12 Aug , 2026 By : Debdeep Gupta
Shares of Amara Raja Energy & Mobility gained 3.15% to Rs 1,000.80 on Wednesday after the automotive battery maker reported a 15.8% year-on-year rise in consolidated net profit for the June quarter. The stock also tracked brokerage commentary on the company's Q1 performance and new-energy business.
Amara Raja reported consolidated net profit of Rs 191 crore for Q1FY27, compared with Rs 165 crore in the year-ago quarter. Consolidated revenue from operations rose 24% year-on-year to Rs 4,214.5 crore from Rs 3,401 crore.
EBITDA increased 11.7% to Rs 405.9 crore from Rs 363.5 crore a year earlier. However, EBITDA margin narrowed to 9.6% from 10.7%.
The lead-acid batteries and allied products business remained the company's largest revenue contributor, with segment revenue rising to Rs 4,005.24 crore from Rs 3,279.79 crore in the year-ago quarter. Revenue from the new-energy business also increased to Rs 209.30 crore from Rs 121.29 crore.
Nomura maintains 'Neutral', raises target price to Rs 1,048
Nomura maintained its 'Neutral' rating on Amara Raja and raised its target price to Rs 1,048 from Rs 942. The brokerage said Q1 margins missed expectations, although it expects lead-acid profitability to improve going forward.
Nomura noted that revenue of Rs 40.4 billion was 5?ove its estimate, while EBITDA margin at 10.1% was below its 11.4% estimate. The brokerage expects margins to recover as lead-acid profitability improves, but said higher capital allocation towards lithium-ion and other new-energy businesses could keep overall ROE subdued.
"While these businesses offer meaningful long-term growth opportunities, low-cost Chinese imports and intense competition could constrain profitability and capacity utilisation," Nomura said.
Nomura raised its FY27/FY28 revenue estimates by 7%/9%, while its FY27/FY28/FY29 EBITDA margin estimates stand at 11.6%/11.8%/12.0%. EPS estimates remain largely unchanged.
JPMorgan raises target price to Rs 1,070
JPMorgan raised its target price on Amara Raja to Rs 1,070 from Rs 985, citing margin pressure in the June quarter from higher brand promotion expenses, increased warranty provisioning, manufacturing upgrade expenses and elevated freight and fuel costs.
The brokerage said some of these costs could persist in the near term before gradually normalising.
JPMorgan also highlighted the company's commentary on battery energy storage systems as a positive. Amara Raja is set to start operations at its 5 GWh facility in Q3FY27, with its current priority focused on energy storage system cells rather than standard EV cells.
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