Amara Raja Energy & Mobility (ARE&M), one of India's largest lead-acid battery makers building a New Energy business in lithium-ion cells and BESS, reports its Q2 FY 2026-2027 numbers with margins under scrutiny after consolidated EBITDA margin slipped to 9.6% in Q1 FY27. The print will speak to whether the 3% (June) plus 2-3% (July) price increases restore margin trajectory toward the 13-14% internal target, and how the New Energy ramp — E-Hub/E+ve commercialization guided for Q2 FY27 — is tracking.
| Results date | November 02, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 4,214.54 Cr (consolidated, Q1 FY27) |
| Previous quarter PAT | Rs. 190.94 Cr (consolidated, Q1 FY27) |
| Previous quarter EBITDA margin | 9.6% (consolidated, Q1 FY27) |
| Market cap | Rs. 13,051.54 Cr |
| CMP | Rs. 713.1 |
The board meets on November 2, 2026 to consider the Q2/H1 FY27 financial results and interim dividend consideration; the trading window is shut October 1 to November 4, 2026 (both days inclusive) under SEBI (PIT) Regulations.
The Q2 FY27 print tests whether Amara Raja's margin recovery can begin, with consolidated EBITDA margin at 9.6% in Q1 FY27 against an internal target of at least 13% to 14% 'over time', and the 3% (June 2026) plus 2-3% (July 2026) price increases flowing through a full quarter for the first time. The demand backdrop strengthened through the quarter: SIAM dispatches for July-September 2026 show passenger vehicle sales of 1.36 million units, up 30.7% YoY, and two-wheeler sales of 6.43 million units, up 15.2% YoY, while FADA retail rose 17.51% to 31.82% YoY across the three months — a stronger pull than the Q1 FY27 KPIs of 4W OEM +24%, 2W OEM >35% and aftermarket +15%. On costs, lead — about 70% of raw material along with alloys — was range-bound through the window (MCX roughly Rs. 195-198/kg; LME cash around $1,885-1,920/t), but sulphur remained sharply elevated with India landed prices at roughly $1,050-1,100/t, sulphuric acid imports around $330-350/t, and the rupee near 95 to the dollar adding imported-cost pressure. In New Energy, E-Hub/E+ve commercialization is guided for Q2 FY27, the segment loss stood at Rs. (22.05) Cr on Rs. 209.30 Cr revenue in Q1 FY27, and the government's July 9, 2026 waiver of basic customs duty on lithium-ion cell manufacturing inputs supports the capex economics; the call is also expected to cover timeline confirmations for the BESS 10 GWh factory (Q3-FY27) and Giga 1 production (June 2027).
Performance vs Guidance Tracking: Key FY27 guidance items management has on the table going into this call:
Margin trajectory and New Energy losses: The two financial questions the call will likely centre on:
Operating metric trajectory: Q1 FY27 KPIs that set the base for Q2:
Strategic execution and capital allocation: Pending updates on the New Energy build-out:
In Q1 FY27, ARE&M reported consolidated revenue of Rs. 4,214.54 Cr, up 23.92% YoY, and consolidated PAT of Rs. 190.94 Cr, up 15.86% YoY but down 39.25% QoQ. Consolidated EBITDA margin slipped to 9.6% from 10.8% in the prior quarter.
Giga 1 (Giga-Cell Factory) at Divitipally is guided for production in June 2027 with commercialization in H1 FY28, and Phase 1 of 2 GWh is slated to commence in Q2-CY27. Equipment for the 2 GWh cell line has been ordered.
Management has guided that the Rs. 280 Cr BESS capex could yield INR 2,700-2,800 crores of revenue at current cell prices, with initial operating margins of about 6-7% and asset turns of 9-10x. At 8-10 GWh scale, EBITDA margins of 10-11% and low double-digit ROCE are indicated.
The CFO said margins were impacted by elevated material costs, increased spending on brand promotions, and strategic initiatives namely Amaron Assist and Factory of the Future. Price increases of 3% in June 2026 plus an additional 2-3% in July 2026 were implemented to offset cost pressures.
The Gotion arrangement is a private corporate-to-corporate agreement needing no government approval, but Chinese restrictions on technology licensing shifted strategy to internal product development in India for NMC, LFP and future chemistries. Initial capacity is NMC-based, with LFP expected in 2028 or later.