Amara Raja Energy Q2: Profit drops 45% despite 18.5% revenue growth, board declares dividend

Battery maker Amara Raja Energy & Mobility reported a 44.9% year-on-year decline in consolidated net profit to ₹153 crore for the September quarter, compared with ₹277 crore in the corresponding period last year.

Revenue from operations rose 18.5% to ₹4,109 crore from ₹3,467 crore a year earlier. Earnings before interest, taxes, depreciation and amortisation (EBITDA), however, fell 3.4% to ₹362 crore from ₹374 crore. EBITDA margin narrowed to 8.8% from 10.8%.

The company said demand from original equipment manufacturers (OEMs) grew at a double-digit pace across the two-wheeler and four-wheeler segments. It also gained market share in the home energy segment, supported by its distribution network and brand reach.

Domestic aftermarket volumes grew modestly, while the industrial uninterruptible power supply (UPS) business recorded steady growth, driven by demand from data centres. Exports continued to face challenges amid geopolitical uncertainty.

New energy business

Amara Raja said sustained supplies of telecom and electric vehicle (EV) battery packs helped drive revenue growth of more than 30% in its new energy business.

The company has invested ₹2,100 crore in Amara Raja Advanced Cell Technologies (ARACT), its wholly owned subsidiary. Its E+Ve Lab was commissioned in October 2026 to support technology development.

The board has approved a 5 GWh cell manufacturing facility using lithium iron phosphate (LFP) chemistry. It has also cleared an expansion of pack assembly capacity from 4 GWh to 9 GWh.

The company said its first giga factory in Telangana remained on track. Its battery energy storage systems (BESS) plant is expected to begin operations next month.

Management commentary

Harshavardhana Gourineni, executive director for automotive and industrial businesses, said strong OEM demand across two-wheelers and four-wheelers, along with aftermarket volumes, helped drive domestic revenue growth of more than 10%. Industrial UPS revenue grew more than 7%, he said.

Geopolitical disruptions to shipping temporarily restricted the company’s ability to meet international demand, Gourineni said. He added that growth was expected to accelerate as logistics conditions normalise.

Vikramadithya Gourineni, executive director for the new energy business, said volume growth continued to be led by the stationary segment. The company’s giga factory project was progressing as planned, he added.

The board declared an interim dividend of ₹4.30 per equity share, with a face value of ₹1, for FY27. The dividend will be paid on or before December 1, 2026.

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