Amara Raja Energy & Mobility Limited (ARE&M), a leading player in the energy and mobility solutions sector, has announced two significant developments: the approval of an Employee Stock Option Scheme and the release of its Q2 FY26 financial results.

Employee Stock Option Scheme 2025

The Board of Directors of ARE&M has approved the 'Amara Raja Energy & Mobility Limited Employee Stock Option Scheme 2025' on November 6, 2025. Key features of the scheme include:

• A total pool of 25 lakh employee stock options, convertible into an equal number of equity shares with a face value of Re. 1 each.
• Implementation through a Trust Route, with the trust acquiring existing equity shares from the open market.
• The exercise price will be determined by the Nomination and Remuneration Committee, linked to the market price with a potential discount of up to 20%.
• Options may be exercised within a maximum period of 5 years from the vesting date.
• The scheme is subject to shareholder approval through Postal Ballot and compliance with SEBI regulations.

Q2 FY26 Financial Performance

ARE&M reported a robust financial performance for the second quarter of FY26:

• Consolidated revenue from operations increased by 6.7% year-on-year to Rs. 3,467.02 crore.
• Profit before tax (PBT) stood at Rs. 364.82 crore, up 15% from the same quarter last year.
• Earnings per share (EPS) for Q2 FY26 was Rs. 15.11, showing a 17.4% increase year-on-year.

The company's performance was driven by strong demand in the OEM segment across 4W and 2W categories, along with a solid showing from its lubes business. The new energy business demonstrated good growth, particularly in the telecom segment.

Segment Performance

Management Commentary

Mr. Harshavardhana Gourineni, Executive Director - Automotive and Industrial, stated, "Our continued growth in the OEM segment underscores our unwavering commitment to quality and reliability. In the telecom sector, we are seeing a decline in lead-acid battery demand though our lithium solutions continue to gain strong traction."

Mr. Vikramadithya Gourineni, Executive Director - New Energy Business, added, "We are seeing consistent progress on our infrastructure development. We are confident our Customer Qualification Plant (CQP) for indigenous cell manufacturing will be operational by Q4 of this FY."

Mr. Jayadev Galla, Chairman and Managing Director, commented, "We continue to see robust performance on the back of our Automotive Lead Acid Business, which has delivered strong results. Even though it has been a tumultuous quarter with tariffs and global uncertainties, our performance has been solid."

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs. 5.40 per equity share for FY 2025-26, with the record date set as November 13, 2025.

ARE&M's dual announcement of the ESOP scheme and strong quarterly results underscores the company's focus on employee engagement and sustained financial growth, positioning it well for future challenges in the dynamic energy and mobility sector.

Amara Raja Energy & Mobility Limited (ARE&M) has reported an 8% increase in revenue for Q2, with figures rising to Rs 3,388.18 crores from Rs 3,349.92 crores in the same quarter of the previous year. The company's financial performance shows both growth and challenges in various segments.

Financial Highlights

Note: All financial figures are in Indian rupees (crores).

Revenue Growth Drivers

The company's revenue growth was attributed to several factors:

1. Strong OEM demand across 4-wheeler and 2-wheeler segments
2. Robust performance from the lubes business
3. Increased export realizations
4. Growth in the new energy business, particularly in the telecom segment

Segment Performance

• Lead-Acid Batteries: The company noted declining demand in the telecom sector for lead-acid batteries.
• Lithium Solutions: This segment gained traction, indicating a shift in market preferences.
• Exports: Performance was impacted by global trade and tariff uncertainties.

New Energy Business

The company's new energy business showed growth, particularly in the telecom segment. This aligns with the broader industry trend of shifting towards more sustainable energy solutions.

Future Outlook

Amara Raja Energy & Mobility expects its Customer Qualification Plant for indigenous cell manufacturing to be operational by Q4 of the current fiscal year. This development could potentially strengthen the company's position in the evolving energy storage market.

Challenges and Opportunities

While the company has shown growth in revenue and certain segments, it also faces challenges:

1. Declining demand for lead-acid batteries in the telecom sector
2. Global trade uncertainties affecting export performance
3. The need to balance traditional battery business with emerging lithium solutions

The company's investment in indigenous cell manufacturing capabilities demonstrates its commitment to adapting to market changes and positioning itself for future growth in the energy and mobility sectors.