Amara Raja, Exide battery stocks surge on Li-ion push

What triggered the latest move in battery stocks

Battery stocks moved sharply after a Moneycontrol report said Amara Raja Energy & Mobility is getting aggressive in lithium-ion battery manufacturing. The report and follow-on commentary pushed positive sentiment across the battery pack. Traders also linked the momentum to improving visibility in telecom and data centre use cases for lithium installations. In the same wave, shares of Exide Industries also jumped over 8% on Wednesday, as discussed widely on social platforms. Separately, policy-related chatter also reappeared after the Centre expanded the safe harbour threshold to include lithium-ion batteries used in electric or hybrid electric vehicles as core auto components. That change raised the limit to Rs 300 crore from Rs 200 crore, and posts described it as supportive for the ecosystem. In another market update being shared, Amara Raja Energy & Mobility closed up 0.70% at 952 on Friday. Exide Industries, in the same update, closed up 1.79% at 374.95.

Amara Raja lithium-ion push in telecom and data centres

The Moneycontrol discussion focused on Amara Raja accelerating its lithium-ion strategy in fast-growing telecom and data centre segments. Executive Director Vikram Gourineni told Moneycontrol the company has crossed 1 gigawatt hour (GWh) capacity in lithium installations in the telecom sector. Commentators highlighted that telecom is an industry where Amara Raja previously dominated with lead-acid offerings. Gourineni also said the company expects aggressive telecom rollouts over the next two to three years. On social media, this was framed as a demand pull that could support further lithium deployments. However, other posts noted that Amara Raja does not yet sell lithium-ion cells, with cell manufacturing still under development. Those posts also pointed to a delay in the start of its lithium-ion giga factory to H1 FY27. The same thread said new energy batteries currently contribute only about 5% of revenue for Amara Raja.

Exide’s ₹4.5 billion infusion into EESL and Bengaluru plant

Exide Industries drew attention after it made an additional investment of ₹4.5 billion in its wholly owned subsidiary, Exide Energy Solutions (EESL). The funding was done through a rights issue of equity shares, and social posts described it as aimed at accelerating a lithium-ion manufacturing roadmap. EESL is developing a facility in Bengaluru to develop lithium-ion battery cells and related products. With this infusion, Exide’s total investment in EESL has increased to ₹48.02 billion, while its shareholding remains unchanged at 100%. The subscription involved 112.5 million equity shares of ₹10 each issued at a premium of ₹30 per share, aggregating to ₹4.5 billion, with the entire amount paid in cash. Exide said the capital infusion will support the subsidiary’s ongoing project development and meet broader funding requirements. Social media also referenced that last December Exide invested ₹1.8 billion in EESL via a rights issue. EESL, incorporated in March 2022, focuses on lithium-ion battery cells, modules and packs for EVs and other energy storage applications.

Lead-acid still drives most revenue for both companies

Despite the lithium narrative, discussions repeatedly returned to the fact that both companies remain lead-acid heavy today. Posts described Amara Raja and Exide as two leading lead-acid battery manufacturers in India, with lead-acid still the core business. One widely shared breakdown said Exide holds about 50% market share in lead-acid, while Amara Raja has about 35%. The same set of posts cited annual revenue figures of ₹17,700 crore for Exide and ₹13,500 crore for Amara Raja. Another investor-report-based point said Amara Raja’s revenue composition is dominated by lead-acid batteries, contributing about 96% of total revenue in Q3 FY25. It also said the remaining 4% comes from other segments, including lithium-ion batteries and new energy solutions. For Exide, posts citing an investor report said lead-acid accounts for approximately 90-95% of total revenue, with lithium-ion contributing less than 5% as the segment is early. This contrast is central to why timelines and execution milestones are being tracked so closely.

Capacity and timelines are the key debate points

The most active debates were about who reaches cell-scale manufacturing first and how quickly volumes ramp. Social posts said Exide is nearing completion of its lithium-ion cell manufacturing plant and expects to start production towards the end of FY26. The same thread described equipment installation and commissioning as nearing completion and utility systems nearing commissioning. On Amara Raja, posts said the lithium-ion giga factory start has been delayed to H1 FY27, despite growing demand for new energy batteries. Another circulated comparison listed Exide’s capex spend at ₹4,252 crore with a planned capacity of 12 GWh, and indicated production starting late this year. For Amara Raja, it cited a capex plan of ₹9,500 crore and a 16 GWh gigafactory, with production timing pushed out. One post also mentioned a dedicated 5 GWh energy storage plan starting in Q1 2028 with a subsidy reference. These timelines, rather than near-term sales, are what appear to be moving sentiment day to day.

Quick comparison table based on shared posts

The following summary reflects only what was circulated in the provided social and media context.

Valuation chatter and what it implies for expectations

Valuation comparisons became a major thread as prices moved. Multiple posts compared PE ratios and argued that the market is pricing different execution outcomes. One summary said Amara Raja trades at a PE of 20 while Exide trades at 34, with an industry PE cited around 36 in the same conversation. That discussion suggested Exide’s valuation looks closer to the industry average, with a premium narrative linked to being early on lithium execution. For Amara Raja, the lower PE was framed as reflecting the delayed cell manufacturing timeline and a smaller current contribution from new energy. At the same time, other posts pointed to profitability differences in a quarter snapshot, stating Amara Raja had net profit of ₹276 crore versus Exide’s ₹172 crore despite lower revenue in that comparison. The same thread attributed Exide’s sales and profit softness partly to “GST 2.0” affecting channel partner behaviour. These points were used to argue that lead-acid economics still matter while lithium ramps. Overall, the tone on social media was that valuations will remain sensitive to commissioning milestones and clarity on commercial sales timelines.

Policy tailwind in focus after safe harbour change

A separate catalyst discussed online was a policy change related to safe harbour thresholds. Posts noted that battery makers Amara Raja and Exide surged 5% and 4% respectively on 26 after the Centre expanded the safe harbour threshold. The update included lithium-ion batteries used in electric or hybrid electric vehicles as core auto components. The limit was raised to Rs 300 crore from Rs 200 crore, according to the same chatter. Social media users interpreted this as a supportive signal for localisation and supply chain investments linked to EV components. The move was not positioned as company-specific, but it added to the positive tone around the sector. Traders also tied it to the broader theme of “new energy” capex and commissioning announcements. However, the discussions also stressed that policy tailwinds do not replace the need to execute on plant commissioning, yields, and commercial orders. As a result, policy updates have been treated as sentiment boosters alongside project timelines.

What investors are watching next across Amara Raja and Exide

Across the threads, the next set of checkpoints is clear and largely execution-driven. For Amara Raja, investors are watching whether the delayed H1 FY27 timeline for cell manufacturing holds and whether telecom rollouts translate into sustained lithium installations. The Moneycontrol quote about crossing 1 GWh in telecom lithium installations is being used as a tangible marker of adoption, even as cells are not yet sold. For Exide, the market is tracking commissioning updates and the stated aim to start production towards the end of FY26. The fresh ₹4.5 billion infusion into EESL is being read as a sign the company wants to keep the project funded and on schedule. Discussions also keep returning to the present reality that lead-acid contributes the bulk of revenue for both companies, so near-term financial performance still depends on that segment. HBL Power Systems also appears in the chatter as a niche defence-focused player in lithium batteries and electronic fuzes, with meaningful scale anticipated by FY28 in the referenced posts. Finally, on the merger and acquisition angle, the material being shared focuses on capex, commissioning and rights issues rather than confirmed M&A events. Until new, verifiable updates emerge, social sentiment is likely to keep swinging around timelines, funding and policy headlines.