Amara Raja Energy & Mobility Q1FY26 concall decoded: Lead Acid’s Old Guard vs Lithium’s New Kids
Opening Hook Just when cricket fans thought India’s batting collapse was the most predictable show in town, Amara Raja proved that battery margins can rival the drama. In Q1 FY26, the company posted consolidated revenue of ₹3,401 crore, up 4% YoY—but with margins stuck at 11.5%, even Rohit Sharma’s strike rate looks healthier. What’s striking? 95% of this revenue still comes from the good old lead-acid batteries, while the much-hyped “new energy” division contributed a modest ₹122 crore. Why does this matter now? Because every EV policy, PLI scheme, and lithium giga-project headline says the future is electric—but Amara Raja’s present is still soaked in lead. Stick around, because between tubular batteries, telecom degrowth, and a ₹1,200 crore capex bet on lithium, this call was part engineering lecture, part suspense thriller.
95% still Lead Acid – Old guard refuses to retire.
New Energy ₹122 cr – EV slowdown = lithium’s cold coffee quarter.
Margins 11.5% – Antimony and power bills ate the profits.
Telecom Lead Acid -30% – Data boom, battery bust.
Lubes doubled YoY – Because someone had to shine.
Capex ₹1,200–1,300 cr – Mostly for lithium dreams, not acid reality.
Management’s Key Commentary
“95–96% of revenue still comes from Lead Acid.” Translation: Lithium is the poster boy, but daddy still pays the bills.
“4-wheeler OEM demand grew 12–13%, aftermarket up 5%.” Translation: Car batteries are selling faster than new hatchbacks.
“Export volumes declined 7–8% YoY due to tariffs and weak markets.” Translation: Customs officers are the new market regulators.
“Industrial telecom Lead Acid volumes degrew 30%, UPS grew 15%.” Translation: One side charges, other discharges. Net: battery flat.
“Lithium pack sales hit 100 MW in telecom, holding 50%+ share.” Translation: Finally, a lithium story that isn’t just a PPT slide.
“Margins subdued at 11.5%, hit by material, power, and warranty costs.” Translation: Blame chemistry, electricity, and customers’ bad luck.
“₹350 cr infused in Advanced Cell subsidiary, total ₹1,200 cr invested.” Translation: Still burning money in a battery startup within a battery giant.
Numbers Decoded
Metric
Figure
Our Take
Revenue – The Hero
₹3,401 cr (+4% YoY, +11% QoQ)
Growth survived even as exports fizzled.
EBITDA – The Sidekick
Margins 11.5%
Still waiting for tubular batteries to save the day.
Margins – The Drama Queen
11.5% vs 13%+ “normal”
Blamed on antimony prices, power costs, and warranty provisions.
Revenue looked healthy thanks to OEM demand in cars and 2-wheelers. EBITDA margins, however, limped along, thanks to higher traded goods (23% mix vs 19% last year) and cost escalations. Management promises better margins once tubular battery production ramps up and recycling plant stabilizes. Until then, margins remain the most unpredictable character in this saga.
Analyst Questions
Exports outlook? CFO: “Weak for 1–2 quarters, then recovery.” Translation: Don’t expect fireworks till Diwali 2025.
Industrial mix? CFO: “Telecom -30%, UPS +15%, net -3% to -4%.” Translation: One side charges, other discharges. Net: battery flat.
Margins recovery? CFO: “Q1 and Q4 were worst; things will only improve.” Translation: Famous last words of every CFO.
Lithium capex timeline? CFO: “₹1,200 cr more needed, 1 GWh NMC cells by FY27.” Translation: Still waiting for the giga to become giga-fact.
GST cut impact? CFO: “Would level lithium (18%) vs lead acid (28%).” Translation: Government tax drama could finally play referee.
