Amara Raja’s Q1 margin slips, but JPMorgan and Nomura lift targets on new-energy outlook

Amara Raja Energy & Mobility reported Q1 FY27 revenue growth of 20.6% to Rs 4,041 crore, while EBITDA margin fell to 10.1% from 11.5%. JPMorgan and Nomura raised target prices, citing potential lead-acid margin recovery and execution of its new-energy plans, including a 5 GWh BESS facility slated for Q3 FY27 operations.

By ·Devil's-advocate pass

— Source publishedWed, 12 Aug, 2026, 08:35 IST·First seen Wed, 12 Aug, 2026, 09:04 IST·Source NDTV Profit

The development

Amara Raja’s Q1 FY27 margin declined on promotion, warranty, upgrade and freight costs, but JPMorgan and Nomura raised targets, citing a likely lead-acid margin recovery and new-energy execution. Its 5 GWh battery energy storage facility is due to begin operations in Q3 FY27.

The numbers

  • Q1 FY27 standalone revenue: Rs 4,041 crore, up 20.6% YoY
  • EBITDA: Rs 407 crore, up 5.4% YoY
  • EBITDA margin: 10.1%, down from 11.5%
  • Net profit: Rs 203 crore, up 4.6% YoY
  • New energy business revenue: Rs 209 crore
  • Lead-acid batteries and allied products revenue: Rs 4,005 crore
  • BESS facility capacity: 5 GWh
  • JPMorgan target price: Rs 1,070, raised from Rs 985
  • Nomura target price: Rs 1,048, raised from Rs 942

Why it matters to operators and investors

The planned 5 GWh BESS facility due to begin operations in Q3 FY27 strengthens Amara Raja’s case for technology, supply-chain and customer partnerships that can accelerate energy-storage scale-up.

What to watch next

  • Confirmation of 5 GWh BESS plant commissioning timeline and initial commercial orders.
  • Quarterly EBITDA-margin recovery versus the Q1 FY27 10.1% level.
  • Lead-acid battery pricing, raw-material spreads and replacement-market demand.
  • Warranty and promotion expense trends as a percentage of revenue.
  • New-energy capex, funding requirements, utilization ramp and customer qualification progress.
  • Further analyst estimate revisions following Q2 FY27 results.
  • Accelerate BESS commissioning, customer tie-ups and offtake announcements ahead of Q3 FY27 operations.
  • Prioritize higher-margin replacement and premium battery segments to reduce reliance on promotional volume growth.
  • Tighten warranty, freight and manufacturing-upgrade cost controls to demonstrate a credible margin-recovery path.
  • Use broker-target upgrades and new-energy milestones to strengthen financing, partnership and talent access for the storage build-out.