Amara Raja Energy Q1 FY26 Results: Revenue Up 3.9%, Profit Down 33.8%, Sector Outlook Positive

Amara Raja Energy & Mobility Limited (formerly Amara Raja Batteries Limited) announced its Q1 FY26 consolidated financial results with key highlights and analysis as follows:

Key Highlights from Q1 FY26 Consolidated Results

• Total Revenue: ₹3,419.58 crores, showing an increase from ₹3,292.64 crores in Q1 FY25.

• Profit Before Tax (PBT): ₹228.92 crores, a decrease from ₹334.71 crores in Q1 FY25.

• Net Profit After Tax (PAT): ₹164.80 crores, down from ₹249.12 crores in Q1 FY25.

• Other Comprehensive Income: Slight loss of ₹0.64 crores compared to gains recorded previously.

• Earnings Per Share (EPS): ₹9.00 per share, down from ₹13.61 per share in Q1 FY25.

• Paid-up Equity Share Capital: ₹18.30 crores.

Sales & Profit Growth

• Revenue Growth: ▲ 3.89% increase in consolidated revenue year-on-year.

• Profit Growth: ▼ 31.61% decrease in Profit Before Tax compared to Q1 FY25.

• Net Profit Growth: ▼ 33.8% decrease in Net Profit compared to Q1 FY25.

Segment-wise Sales Data and Growth

Important Financial Ratios

• Price to Earnings (P/E) Ratio: 18.07

• Price to Book (P/B) Ratio: 2.41

• Return on Equity (ROE): 13.32%

• Earnings Per Share (TTM): ₹52.66

• Cash Earnings Per Share (CEPS): ₹79.55

Market and Peer Comparison

• Market Capitalization: ₹17,415.78 crores (full market cap)

• Category: Auto Components & Equipments

• Index: BSE 500

• Trading Volumes: Average 2W quantity 0.55 lakh shares with a turnover of ₹1.65 crores in Q1 FY26.

• Peers in Sector: The company is among leading auto components players with fairly strong market capitalization and financial metrics compared to peers like Exide Industries, Amtek Auto, and others in the battery and electric mobility segment.

Industry Outlook

• Growing demand for electric vehicles (EVs) and energy storage solutions positively impacts the new energy business segment, despite short-term losses.

• Traditional lead-acid battery demand continues steady growth with evolving applications in automotive and industrial sectors.

• Regulatory support for clean energy and EV adoption in India enhances long-term growth prospects for battery manufacturers.

Company’s Future Outlook

• Focus on expanding new energy business, particularly lithium-ion battery packs and allied products, aiming to overcome current losses.

• Continued innovation, capacity expansion, and strategic partnerships to enhance competitive positioning in the electric mobility space.

• Emphasis on cost optimization in lead-acid battery segment to maintain profitability while driving revenue growth.

Visual Indicators and Symbols:

• Revenue Growth: 3.89% ▲ (green)

• Profit Before Tax: 31.61% ▼ (red)

• Net Profit: 33.8% ▼ (red)

• Lead Acid Battery Sales: 4.56% ▲ (green)

• New Energy Business Sales: 3.57% ▼ (red)

• Lead Acid Segment Profit: 17.42% ▼ (red)

• New Energy Business Segment: Increased loss (red)

Impact on Sector

• Amara Raja’s mixed financial performance highlights challenges in the transition towards new energy while reaffirming the resilience of traditional battery business.

• Industry players may face margin pressures and increased competition while investing in new energy technologies, but long-term sector growth remains positive.

Impact on Company

• The decrease in profits reflects transitional challenges but emphasizes potential growth avenues in the EV battery segment.

• Effective cost and operational strategies will be key to balance short-term headwinds and future growth.

Additional Insights

• The company's capacity to manage supply chain and cost inflation will be critical.

• Potential for growth in export markets and aftermarket segments.

• Monitoring emergence of new technologies (e.g., solid-state batteries) critical for future competitiveness.

  
  

  ⚠ Important Note:
  Market investments are subject to risks, including the possible loss of principal. Past performance is not indicative of future results.