Amara Raja Energy & Mobility Limited – Investor Presentation Summary

Key Operational Highlights

  • Sustained double-digit growth momentum in OEM across 4W & 2W volumes in Lead Acid Business
  • Strengthened market share in Home Energy supported by distribution/brand reach
  • Domestic aftermarket volumes registered modest growth during the quarter
  • Industrial UPS registered steady growth rates driven by demand from data centres
  • Exports continue to face headwinds due to geopolitical uncertainty
  • New Energy Business sustained supply of telecom packs & EV packs led to revenue growth of more than 30%
  • E+Ve Lab commissioned during October 2026 to support technological advancements
  • Current annualized capacity: ~70 Mn automotive batteries, ~2.4 Bn Ah industrial batteries, ~1.8 Mn tubular batteries

Key drivers of operational performance: Distribution network expansion, digital initiatives, strong OEM demand, data center growth

Segment-wise Performance

  • Lead Acid Business: Strong performance in automotive OEM (4W & 2W), industrial UPS for data centers
  • New Energy Business: Over 30% revenue growth driven by telecom packs and EV packs

Explanation of significant changes in segment performance: Growth in New Energy Business driven by sustained pack supplies; Lead Acid growth driven by OEM demand and data center requirements

Financial Highlights

Revenue: ₹41,087 Mn (Q2 FY27 Consolidated)

EBITDA: ₹3,616 Mn (Q2 FY27 Consolidated)

PAT: ₹1,525 Mn (Q2 FY27 Consolidated)

EPS: ₹8.33 (Q2 FY27 Consolidated Diluted EPS)

Margins: EBITDA Margin 8.8%, PAT Margin 3.7% (Q2 FY27 Consolidated)

YoY/QoQ comparison: Revenue up 18.5% YoY but down 2.5% QoQ; EBITDA down 3.4% YoY and 10.9% QoQ; PAT down 44.8% YoY and 20.1% QoQ

Drivers of financial performance: Elevated raw material costs, increased spending on strategic initiatives (Amaron Assist and Factory of Future)

Key Risks: Geopolitical uncertainty affecting exports, raw material price volatility

Geographical Revenue Split

Domestic vs Export Revenue: Domestic market showing growth while exports facing headwinds due to geopolitical uncertainty

Balance Sheet Snapshot

Total Assets: ₹123,009 Mn (H1 FY27 Consolidated)

Non-Current Assets: ₹72,973 Mn (H1 FY27 Consolidated)

Current Assets: ₹50,036 Mn (H1 FY27 Consolidated)

Equity: ₹83,453 Mn (H1 FY27 Consolidated)

Current Liabilities: ₹32,893 Mn (H1 FY27 Consolidated)

Borrowings: ₹5,472 Mn (Current), ₹0 Mn (Non-current) (H1 FY27 Consolidated)

Financial Health Insights: Modest debt in books, AA+ Credit Rating by CRISIL

Capex & Cash Flow Health

Capital Expenditure: Ambitious capex plan of ₹95 Bn for setting up Giga Corridor in Telangana

Infused ₹2,100 crore into ARACT (Wholly owned subsidiary) till date

Board approvals received for setting up Cell Giga factory with capacity of 5 GWh based on LFP chemistry and enhancing Pack Assembly capacity from 4 GWh to 9 GWh

Investment Rationale: Focus on leading India's Energy Transition in Energy & Mobility space by providing comprehensive energy solutions

Strategic & R&D Initiatives

Investments in Innovation: E+ Positive Energy Labs (innovation & research facility), Customer Qualification Plant (multi-chemistry pilot facility), Lithium Cell manufacturing

Expected impact on growth: GIGA 1 (2 GWh NMC Chemistry) expected to commission during Q2-FY28; 16 GWh Giga facility by FY2030 to cater to Energy Storage Solutions

Strategic Rationale: Expanding into high-growth new energy markets, reducing dependency on traditional lead-acid business

Industry Trends & Business Environment

Macro/Industry Trends: Growing demand from data centers for UPS systems, electric vehicle adoption driving battery demand, geopolitical uncertainty affecting exports

Impact on Company: Strong demand from data centers supporting industrial UPS growth, EV market creating opportunities for New Energy Business, export challenges due to geopolitical issues

Management Commentary & Growth Outlook

Strategic Outlook: Company aims to lead India's Energy Transition in the Energy & Mobility space

Growth Targets: Scaling pack business by entering new mobility applications, building 16 GWh Giga facility by FY2030

Risks and Opportunities: Geopolitical uncertainty affecting exports, raw material price volatility, opportunities in energy storage and electric mobility

ESG Updates

  • Committed to Net Zero by 2050, net zero plan aligned with SBTi limiting to 1.5°C increase
  • 21.82% Renewable energy share with captive renewable at 67 MW
  • Reduced intensity of Scope 1&2 emissions by 37% from FY22 baseline
  • All manufacturing plants are zero liquid discharge and not located in water-stressed areas
  • 12X water positive organization (third party certified)
  • Reduction in absolute water consumption by 16% & intensity by 57% over FY22
  • 99% of manufacturing waste is recycled
  • In compliance with Battery Waste Management Rules, 2022 as Extended Producer Responsibility
  • Rank 1 in S&P Global ESG rating in respective sector in India
  • B Rating CDP "Climate change" 2025
  • A- rating in "CDP Water Security" 2025
  • Achieved Silver Medal in sustainability assessment from EcoVadis

Digital Transformation

  • Digital initiatives to enhance Customer Experience including AMARON KONNECT APP
  • Channel Digitalization with Dealer Collections Solution Program
  • E-Commerce Business development
  • Enterprise AI capabilities building
  • Data Analytics for real-time insights and predictive quality