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Amara Raja Energy & Mobility Limited — Q4 FY26
Amara Raja reported Q4 FY26 consolidated revenue of ₹3,530 crore, up 15% YoY, driven by strong domestic automotive OEM volumes (30%+ growth) and tubular battery demand (35%+ volume growth).
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Amara Raja reported Q4 FY26 consolidated revenue of ₹3,530 crore, up 15% YoY, driven by strong domestic automotive OEM volumes (30%+ growth) and tubular battery demand (35%+ volume growth). Lead-acid battery revenue grew 12% YoY, while the new energy business contributed ₹280 crore (1.5x YoY). EBITDA margin on a standalone basis was 11%, with lead-acid margins at 12.3% after adjusting for recycling benefits. Raw material cost inflation (lead, alloys, plastics) and a higher OEM mix pressured margins, partially offset by 5-6% price hikes. Management guided for mid-to-high single-digit growth in FY27 for lead-acid, with capex of ₹1,500-1,700 crore (mostly for new energy). The new energy business is progressing: customer qualification plant commissioning, ESS facility targeting Q4 FY27 production, and Giga 1 cell line expected in June 2027. Key risk: cost disadvantage vs. imported cells and reliance on policy support for localization.
अमरा राजा ने चौथी तिमाही में 3,530 करोड़ रुपये का कारोबार किया, जो पिछले साल से 15% ज्यादा है। इसकी वजह देश में वाहन कंपनियों को बैटरी की बिक्री (30% से अधिक बढ़ोतरी) और ट्यूबलर बैटरी की मांग (35% से अधिक बढ़ोतरी) रही। लेड-एसिड बैटरी से कमाई 12% बढ़ी, जबकि नई ऊर्जा कारोबार ने 280 करोड़ रुपये दिए (पिछले साल से डेढ़ गुना)। कंपनी का मुनाफा मार्जिन 11% रहा। कच्चे माल (लेड, मिश्र धातु, प्लास्टिक) के महंगा होने और वाहन कंपनियों को ज्यादा बिक्री से मार्जिन पर दबाव पड़ा, लेकिन 5-6% कीमत बढ़ाकर कुछ राहत मिली। अगले साल लेड-एसिड कारोबार में 5-8% बढ़ोतरी का अनुमान है। कंपनी नई ऊर्जा में 1,500-1,700 करोड़ रुपये निवेश करेगी। मुख्य जोखिम: आयातित बैटरी से मुकाबला और सरकारी मदद पर निर्भरता।
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Domestic automotive OEM volume growth (4W & 2W)
>30%
+30% YoY
Four-wheeler and two-wheeler OEM volumes grew over 30% in Q4 FY26.
Tubular battery volume growth
>35%
+35% YoY
Tubular battery volumes grew more than 35% in Q4, driven by seasonal demand.
New energy business revenue
₹280 crore
+50% YoY
New energy business clocked ₹280 crore from battery packs and chargers, 1.5x previous year.
Telecom lithium pack supply (cumulative)
1 GWh
+100% YoY
Crossed cumulative installation of 1 GWh in stationary applications, driven by telecom market share.
What Changed vs Last Quarter
NEW
Lead-acid battery business growth of mid-to-high single digits in FY27
Management expects the lead-acid battery business to grow in the mid-to-high single digits in FY27, driven by aftermarket and home energy segments.
NEW
Capex of ₹1,500-1,700 crore in FY27
Total capex for FY27 is expected to be ₹1,500-1,700 crore, with ~₹400 crore in lead-acid and the rest in new energy.
NEW
ESS integration facility to start production by end of calendar year 2026
The ESS integration facility in Bali will start production by end of 2026 with an initial capacity of 5 GWh, expandable to 10 GWh.
NEW
Giga 1 cell production line to start in June 2027
The first 2 GWh cell manufacturing line (Giga 1) is on track to start production in June 2027.
DROPPED
Lead-acid revenue growth of 8-10% for FY26
Management expects lead-acid battery revenue to grow 8-10% in the current fiscal year, driven by OEM and aftermarket recovery.
DROPPED
EBITDA margin target of 13% near-term, 14% long-term
Management aspires to reach 13% EBITDA margin on a run-rate basis, and eventually return to 14% as efficiency projects and recycling plant contribute.
DROPPED
Capex of ₹1,400-1,500 crore for FY26
Total capex for FY26 is expected to be ₹1,400-1,500 crore, with major outlay towards new energy business in H2.
DROPPED
New energy revenue share to reach 5% by FY26 end, 7-8% in FY27
New energy business revenue share is expected to move to ~5% by end of FY26 and 7-8% in FY27, driven by pack and cell sales.
NEW RISK
Raw material cost inflation and margin pressure
Lead, alloys, plastics, and sulfuric acid prices have increased substantially, and further price hikes may be needed to protect margins.
NEW RISK
Cost disadvantage vs. imported cells in new energy
Domestic cell manufacturing faces a cost disadvantage of $15-20/kWh vs. Chinese imports, and localization may not bridge the gap quickly.
NEW RISK
Geopolitical and tariff risks in export markets
Export volumes were muted due to geopolitical issues in the Middle East and tariff barriers in North America, impacting lead-acid revenue.
NEW RISK
Technology transfer challenges with Gotion partnership
The Gotion technology licensing deal faces headwinds from Chinese government restrictions, forcing self-reliant R&D and delaying LFP cell plans.
RISK GONE
Lead price inflation and pricing action uncertainty
Lead prices have risen ~₹20,000/tonne; management has not yet taken pricing action, which could pressure margins if prices persist.
RISK GONE
Higher warranty provisions may persist for 2-3 quarters
Warranty provisions increased due to higher actual replacements; management expects elevated provisions for at least the next couple of quarters.
RISK GONE
EPR provision may not be fully reversible
A one-time ₹35 crore EPR provision was taken; if scrap collection does not improve, additional costs may arise, though monthly impact is expected to be <₹1 crore.
RISK GONE
Chinese equipment export restrictions could delay cell plant
China's restrictions on equipment for lithium-ion cell manufacturing may cause minor delays, though management is exploring alternatives.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q2 FY26
Total capex for FY26 is expected to be ₹1,400-1,500 crore, with major outlay towards new energy business in H2.
Fast read
Guidance and risk preview
Management expects the lead-acid battery business to grow in the mid-to-high single digits in FY27, driven by aftermarket and home energy segments.
Lead, alloys, plastics, and sulfuric acid prices have increased substantially, and further price hikes may be needed to protect margins.
View Risks →