Amara Raja To Set Up US Subsidiary, Posts Steady Quarterly Performance

CW Bureau ·

Amara Raja Energy & Mobility, best known for its flagship Amaron battery brand, is strengthening its global footprint with plans to incorporate a wholly owned subsidiary in the United States. The proposed entity, expected to be set up within the next three to six months, will support the company’s international expansion strategy and enhance customer service capabilities in one of its key overseas markets.

The company plans to invest up to $5 million in the US subsidiary through equity or other securities, in one or more tranches. A local presence is expected to enable faster response times, more efficient delivery, and closer engagement with customers, while also opening up new business opportunities. The entity will also evaluate future localisation initiatives, including potential manufacturing or assembly operations in the region.

Alongside its expansion plans, Amara Raja reported a healthy financial and operational performance for the quarter. Revenue from operations rose to ₹3,350.84 crore, up from ₹3,164.02 crore in the corresponding period last year. Net profit stood at ₹151.69 crore, while total expenses increased to ₹3,125.90 crore, reflecting higher activity levels across key segments.

Chairman and Managing Director Jayadev Galla said the company’s performance reflects steady and consistent progress across the energy and mobility value chain. “Energy and mobility are no longer separate conversations. They are converging into a single ecosystem defined by reliability, sustainability, and strategic resilience. Our focus is on building technologies, capabilities, and partnerships that will power this transition responsibly and at scale,” he said.

Performance was led by strong growth in the automotive battery business, driven by rising OEM volumes, particularly in the domestic four-wheeler and allied segments. The industrial battery business delivered steady results, supported by demand in the UPS segment, while telecom customers continued to migrate towards advanced lithium-ion battery solutions. Export revenues declined during the quarter, primarily due to ongoing geopolitical tensions impacting global trade flows.

The New Energy Business emerged as a key growth driver, crossing the ₹200 crore revenue milestone during the quarter. This was supported by robust domestic demand for telecom battery packs and progress on strategic capacity build-up.

Harshavardhana Gourineni, Executive Director – Automotive and Industrial, said the battery business delivered a strong performance, led by robust OEM demand, and added that the company’s diversified portfolio and operational resilience helped it navigate export-related challenges.

Vikramadithya Gourineni, Executive Director – New Energy Business, said progress on the Customer Qualification Plant and R&D production facility remains on track, with formal inauguration expected soon. He added that this will enable the company to supply “Made and Designed in India” cells to customers for testing early next financial year, with commercial production at the Gigafactory planned for early next calendar year.