Amara Raja Q4FY26 revenue up 15% to ₹3,536 crore

Q4FY26 numbers highlight a familiar mix

Amara Raja Energy and Mobility reported consolidated revenue of ₹3,536 crore for the March quarter (Q4FY26), up 15% year-on-year. The company’s lead-acid battery (LAB) business continued to dominate the mix, contributing 92% of quarterly revenue. The remaining 8% came from its new energy business, which is focused on lithium-ion cell manufacturing and electric vehicle (EV) battery-pack manufacturing. The split reinforces a key reality for investors: near-term performance is still driven by lead-acid, while the market narrative increasingly hinges on execution in new energy.

New energy contribution remains small and watched closely

The slower ramp-up in the new energy business is emerging as a concern in the backdrop of the company’s pivot narrative. Revenue contribution from the segment was reported at 4% to 7% between Q3FY25 and Q3FY26. In Q4FY26, the contribution was 8%, based on the company’s segment mix disclosure for the quarter. The numbers show progress, but also underline that the new energy unit is still at an early scale relative to the company’s core cash-generating operations.

New energy crosses ₹200 crore revenue in the quarter

The new energy business crossed ₹200 crore in quarterly revenue, marking an operational milestone for Q4FY26. This performance was supported by robust domestic demand for telecom battery packs, as disclosed by management. The data point matters because it provides a clearer marker of activity beyond pilot-scale commentary. Even so, the segment’s share of consolidated revenue remains in single digits, keeping focus on whether the order pipeline and production readiness can translate into sustained growth.

Capex guidance: ₹1,500–1,700 crore this fiscal

Management outlined a capex plan of around ₹1,500 crore to ₹1,700 crore for the ongoing fiscal year to support lithium-ion cell manufacturing plans and battery energy storage systems (BESS). On the post-earnings call, CFO Y Delli Babu said the company expects to spend about ₹400 crore in the lead-acid battery business. He added that around ₹1,100 crore to ₹1,200 crore of capex is planned for the new energy business. The split indicates that incremental capital allocation is now weighted toward the transition businesses, even as the lead-acid segment remains the revenue anchor.

Telangana gigafactory: 16 GWh target in phases by 2030

Through Amara Raja Advanced Technologies, the company is setting up a gigafactory in Telangana, with a stated target of 16 GWh total cell manufacturing capacity in a phased manner by 2030. The facility has been discussed as a central pillar of the company’s lithium-ion strategy. Management said the Telangana facility is set to be commissioned by Q1 FY28. Separately, Executive Director (New Energy Business) Vikramadithya Gourineni said the first 2 GWh line, referred to as Giga 1, remains on target to start production in June 2027.

BESS focus increases as demand accelerates

Alongside EV-linked opportunities, the company is stepping up focus on energy storage systems, with management noting that BESS demand has accelerated, driven by India’s renewable energy push. To address expected demand, Amara Raja is setting up a 5 GWh BESS integration facility at Divitipalli, which is scalable to 10 GWh. Production at this facility is expected to begin by the end of 2026. The emphasis suggests the company is positioning BESS as a nearer-term scaling lever within the new energy platform.

Customer qualification plant and R&D facility updates

Gourineni said progress on the customer qualification plant and the R&D production facility continues as per plan, with formal inauguration planned soon. He indicated that these facilities are expected to help the company supply cells that are “Made and Designed in India” to customers for testing early next financial year. He also stated that other critical gigafactory infrastructure is proceeding as planned, with commercial production on track for early next calendar year. These statements place the qualification and testing cycle at the center of the near-term roadmap.

Broader transition context: rebranding and partnerships

Amara Raja Group was founded in 1985 by RN Galla and rebranded the listed company from “Amara Raja Batteries” to “Amara Raja Energy & Mobility” in 2023. The company has positioned this as a signal of a broader energy transition focus. It has also disclosed a technical licensing agreement with China’s Gotion High-Tech signed in June 2024 to accelerate lithium-ion capabilities. The company has described itself as India’s second-largest automotive battery manufacturer and has referenced that it generates 67% of its revenue from the automotive battery sector.

Key figures at a glance

Why the mix matters for investors

The Q4FY26 revenue mix shows the company’s dependence on lead-acid cash flows remains high, even as capex and strategy increasingly tilt toward lithium-ion and energy storage. That creates a practical execution challenge: new energy has to scale without disrupting the core economics of the legacy business. The segment’s move from a 4% to 7% range in earlier quarters to 8% in Q4FY26 is a measurable step, but still small relative to the investment intensity outlined.

Conclusion

Amara Raja’s Q4FY26 results underline steady growth in the lead-acid franchise and a gradual, still-limited contribution from new energy. The key next markers are progress on the Telangana gigafactory, the June 2027 production target for the first 2 GWh line, and the end-2026 start for the BESS integration facility at Divitipalli. Management’s capex guidance of ₹1,500 to ₹1,700 crore for the ongoing fiscal sets the near-term investment cadence investors will track alongside quarterly mix changes.