Can Amara Raja’s AGM Edge Challenge Exide’s Dominance in India’s Battery Market?

Synopsis: Amara Raja is emerging as a strong competitor with Exide in India’s battery market, leveraging advanced AGM technology, rising OEM demand, and efficient operations, while Exide maintains scale and brand strength, highlighting a shifting landscape in the industry.

Amara Raja and Exide are two of the most influential names in India’s battery industry, operating across automotive, industrial, and energy storage segments. As the sector undergoes structural shifts driven by technological upgrades, evolving vehicle requirements, and changing consumer expectations, competition between established players has intensified. 

Within this landscape, differences in strategic orientation, operational priorities, and adaptability have begun to shape how each company positions itself for the future. Understanding these underlying contrasts helps explain why market participants increasingly compare the two companies beyond just size and legacy.

Amara Raja Energy & Mobility Ltd, with a market capitalization of Rs. 16,472.28 crore, closed at Rs. 900 per equity share, down by 1.58 percent from its previous day’s close price of Rs. 914.45 per equity share.

Amara Raja Energy & Mobility Limited is an Indian energy company that makes automotive and industrial batteries and is expanding into lithium-ion batteries, EV chargers, and energy storage solutions, serving sectors like automobiles, telecom, railways, defence, and solar in India and overseas.

Exide Industries Limited is a Kolkata-based battery manufacturer that designs and sells automotive and industrial lead-acid batteries in India and abroad, while also offering lithium-ion batteries, energy storage solutions, UPS systems, and recycled lead products across multiple power and mobility applications.

AGM Batteries Manufacturing 

One of Amara Raja’s biggest strategic advantages over Exide is its leadership in AGM (Absorbent Glass Mat) battery technology. As per the sources, Amara Raja is the only Indian battery manufacturer currently supplying AGM batteries to OEMs. AGM batteries sit at the premium end of the lead-acid segment and are critical for start-stop vehicles, hybrids, SUVs, pickups, and auxiliary batteries in EVs. This gives Amara Raja a clear technological edge in a segment where demand is growing faster than conventional lead-acid batteries, while most domestic peers, including Exide, are still more dependent on standard products.

AGM batteries

An AGM (Absorbent Glass Mat) battery is a premium type of lead-acid battery in which the electrolyte is absorbed into a fiberglass mat, making the battery sealed, maintenance-free, spill-proof, and more durable than regular lead-acid batteries. It can handle frequent charge–discharge cycles, deliver high starting power, and support heavy electronic loads, which is why it is widely used in start-stop vehicles, SUVs, luxury cars, hybrids, and as auxiliary batteries in electric vehicles, as well as in UPS and telecom applications. Compared to normal batteries, AGM batteries last longer, charge faster, and perform better in demanding conditions.

US Expansion Strategy

Amara Raja is actively targeting the North American market with a clear goal of increasing export contribution from 13 percent to 20–25 percent over the next five years. Unlike aggressive capital-heavy approaches, the company is focusing on local distribution, warehousing, and after-sales support in the US, while retaining manufacturing control in India.

It is also exploring local finishing operations to improve cost competitiveness amid tariffs. This cautious but focused global expansion strategy gives Amara Raja an edge in accessing a large, premium market without taking excessive balance-sheet risk; something Exide has not articulated as clearly in the US context.

OEM Demand 

Amara Raja has a clear advantage in OEM demand for 2-wheelers and 4-wheelers. In Q2, its lead-acid battery business earned Rs. 3,297 crore, growing about 5 percent compared to last year, mainly due to strong orders from vehicle makers. OEM volumes were up around 30 percent, while sales in the replacement market stayed flat because of GST-related delays. This shows Amara Raja is well-connected with vehicle manufacturers, giving it an edge over Exide.

Better Profitability Metrics

Amara Raja also has an edge over Exide when it comes to profit margins. In Q2 FY26, Amara Raja posted an operating margin (OPM) of 12 percent and a net profit margin (NPM) of 8.91 percent, compared to Exide’s 9 percent OPM and 3.99 percent NPM. This shows that Amara Raja is more efficient and profitable, earning more from each rupee of revenue than Exide.

More Attractive Valuation

Amara Raja trades at a P/E of 20.3x, compared to Exide at 37.4x, while the industry average P/E is 28.5x. This indicates that Amara Raja’s current valuation is reasonable relative to its earnings compared to Exide.

Conclusion

Based on recent performance, Amara Raja demonstrates advantages in AGM technology, OEM demand, profitability, and financial efficiency, while Exide continues to leverage its scale, brand recognition, and broad product portfolio. This shows that Amara Raja is stronger in premium and growth segments, whereas Exide remains a formidable player across multiple markets. Overall, both companies have their own strengths, making the competition healthy and the Indian battery industry more dynamic.

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