The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Amara Raja Energy & Mobility's current ratio for the quarter that ended in Mar. 2026 was 1.64.
Amara Raja Energy & Mobility has a current ratio of 1.64. It generally indicates good short-term financial strength.
The historical rank and industry rank for Amara Raja Energy & Mobility's Current Ratio or its related term are showing as below:
NSE:ARE&M'
s Current Ratio Range Over the Past 10 Years
Min: 1.64 Med: 2.15 Max: 2.44
Current: 1.64
During the past 13 years, Amara Raja Energy & Mobility's highest Current Ratio was 2.44. The lowest was 1.64. And the median was 2.15.
NSE:ARE&M's Current Ratio is ranked worse than 62.74% of 3073
companies
in the Industrial Products industry
Industry Median: 1.96
vs NSE:ARE&M: 1.64
Amara Raja Energy & Mobility (NSE:ARE&M) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Amara Raja Energy & Mobility Current Ratio Related Terms
Amara Raja Energy & Mobility Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electrical Equipment & Parts subindustry, Amara Raja Energy & Mobility's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Amara Raja Energy & Mobility Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Amara Raja Energy & Mobility's Current Ratio distribution charts can be found below:
* The bar in red indicates where Amara Raja Energy & Mobility's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Amara Raja Energy & Mobility (NSE:ARE&M) has a Current Ratio of 1.64 as of Mar. 2026. This is 24% below median its historical median of 2.15. Over the past decade, Amara Raja Energy & Mobility's Current Ratio has ranged from 1.64 to 2.44. According to the industry distribution chart, Amara Raja Energy & Mobility ranks #1928 out of 3073 companies in the Industrial Products industry, placing it in the top 62.7%.
Is Amara Raja Energy & Mobility's Current Ratio too high?
Amara Raja Energy & Mobility's current Current Ratio of 1.64 is 24% below median its 10-year median of 2.15. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 2.44. The Industrial Products industry median Current Ratio is 1.96. Amara Raja Energy & Mobility's value of 1.64 is 16.3% below this industry median. Based on the distribution chart, Amara Raja Energy & Mobility ranks #1928 out of 3073 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Amara Raja Energy & Mobility has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Amara Raja Energy & Mobility's Current Ratio compare to VRT and BE?
According to the Industrial Products industry distribution chart, Amara Raja Energy & Mobility ranks #1928 out of 3073 companies for Current Ratio. This places Amara Raja Energy & Mobility in the lower half of its industry. The industry median Current Ratio is 1.96. Amara Raja Energy & Mobility's value of 1.64 is 16.3% below this benchmark. Historically, Amara Raja Energy & Mobility's own Current Ratio has ranged from 1.64 to 2.44 over the past decade. While the company's 10-year median is 2.15 vs. the industry median of 1.96, Amara Raja Energy & Mobility has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,073 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amara Raja Energy & Mobility's current Current Ratio of 1.64 is 16.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amara Raja Energy & Mobility's current Current Ratio is 1.64, which is 24% below median its own 10-year median of 2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amara Raja Energy & Mobility stock overvalued right now?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility (NSE:ARE&M) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,070.09, compared to a current price of ₹862.75 — trading 19.4% below its estimated fair value. The current Current Ratio is 1.64, which is 24% below median its 10-year median of 2.15 and 16.3% below the Industrial Products industry median of 1.96. Amara Raja Energy & Mobility's overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Amara Raja Energy & Mobility (NSE:ARE&M), the current Current Ratio is 1.64 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Amara Raja Energy & Mobility (NSE:ARE&M) Overvalued in 2026?
Based on GuruFocus' analysis, Amara Raja Energy & Mobility stock appears to be undervalued.
The current stock price of ₹862.75 is trading 19.4% below its estimated GF Value™ of ₹1,070.09.
GuruFocus considers Amara Raja Energy & Mobility to be Modestly Undervalued.
Key valuation signals for NSE:ARE&M:
Current Ratio: 1.64 (24% below median its 10-year median of 2.15)
GF Value™: ₹1,070.09 vs. price of ₹862.75 (19.4% below fair value)
Industry Position: 16.3% below the Industrial Products median (#1928 of 3073)
No single metric tells the full story. See the NSE:ARE&M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Amara Raja Energy & Mobility Ltd is an India-based battery maker for both industrial and automotive applications in the Indian storage battery industry. It offers Li-ion cells, battery packs, and charging solutions for Light Electric Vehicles and the telecom industry. The company's reportable segments are; Lead acid and allied products, and Others. The majority of its revenue is generated from the Lead acid and allied products segment. The others segment includes predominantly the manufacture and sale of new energy business-related products. Geographically, the derives its key revenue from India and also exports its products to various other countries.
97GF Score
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