Amara Raja Energy & Mobility (500008) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue rose 4.2% year-over-year to INR 3,401 crore (INR 34,011 Mn), with 95-96% from lead-acid batteries and the remainder from new energy batteries and chargers.

• EBITDA margin declined to 10.7% from 13.4% year-over-year, while PAT margin dropped to 4.8% from 7.6%.

• Domestic OEM and aftermarket volumes grew, but export volumes declined 7-8% year-over-year due to market weakness and tariff challenges.

• The business continues to expand in both lead-acid and new energy segments, with strong telecom sector demand for lithium packs, though EV segment demand slowed.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on August 14, 2025.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 3,401 crore, up from INR 3,263 crore in Q1 FY25.

• EBITDA margin for Q1 FY26 was 11.5%; adjusted for lithium revenues, margin was 11.7%.

• Consolidated PAT for Q1 FY26 was INR 1,648 Mn (₹164.80 crore), down 33.8% year-over-year; diluted EPS at INR 9.00.

• Margins were subdued due to higher material, power, and employee costs, as well as increased warranty provisioning.

• Trading revenue mix increased to 23% from 19% year-over-year, diluting EBITDA margin.

Outlook and guidance

• Ongoing capex in new energy with a 16 GWh giga cell plant targeted by FY30; phase 1 operations expected in Q3/Q4 FY26.

• Demand for lithium packs in telecom expected to remain strong; EV demand anticipated to revive in coming quarters.

• Margin improvement expected as power cost issues resolve and trading mix normalizes; Q1 and Q4 of last year seen as margin troughs.

• Export growth may remain subdued for 1-2 quarters but is expected to recover with market expansion.

• Focus on scaling pack business and expanding into new mobility applications.