Amara Raja Energy & Mobility Limited has informed stock exchanges about receiving multiple tax orders from authorities across Tamil Nadu, Andhra Pradesh, and Rajasthan, involving a combined demand of approximately ₹25.11 crores. The company disclosed the latest development on December 31, 2025, adding to previous disclosures made on December 30, 2025, in compliance with SEBI listing regulations.

Latest GST Order from Rajasthan

The Deputy Commissioner, Circle-A, Jaipur-III, Rajasthan, issued Order No. ZD0812250933186 in DRC-07 under Section 74 and 122 of the CGST/RGST Act, 2017 read with Section 4 & 20 of IGST Act, 2017. The order was received by the company on December 31, 2025.

The violation involved delay in raising tax invoices for scrap batteries transferred from Rajasthan to Head Office and shipped to the smelter. The company believes the order should not have been issued under Section 74, as it has voluntarily paid the applicable tax and interest, with no intention of evading tax.

Previous GST Order from Tamil Nadu

The Deputy Commercial Tax Officer, Erode, Tamil Nadu, had issued Order No ZD331225405255T under Section 129(3) of the CGST/TNGST Act, 2017. The order was uploaded in a temporary ID instead of the company's regular GSTIN ID on December 26, 2025.

The violation involved goods being withheld due to a mismatch between the "Bill-to" address in the tax invoice and the registered place of business of the customer under GST.

Income Tax Demand from Andhra Pradesh

The Deputy Commissioner of Income Tax, Circle-1(1), Tirupati, Andhra Pradesh, issued Order No ITBA/GEA/M/170A/2025-26/1084169716(1) dated December 29, 2025, under Section 143(1) of the Income Tax Act, 1961.

This demand arose pursuant to the scheme of arrangement approved by NCLT, for which the company had filed a return of income under Section 170A of the Act.

Consolidated Tax Orders Summary

Company's Response and Impact Assessment

Amara Raja Energy & Mobility has stated that all orders will have no material impact on its financial, operational, or other activities. For the GST matters, the company emphasized that there is no intention of tax evasion and penalties will be recovered from contractors where applicable. The company is in the process of filing appeals against all orders, believing there are certain infirmities in the demands.

Regulatory Compliance

The disclosures were made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Company Secretary and Vice President-Legal Vikas Sabharwal signed the regulatory filings submitted to both NSE and BSE.

Amara Raja Energy & Mobility Limited (ARE&M) has reported a consolidated revenue of INR 3,467 crores for the second quarter, marking a 6.5% year-over-year growth. The company's performance was primarily driven by robust demand from Original Equipment Manufacturers (OEMs) in the automotive sector.

Lead Acid Business Remains Strong

The lead acid business, which contributes 95% of the company's revenue, grew by 5% year-over-year to INR 3,297 crores. This growth was largely attributed to a significant 30% increase in OEM volumes across both 4-wheeler and 2-wheeler segments. However, aftermarket volumes remained stable due to procurement delays following GST rate revisions.

New Energy Business Shows Promise

ARE&M's New Energy business demonstrated impressive growth, delivering INR 170 crores in revenue, a more than 50% increase compared to the previous year. This growth was supported by increased demand for telecom packs and chargers. The company supplied 150 megawatts in telecom volumes and commenced production of 3-wheeler packs with LFP cells.

Financial Performance

The company's stand-alone operating margins stood at 12%, impacted by warranty expense provisions and Extended Producer Responsibility (EPR) liability provisions totaling INR 35 crores. Excluding these provisions and the impact of lithium telecom batteries, the adjusted operating margin would have been around 12.4%.

Investment in Lithium Subsidiary

ARE&M invested INR 350 crores in Amara Raja Advanced Cell Technologies during the quarter, bringing the total investment in its lithium subsidiary to INR 1,200 crores. This move aligns with the company's strategy to expand its presence in the New Energy sector.

Segment-wise Performance

Future Outlook

The company has outlined a capital expenditure plan of INR 1,400-1,500 crores for the full year, with a major allocation towards the New Energy business. ARE&M aims to increase its New Energy business contribution to 5% of overall revenue by the end of the current fiscal year and potentially 7-8% by FY'27.

Y. Delli Babu, Chief Financial Officer of Amara Raja Energy & Mobility Limited, commented on the results, stating, "We expect the Lead Acid Battery revenue to grow anywhere between 8% to 10% in the next year as well. Our aspiration is to move to a 13% EBITDA margin on a run rate basis and eventually return to our original 14% margin over time."

The company's focus on both traditional lead acid batteries and new energy solutions positions it well to capitalize on the evolving energy storage market in India and internationally.