Financial Performance Summary

Q4 FY26 Performance

  • Consolidated Revenue: INR 3,530 crores, representing 15% YoY growth
  • Revenue Breakdown: 92% from Lead Acid Battery business, 8% from New Energy business
  • New Energy Revenue: INR 280 crores from battery packs and chargers (1.5x growth YoY)
  • Export Contribution: 11% of total revenue
  • Standalone EBITDA Margin: 11%
  • Lead Acid Business Margin: 11.6% (adjusted for lithium trading revenue)
  • Lead Acid Business Margin with Recycling: 12.3% (including captive recycling plant benefits)

Full Year FY26 Performance

  • Consolidated Revenue: INR 13,814 crores (7.5% YoY growth)
  • Full Year Margins: 10.8% consolidated, 12.2% for lead acid business
  • Lithium Pack Supply: Crossed 1 GWh supply to telecom segment for full year

Segment-wise Performance Details

Lead Acid Battery Business

  • 4-wheeler OEM: Growth exceeding 30% in Q4
  • 2-wheeler OEM: Growth exceeding 30% in Q4
  • Aftermarket: 5-6% growth in both 4-wheeler and 2-wheeler segments
  • Tubular Batteries: Volume growth exceeding 35% in Q4
  • Tubular Manufacturing: 70-75% in-house manufacturing, 20-25% traded from other manufacturers
  • Industrial Segments: 3% growth (excluding telecom)
  • Telecom Segment: Transition to lithium causing reduction in lead acid volumes
  • Lubes Product: Reached scale of ~INR 50 crores per quarter

New Energy Business

  • Telecom Packs Supplied: 300+ MWh in Q4 FY26
  • Applications Served: Telecom, 3-wheeler, and 2-wheeler applications
  • Cumulative Investment in Subsidiary: INR 1,500 crores infused into Amara Raja Advanced Cell Technologies
  • Q4 Investment: Additional INR 100 crores infused

Margin Analysis and Cost Pressures

  • Raw Material Inflation: Significant increases in alloys and sulfuric acid due to geopolitical conflicts
  • Cost Mitigation: Price increases of 5-6% taken in Domestic Automotive business in tranches during Q4
  • Future Price Actions: Potential additional price increases due to rupee depreciation, freight costs, and raw material inflation
  • Recycling Plant Benefit: 0.5% margin accretion in Q4, expected to stabilize with battery breaking operations

Capital Expenditure (Capex)

FY26 Capex

  • Total Capex: ~INR 600 crores
  • Lead Acid Business: INR 500 crores (net of insurance claim)
  • New Energy Projects: Includes research lab and Customer Qualification Plant

FY27 Capex Guidance

  • Total Planned Capex: INR 1,500-1,700 crores
  • Lead Acid Business: ~INR 400 crores
  • New Energy Business: INR 1,100-1,200 crores

New Energy Business Update

Manufacturing Facilities

  • Customer Qualification Plant: Final commissioning phase, expected to commence full-scale operations in coming months
  • BESS Facility: Energy storage facility for C&I and grid applications, expected production start in Q4 FY27
  • First Giga Factory: Under construction, expected production start in June 2027 (2 GWh capacity)
  • ESS Integration Facility: New facility in Divitipally with initial 5 GWh capacity, ultimate capacity 10 GWh

Strategic Updates

  • Technology Development: Moving toward self-driven technology development rather than external partnerships
  • Gotion Partnership: Facing challenges due to Chinese government restrictions on technology sharing
  • Cell Manufacturing Focus: 2170 cylindrical cell program for 2-wheeler segment
  • ESS Strategy Shift: Accelerated focus on energy storage systems due to renewable energy drive in India

Business Outlook and Guidance

Lead Acid Business

  • FY27 Growth Expectation: Mid to high single-digit growth
  • International Markets: Focus on localization strategies to address geopolitical tensions and tariff barriers
  • Capacity Utilization: Unlocking throughput in existing manufacturing locations through digital capabilities

New Energy Business

  • Margin Expectations: 6-7% operating margins for BESS business initially, with potential upside as scale improves
  • Cell Manufacturing Returns: Expected EBITDA margin of 10-11% at 8-10 GWh scale
  • Capacity Planning: 16-20 GWh target for Divitipally, with mix shifting toward stationary storage

Sustainability Initiatives

  • Water Management: 12x water positive in distressed water situation areas
  • Waste Management: Zero waste to landfill achievement
  • Energy Efficiency: Reductions in energy expenditure and increasing renewable energy share

Exceptional Items

  • Insurance Claim: Full receipt of claim for tubular battery fire accident
  • One-time Cost: Gratuity cost due to implementation of labor code