Q1 2027 Amara Raja Energy & Mobility Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 24% YoY to INR4,215 crore, driven by strong volume momentum in both aftermarket and OEM segments.
- New energy business revenue surged over 70% YoY to INR209 crore, with EV and telecom packs both growing more than 50% in volume.
- Home energy business (tubular batteries and home UPS) grew over 60% YoY, with the tubular plant operating at 100% capacity.
- Maintained over 60% market share in the telecom segment, with lithium-ion telecom volumes growing around 50% YoY.
- Customer qualification plant with multi-form and multi-chemistry capability inaugurated in July 2026, and ePositive Energy Labs research facility expected to commence operations in the current quarter.
- Andhra Pradesh Pollution Control Board revoked the closure order issued in 2021, removing a long-standing regulatory overhang.
- Consolidated EBITDA margin declined to 9.6% (standalone 10.1%), impacted by elevated material costs, increased brand spending, and strategic initiatives (Amaron Assist, Factory of the Future).
- Raw material costs (alloy, sulfuric acid, poly) rose significantly, and price hikes of 3% in June were insufficient to fully offset the increase; additional 2-3% hikes are being rolled out.
- Automotive international revenue de-grew around 20% YoY due to significant volume drops in the Middle East market, with recovery uncertain.
- Trading revenue (15% of lead-acid revenue) diluted gross margins, and the recycling plant is facing cost pressure due to high local scrap prices.
- New energy business margins are lower (around 5-6% operating margin) and BESS project faces competitive intensity and working capital requirements (90-100 day cash conversion cycle).
- Lithium-ion cell technology development is still in early stages, with significant R&D spending (INR100-150 crore) and no clear timeline for commercialization, while competing with Chinese imports at a 15-20% price disadvantage.
Ladies and gentlemen, good day and welcome to the Amara Raja Batteries Limited Q1 FY 2027 earnings conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Jai Kale from Elara Securities Private Limited. Thank you and over to you.
Good evening, everyone. On behalf of Elara Securities, we welcome you to the Q1 FY 2027 earnings conference call of Amara Raja Energy & Mobility Limited. On behalf of the management, we have with us today Mr. Y. Delli Babu, Chief Financial Officer, and Ms. Sajitha Rapeti, Head Corporate Finance. I would now like to hand over the call to Mr. Delli Babu for his opening remarks. Over to you, sir.
Sajitha, you can go ahead with the opening remarks, please.
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