NewKerala.com

Key Points

Amara Raja Energy posted a 34% profit drop despite revenue growth in Q1 FY26. Higher raw material costs and stock purchases squeezed margins to 11%. While lead-acid battery sales rose, the lithium-ion segment saw a decline. The stock has lost 20% value in 2025 amid the company's EV technology expansion.

Key Points: Amara Raja Q1 profit drops 34% to Rs 165 crore amid rising costs

  • Amara Raja Q1 PAT falls 34% YoY to Rs 165 crore
  • Revenue grows 4.2% YoY to Rs 3,401 crore
  • EBITDA margins drop to 11% from 13.4% YoY
  • Lead-acid battery business up 4.5% while lithium-ion segment declines 3.5%
2 min read

Battery maker Amara Raja's Q1 profit drops 34 pc to Rs 165 crore

Amara Raja Energy reports 34% YoY profit decline to Rs 165 crore in Q1 FY26 despite 4.2% revenue growth, impacted by raw material costs.

"The decline was mainly due to higher raw material costs, which rose 6.4% YoY to Rs 1,800.68 crore – Regulatory Filing"

Mumbai, Aug 14

Amara Raja Energy and Mobility Limited on Thursday reported a 34 per cent drop in its consolidated net profit for the April–June quarter (Q1 FY26), as profit after tax (PAT) stood at Rs 165 crore, compared to Rs 249 crore in the same period previous fiscal (Q1 FY25).

Sequentially, however, profit inched up 2 per cent from Rs 161.57 crore in the March 2025 quarter (Q4 FY25), according to its stock exchange filing.

Revenue from operations rose 4.2 per cent year-on-year (YoY) to Rs 3,401 crore, from Rs 3,263 crore a year earlier.

On a sequential basis, revenue jumped 11.1 per cent from Rs 3,060 crore in Q4 FY25.

Total income came in at Rs 3,419.6 crore, up 3.9 per cent over previous fiscal, the firm stated in its regulatory filing.

EBITDA fell 17 per cent YoY to Rs 363 crore from Rs 437 crore, with margins slipping to 11 per cent from 13.4 per cent in the year-ago quarter.

The decline was mainly due to higher raw material costs, which rose 6.4 per cent YoY to Rs 1,800.68 crore, and increased purchases of stock-in-trade.

The company’s lead-acid batteries and allied products business generated Rs 3,279.8 crore in revenue, up 4.5 per cent from previous financial year, while its new energy segment, which focuses on lithium-ion and renewable solutions, posted Rs 121.3 crore, down 3.5 per cent YoY.

Tax expenses dropped 25.1 per cent YoY to Rs 64.1 crore, while earnings per share fell to Rs 9.00 from Rs 13.61 in the same period previous financial year.

Following the earnings announcement, shares of Amara Raja were trading 0.69 per cent lower at Rs 951.35 on the NSE. The stock has lost over 20 per cent so far in 2025.

Headquartered in Tirupati, Andhra Pradesh, Amara Raja is an energy storage solutions provider known for its Amaron and PowerZone brands.

The company is expanding into lithium-ion technology for electric vehicles and renewable energy, while continuing to serve both OEM and aftermarket segments across more than 50 countries.

- IANS

Share this article:

Reader Comments

S
Sarah B
As an investor, I'm concerned about the 20% stock drop this year. The new energy segment decline is worrying when EV adoption is supposedly growing. Management needs to address this in their next conference call.
A
Arjun K
Used Amaron batteries for years - best in class! But with rising costs, will they maintain quality? The 11% sequential revenue growth shows some resilience at least. Jai Hind 🇮🇳
P
Priya S
The lithium-ion segment decline is surprising when everyone's talking about EV revolution. Maybe they're facing stiff competition from Chinese manufacturers? Government should support local battery makers more.
V
Vikram M
Margins down from 13.4% to 11% is concerning. But let's not forget they're still profitable when many companies are bleeding money. The Tirupati plant expansion should help long-term.
K
Kavya N
My father worked at Amara Raja for 15 years - they've always been a stable employer in Andhra. Hope the new energy investments don't come at the cost of existing workforce. #MakeInIndia

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50