ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Amara Raja Energy & Mobility's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹12,573 Mil.
Amara Raja Energy & Mobility's average Total Assets over the quarter that ended in Mar. 2026 was ₹114,567 Mil. Therefore, Amara Raja Energy & Mobility's annualized ROA % for the quarter that ended in Mar. 2026 was 10.97%.
The historical rank and industry rank for Amara Raja Energy & Mobility's ROA % or its related term are showing as below:
NSE:ARE&M'
s ROA % Range Over the Past 10 Years
Min: 8.28 Med: 11.09 Max: 14.64
Current: 8.28
During the past 13 years, Amara Raja Energy & Mobility's highest ROA % was 14.64%. The lowest was 8.28%. And the median was 11.09%.
NSE:ARE&M's ROA % is ranked better than 82.11% of 3075
companies
in the Industrial Products industry
Industry Median: 3.05
vs NSE:ARE&M: 8.28
Amara Raja Energy & Mobility (NSE:ARE&M) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Amara Raja Energy & Mobility ROA % Related Terms
Amara Raja Energy & Mobility ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Amara Raja Energy & Mobility's ROA % distribution charts can be found below:
* The bar in red indicates where Amara Raja Energy & Mobility's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Amara Raja Energy & Mobility (NSE:ARE&M) has a ROA % of 10.97% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Amara Raja Energy & Mobility and its competitors. This is near median its historical median of 11.09. Over the past decade, Amara Raja Energy & Mobility's ROA % has ranged from 8.28 to 14.64. According to the industry distribution chart, Amara Raja Energy & Mobility ranks #550 out of 3075 companies in the Industrial Products industry, placing it in the top 17.9%.
Is Amara Raja Energy & Mobility's ROA % too high?
Amara Raja Energy & Mobility's current ROA % of 10.97% is near median its 10-year median of 11.09. Over the past 10 years, this metric has ranged from a low of 8.28 to a high of 14.64. The Industrial Products industry median ROA % is 3.05. Amara Raja Energy & Mobility's value of 10.97% is 259.7% above this industry median. Based on the distribution chart, Amara Raja Energy & Mobility ranks #550 out of 3075 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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 ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Amara Raja Energy & Mobility ranks #550 out of 3075 companies for ROA %. This places Amara Raja Energy & Mobility in the top 18% of its industry — outperforming the majority of peers. The industry median ROA % is 3.05. Amara Raja Energy & Mobility's value of 10.97% is 259.7% above this benchmark. Historically, Amara Raja Energy & Mobility's own ROA % has ranged from 8.28 to 14.64 over the past decade. While the company's 10-year median is 11.09 vs. the industry median of 3.05, Amara Raja Energy & Mobility has consistently been above 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 ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,075 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amara Raja Energy & Mobility's current ROA % of 10.97% is 259.7% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Amara Raja Energy & Mobility and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amara Raja Energy & Mobility's current ROA % is 10.97%, which is near median its own 10-year median of 11.09. 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 ₹1,070.45, compared to a current price of ₹834.80 — trading 22% below its estimated fair value. The current ROA % is 10.97%, which is near median its 10-year median of 11.09 and 259.7% above the Industrial Products industry median of 3.05. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Amara Raja Energy & Mobility (NSE:ARE&M), the current ROA % is 10.97% 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 ₹834.80 is trading 22% below its estimated GF Value™ of ₹1,070.45.
GuruFocus considers Amara Raja Energy & Mobility to be Modestly Undervalued.
Key valuation signals for NSE:ARE&M:
ROA %: 10.97% (near median its 10-year median of 11.09)
GF Value™: ₹1,070.45 vs. price of ₹834.80 (22% below fair value)
Industry Position: 259.7% above the Industrial Products median (#550 of 3075)
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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