Amara Raja Energy & Mobility Limited has informed the Exchange about Investor Presentation
ARE&M · price
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Amara Raja Energy & Mobility (ARE&M) reported FY26 consolidated revenue of ₹1,38,140 Mn, up 7.5% YoY, but EBITDA fell 7.4% to ₹14,971 Mn. EBITDA margins contracted sharply to 10.8% in FY26 from 12.6% in FY25 and 14.2% in FY24, indicating sustained margin pressure from raw material costs and ramp-up costs in the new energy business. PAT declined 5.2% YoY to ₹8,958 Mn with PAT margins at 6.5%. Q4 FY26 was stronger on a standalone basis with exceptional insurance income of ₹1,812 Mn boosting PAT to ₹3,143 Mn. The company has invested ₹1,500 crore into its wholly-owned subsidiary ARACT (New Energy Business) as it builds out giga manufacturing capacity. Lead acid business dominates ~92% of revenue while new energy (lithium packs/ESS) contributes ~8%. The company maintains a strong balance sheet with minimal debt and AA+ credit rating.
The declining EBITDA margin trend over three consecutive years (14.2% → 12.6% → 10.8%) is a concern for shareholders, as it signals structural margin pressure from input costs and heavy new energy capex. The new energy business is still in investment phase, meaning profitability recovery may take time as margins are compressed by ramp-up costs.