Amara Raja Q2 FY27 profit falls 45% to ₹153 crore; declares ₹4.30 interim dividend
Synopsis
Amara Raja Energy and Mobility posted a 44.8% profit drop to ₹153 crore in Q2 FY27 even as revenues surged 18.5% — a textbook margin squeeze from cost pressures. The company also trimmed its interim dividend to ₹4.30 per share, a step down from ₹5.40 declared a year ago, signalling that the earnings pain is real even as demand across automotive and home energy segments holds up.
Key Takeaways
Amara Raja Energy and Mobility reported Q2 FY27 net profit of ₹153 crore , down 44.8 per cent year-on-year from ₹277 crore .
Revenue from operations rose 18.5 per cent to ₹4,109 crore , despite the profit decline.
EBITDA margin contracted to 8.8 per cent from 10.8 per cent in Q2 FY26, as cost pressures mounted.
The company declared an interim dividend of ₹4.30 per share for FY27, with record date set for 6 November 2026 .
The dividend is lower than recent payouts: ₹5.40 per share in November 2025 and ₹5.20 per share in July 2026.
Shares closed 3.14 per cent higher at ₹708.40 on the NSE , though the stock is down 29.34 per cent over the past year.
Amara Raja Energy and Mobility Limited on Monday, 3 November 2026, reported a steep 44.8 per cent year-on-year decline in consolidated net profit for the second quarter of FY27, as rising cost pressures squeezed margins even as revenues climbed to a new quarterly high. The battery and energy major posted a net profit of ₹153 crore for the quarter ended September 2026, down from ₹277 crore in the same period a year ago, according to its stock exchange filing.
Revenue Rises, Margins Compress
Revenue from operations grew a robust 18.5 per cent year-on-year to ₹4,109 crore, up from ₹3,467 crore in Q2 FY26. However, the top-line momentum failed to translate into bottom-line gains. Earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 3.4 per cent to ₹361.6 crore from ₹374.3 crore a year earlier, while EBITDA margin contracted sharply to 8.8 per cent from 10.8 per cent in the year-ago quarter, as per the regulatory filing. The divergence between revenue growth and profit decline points to a pronounced cost escalation — a pattern visible across India's battery manufacturing sector amid elevated input material prices.
Interim Dividend Declared at ₹4.30 Per Share
Alongside its quarterly results, the company announced an interim dividend of ₹4.30 per equity share for the financial year 2026-27, with 6 November 2026 set as the record date for determining eligible shareholders. Notably, the payout marks a moderation from recent distributions. Amara Raja had declared an interim dividend of ₹4.80 per share in November 2023, which rose to ₹5.40 per share in November 2025. The company had also paid out ₹5.20 per share in July 2026. The step-down in the interim dividend aligns with the compression in profitability during the current quarter.
Segment Demand Stays Strong Despite Earnings Pressure
Despite the earnings slide, the company flagged resilient demand across key verticals. Performance was reportedly supported by robust double-digit growth in the automotive battery aftermarket and original equipment manufacturer (OEM) businesses, alongside continued momentum in its Home Energy segment. This suggests the profit decline is being driven primarily by the cost side rather than a demand-side deterioration — a distinction that could matter for the stock's medium-term trajectory.
Stock Performance and Market Reaction
The results were announced after market hours. Shares of Amara Raja Energy and Mobility ended the trading session 3.14 per cent higher at ₹708.40 on the National Stock Exchange (NSE). Over the past week, the stock has gained 2.34 per cent, though it remains down 5 per cent over the last month. On a year-to-date basis, shares have declined 23.47 per cent and are down 29.34 per cent over the past year, reflecting broader investor caution around margin visibility in the battery sector.
The focus will now shift to management commentary on cost trajectory and whether margin recovery is expected in the second half of FY27.
Point of View
But input cost inflation is eating into every rupee of revenue growth. A near-45% profit drop on an 18.5% revenue gain is a stark margin compression story, not a demand collapse — and that distinction matters. The trimming of the interim dividend to ₹4.30 from ₹5.40 a year ago is a quiet but telling signal that management is preserving cash. With the stock already down nearly 30% over the past year, the market has been pricing in this deterioration for some time. The real question is whether cost normalisation in the second half of FY27 can restore margins — or whether structural pressures in battery materials persist longer than the company's guidance implies.
NationPress
2 Nov 2026
Frequently Asked Questions
What were Amara Raja Energy and Mobility's Q2 FY27 results?
Amara Raja reported a consolidated net profit of ₹153 crore in Q2 FY27, down 44.8 per cent year-on-year from ₹277 crore. Revenue from operations rose 18.5 per cent to ₹4,109 crore, but rising costs compressed EBITDA margin to 8.8 per cent from 10.8 per cent a year ago.
What interim dividend has Amara Raja declared for FY27?
Amara Raja has declared an interim dividend of ₹4.30 per equity share for FY27. The record date for determining eligible shareholders is 6 November 2026.
How does the latest dividend compare to previous payouts?
The ₹4.30 per share interim dividend is lower than recent distributions — the company paid ₹5.40 per share in November 2025 and ₹5.20 per share in July 2026. It had also paid ₹4.80 per share in November 2023.
Why did Amara Raja's profit fall despite strong revenue growth?
The profit decline was driven by rising cost pressures that compressed operating margins, even as revenues grew 18.5 per cent year-on-year. EBITDA fell 3.4 per cent and EBITDA margin shrank by 200 basis points, indicating input cost inflation outpaced revenue gains.
How did Amara Raja's shares react to the Q2 results?
Shares of Amara Raja closed 3.14 per cent higher at ₹708.40 on the NSE on the day the results were announced after market hours. However, the stock remains down 23.47 per cent year-to-date and 29.34 per cent over the past year.
