Amara Raja Energy & Mobility reported a 24% year-on-year revenue jump to ₹4,215 crore, driven by a 22% growth in lead-acid batteries and over 70% surge in new energy business. EBITDA margins moderated to 9.6% due to costs. A key regulatory closure order from 2021 was revoked.
Amara Raja Energy & Mobility: Strong Revenue Growth Fueled by New Energy Segment
Consolidated Revenue: INR 4,215 crore (up ~24% YoY)
New Energy Revenue: INR 209 crore (up >70% YoY)
Reader Takeaway: Robust revenue growth across segments; margin pressure from costs and strategic spending persists.
What just happened
Amara Raja Energy & Mobility announced its latest financial results, showcasing a significant 24% year-on-year increase in consolidated revenue, reaching INR 4,215 crore. The company's established lead-acid battery business grew by 22%, while its burgeoning new energy segment experienced exceptional growth of over 70%, contributing INR 209 crore to the revenue.
Why this matters
This strong top-line performance indicates sustained demand for Amara Raja's products, both traditional and in emerging energy solutions. The high growth in the new energy sector highlights the company's successful diversification and positioning in future-oriented markets. However, consolidated EBITDA margins saw a slight moderation to 9.6%, attributed to rising raw material costs and strategic investments.
The company reported spending INR 450 crore in capital expenditure during Q1 FY27, with a planned INR 1,700 crore for the full fiscal year, primarily directed towards new energy initiatives.
The backstory
Amara Raja's core business has historically been lead-acid batteries. In recent years, the company has strategically invested in diversifying into new energy solutions, including lithium-ion batteries and energy storage systems (BESS), aiming to capture growth in electric mobility and renewable energy sectors.
What changes now
The Andhra Pradesh Pollution Control Board (APPCB) has revoked a closure order issued in April 2021. This development allows Amara Raja to withdraw its writ petition, resolving a significant regulatory overhang and improving the company's operational clarity. The company expects its lead-acid battery business to grow at 9-10% annually in the medium term.
Risks to watch
Margin pressure remains a key concern, exacerbated by rising procurement costs for key inputs like alloy and sulfuric acid. While a price hike was implemented, it may not fully offset these costs. The company plans further price increases.
Peer comparison
While specific peer data is not provided in the filing, Amara Raja operates in the battery manufacturing sector, facing competition from both domestic and international players in lead-acid and increasingly in lithium-ion battery segments.
Context metrics (time-bound)
- Consolidated Revenue: INR 4,215 crore (up ~24% YoY)
- Lead Acid Growth: ~22%
- New Energy Growth: >70% (INR 209 crore revenue)
- Consolidated EBITDA Margin: 9.6%
- Q1 FY27 Capex Spent: INR 450 crore
- Planned FY27 Capex: INR 1,700 crore (INR 1,300 crore for new energy)
What to track next
Investors will be keen to observe the execution of new energy projects, particularly the ramp-up of the 10-gigawatt-hour BESS factory and the performance of the customer qualification plant. Monitoring margin trends and the impact of planned price hikes will also be crucial.