Can Amber Enterprises Overcome Margin Pressure and Revive Growth by FY27?
About Amber Enterprises
Amber Enterprises India Ltd is a leading solutions provider for air conditioners, consumer durables, and electronic manufacturing services (EMS). The company supplies major OEMs like Voltas, LG, and Daikin and is expanding into components and R&D-driven value addition.
Q2 FY26 results were below expectations as revenue and margins contracted due to higher raw material costs and weaker demand from the RAC segment.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,850 Cr | –9% | –5% |
| EBITDA | ₹165 Cr | –18% | –10% |
| EBITDA Margin | 8.9% | –120 bps | –80 bps |
| PAT | ₹72 Cr | –21% | –9% |
Revenue ₹1,850 Cr — impacted by soft RAC segment and muted electronics demand.
EBITDA ₹165 Cr — lower due to input cost escalation and underutilisation.
PAT ₹72 Cr — decline driven by subdued topline and pressure on margins.
Track electronics sector action with Nifty Option Put.
Peer Comparison
| Company | EBITDA Margin | Focus Area |
|---|---|---|
| Amber Enterprises | 8.9% | RAC & Components |
| Voltas | 10.2% | Consumer ACs |
| PG Electroplast | 9.5% | EMS Solutions |
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Opportunities & Threats
|
|
Valuation & Investment View
- Short-term: Neutral with potential Q4 demand rebound.
- Medium-term: Margin improvement likely from cost efficiencies.
- Long-term: Positioned for structural growth in consumer electronics.
For durable sector cues, track BankNifty Option Put.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, observes that Amber Enterprises remains a medium-term recovery candidate as PLI benefits and component diversification materialize. Explore detailed coverage at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
