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I would replace it now. The light is going off for a reason. The battery may not be charging properly. Double check the owner's manual to make sure it is the battery warning. IN addition to showing a battery icon, the color (yellow/red) might mean a different problem.
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If no codes are being thrown use Chevron Techron fuel injector cleaner (concentrate). It solves rpm fluctuating upon cold start-up. Also, for most BMW problems start off by scanning your car with the Peake Research Tool. It contains the actual BMW codes. If you want to register a newly installed battery for free (just buy a $10 cable) and google/download BMWLogger
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