Amara Raja Energy & Mobility Ltd. delivered strong Q1 FY27 results with consolidated net profit rising 16% to ₹191 crore compared to ₹164.8 crore in the year-ago period, as reported by Business Standard. The company's revenue from operations grew 24% to ₹4,214.54 crore from ₹3,401.08 crore year-on-year, demonstrating robust top-line growth. At the operational level, EBITDA increased 11.7% to ₹405.9 crore from ₹363.5 crore, though EBITDA margin compressed to 9.6% from 10.7% in the previous year. The results showcase the company's ability to maintain profitability while scaling operations significantly in the evolving energy storage market.
The lead-acid batteries and allied products business remained the company's main revenue contributor, with segment revenue rising to ₹4,005.24 crore from ₹3,279.79 crore in the year-ago quarter, as reported by Business Standard. Revenue from the new energy business also increased significantly to ₹209.3 crore from ₹121.29 crore in the corresponding quarter. At the segment-results level, the lead-acid batteries business reported ₹269.60 crore, up from ₹253 crore year earlier, while the new energy business narrowed its loss to ₹22.05 crore from ₹35.20 crore in the corresponding quarter, showing continued improvement in this strategic segment.
Despite the margin miss in Q1 FY27, brokerages remain constructive on Amara Raja's prospects. JPMorgan raised its target price to ₹1,070 from ₹985, citing margin pressure driven by higher brand promotion expenses, increased warranty provisioning, manufacturing upgrade expenses and elevated freight costs. The brokerage believes Q1 margins likely marked the bottom, providing a basis for higher target despite the earnings miss. Nomura also raised its target price to ₹1,048 from ₹942, while retaining a Neutral rating, expecting margins in the lead-acid business to improve but monitoring new energy business margins closely as a key factor for any re-rating.
During the quarter, Amara Raja invested approximately ₹150 crore in Amara Raja Advanced Cell Technologies Pvt Ltd (ARACT) through equity shares to meet capital requirements, as reported by CNBC TV18. This investment brings the company's total investment in ARACT to about ₹1,650.01 crore. The company is launching its first 2170 cylindrical cell, primarily designed for electric two-wheelers, with potential applications in drones and power tools. Several EV manufacturers are evaluating these cells, although the company expects customer adoption to take time. Vikram Gourineni, Executive Director at Amara Raja, stated that while the company would not be cost-competitive with China from day one, there is a premium some customers are willing to pay for products made in India.
As of August 10, 2026, Amara Raja Energy & Mobility Ltd. shares are trading at ₹905.90 on BSE, showing a 2.82% decline from the previous close of ₹932.15, as reported by CNBC TV18. The stock has demonstrated 2.20% growth over the last 5 trading sessions and maintains a market capitalization of ₹17,076 crore. The current traded volume reflects moderate investor interest, with the stock showing volatility within its 52-week range of ₹1,058 to ₹670. The company's Price to Earnings ratio stands at approximately 26x, which is lower than the sectoral P/E of 24.16, indicating the stock may be undervalued relative to its peers.
