Amara Raja Q1 FY27 revenue jumps 24% as margins narrow

Amara Raja Energy & Mobility reported a 24% year-on-year increase in consolidated revenue for the first quarter of fiscal year 2027, according to company presentation slides released on Monday.

Revenue rose to 24.3 billion rupees ($285 million) from 19.6 billion rupees in the same period last year. The growth was attributed to higher volumes across automotive battery and energy storage segments, as well as expanded market share in India’s electric vehicle ancillary space.

Despite the revenue surge, profit margins compressed during the quarter. Gross margin fell to 18.2% from 22.1% a year earlier, reflecting elevated raw material and logistics costs. Operating margin also declined to 11.6% from 15.4%, pressured by increased manufacturing expenses and competitive pricing.

Net profit for the quarter totaled 1.9 billion rupees, up 12% from 1.7 billion rupees in Q1 FY26. The company noted that while demand remained robust, cost pressures persisted, limiting margin recovery.

Amara Raja, a key supplier to India’s automotive sector, has been expanding its presence in lithium-ion battery manufacturing as the country accelerates its transition to electric vehicles. The company’s domestic market share in lead-acid batteries remains dominant, though competition in the EV battery segment is intensifying.

Management highlighted ongoing investments in capacity expansion and technology upgrades to support long-term growth. The company did not provide formal earnings guidance in the slides but emphasized its commitment to maintaining market leadership amid evolving industry dynamics.