Amara Raja Energy falls 5% on Q3 results; profit down 53%, margins contract

Amara Raja Energy net profit fell 53 per cent year-on-year to ₹140 crore in Q3FY26 from ₹298.4 crore in the year-ago period

Amara Raja Energy share price today: Shares of Amara Raja Energy and Mobility, a battery manufacturing company, fell over 5 per cent in Thursday's session after the company announced its results for the October-December quarter of FY26 (Q3FY26). The stock touched an intraday low of ₹864 on the National Stock Exchange (NSE). 

 

As of 01:55 PM, Amara Raja Energy's share price was quoting at ₹864.7, down 5.2 per cent compared to the previous session's close of ₹911.70. In comparison, Nifty was trading 0.53 per cent down at 25,817.65. 

  The market capitalisation of the company stood at ₹15,827 crore. The stock has fallen around 22 per cent from its 52-week high of ₹1,109 touched on March 26, 2025.

 

Amara Raja Energy Q3 results highlights

In the Q3FY26, Amara Raja Energy reported a muted performance dragged by pressure on profitability despite revenue growth. The company's net profit fell 53 per cent year-on-year (Y-o-Y) to ₹140 crore in Q3FY26 from ₹298.4 crore in the year-ago period. However, revenue from operations grew 4.2 per cent Y-o-Y to ₹3,410 crore compared to ₹3,272 crore in Q3FY25. 

 

On the operational front, the company's earnings before interest, tax, depreciation and amortisation (Ebitda) fell 7.7 per cent to ₹374 crore, compared to ₹405 crore a year ago. Its Ebitda margin contracted to 11 per cent from 12.4 per cent in Q3FY26. 

 

The company's total expenses stood at ₹3,203.1 crore against ₹3,009.5 crore in the corresponding quarter of the previous fiscal. 

 

Additionally, the company's board of directors approved a proposal to incorporate a subsidiary in the United States to strengthen its customer service capabilities and facilitate global expansion. The company will invest around $5 million either through equity/loan/other kinds of securities, or through capital expenditures, in one or more tranches.   Check Q3 Results today

Management commentary

Harshavardhana Gourineni, executive director - automotive and industrial at Amara Raja Energy, said the battery business delivered a strong performance during the quarter, led by robust growth and sustained demand in the OEM segment. 

 

"While geopolitical developments posed challenges in certain export markets, our diversified portfolio and operational resilience helped us navigate these headwinds effectively,” he added.

 

Vikramadithya Gourineni, executive director – New Energy Business, noted that the progress on the Customer Qualification Plant and R&D production facility is on track and will soon be inaugurated. These will enable the supply of Made and Designed in India cells for customer testing early next financial year. Critical Gigafactory infrastructure is progressing as planned, with commercial production expected early next calendar year.