE&M's net sales for the January to March 2026 quarter came in at ₹3,460 crore, up 16% year-on-year. The company's EBITDA in Q4FY26 came in at ₹377 crore with corresponding EBITDA margins at 10.9%, down 30 basis points quarter-on-quarter. Profit after tax (PAT) jumped 93% YoY at ₹322 crore, though this included a one-time gain of ₹181 crore due to insurance claims. The company demonstrated strong revenue growth but lagged peers on margin performance.
As reported by Business Standard, ARE&M encompasses a diverse range of solutions including energy storage solutions, Lithium-ion cell manufacturing, electric vehicle chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries. The company is one of the largest manufacturers of energy storage products for both industrial and automotive applications in India, serving major telecom service providers, telecom equipment manufacturers, UPS sector, Indian Railways, and Power, Oil & Gas industry segments. The new energy business recorded an impressive 60% increase in revenue over the previous year, driving overall growth momentum.
According to ICICI Securities as reported by Business Standard, the company delivered resilient performance amid dynamic external environment, with strong automotive growth of over 20% driven by rising OEM volumes. The home energy business posted especially strong growth, while lithium solutions for the telecom segment continued their steady expansion. Cell manufacturing is shaping well with qualification plant under commissioning next month, and the company is planning for a BESS plant targeted to be operational in Q4. The first 2 GWh of cell manufacturing remains on track for June 2027, positioning the company for significant capacity expansion in the energy storage sector.
