Amara Raja Ener. Q1 FY27 Results (NSE: ARE&M)
Signal: Growth reaccelerated
The read
Revenue grew year on year, while management reported pressure from higher material costs and strategic spending. Consolidated and standalone EBITDA margins were 9.6% and 10.1%, respectively.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,214.54 Cr | +23.9% | +19.2% |
| EBIT | ₹266.55 Cr | +11.1% | |
| Net profit | ₹190.94 Cr | +15.9% | |
| EPS | ₹10.43 | +15.9% |
P&L walk
Consolidated revenue grew year on year; management reported a 9.6% EBITDA margin, citing elevated material costs and strategic spending.
Segments
Lead Acid segment posted PBIT of ₹270 Cr (+6.6% YoY) on 22% revenue growth, while New Energy revenue surged 73% YoY to ₹209 Cr but remained loss-making at -₹22 Cr (narrowed from -₹35 Cr). Consolidated PAT of ₹191 Cr trails standalone PAT of ₹203 Cr, reflecting the drag from new energy subsidiaries.
Key positives
- Revenue growth re-accelerated to 24% YoY after three quarters of sub-10% growth, driven by both Lead Acid and New Energy.
- New Energy revenue up 73% YoY to ₹209 Cr; segment loss narrowed 37% YoY to ₹22 Cr.
- Raw material cost as % of revenue declined 660bps QoQ to 55.8%, easing from a spike in Q4FY26.
- APPCB closure orders revoked, removing a long-standing regulatory overhang.
- EPS grew 15.9% YoY to ₹10.43, fully tracking PAT with no dilution.
Key concerns
- Management reported a 9.6% consolidated EBITDA margin, citing material costs and strategic spending as pressures.
- Other expenses surged 31.2% YoY, far exceeding revenue growth and signaling cost control challenges.
- Lead Acid segment PBIT grew only 6.6% YoY despite 22% revenue growth, indicating margin pressure in the core business.
- Consolidated PAT QoQ plunged 39% to ₹191 Cr as Q4FY26 included a one-off exceptional gain.
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