Earnings Outlook
Amara Raja Q1 Profit After Tax seen up on higher battery sales
This story was originally published at 18:45 IST on 8 August 2026
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By Pratyush Kumar
MUMBAI – Amara Raja Energy & Mobility Ltd. is expected to report higher sales for the June quarter led by increased sales of replacement batteries, according to brokerages tracking the company. The company's revenue and profit for the quarter are likely to improve on the back of growing demand from original equipment manufacturers and measures taken by the company to reduce costs.
The company's net profit for the June quarter is seen rising nearly 9% on year to INR 2.11 billion from INR 1.94 billion, according to the average of estimates from six brokerages. The net profit is likely to rise 50% sequentially. The net sales of the company are expected at INR 38.05 billion, up nearly 14% on year from INR 33.50 billion and up 10% on quarter, according to the estimates.
The highest estimate for Amara Raja's net profit for the June quarter is INR 2.24 billion from Kotak Securities Ltd. and the lowest is INR 1.91 billion from Motilal Oswal Financial Services Ltd. The highest estimate for net revenue is INR 40.14 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 35.84 billion from Motilal Oswal.
Amara Raja is expected to post a high growth in its revenue for the June quarter on the back of demand from the automotive replacement segment, a rise in demand from original equipment manufacturers, and steady industrial battery sales, brokerages said.
Domestic demand for batteries from automotive original equipment manufacturers along with demand for replacement of batteries is likely to continue in the June quarter, Motilal Oswal said. On the other hand, exports of Amara Raja are expected to remain weak for the quarter, the brokerage added.
Amara Raja's earnings before interest, tax, depreciation, and amortisation are expected at INR 4.21 billion, according to the average of four estimates. The highest estimate for EBITDA is INR 4.31 billion from Elara Securities (India) Pvt. Ltd. and the lowest is INR 3.98 billion from Motilal Oswal.
The battery maker's EBITDA margin for the June quarter is expected to be 12.1-12.2%, an on-year improvement aided by high operating leverage and higher sales of high-margin products, according to 360 ONE Capital and Kotak. Measures such as reduction in manufacturing cost and increase in prices are also expected to aid the margin, Kotak said. However, Motilal expects the company's EBITDA margin to contract to 11.1% for the June quarter. The brokerage did not give reasons for the contraction in margin.
Amara Raja will detail its June quarter earnings Monday. Investors will watch the progress on the new lithium-ion manufacturing facility and tie-ups with major automotive companies to supply batteries, Nuvama said. Shares of Amara Raja ended Friday marginally up at INR 931.70 on the National Stock Exchange. The shares are up 5% since the company detailed its March quarter earnings on May 25.
Of the six brokerage reports available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 983 apiece, up over 5% from the closing price Friday. Three brokerages have a "hold" recommendation on the stock with an average target price of INR 927 apiece.
The following are the June quarter earnings estimates for Amara Raja Energy from six brokerages in descending order of the estimate of net profit, in INR billion:
|
Brokerages |
Net Sales |
Net Profit |
EBITDA |
|
Kotak Securities Ltd. |
36.85 |
2.24 |
4.29 |
|
360 ONE Capital Market Pvt. Ltd. |
37.52 |
2.23 |
-- |
|
Nuvama Wealth Management Ltd. |
38.86 |
2.20 |
4.26 |
|
Anand Rathi Share and Stock Brokers Ltd. |
40.14 |
2.06 |
-- |
|
Elara Securities (India) Pvt. Ltd. |
39.11 |
2.03 |
4.31 |
|
Motilal Oswal Financial Services Ltd. |
35.84 |
1.91 |
3.98 |
|
Average |
38.05 |
2.11 |
4.20 |
End
Edited by Pankaj Aher
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