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; sequentially, revenue declined 1.6%.

• New energy business revenue exceeded INR 200 crore for the first time, nearly doubling YoY, driven by telecom pack demand and 80%+ capacity utilization.

• EBITDA for Q3 FY26 was INR 3,738 Mn (11.0% margin), down 7.9% YoY; PAT was INR 1,402 Mn (4.1% margin), down 53% YoY, impacted by raw material costs and exceptional expenses.

• Domestic automotive four-wheeler OEM volumes grew 25% YoY, aftermarket up 3%, and tubular batteries and HUPS up 10%.

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

Financial highlights

• Standalone operating margins were 11.2%; adjusted for lithium telecom trading and lead recycling, margins would be 12.3%.

• Consolidated EBITDA margin for Q3 FY26 was 9.7% (EBITDA: ₹330.68 crore, Revenue: ₹3,410.15 crore).

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

• Gross margin contraction was mainly due to higher raw material costs and initial ramp-up costs for the tubular factory.

• Lead recycling plant contributed 0.6% to EBITDA margin.

Outlook and guidance

• Price increase of 2% was implemented in January 2026 to offset cost pressures; further increases depend on commodity trends.

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

• Plans to set up a 5GWh Battery Energy Storage Solutions Giga factory with INR 280 crore CapEx, operational by FY27, targeting grid and commercial storage markets.

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

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