Amara Raja Energy & Mobility Limited Earnings Summary — Q1 FY2027
Amara Raja Energy & Mobility Reports Continued Growth in Revenues Despite Raw Material Headwinds
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹4,041 Cr is 20.6% higher year-on-year.
- Revenue has compounded at 17.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹203 Cr is 4.5% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -5.1% annualised across the period.
- Operating margin stands at 10.1% in Q1 FY2027.
- Operating margin compressed by 146 bps year-on-year.
- Over the last two years operating margin has contracted by 366 bps.
- PBT margin is 6.7%.
- Expenses grew 22.6% against revenue growth of 20.6%.
- Operating profit of ₹407 Cr is 5.4% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 4,041 | 3,460 | 3,351 | 3,388 | 3,350 | 2,974 | 3,164 | 3,136 | 3,131 | 2,797 |
| Expenses | Improving | 3,634 | 3,083 | 2,976 | 2,982 | 2,963 | 2,632 | 2,748 | 2,695 | 2,701 | 2,389 |
| Operating Profit | Stable | 407 | 377 | 375 | 406 | 387 | 342 | 416 | 441 | 430 | 408 |
| Operating Margin | Softening | 10.1% | 10.9% | 11.2% | 12.0% | 11.5% | 11.5% | 13.1% | 14.1% | 13.7% | 14.6% |
| Other Income | Accelerating | 16 | 209 | -17 | 146 | 14 | 20 | 140 | 18 | 26 | 28 |
| Interest | Accelerating | 11 | 13 | 9 | 8 | 10 | 9 | 11 | 13 | 9 | 10 |
| Depreciation | Stable | 140 | 140 | 141 | 138 | 129 | 128 | 123 | 122 | 118 | 121 |
| Profit Before Tax | Volatile | 272 | 433 | 207 | 406 | 261 | 224 | 422 | 324 | 329 | 305 |
| Tax | Volatile | 70 | 111 | 56 | 103 | 67 | 58 | 110 | 83 | 84 | 77 |
| Net Profit | Volatile | 203 | 322 | 152 | 302 | 194 | 167 | 312 | 241 | 245 | 228 |
| Net Margin | Volatile | 5.0% | 9.3% | 4.5% | 8.9% | 5.8% | 5.6% | 9.9% | 7.7% | 7.8% | 8.2% |
Key Takeaways
- Consolidated revenue grew 23.9% YoY to ₹4,214.54 crores, driven by a recovery in lead-acid battery volumes and growth in the new energy segment.
- Net profit after tax rose to ₹190.94 crores compared to ₹164.80 crores in the same quarter last year, a 15.8% YoY increase.
- The New Energy business segment contributed ₹209.30 crores to revenue, representing approximately 5% of the total consolidated revenue.
- Profitability faced pressure from significantly higher cost of materials consumed, which jumped to ₹2,352.10 crores from ₹1,800.68 crores YoY.
- APPCB closure orders for the company's major plants in Andhra Pradesh were officially revoked on July 18, 2026, resolving a long-standing regulatory risk.
- The company continues its aggressive capital expenditure, infusing ₹150 crores into its wholly-owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), during the quarter.
Management Guidance
Management expects to maintain a capex cycle of ₹1,500 crores to ₹1,700 crores for FY2027, with the majority (₹1,100-1,200 crores) allocated to New Energy initiatives. They aim for the first 2GWh cell manufacturing line to start production by June 2027.
Sentiment Shift
Improving
The resolution of the long-standing APPCB closure orders and robust revenue growth in the core lead-acid business provide a clearer path for execution, despite raw material price volatility.
Outlook
The outlook is anchored on the 'Giga Corridor' infrastructure and scaling lithium-ion cell production. While traditional lead-acid remains the primary cash generator, the company is shifting focus toward Energy Storage Systems (ESS) with a 5GWh integration facility expected to start production by late 2026.
From the Annual Report (Key Quotes)
“The business has seen various headwinds, but we're very happy that we've been able to come out of it with good resilience.”
“Our approach to all industries has been to make sure that we provide the right solutions... making us truly multi-chemistry, technology agnostic.”
“This year marks the first year that we're actually making cell manufacturing at a reasonable scale in India at Amara Raja.”
Official Quarterly Documents
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This summary is AI-generated from Amara Raja Energy & Mobility Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.