Amara Raja Energy & Mobility (500008) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹4,108.71 crore, up 18.5% YoY; net profit was ₹152.48 crore versus ₹276.49 crore.

• Lead-acid contributed 94% of Q2 revenue; new-energy revenue was ₹232.46 crore, up more than 30%.

• H1 consolidated revenue rose 21.2% to ₹8,323.25 crore, while net profit declined 22.2% to ₹343.42 crore.

Financial highlights

• Q2 consolidated EBITDA was ₹361.6 crore; EBITDA margin was 8.8% versus 10.8% YoY, and PAT margin was 3.7% versus 8.0%.

• Q2 standalone revenue was ₹3,843.25 crore, EBITDA ₹386.3 crore and PAT ₹188.30 crore; EBITDA margin was 10.1%.

• H1 consolidated EBITDA rose 4.0% to ₹767.5 crore; PAT margin was 4.1% versus 6.4% YoY.

• Elevated alloy, sulfuric acid, polymer and other raw-material costs pressured margins; a ~2% Q2 price increase brought H1 increases to ~5%.

• Prior-year Q2 and H1 comparisons included a ₹121.79 crore exceptional gain; current consolidated EPS was ₹8.33 for Q2 and ₹18.76 for H1.

Outlook and guidance

• ₹2,320 crore capex was approved for pack capacity expansion from 4 GWh to 9 GWh and a 5 GWh LFP cell plant; completion is planned within 30 months, funded through equity and debt.

• Giga 1 is expected to commission in Q2 FY28 with 2 GWh NMC capacity; planned NEB capacity by FY30 includes 9 GWh of packs and 16 GWh of cells.

• FY2027 CapEx is estimated at ₹2,200 crore, including ~₹1,600 crore for new energy; ₹800 crore was spent in H1, including ₹500 crore for new energy.

• BESS utilization is estimated at 50%-60% of initial 5 GWh capacity in FY2028, with potential full utilization by FY2029; ~30% could serve export markets, subject to conditions.

• Management sees medium-term lead-acid growth of 8%-10% and potential margin improvement of ~2% from current levels, contingent on cost control, throughput initiatives and international recovery.