1. Opening Hook
Remember when everyone thought the EV dream would turn into a lithium gold rush? Well, Amara Raja’s CFO just poured some lead-acid realism into that fantasy. With exports sulking, margins dieting, and new plants still learning to walk, the company’s tone was a mix of “we’re building the future” and “please ignore the temporary pain.”Still, there’s something quietly confident about Amara Raja’s steady 11% QoQ revenue growth and that 100 MW lithium milestone — a flicker of voltage in India’s energy evolution. Stick around, because the gigafactory gossip and GST drama later in the call wereshockinglyinteresting. ⚡️
2. At a Glance
- Revenue up 11% QoQ:Batteries are back in charge, literally.
- Lead-Acid still 95% of sales:Old tech refuses to die; it just charges slower.
- EBITDA margin 11.5%:Cost gremlins chewed through the wires again.
- Telecom Lead-Acid down 30%:5G didn’t call back.
- Lithium revenue ₹122 Cr:Small spark, but enough to keep investors curious.
- Capex ₹1,200–1,300 Cr:Because dreams of a gigafactory don’t come cheap.
3. Management’s Key Commentary
“Revenue grew 4% YoY and 11% QoQ, mainly from strong OEM and aftermarket demand.”(Translation: We sold more car batteries — India’s traffic jams are good business.)
“Exports degrew 7–8% YoY due to market weakness.”(AKA: Global customers ghosted us — maybe they found cheaper volts elsewhere 😏.)
“Margins subdued at 11.5% due to material costs, power hikes, and higher warranty provisioning.”(Everything that could go wrong did, except maybe a blackout.)
“We’ve infused ₹350 Cr more into our New Energy arm; total investment now ₹1,200 Cr.”(Slowly turning from battery makers to billion-volt dreamers.)
“Lithium pack sales crossed 100 MW for the first time.”(They’re finally on the lithium leaderboard — even if it’s still a warm-up lap.)
“Gigafactory construction has begun; 1 GWh NMC cells first, LFP later.”(Read: We’re building it — but patience, my investor friend, patience 🧘.)
“Power cost issues should resolve by Q3.”(If the power bills don’t, maybe the CFO’s blood pressure will.)
4. Numbers Decoded
| Metric | Q1 FY26 | YoY Change | QoQ Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹3,401 Cr | +4% | +11% | OEM and aftermarket did the heavy lifting |
| Lead-Acid Share | ~96% | Flat | Flat | Old faithful still running the show |
| EBITDA Margin | 11.5% | – | – | Material + power costs pinch hard |
| Lithium Revenue | ₹122 Cr | — | — | First meaningful contribution ⚡️ |
| Telecom LA Volume | -30% | — | — | Ouch. Customers unplugged. |
| UPS Battery Growth | +15% | — | — | Backup power is the new hero. |
| Capex FY26 | ₹1,200–1,300 Cr | – | – | 70% going to “New Energy” bets. |
TL;DR:Cash going into lithium, profits stuck in lead — a classic Amara Raja equation.
5. Analyst Questions
Q:Export degrowth outlook?A:Two tough quarters ahead; recovery after tariffs cool down.(Translation: We’re charging exports slowly, one tariff at a time.)
Q:Margin recovery plan?A:Power costs and trading mix normalization will help.(AKA: If electricity behaves, margins might too.)
Q:Gigafactory timeline?A:FY27-end, maybe plus/minus a quarter.(“Maybe” — the most honest word in any capex call 😏.)
Q:BESS opportunity?A:Big potential, working across all segments.(They’ve found a new buzzword: “Energy Storage Solutions.”)
6. Guidance & Outlook
Management expects steady 5–7% growth across core segments — with UPS and auto aftermarket leading the way. Exports? “Subdued” until tariffs stop acting like party spoilers. Margins should
