Amara Raja Energy & Mobility Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Amara Raja Energy & Mobility Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Amara Raja Energy & Mobility reported Q4 FY26 consolidated revenue of about Rs 3,530 crores, up close to 15% year-on-year, with the Lead Acid Battery business growing 12% and the New Energy business growing about 1.5 times over the previous year. Management said EBITDA margin was about 11% on a standalone basis, with the Lead Acid Battery business operating margin at 12.3% after adjusting for lithium pack trading revenue and captive recycling benefits. For FY26 as a whole, consolidated revenue was Rs 13,814 crores, a growth of about 7.5%, with full-year consolidated margin at 10.8% and lead acid battery operating margin at about 12.2%.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: about INR3,530 crores (Q4 FY26)
p. 3
“we have achieved a consolidated revenue of about INR3,530 crores.”
Y Delli Babu, page 3 of the filed PDF · View the filing
New Energy business revenue: about INR280 crores (Q4 FY26)
p. 3
“The New Energy business clocked a revenue of about INR280 crores from the sale of battery packs and chargers.”
Y Delli Babu, page 3 of the filed PDF · View the filing
4-wheeler OEM volume growth: over 30% (Q4 FY26)
p. 3
“The 4-wheeler OEM volumes have seen a sustained growth over and above 30% during the current quarter.”
Y Delli Babu, page 3 of the filed PDF · View the filing
Tubular battery volume growth: more than 35% (Q4 FY26)
p. 3
“The tubular battery volumes grew more than 35% during the current quarter with the onset of the season.”
Y Delli Babu, page 3 of the filed PDF · View the filing
Lubes segment revenue: about INR50 crores per quarter (Q4 FY26)
p. 3
“we have now reached a scale of about INR50 crores per quarter as a sales revenue from this segment.”
Y Delli Babu, page 3 of the filed PDF · View the filing
Overall revenue growth: 16% (Q4 FY26)
p. 4
“The kind of volume growth that I have alluded to resulted in an overall revenue growth of 16%.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Export revenue share: about 11% (Q4 FY26)
p. 4
“The revenue for the quarter from exports stood at about 11%.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Telecom pack supply: more than 300-megawatt hour (Q4 FY26)
p. 4
“we have almost supplied more than 300-megawatt hour of telecom packs to various telecom players.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Investment in Amara Raja Advanced Cell Technologies: about INR1,500 crores cumulative (as of Q4 FY26)
p. 4
“With this, the overall investment into this subsidiary is about INR1,500 crores.”
Y Delli Babu, page 4 of the filed PDF · View the filing
EBITDA margin (standalone): about 11% (Q4 FY26)
p. 4
“the current quarter has seen the overall EBITDA margin standing at about 11% on stand-alone basis.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Lead Acid Battery operating margin (adjusted for lithium trading and recycling): 12.3% (Q4 FY26)
p. 4
“the EBITDA margin of Lead Acid Battery business as a whole is actually at 12.3%.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Price increase taken in Q4: 5% to 6% (Q4 FY26)
p. 4
“we have taken some price increases in Q4 at about 5% to 6% in the Domestic Automotive business in tranches.”
Y Delli Babu, page 4 of the filed PDF · View the filing
FY26 consolidated revenue: INR13,814 crores (FY26)
p. 4
“the consolidated revenue stood at INR13,814 crores.”
Y Delli Babu, page 4 of the filed PDF · View the filing
FY26 revenue growth: about 7.5% (FY26)
p. 5
“That's a growth of about 7.5% over the previous year, supported by both the Lead Acid Battery business as well as the Lithium Pack business as well.”
Y Delli Babu, page 5 of the filed PDF · View the filing
Export contribution to revenue: about 12% (FY26)
p. 5
“the total exports have contributed about 12% of the total revenue in the current financial year.”
Y Delli Babu, page 5 of the filed PDF · View the filing
FY26 consolidated EBITDA margin: 10.8% (FY26)
p. 5
“The full year margins at the consolidated level stood at 10.8%.”
Y Delli Babu, page 5 of the filed PDF · View the filing
FY26 lead acid battery operating margin: about 12.2% (FY26)
p. 5
“at lead acid battery level, our operating margin for the full year is at about 12.2% despite reduction of international volumes and continuous increase in the input costs and other expenses like EPR liabilities and warranty costs.”
Y Delli Babu, page 5 of the filed PDF · View the filing
Lead acid capex: roughly INR600 crores gross, about INR500 crores net of insurance claim (FY26)
p. 5
“we have spent roughly about INR600 crores in our Lead Acid business, both between the Battery business as well as the Recycling business.”
Y Delli Babu, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — INR1,500 crores to INR1,700 crores, with about INR400 crores in Lead Acid Battery business and around INR1,100 crores to INR1,200 crores in New Energy business · FY27
stated firmly by Y Delli Babu
p. 5
“In the coming year, we would be spending an amount in the range of INR1,500 crores to INR1,700 crores as capex, about INR400 crores or so in the Lead Acid Battery business and less -- rest of around INR1,100 crores to INR1,200 crores of capex in the New Energy business.”
Y Delli Babu, page 5 of the filed PDF · View the filing
BESS ESS integration facility commissioning — initial capacity of 5 gigawatt hour, ultimate capacity of 10 gigawatt hour · end of this calendar year
stated as an aspiration by V. Gourineni
p. 7
“We're aiming to start production at the end of this calendar year with an initial capacity of 5 gigawatt hour in a facility with the ultimate capacity of 10 gigawatt hour.”
V. Gourineni, page 7 of the filed PDF · View the filing
Giga 1 cell line production start — first 2 gigawatt hour line · June 2027
stated firmly by V. Gourineni
p. 8
“The first 2 gigawatt hour line, Giga 1 is still on progress -- is in line to start production in June of 2027.”
V. Gourineni, page 8 of the filed PDF · View the filing
FY27 industry/company growth — mid- to high single-digit growth · FY27
stated as an aspiration by H. Gourineni
p. 10
“Along those lines, we'll continue to see that mid to high single-digit growth, which is one, of course, growing a bit better than the market, also further segmenting ourselves”
H. Gourineni, page 10 of the filed PDF · View the filing
BESS business EBITDA margin at scale — 10% to 11% at 8 to 10 gigawatt hour scale
stated conditionally by Y Delli Babu
p. 13
“if we can achieve a scale of about 8 to 10 gigawatt hour, we see that there is a possibility of an EBITDA margin in the range of 10% to 11%.”
Y Delli Babu, page 13 of the filed PDF · View the filing
LFP plant — 2028 and later
stated conditionally by V. Gourineni
p. 17
“I think we'll give you a more firm date for probably 2028 and later.”
V. Gourineni, page 17 of the filed PDF · View the filing
New Energy capacity mix (16 gigawatt hour Telangana) — 16 gigawatt hour
stated firmly by V. Gourineni
p. 17
“we remain committed to adding the 16 gigawatt hour in full in Telangana.”
V. Gourineni, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Equipment has been ordered; the bigger challenge is getting Chinese engineers to obtain visas to commission the equipment, though some progress has been made.
Answered by V. Gourineni
Asked by Vibhav Zutshi: On the 2 gigawatt hour cell line commissioning next year, has equipment been ordered and what challenges are being faced?
p. 8
“I want to share that the equipment has been ordered. The bigger challenge that we've been facing is not so much that we don't have access to equipment, but we have a little bit of limitations in terms of getting the engineers from China to come and help to actually commission the equipment.”
V. Gourineni, page 8 of the filed PDF · View the filing
Technology licensing from China has been discouraged by the Chinese government, so product development is now largely driven by teams in India.
Answered by V. Gourineni
Asked by Vibhav Zutshi: How is the Gotion technology licensing partnership progressing?
p. 9
“largely going forward, whether it's NMC, LFP, future chemistries, the efforts of the product development is largely driven by teams in India.”
V. Gourineni, page 9 of the filed PDF · View the filing
Operating margins could start around 6-7% with potential upside as scale improves.
Answered by Y Delli Babu
Asked by Vibhav Zutshi: What margins are expected for the BESS plant once stabilized?
p. 9
“The operating margins could be around, let's say, 6% to 7% to start with.”
Y Delli Babu, page 9 of the filed PDF · View the filing
Both 4-wheeler and 2-wheeler OEMs grew more than 30%, aftermarket grew 5-6%, telecom saw degrowth, and other industrial segments grew about 3-4%.
Answered by Y Delli Babu
Asked by Raghunandhan NL: What was the growth for 2-wheeler OEM, UPS, Telecom and 4-wheeler export segments in Q4, and outlook for FY27?
p. 10
“both the OEMs, both in the 4-wheeler and 2-wheeler have grown more than 30% during the current quarter. And aftermarket was growing somewhere around 5% to 6% during the current quarter”
Y Delli Babu, page 10 of the filed PDF · View the filing
Lead and alloys form about 70% of raw material cost with rising alloy and forex-driven costs; plastics about 10% with potential 40% price increase; further price hikes of 2-3% expected.
Answered by Y Delli Babu
Asked by Raghunandhan NL: What is the raw material cost mix and expected price hikes?
p. 10
“about 70% of the material is between lead and alloys and naturally alloys like tin, antimony, all these are showing increasing trends”
Y Delli Babu, page 10 of the filed PDF · View the filing
The 2170 cell capacity is based on internal market assessment for the 2-wheeler segment, with the 16 gigawatt hour scale-up bridged by a mix of 4-wheeler OEM programs and the company's own ESS offtake.
Answered by V. Gourineni
Asked by Ganeshram: Given large industry capacity announcements versus demand, who is the incremental buyer as the company scales from 2 to 16 gigawatt hours?
p. 12
“So I think we have more belief that our ability to sell the systems. So some sort of mix between 4-wheeler OEMs and our own ESS capacity is how we'll bridge the 16 gigawatt hour.”
V. Gourineni, page 12 of the filed PDF · View the filing
Management expects a cost gap of China plus 15-20% initially, narrowing over time, with EBITDA margin of 10-11% possible at 8-10 gigawatt hour scale and a low double-digit ROCE.
Answered by V. Gourineni
Asked by Ganeshram: What cell cost gap exists versus imported Chinese cells, and what ROCE is underwritten for the capex plan?
p. 12
“I think it's like China plus 15% to 20% is the minimum that we can bridge immediately because we don't have local material and a couple of other things that is advantageous to China in terms of scale”
V. Gourineni, page 12 of the filed PDF · View the filing
Management still targets 13-14% EBITDA margin over time, and does not see a near-term redundancy risk for lead acid capacity given a large vehicle parc and coexistence of technologies.
Answered by Y Delli Babu
Asked by Kapil Singh: What are the medium-term margin expectations given current cost inflation, and is there a risk of lead acid facility underutilization as EV penetration rises?
p. 14
“still 13% margin trajectory is something that is still on the horizon. But obviously, in the current times of high volatility around every aspect that we touch, it's difficult for me to say what's the time horizon within which that I can reach there.”
Y Delli Babu, page 14 of the filed PDF · View the filing
No government approval was ever sought as it is a private corporate deal; LFP capacity is now expected around 2028 or later, based on internally developed technology.
Answered by V. Gourineni
Asked by Jinesh Gandhi: Have government approvals been received for the Gotion technology tie-up, and when will the LFP plant come on stream?
p. 16
“the deal earlier announced with Gotion is simply a corporate-to-corporate tie-up. We never sought any government approval on either side. It's a completely private deal.”
V. Gourineni, page 16 of the filed PDF · View the filing
The mix is shifting from an earlier 80% EV/20% ESS split to something closer to 2/3 EV, 1/3 ESS or higher, and duties on imported battery packs have already increased.
Answered by V. Gourineni
Asked by Ganeshram: How is the expected EV versus ESS mix within the 16 gigawatt hour plan changing, and could localization norms be extended to EVs?
p. 17
“today, we believe it's going to look something more like 2/3, 1/3, maybe even depending on how successfully ESS continues to roll out, it can even be higher.”
V. Gourineni, page 17 of the filed PDF · View the filing
Risks flagged
Muted export growth in the automotive business due to ongoing geopolitical issues
p. 3
“During the current quarter, with the ongoing geopolitical issues, we have seen a muted growth in the export volumes of Automotive business.”
Y Delli Babu, page 3 of the filed PDF · View the filing
Rising raw material costs in alloys and sulfuric acid due to geopolitical conflict
p. 4
“Raw material costs, particularly in the alloys and sulfuric acid have increased substantially during the quarter due to the ongoing geopolitical conflict as well.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Rupee depreciation and higher freight and raw material costs may require further price increases
p. 4
“And now considering the way the rupee is depreciating and also the enhanced cost of freight and raw materials might force us to look at some more price increases in the coming periods.”
Y Delli Babu, page 4 of the filed PDF · View the filing
Reduction in international volumes due to Middle East geopolitical developments and North American tariff barriers
p. 5
“the international volumes have marginally reduced over the previous year, considering the overall geopolitical developments in Middle East as well as the tariff barriers that we have seen in the North American market.”
Y Delli Babu, page 5 of the filed PDF · View the filing
Difficulty obtaining Chinese engineer visas for equipment commissioning
p. 8
“While still the numbers of visas being issued is less than we would like, I think our experience at CQP has been that we have been able to issue a couple of visas.”
V. Gourineni, page 8 of the filed PDF · View the filing
Chinese government discouraging technology licensing to foreign partners
p. 9
“sharing of technology, licensing technology is something that's been largely discouraged by the Chinese government.”
V. Gourineni, page 9 of the filed PDF · View the filing
Cost disadvantage versus imported cells due to lack of local material and scale
p. 12
“we're not going to be cost competitive with a product that's imported from China.”
V. Gourineni, page 12 of the filed PDF · View the filing
Potential localization mandates could raise solution costs and slow adoption of EV and renewable technologies
p. 13
“I do believe there is some risk that maybe EV or renewables can slow down moderately.”
V. Gourineni, page 13 of the filed PDF · View the filing
Lack of local upstream material and lithium localization in India slowing EV transition
p. 15
“we don't have upstream material and lithium that's yet localized in India.”
V. Gourineni, page 15 of the filed PDF · View the filing
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