Amara Raja Energy & Mobility (500008) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue reached INR 3,410 crore (INR 34,102 Mn), up 4.2% year-over-year, with 93% from lead-acid and the rest from new energy business.

• EBITDA for Q3 FY26 was INR 3,738 Mn (11.0% margin), with PAT at INR 1,402 Mn (4.1% margin), both declining year-over-year.

• New energy business revenue exceeded INR 200 crore for the first time, driven by telecom pack demand, but the segment posted a loss of INR 26.71 crore.

• Domestic automotive four-wheeler OEM volumes grew 25% YoY, aftermarket up 3%, while exports declined 15% due to tariffs and geopolitical issues.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY26 were approved and reviewed by the Board.

Financial highlights

• Standalone operating margin was 11.2%; consolidated EBITDA margin for Q3 FY26 was 11.0%, down from 12.4% YoY.

• PAT for Q3 FY26 stood at INR 1,402 Mn (consolidated), down 53% YoY, with a margin of 4.1%.

• Standalone EBITDA margin for Q3 FY26 was approximately 9.5%.

• Diluted EPS for Q3 FY26 was INR 7.66 (consolidated) and INR 8.29 (standalone).

• Lead recycling plant contributed 0.6% to EBITDA margin.

Outlook and guidance

• Board approved a 5 GWh integrated BESS plant with INR 280 crore CapEx, targeting grid and commercial storage, operational by FY27.

• Giga cell plant targeting 16 GWh capacity by FY30, with phased expansion and operations commencing H1 CY2027.

• Lead-acid CapEx for FY26 expected to reach INR 750-800 crore; next year, INR 300-400 crore for lead-acid and INR 1,000 crore for new energy.

• BESS market demand projected at 25-30 GWh by FY31, with asset turnover ratios expected at 9-10x.

• The group continues to monitor regulatory developments, especially regarding new labour codes.