Earnings call transcript - Q1 FY27

August 14, 2026 National Stock Exchange of India Limited BSE Limited Listing Compliance Department Corporate Relations Department “Exchange Plaza” Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Fort Bandra East, Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: ARE&M BSE SCRIP CODE: 500008 Dear Sir / Madam, Sub: Transcript of Earnings Call - Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 With reference to our letter dated August 6, 2026, the transcript of the Earnings call held on August 11, 2026, is enclosed herewith and the same is also available on the website of the Company at: https://www.amararajaeandm.com/investors/Earnings-calls We request you to take the same on record. Thank you Yours faithfully For Amara Raja Energy & Mobility Limited Vikas Sabharwal Company Secretary & General Counsel Encl: a/a “Amara Raja Energy and Mobility Limited Q1 FY27 Earnings Conference Call” August 11, 2026 MANAGEMENT: MR. Y DELLI BABU – CHIEF FINANCIAL OFFICER – AMARA RAJA ENERGY AND MOBILITY LIMITED MS. SWAJITHA RAPETI – HEAD, CORPORATE FINANCE – AMARA RAJA ENERGY AND MOBILITY LIMITED MODERATOR: MR. JAY KALE – ELARA SECURITIES PRIVATE LIMITED Page 1 of 15 Amara Raja Energy and Mobility Limited August 11, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Amara Raja Energy and Mobility Limited Q1 FY27 Earnings Conference Call, hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jay Kale from Elara Securities Private Limited. Thank you, and over to you. Jay Kale: Yes. Good evening, everyone. And on behalf of Elara Securities, we welcome you to the Q1 FY27 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. Swajitha 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. Y. Delli Babu: Swajitha, you can go ahead with the opening remarks, please. Yes. Swajitha Rapeti: Good evening, everyone. Thanks for joining the call. Maybe I'll give a brief about the Q1 performance first, and then we can move on to the Q&A session. For the quarter ended June 30th, 2026, we have achieved a robust growth of around 24% on consolidated basis with revenue of around INR4,215 crores, with about 95% of the revenue coming from lead acid business, which grew by around 22%. The new energy business grew by more than 70%, recording a revenue of around INR209 crores. Our revenue growth has remained strong, driven by sustained volume momentum in both aftermarket and OEM segments. We continue to strengthen and deepen our market position in automotive and home energy sector. Four-wheeler and two-wheeler aftermarket volumes have grown by around 15%, and OEM segments continue to retain the volume growth momentum of around 24% in 4-wheelers and more than 35% in 2-wheelers on Y-o-Y basis. Further, we also delivered growth of more than 60% in home energy business, both on the tubular batteries and home EPS. During the current quarter, our tubular manufacturing plant operated at 100% capacity However, we continue to supply traded batteries also for meeting the excess demand. The trading revenue in the current quarter stood at around 15% of the lead acid battery revenue. Our automotive international revenue degrew by around 20% owing to significant volume drop in the Middle East market. We are expecting to recover these volumes in these markets in the subsequent quarters. The revenue from industry lead acid battery business grew by around 2% on Y-o-Y basis. The volumes in UPS batteries have grown by around 10%, though the telecom lead acid batteries continue to degrow due to its migration to lithium-ion sector. Lithium-ion telecom volumes grew by around 50%, and during the quarter on a combined basis, we maintained market share of over 60% in telecom segment. New Energy business during Q1 Page 2 of 15 Amara Raja Energy and Mobility Limited August 11, 2026 continued to deliver strong performance with revenue growth supported by increased demand for telecom packs and 3-wheeler packs. Both EV and telecom packs have demonstrated volume growth of more than 50% on Y-o-Y basis. Further, we are happy to share that we have inaugurated our customer qualification plant with multi-form and multi-chemistry capability in July ‘26. E Positive facility, which is our research facility, is also expected to commence operations in the current quarter. Both the first giga cell and BESS 10-gigawatt-hour factory are on track and expected to commence operations as per the timelines indicated earlier. During Q1, the standalone EBITDA margin is around 10.1% and consolidated margin stood at 9.6%. The margins were impacted during the current quarter due to elevated material costs, increased spending on brand promotions, and strategic initiatives, namely Amaron Assist and Factory of the Future. Considering our long-term plans to strengthen our market position at strategic level, we made couple of long-term investments in our manufacturing excellence, organizational capability, and in our brand promotion. The moderation of Q1 operating margins at standalone level reflects these investments. As communicated in our earlier earning calls, we have launched Amaron Assist during Q1 FY27 in Hyderabad, a pilot project focused on providing automotive services to B2C segment, deepening our customer engagement. Based on the learnings from the pilot, we will formulate a long-term plan on the service business model. Further, to strengthen our market presence in B2C segment and improving our brand equity across all product segments, we've invested in brand presence during various events including IPL, which also led to some moderation in the margins during the current quarter. The other reason that contributed to margin dilution is on account of expenses incurred for improving our manufacturing excellence by way of capacity enhancement in our existing automotive plants. These costs will add to the manufacturing competitiveness in near future. Higher expenses on these strategic initiatives during the quarter led to a margin moderation of around 0.9%. The other important aspect which also led to the moderation in profitability is a significant increase in the procurement costs of alloy, sulfuric acid, and poly. We did see some price increase during Q4 FY26. However, subsequently also the procurement cost for sulfuric acid and poly have risen substantially during the quarter. To absorb these costs, we took further price increase of around 3% in June, which helped offset a portion of these cost pressures, although not entirely. Additional price increases of around 2% to 3% will be rolled out during the current month. The above raw material price increases also led to increase in warranty provision and further incremental costs during the quarter led to some margin dilution. At consolidated level, the margins are lower by around 0.5%, which is around 9.6%, which is primarily due to the additional cost at new energy business towards our upcoming Giga 1 plant and BESS plant. And during FY27, we estimate to spend around INR1,700 crores towards our capex project with major outlay towards the new energy business of around INR1,300 crores and rest of it towards Page 3 of 15 Amara Raja Energy and Mobility Limited August 11, 2026 the lead acid business including recycling capex. This capex outlay is majorly towards our upcoming Giga 1 plant which is expected to commercialize during H1 FY28, and towards other projects inc [Showing first 8,000 characters — download PDF for full document]