Exide, Amara Raja shares jump up to 5% as safe harbour threshold for Li-ion batteries raised to Rs 300 cr

Shares of Exide Industries and Amara Raja surged up to 5% in Wednesday's intraday trade after the Central Board of Direct Taxes (CBDT) expanded the scope of Safe Harbour Rules, including lithium-ion batteries used in electric and hybrid vehicles under the definition of core auto components, according to a notification.

Safe Harbour Rules provide businesses immunity from detailed tax scrutiny if they comply with predefined pricing norms under the Income-tax Rules, 1962.

Additionally, the threshold for availing safe harbour has been raised from Rs 200 crore to Rs 300 crore. These changes, applicable to businesses engaged in international transactions, will be effective for assessment years 2025-26 and 2026-27.


"An entire ecosystem is being set up for EV manufacturing in India. In this Budget, the FM announced a complete customs duty exemption on several capital goods for Li-ion battery production. Now, by clearly categorizing manufactured Li-ion batteries as an 'auto component' under safe harbour, import-related tax disputes are expected to be reduced. This will boost India's EV industry," said Vivek Jalan, Partner at Tax Connect Advisory Services.

Following the update, Amara Raja shares jumped over 5% to Rs 1,108.7, while Exide Industries shares surged nearly 4% to Rs 374.

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Exide Industries, Amara Raja shares target price

According to Trendlyne data, the average target price for Exide Industries is Rs 425, indicating a 16% upside. The consensus recommendation from 19 analysts remains a 'Hold'.

Meanwhile, the average target price for Amara Raja is Rs 1,283, reflecting a 19% upside. The consensus recommendation from 15 analysts also remains a 'Buy'.

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Stock performance

Exide Industries has declined 22% in the past six months but gained 109% over the last two years. The company’s market capitalization stands at Rs 31,105 crore.

Amara Raja has declined 19% in the past six months but surged 91% over the last two years. The company’s market capitalization stands at Rs 31,710 crore.