Amara Raja's lithium-ion gamble piles on margin worries

Steep slide

- Manvi Agarwal

Amara Raja Energy & Mobility Ltd is juggling persistent margin pressure in its core lead-acid battery business while spending heavily on lithium-ion capacity.

Elevated alloy and power costs, along with a higher share of lower-margin traded products, dragged operating margin down by 220 basis points on-year to 11.5% in Q1FY26. The company expects a gradual recovery to 13% by Q3FY26, aided by easing power costs, reinstatement of the tubular plant, and the new recycling facility that will cut costs.