Amber Enterprises India Limited — Q2 FY26 earnings call

Call held 7 Nov 2025

Management summary

Amber Enterprises faced a challenging Q2 FY26 as the Room Air Conditioner (RAC) industry contracted sharply due to unfavorable weather and purchase deferment ahead of a GST cut. While the core RAC business dragged on profitability, leading to a quarterly loss, the company's diversification strategy into Electronics and Railway subsystems provided a revenue hedge. Management remains bullish on a Q4 recovery and long-term growth, backed by significant fundraising and a transition toward a full-stack EMS provider.

Highlights

  • Consolidated revenue remained flat YoY at ₹1,647 crores despite a 30-35% decline in the broader RAC industry.

  • Operating EBITDA declined 19% YoY to ₹98 crores, with a resulting PAT loss of ₹32 crores for the quarter.

  • Electronics division showed robust growth with revenue up 30% YoY to ₹642 crores and H1 revenue up 60% to ₹1,409 crores.

  • Raised ₹1,000 crores through QIP and secured ₹1,750 crores at the ILJIN subsidiary level to fund expansion.

  • Railway Subsystem order book stands at ₹2,600+ crores, with management targeting a doubling of revenue over the next 2 years.

  • Consumer Durable (RAC) division revenue fell 18% YoY to ₹873 crores, impacted by weather and GST rate cut deferment.

  • Management maintained guidance for $1 billion revenue in the Electronics division within the next 3 financial years.

Concerns

  • Seasonal and Weather Dependency

Key financials

  1. Revenue ₹1,647 Cr 0%YoY
  2. Operating EBITDA ₹98 Cr -19%YoY
  3. PAT ₹-32 Cr -252%YoY
  4. Net Debt ₹1,012 Cr

What they filed

Q1 FY27: revenue up 12.7%, net profit down 97.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,685 2,133 3,754 3,449 1,647 −2%2,943 +38%4,148 +10%3,888 +13%
EBITDA111 150 282 250 84 −25%237 +59%291 +3%312 +25%
Net profit21 37 118 106 -32 −253%-9 −125%162 +37%3 −97%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,647 Cr Total
  • Consumer Durable ₹873 Cr 53.0%
  • Electronics ₹642 Cr 39.0%
  • Railway Subsystem and Defense ₹132 Cr 8.0%

Guidance & targets

Revenue

  • Electronics Division Revenue Revenue · next 3 financial years · High confidence $1 billion
    Well, yes, we guided that in next 3 financial year, we should be touching about $1 billion revenue, and we seem to be quite on track as far as that is concerned in the Electronics division.

    — Jasbir Singh, Executive Chairman and CEO

  • Consumer Durable Division Growth Revenue · FY26 · Medium confidence 13% to 15%
    We remain optimistic that this division, Consumer Durable division, should grow in the range of 13% to 15% for the year.

    — Jasbir Singh, Executive Chairman and CEO

  • Railway Division Revenue Revenue · next 2 financial years · High confidence Double
    we remain optimistic of doubling the division's revenue over next 2 financial years.

    — Sudhir Goyal, Group CFO

Margin

  • Electronics Division EBITDA Margin Margin · FY26 year-end · Medium confidence 8% to 9%
    We expect this division margins to be in the range of 8% to 9% by the year-end.

    — Jasbir Singh, Executive Chairman and CEO

Capex

  • Consolidated Capex Capex · FY26 · Medium confidence ₹700-850 crores
    this year, we are expecting a consol capex of between like INR700 crores to INR850-odd crores.

    — Sudhir Goyal, Group CFO

Risks & concerns

  • Seasonal and Weather Dependency

    high

    Non-conducive weather led to a 30-35% industry decline in RAC during Q2.

    Both acknowledged

  • Raw Material Inflation

    medium

    13% increase in copper clad laminate and rising gold prices impacted PCB margins in Q2.

    Management acknowledged

  • Project Execution Delays

    medium

    Delays in Vande Bharat execution and Ascent facility approvals (pollution certificates) pushed back timelines.

    Analyst acknowledged

Areas of evasion (1)

  • Specific FY28 consolidated capex numbers were avoided as being 'too early to say'.

Q&A highlights

3 direct
Electronics Margin Weakness Direct
Largely we got impacted because of the copper clad laminate prices got increased by 13%... And also the gold price also went up... we are able to pass on to our customer any price increase or decrease with a quarter lag.

Explains why margins dipped despite revenue growth and confirms the B2B nature of cost pass-throughs.

Asked by Nirransh Jain, BNP Paribas

Electronics Segment Slowdown Direct
So because consumer durable quarter has not done good and primarily air conditioners was a big dissuader, where ILJIN is one of the leading players supplying printed circuit board assemblies for all the air conditioning suppliers... That's the main prime reason.

Reveals the high correlation (58-60%) between the Electronics segment and the struggling RAC market.

Asked by Ankur, HDFC Life

Debt Reduction and QIP Utilization Direct
So first on the QIP money, we already utilized it to reduce our debt, largely for the debt and partially for our capex... we are hopeful that by year-end, it should be cash positive by year-end.

Management expects to be net cash positive by the end of FY26, a significant shift in the balance sheet strength.

Asked by Praveen Sahay, PL Capital

2 min read 5 chapters

Detailed narrative

RAC Industry Headwinds and Resilience

The Room Air Conditioner (RAC) industry faced a perfect storm in Q2 FY26, contracting 30-35% due to unfavorable weather and customers deferring purchases in anticipation of the GST rate cut from 28% to 18%. Amber's Consumer Durable division demonstrated relative resilience, with revenue declining only 18% to ₹873 crores. Management expects a sharp recovery in Q4, which typically accounts for a large portion of annual sales, and maintains a full-year growth target of 13-15% for the division.

Electronics Division Pivot to Full-Stack EMS

The Electronics division is transitioning from a PCBA supplier to a full-stack EMS company, targeting $1 billion in revenue within three years. While Q2 margins were squeezed by a 13% rise in copper clad laminate costs and gold prices, management expects margins to bounce back to 8-9% by year-end as cost pass-throughs kick in with a one-quarter lag. The division's growth is being fueled by expansion into automotive, energy meters, and telecom, reducing its historical reliance on the RAC segment.

Railway and Defense Order Book Momentum

The Railway Subsystem and Defense division is poised for significant growth, backed by an order book exceeding ₹2,600 crores. Management is confident in doubling the division's revenue over the next two financial years as Vande Bharat execution delays have been clarified by the government. New facilities, including Sidwal's Greenfield plant for HVAC and gangways, are expected to commence commercial production by Q4 FY26.

Strategic Fundraising and Deleveraging

Amber significantly strengthened its balance sheet during the quarter by raising ₹1,000 crores through a QIP and securing ₹1,750 crores for its ILJIN subsidiary. These funds are being utilized to reduce gross debt, which stood at approximately ₹2,500-2,600 crores, and to fund aggressive capex plans in the PCB segment. The company expects to be net cash positive by the end of the financial year, significantly reducing interest cost burdens which impacted Q2 PAT.

Capex Roadmap and New Ventures

The company has outlined a massive capex roadmap, with ₹700-850 crores planned for FY26 and significant investments slated for FY27, including ₹1,200 crores for the Korea Circuit JV (KCC) and ₹650 crores for Ascent Circuits. These investments are aimed at capturing the High-Density Interconnect (HDI) and multilayer PCB markets. Management noted that their application for the Ascent multilayer PCB project has already been approved under the ECMS scheme with a planned investment of ₹991 crores over the scheme tenure.

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