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Revenue
₹3,467 Cr
verified against source
Revenue YoY
6.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Amara Raja's Q2 FY26 consolidated revenue grew 6.5% YoY to ₹3,467 crore, driven by 30% YoY growth in OEM volumes for lead-acid batteries, while aftermarket remained flat due to GST-related disruptions. The new energy business surged 50% YoY to ₹170 crore, supported by telecom lithium packs and charger orders crossing 5,000 units. Standalone EBITDA margin stood at 12%, impacted by a one-time ₹35 crore EPR provision and higher warranty costs; adjusted for these, margins would be ~13.4%. Management guided for lead-acid revenue growth of 8-10% and a gradual margin recovery to 13% near-term, aided by tubular plant ramp-up and recycling plant commissioning in Q4. Key risk: sustained lead price inflation and competitive pressure in lithium packs could pressure margins.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects lead-acid battery revenue to grow 8-10% in the current fiscal year, driven by OEM and aftermarket recovery.
- Management aspires to reach 13% EBITDA margin on a run-rate basis, and eventually return to 14% as efficiency projects and recycling plant contribute.
- Total capex for FY26 is expected to be ₹1,400-1,500 crore, with major outlay towards new energy business in H2.
- 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.
Risks flagged
- Lead prices have risen ~₹20,000/tonne; management has not yet taken pricing action, which could pressure margins if prices persist.
- Warranty provisions increased due to higher actual replacements; management expects elevated provisions for at least the next couple of quarters.
- 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.
- China's restrictions on equipment for lithium-ion cell manufacturing may cause minor delays, though management is exploring alternatives.
Key quotes
- We have taken a one-time provision of about 35 crores in this quarter but going forward the impact on a monthly basis will not be more than a crore of rupees depending on the sales volume.
- We expect the lead acid battery revenue to grow anywhere between 8 to 10% in the next year as well but I don't have a specific guidance number for you.
- We still believe that the overall demand potential for NMC will remain good enough for us to sell this capacity of 2 GWh.
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