Amara Raja Energy & Mobility Q2 FY27 results: net profit down 44.9% to ₹152.48 crore, revenue up 18.5%

How did Amara Raja Energy & Mobility perform in Q2 FY27?

Amara Raja Energy & Mobility reported consolidated revenue of ₹4,109 crore for Q2 FY27, up 18.5% from ₹3,467 crore in Q2 FY26. Total income rose 18.2% to ₹4,131.33 crore, while EBITDA fell 3.4% to ₹361.59 crore and EBITDA margin declined 2.0 percentage points to 8.8%.

Profit before tax fell 42.8% to ₹208.52 crore and net profit fell 44.9% to ₹152.48 crore. Basic EPS declined 44.9% to ₹8.33. Against Q1 FY27, revenue fell 2.5% to ₹4,109 crore, EBITDA fell 10.9% to ₹361.59 crore, net profit fell 20.1% to ₹152.48 crore, and EPS fell 20.1% to ₹8.33.

On the standalone basis, revenue was ₹3,843.25 crore, up 13.4%, while PAT was ₹188.3 crore. The board approved unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, accompanied by a limited review report from the joint statutory auditors.

What changed in Amara Raja Energy & Mobility's costs and profit?

Cost of materials increased by ₹618.46 crore to ₹2,715 crore from ₹2,096 crore in Q2 FY26, while other expenses rose by ₹55.18 crore to ₹594.68 crore. Employee cost increased by ₹16.54 crore to ₹267.58 crore, finance costs by ₹5.71 crore to ₹14.71 crore, and depreciation by ₹10.65 crore to ₹160.98 crore. Total expenses were ₹3,923 crore, up ₹670.77 crore or 20.6%.

Other income fell by ₹5.43 crore to ₹22.62 crore from ₹28.05 crore. Q2 FY26 included a ₹121.79 crore exceptional gain, while Q2 FY27 had no exceptional item. Tax expense fell by ₹32.29 crore to ₹56.04 crore from ₹88.33 crore, but the net profit decline was larger.

The company said operating margins were moderated by elevated raw-material costs and increased spending on strategic initiatives such as Amaron Assist and the Factory of Future. Management also said that price hikes taken in Q1 FY27 were intended to offset cost pressure, but acid and poly prices rose further in Q2.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 21.2% to ₹8,323.25 crore from ₹6,868.1 crore in H1 FY26. Total income increased 21.0% to ₹8,365.37 crore, while profit before tax fell 22.0% to ₹463.15 crore. PAT declined 22.2% to ₹343.42 crore and EPS fell 22.2% to ₹18.76.

The earnings presentation attributed the moderation in operating margins to elevated raw-material costs and higher spending on strategic initiatives, including Amaron Assist and the Factory of Future. It also reported sustained double-digit OEM growth across 4W and 2W volumes, steady industrial UPS growth driven by data-centre demand, and export headwinds from geopolitical uncertainty.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹12,300.89 crore against ₹11,456.72 crore at 31 March 2026, while total equity rose to ₹8,345.27 crore from ₹8,098.96 crore. Borrowings increased to ₹547.24 crore from ₹276.46 crore, and cash declined to ₹156.79 crore from ₹226.0 crore. Inventories rose to ₹2,686.15 crore from ₹2,514.7 crore, trade receivables to ₹1,480.07 crore from ₹1,243.21 crore, and trade payables to ₹1,564.56 crore from ₹1,183.71 crore.

H1 FY27 operating cash flow was ₹645.68 crore, compared with ₹529.45 crore in H1 FY26. Investing cash flow was negative ₹855.28 crore against negative ₹566.7 crore, while financing cash flow was positive ₹141.17 crore against negative ₹80.48 crore. Capital expenditure was ₹807.09 crore in H1 FY27, compared with ₹641.5 crore in H1 FY26.

How has Amara Raja Energy & Mobility done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, reaching its highest level of ₹4,214.54 crore in Q1 FY27 before easing to ₹4,108.71 crore in Q2 FY27. The lowest revenue in the period was ₹3,060.07 crore in Q4 FY25, while the lowest EBITDA margin was 8.8% in the latest quarter. Net profit bottomed at ₹140.15 crore in Q3 FY26 and reached ₹314.33 crore in Q4 FY26, before declining to ₹152.48 crore in Q2 FY27.

Which businesses drove the quarter?

Lead acid batteries and allied products recorded revenue of ₹3,876.25 crore in Q2 FY27, up 17.6% from ₹3,297.01 crore in Q2 FY26. Segment EBIT was ₹240.02 crore, against ₹393.92 crore in the year-ago quarter, with an EBIT margin of 6.2%.

The new energy business reported revenue of ₹232.46 crore, up 36.7% from ₹170.01 crore. Segment EBIT was a loss of ₹41.55 crore, compared with a loss of ₹48.72 crore in Q2 FY26, and the EBIT margin was negative 17.9%. The presentation said telecom and EV packs supported revenue growth of more than 30%.

What else did the company announce?

The board declared an interim dividend of Rs. 4.30/- per equity share for FY27, representing 430% of the fully paid Re.1/- share capital. Payment is scheduled on or before 1 December 2026, and 6 November 2026 was fixed as the record date. The board also noted a ₹2,320 crore capex approval by wholly owned subsidiary ARACT for increasing pack manufacturing capacity from 4 GWh to 9 GWh and setting up an LFP cell plant within the next 30 months.

The board approved incorporation of Amaron Assist Private Limited, or a name subject to approval of relevant authorities, as a wholly owned subsidiary in Telangana, India, within two months. The proposed company will provide automotive, battery and spares services under the Amaron Assist brand, with an initial investment of up to Rs. 100 crores in tranches. No appointment or fund-raising matter was disclosed in the same-day filings reviewed.

What did Amara Raja Energy & Mobility's management say?

Management expects BESS capacity utilisation of 50-60% in FY28 and full use of 5 GWh capacity by FY29, with an operating margin of around 6-7% in FY28. It identified rising sulphuric acid, sulphur, separator, alloy and lead costs, volatile international and Middle East demand, geopolitical disruption, export freight costs, EV demand headwinds and uncertain LFP commercialisation timing as risks.

Management said input inflation and strategic spending kept margins below prior levels. It said cost normalisation could improve the EBITDA margin by about 1.5%, with an optimistic improvement of up to 2.5%, but gave no formal margin or EPS range. No analyst questions were recorded in the supplied earnings-call information.

How did Amara Raja Energy & Mobility shares react?

The results were released after market hours, and the stock initially moved from ₹692.0 after the filing to 0.1% higher after five minutes, 0.8% higher after 15 minutes and 0.5% higher after 30 minutes. On the reaction day, the stock fell 1.6% from its pre-results close of ₹710.0, while the industry median rose 0.8%, leaving the stock 2.4 percentage points below the sector move.

By the next day's close, the stock was up 2.4% from its pre-results close. The industry median was up 2.0% over the corresponding closes, so the stock was 0.4 percentage points ahead of the sector. Earlier reaction-day moves were negative on seven of the eight listed occasions, including 4.0% lower on 10 August 2026 and 6.0% lower on 11 February 2026.

How did other Auto Components & Equipments companies do?

Among 45 other Auto Components & Equipments companies compared for the quarter, the median revenue growth was 34.2%. Eleven peers grew revenue more slowly than Amara Raja Energy & Mobility and 34 grew faster. Of 46 peers for which profit was compared, 37 reported higher profit.