Amara Raja Energy & Mobility Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 4,108.71 Cr (+18.51% YoY) and PAT growth of -44.85% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,108.71 Cr (+18.51% YoY) |
| PAT (Q2) | Rs. 152.48 Cr (-44.85% YoY) |
| EBITDA margin | 8.80% (-200 bps YoY) |
| EPS (Q2) | Rs. 8.33 (-44.87% YoY) |
ARE&M delivered 18.51% YoY revenue growth with both segments contributing and LAB running ahead of its 8-10% FY27 guide, but EBITDA margin compressed for a second straight quarter to 8.80% as materials costs rose to 66.08% of revenue, and normalized PAT fell 17.21% YoY. The New Energy loss widened QoQ to Rs.(41.55) Cr and the balance sheet swung to net debt of Rs.186.14 Cr as the company approved Rs.2,320 Cr of fresh ARACT capex. Cash conversion remains healthy at 1.88x CFO/PAT, and the margin recovery needed to reach the stated 13-14% target has widened rather than narrowed.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "Ahead — plausibly extending the +23.92% YoY print of Q1" | +18.51% YoY, −2.51% QoQ | Partially |
| EBITDA margin | "Probably does not snap back in one quarter" vs the ≥13–14% target | 8.80% (vs 9.63% Q1) — compression deepened | Played out |
| LAB growth guide | "On track to ahead of guide" | +17.57% YoY | Played out |
| Lead cost relief (per pre-call note, web-sourced, Oct 2026) | Less adverse than Q1 | Filing silent on input prices; materials ratio still rose | Not observable |
| International/Middle East recovery | Promised for "subsequent quarters" | Not addressed in filing — open for the call | Not observable |
| New Energy loss | Watch for narrowing toward breakeven | Widened QoQ to Rs.(41.55) Cr (narrower YoY) | Contradicted QoQ |
| Interim dividend / capital announcement | Flagged possibility | Rs.4.30/share declared; Rs.2,320 Cr ARACT capex approved | Played out |
| Pre-registered one-time item | None for Q2 FY27 | Exceptional row nil; normalization inventory empty | n/a |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Group capex Rs.1,700 Cr FY27 (NE Rs.1,300 Cr) | Q1 FY27 earnings call (restated) | H1 Rs.807.09 Cr consol PP&E (47.5% of guide) | On Track |
| LAB revenue growth 8–10% FY27 | Q4 FY26 earnings call | +17.57% YoY Q2; H1 +19.85% — ahead | On Track |
| EBITDA margin "at least 13% to 14%" over time | Q3 FY26 call, reiterated Q1 FY27 | 8.80% in Q2, down from 9.63% — open-ended target | Missed this quarter |
| Cash generation Rs.700–800 Cr p.a. | Q1 FY27 call | H1 consol CFO Rs.645.68 Cr | On Track |
| BESS 10 GWh operations Q3 FY27 | Q1 FY27 presentation | Filing silent; Rs.2,320 Cr ARACT capex approved (incl. LFP cell plant) | Too Early |
| Giga 1 production Jun-2027 / commercialization H1 FY28 | Q4 FY26 / Q1 FY27 calls | No update in filing | Too Early |
| Warranty provisions elevated "next couple of quarters" | Q2 FY26 call | Provisions still building (+Rs.118.33 Cr H1 cash-flow build) | Materializing |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.