- Amara Raja's Q2 net profit fell 44.8% to Rs 153 crore despite 18.5% revenue growth
- Q2 EBITDA dropped 3.4% to Rs 361.6 crore, with margins contracting to 8.8% from 10.8%
- Interim dividend declared at Rs 4.30 per share, lower than recent previous payouts
Amara Raja Energy & Mobility Ltd. reported a mixed set of results for the September quarter, with revenue growth failing to translate into higher profitability as margins and net profit came under pressure. The company also announced an interim dividend of Rs 4.30 per share, even as its quarterly earnings reflected the impact of cost pressures and operational challenges.
The company's consolidated net profit declined 44.8% year-on-year to Rs 153 crore in quarter ended September, compared with Rs 277 crore in the corresponding quarter last year. Revenue from operations, however, increased 18.5% to Rs 4,109 crore from Rs 3,467 crore a year ago. Operating performance remained under pressure, with earnings before interest, tax, depreciation and amortisation (Ebitda) declining 3.4% to Rs 361.6 crore against Rs 374.3 crore in the year-ago period.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Consequently, Ebitda margin contracted to 8.8% from 10.8% in the second quarter, highlighting the disconnect between revenue growth and profitability.
Amara Raja Announces Interim Dividend
Alongside its quarterly results, Amara Raja announced an interim dividend of Rs 4.30 per equity share for the financial year 2026-27. The company has fixed Friday, Nov. 6, 2026, as the record date to determine shareholders eligible to receive the interim dividend.
The latest payout is the lowest dividend announced by the company since July 2023, when it had declared Rs 3.20 per share. For comparison, Amara Raja announced an interim dividend of Rs 4.80 per share in November 2023. The payout increased to Rs 5.40 per share in November 2025, while the company announced a dividend of Rs 5.20 per share in July 2026.
The Rs 4.30 payout therefore marks a moderation from the company's more recent dividend announcements.
What Drove Amara Raja's Q2 Performance?
Despite the decline in profitability, the company reported healthy demand across several of its businesses. Amara Raja said its performance was supported by strong double-digit growth in the automotive battery aftermarket and original equipment manufacturer (OEM) segments, as well as its Home Energy business. The new energy business also witnessed healthy growth in demand for stationary telecom battery packs.
Commenting on the performance, Harshavardhana Gourineni, Executive Director – Automotive and Industrial, said robust OEM demand across two-wheelers and four-wheelers, along with healthy aftermarket volumes, supported domestic revenue growth of more than 10%. Industrial UPS business also recorded growth of over 7%.
READ | ITC Q2 Results: Profit Plunges 20% As Margin Shrinks, Revenue Up Slightly
"International demand remains strong, but geopolitical shipping disruptions have temporarily limited our ability to fulfil it. As logistics normalise, we are confident of accelerating growth," Gourineni said.
Amara Raja Arm Approves Rs 2,320 Crore Capex
Separately, the board of Amara Raja Advanced Cell Technologies Ltd., a wholly owned subsidiary of the company, has approved a capital expenditure of Rs 2,320 crore to expand its battery manufacturing capabilities. The investment will increase pack manufacturing capacity from 4 GWh to 9 GWh and support the establishment of an LFP (lithium iron phosphate) cell manufacturing plant at the Amara Raja Giga Corridor in Telangana.
The facilities are expected to be established over the next 30 months. The investment will be financed through a combination of equity and debt.
The company said the investment aligns with its Energy & Mobility roadmap and its ambition to establish an integrated ecosystem in India for emerging energy and mobility technologies.
The company is also expanding its presence in automotive services through Amaron Assist, a technology-led services and solutions business. The platform will provide automotive maintenance, battery services, vehicle care and mobility assistance, extending Amara Raja's presence beyond battery manufacturing.
Amara Raja Share Price Today
The results were announced after market close. Shares of Amara Raja closed as much as 3.14% higher during the day at Rs 708.4 apiece on the NSE. This compares with a 1.68% advance in the benchmark Nifty 50. The shares have risen 2.34% in one week but fallen 5% in one month. The shares are down 23.47% year-to-date and 29.34% in one year.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.