Amara Raja Energy and Mobility Limited posts 13% Q2 revenue growth

Amara Raja Energy and Mobility Limited reported revenue from operations of Rs 3,843.25 crore in Q2 FY27, up 13% from a year earlier, driven by automotive original equipment manufacturer, aftermarket and home-energy demand. Profit before tax and exceptional items was Rs 250.71 crore, below both the prior-year quarter and the June 2026 quarter.

How much did ARE&M’s Q2 FY27 revenue grow?

ARE&M’s revenue from operations rose 13% year on year to Rs 3,843.25 crore for the quarter ended September 30, 2026, from Rs 3,388.18 crore for the quarter ended September 30, 2025. The company attributed the result to double-digit growth in automotive battery aftermarket and original equipment manufacturer, or OEM, business, alongside growth in Home Energy.

Revenue was lower sequentially, falling from Rs 4,041.44 crore in the quarter ended June 30, 2026. The decrease was Rs 198.19 crore, or about 5% based on the reported figures, meaning the year-on-year increase occurred despite lower revenue than in the immediately preceding quarter.

For the half-year ended September 30, 2026, ARE&M reported revenue from operations of Rs 7,884.69 crore, compared with Rs 6,738.10 crore in the half-year ended September 30, 2025. The Rs 1,146.59 crore increase was about 17%, exceeding the 13% growth reported for the September quarter alone.

Why did ARE&M’s revenue increase in the September quarter?

ARE&M said double-digit growth in automotive battery aftermarket and OEM channels, together with the Home Energy business, drove Q2 FY27 revenue. Harshavardhana Gourineni, Executive Director for Automotive and Industrial, said domestic revenue rose by more than 10%, supported by OEM demand across four-wheelers and two-wheelers and healthy aftermarket volumes.

Industrial demand also contributed to the quarter’s performance. Gourineni said industrial uninterruptible power supply, or UPS, grew by more than 7%, while ARE&M said its new-energy business recorded good growth in stationary telecom battery-pack demand. The stated drivers therefore covered automotive batteries, home energy, industrial UPS and telecom storage rather than one product category.

International demand remained strong, according to Gourineni, but geopolitical shipping disruptions temporarily limited ARE&M’s ability to fulfil it. The announcement does not quantify international revenue, shipments affected or the financial effect, while management said it expected growth to accelerate as logistics normalise.

What happened to ARE&M’s Q2 FY27 profit before tax?

ARE&M reported profit before tax and exceptional items of Rs 250.71 crore in Q2 FY27, down from Rs 283.76 crore in Q2 FY26 and Rs 272.30 crore in Q1 FY27. The year-on-year decline was Rs 33.05 crore, or about 12%, despite the 13% increase in quarterly revenue from the prior-year period.

Sequentially, profit before tax and exceptional items declined by Rs 21.59 crore from the June 2026 quarter, or about 8%. The announcement provides revenue and profit figures but gives no breakdown of costs, margins, tax expense or exceptional items to explain the divergence between revenue growth and profit movement.

For the six months ended September 30, 2026, profit before tax and exceptional items was Rs 523.01 crore, compared with Rs 544.77 crore a year earlier. First-half revenue increased by Rs 1,146.59 crore while first-half profit before tax and exceptional items decreased by Rs 21.76 crore, based on ARE&M’s standalone performance table.

ARE&M also reported earnings per share of Rs 10.29 for Q2 FY27 and declared an interim dividend of Rs 4.30 per equity share. The announcement does not disclose the record date, payment date, number of equity shares or total dividend payout.

What is ARE&M planning in new-energy storage?

ARE&M said Giga Factory-1 in Telangana remained on track during Q2 FY27. Vikramadithya Gourineni, Executive Director for New Energy Business, said stationary applications led volume growth and that the telecom sector was rapidly shifting to lithium technology.

ARE&M said its battery energy storage system, or BESS, plant was expected to come online in the month after the November 2, 2026 announcement. This indicates an expected December 2026 start, although the company did not disclose the plant’s capacity, investment, location or expected revenue contribution.

Management linked Giga Factory-1 and the expected BESS plant start-up to its aim of expanding capabilities across the energy-storage value chain. The announcement identifies lithium-ion cell manufacturing, lithium-ion battery-pack assembly and electric-vehicle chargers among ARE&M’s solution areas, but gives no production targets or commercial volumes for Q2 FY27.

Chairman and Managing Director Jayadev Galla said the lead-acid business continued to perform strongly through broad-based segment traction, while the new-energy business maintained growth momentum. The Rs 3,843.25 crore quarterly revenue result therefore reflects both established lead-acid operations and newer stationary and lithium-related activity, without separate revenue figures for either business.

Conclusion

ARE&M’s Q2 FY27 results show that automotive OEM, aftermarket, home-energy, industrial UPS and stationary telecom battery-pack demand supported a 13% year-on-year increase in revenue to Rs 3,843.25 crore. However, profit before tax and exceptional items declined to Rs 250.71 crore from Rs 283.76 crore a year earlier, while revenue was also below Rs 4,041.44 crore in Q1 FY27.

The next disclosed operational milestones are the expected December 2026 commissioning of the BESS plant and continuing progress at Giga Factory-1 in Telangana. Watch whether logistics normalise sufficiently for ARE&M to fulfil international demand, and whether domestic OEM, aftermarket and stationary demand continue after the quarter ended September 30, 2026.