Amara Raja revenue rises 19% as quarterly profit falls 45%

Amara Raja Energy & Mobility Limited reported consolidated revenue from operations of Rs 4,108.71 crore for the quarter ended September 30, 2026, up 19% from Rs 3,467.02 crore a year earlier, while net profit fell 45% to Rs 152.48 crore from Rs 276.49 crore as lead-acid segment results declined and the new-energy business remained loss-making.

What drove Amara Raja’s quarterly profit decline?

Amara Raja’s quarterly consolidated net profit declined as profit before tax was Rs 208.52 crore in the quarter ended September 30, 2026, compared with Rs 364.82 crore a year earlier, while total expenses rose to Rs 3,922.81 crore from Rs 3,252.04 crore. Revenue from operations increased by Rs 641.69 crore, while total expenses increased by Rs 670.77 crore.

The year-earlier comparison included a Rs 121.79 crore exceptional item, whereas the September 2026 quarter had no exceptional item. Before exceptional items, profit before tax in the September 2025 quarter was Rs 243.03 crore, compared with Rs 208.52 crore in the current quarter. Tax expense declined to Rs 56.04 crore from Rs 88.33 crore, but net profit after tax was lower.

Material consumption was Rs 1,714.87 crore, compared with Rs 2,096.41 crore a year earlier, while purchases of stock-in-trade increased to Rs 393.63 crore from Rs 287.82 crore. Employee benefit expense rose to Rs 267.58 crore from Rs 251.04 crore, depreciation and amortisation increased to Rs 160.98 crore from Rs 150.33 crore, and other expenses rose to Rs 594.68 crore from Rs 539.50 crore.

How did Amara Raja’s segments perform?

Amara Raja’s lead-acid batteries and allied products segment generated Rs 3,876.25 crore of quarterly revenue, up from Rs 3,297.01 crore, but its segment result fell to Rs 240.02 crore from Rs 393.92 crore. The segment supplied most reported revenue, but its profit contribution declined by Rs 153.90 crore despite a Rs 579.24 crore revenue increase.

The new-energy business increased quarterly revenue to Rs 231.46 crore from Rs 170.01 crore, while its segment loss narrowed to Rs 41.55 crore from Rs 48.72 crore. The filing defines this business as lithium-ion battery packs, chargers and allied products. The smaller loss improved the segment result by Rs 7.17 crore, but the business remained loss-making.

Total segment results were Rs 198.47 crore in the September 2026 quarter, down from Rs 345.20 crore a year earlier. Net unallocable income was Rs 10.05 crore, compared with Rs 19.61 crore in the comparable quarter, taking total profit before tax to Rs 208.52 crore. The filing says unallocable corporate income mainly includes interest income, foreign-exchange gains, dividends and investment-related gains.

For the half-year ended September 30, 2026, lead-acid revenue rose to Rs 7,881.49 crore from Rs 6,576.80 crore, while its segment result declined to Rs 509.62 crore from Rs 646.92 crore. New-energy revenue increased to Rs 441.76 crore from Rs 291.30 crore and its loss narrowed to Rs 63.60 crore from Rs 83.93 crore, leaving total half-year profit before tax at Rs 463.15 crore versus Rs 593.74 crore.

How did Amara Raja’s half-year cash flow and balance sheet change?

Amara Raja generated Rs 645.68 crore of net cash from operating activities in the half-year ended September 30, 2026, up from Rs 529.45 crore a year earlier. Cash generated from operations was Rs 770.76 crore after working-capital movements, including a Rs 236.20 crore increase in trade receivables and a Rs 171.45 crore increase in inventories.

Investing cash outflow increased to Rs 855.28 crore from Rs 566.70 crore, chiefly reflecting Rs 807.09 crore spent on property, plant and equipment, compared with Rs 641.50 crore in the prior period. Financing activities generated Rs 141.17 crore, against an outflow of Rs 80.48 crore a year earlier, as Rs 925.55 crore of short-term borrowing proceeds exceeded Rs 654.77 crore of repayments.

Cash and cash equivalents ended the half-year at Rs 156.79 crore, down from Rs 226.00 crore at March 31, 2026. Total assets increased to Rs 12,300.89 crore from Rs 11,456.72 crore, while total equity rose to Rs 8,345.27 crore from Rs 8,098.96 crore. Current borrowings were Rs 547.24 crore at September 30, 2026, compared with Rs 276.46 crore at March 31, 2026.

Segment assets assigned to the new-energy business were Rs 2,599.39 crore at September 30, 2026, up from Rs 1,843.50 crore at March 31, 2026. Lead-acid batteries and allied products had Rs 8,451.36 crore of segment assets, marginally higher than Rs 8,287.69 crore six months earlier, making new energy the larger contributor to the increase in segment assets.

What did Amara Raja approve after the September results?

Amara Raja’s board approved an interim dividend of Rs 4.30 per equity share with a face value of Rs 1 on November 2, 2026, and fixed November 6, 2026 as the record date. The approval accompanied the board’s consideration of unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026.

The consolidated results include five wholly owned subsidiaries: Amara Raja Batteries Middle East (FZE), ARE&M US LLC, Amara Raja Circular Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited and Amara Raja Power Systems Limited. The joint reviewers stated that nothing had come to their attention causing them to believe the consolidated statement was not prepared, in all material respects, under the applicable financial reporting framework.

Two subsidiaries’ interim financial information had not been reviewed by their auditors, according to the review report. Those entities together represented total assets of Rs 11.71 crore and quarterly revenue of Rs 4.88 crore as at and for the quarter ended September 30, 2026; management told the reviewers that the information was not material to the group.

Conclusion

Amara Raja’s September-quarter results show that the Rs 579.24 crore rise in lead-acid segment revenue did not translate into a higher segment result, which declined by Rs 153.90 crore. New energy reduced its quarterly loss by Rs 7.17 crore, but its Rs 41.55 crore loss remained a deduction from consolidated segment results.

The next disclosed event is the November 6, 2026 record date for the Rs 4.30 interim dividend. Subsequent results will also show whether the new-energy business can further reduce losses after its segment assets rose to Rs 2,599.39 crore at September 30, 2026, and whether lead-acid segment results improve from Rs 240.02 crore.