New Delhi, Aug. 26 -- Amara Raja Energy & Mobility Ltd is juggling persistent margin pressure in its core lead-acid battery business while spending heavily to build capacity in lithium-ion technology, its new-energy business.

Elevated alloy and power costs, along with a higher share of lower-margin traded products, dragged operating margin down by 220 basis points year-on-year to 11.5% in the June quarter (Q1FY26). Management expects a gradual margin recovery to 13% by Q3FY26, aided by easing power costs, reinstatement of the tubular plant, and the start of operations at the new recycling facility, which should lower input costs.







The lead-acid segment, which contributes 96% of revenue, is showing mixed demand trends. Two-wheeler r...