SYNOPSIS: Amara Raja arm enters defence electronics, develops indigenous naval sonar PCC with 61 percent localisation and cost efficiency, targeting broader ecosystem expansion amid rising Indian Navy investments.
During Thursday’s trading session, shares of a comprehensive solutions provider in the Energy & Mobility space are in focus on the stock exchanges, after its arm forays into the defence electronics segment with an indigenous Power Conditioning Cabinet (PCC) for naval sonar systems.
With a market cap of Rs. 14,235 crores, shares of Amara Raja Energy & Mobility Limited are currently trading at Rs. 777.75 on BSE, compared to its previous closing price of Rs. 784.3. The stock has delivered negative returns of around 27 percent in the last one year, and has fallen by over 8 percent in one month.
News
According to a few media reports, Amara Raja Design Alpha (ARDA), the specialised R&D arm of Amara Raja Group, has entered the mission-critical defence electronics segment with the development of an indigenous Power Conditioning Cabinet (PCC) for naval sonar systems.
The reports stated that the company’s next phase of growth will focus on designing power amplifiers, signal interface systems, and power amplifier cabinets to create a holistic, domestically developed ecosystem for naval sonar technologies. This development underscores the growing role of private-sector innovation in supporting India’s naval indigenisation agenda and strengthening domestic defence capabilities.
ARDA highlighted that around 61 percent of the system’s components are sourced locally, translating into nearly 40 percent cost savings through efficient power engineering and local manufacturing practices.
The company also noted that the Indian Navy’s budget has expanded significantly, from Rs. 49,623 crore in FY21 to over Rs. 1.03 lakh crore in FY26, reflecting the country’s rising focus on enhancing maritime strength. Within this framework, sonar systems serve as a critical component for underwater monitoring and anti-submarine warfare operations.
According to Suresh Nair, Managing Director at ARDA, the initiative highlights the company’s commitment to leveraging its expertise in electronics and power system design to support national defence, in collaboration with India’s defence research ecosystem.
The management added that its systems are designed to meet global benchmarks, ensuring high performance and reliability in challenging naval conditions. The PCC is capable of handling loads of up to 160 kW, providing a consistent and high-quality power supply required for sonar systems, where precision and reliability are essential during extended maritime missions.
Financials
For Q3 FY26, Amara Raja reported a consolidated revenue from operations of Rs. 3,410 crores, reflecting around 2 percent QoQ decline compared to Rs. 3,467 crores in Q2 FY26, but a year-on-year increase of around 4 percent from Rs. 3,272 crores recorded in Q3 FY25.
Net profit stood at Rs. 140 crore, indicating a decrease of more than 49 percent QoQ from Rs. 276 crores in Q2 FY26, while on a year-on-year basis, the profit moved down by nearly 53 percent from Rs. 298 crores reported in Q3 FY25.
Amara Raja Energy & Mobility Limited is one of the largest manufacturers of lead-acid storage batteries for industrial and automotive applications in India. It is also engaged in the development and manufacturing of energy storage & management products, solutions and technologies related to lithium cells or such other Advanced Cell Chemistries (ACC), battery packs and components like chargers, etc.
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