Concall AI

Amber Enterprises India Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Amber Enterprises delivered strong Q3 FY26 results with consolidated revenue growing 38% and EBITDA up 53%, driven by robust performance in both Consumer Durables and Electronics divisions. The company is expanding its manufacturing footprint and product portfolio, particularly in the electronics segment, and has a healthy order book for its Railway and Defense division. However, it faced a one-time impairment loss on its Shivalik investment and is navigating commodity cost pressures.

Highlights

Consolidated revenue of ₹2,943 crores, up 38% YoY, driven by diversified product offerings and customer wallet share.
Operating EBITDA of ₹247 crores, a growth of 53% YoY, demonstrating strong operational performance.
Electronics division showed robust growth with revenue up 79% and EBITDA up 157%, supported by Shogini acquisition and Unitronics stake increase.
PAT before exceptional impairment of Shivalik grew 128% to ₹84 crores.
Strong order book visibility of over ₹2,600 crores for the Railway Subsystem and Defense division, with a target to double revenue in 2 years.

Concerns

One-time exceptional impairment loss recognized for the investment in Shivalik due to Titagarh Firema turnaround not materializing.
Sharp surge in commodity costs and currency depreciation, leading to margin pressure in the bare PCB vertical, with a 1-1.5 quarter lag for pass-through.
Finance cost increased marginally QoQ due to inventory build-up ahead of BEE rating changes and recent acquisitions.

Key financials

2 periods

Q3 FY26

Consolidated Revenue
₹2,943 Cr
YoY +38%
Consolidated Operating EBITDA
₹247 Cr
YoY +53%
PAT before Impairment
₹84 Cr
YoY +128%

9M FY26

Consolidated Revenue
₹8,039 Cr
YoY +29%
Consolidated Operating EBITDA
₹608 Cr
YoY +26%
Profit before Impairment
₹158 Cr
YoY +19%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	1,685	2,133	3,754	3,449	1,647 −2%	2,943 +38%	4,148 +10%	3,888 +13%
Expenses	1,574	1,984	3,472	3,199	1,563	2,705	3,856	3,576
EBITDA	111	150	282	250	84 −25%	237 +59%	291 +3%	312 +25%
Margin	7%	7%	8%	7%	5%	8%	7%	8%
Other income	18	16	19	30	16	-48	84	-75
Interest	49	54	55	63	77	79	65	85
Depreciation	57	59	58	62	70	91	99	108
Profit before tax	24	53	189	154	-48 −302%	19 −65%	211 +12%	43 −72%
Tax rate	11%	30%	37%	31%	-33%	150%	23%	93%
Net profit	21	37	118	106	-32 −253%	-9 −125%	162 +37%	3 −97%
EPS	5.69	10.61	34.32	30.66	-9.35	-7.74	38.04	6.31

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 (Q3 FY26)

₹2,943 Cr Total

Consumer Durable ₹1,971 Cr 67.0%
Electronics ₹845 Cr 28.7%
Railway Subsystem and Defense ₹127 Cr 4.3%

Order book

high confidence

Total value

₹2,600 Cr

as of 2025-12-31 quantified

Execution

doubling the division's revenue over next 2 financial years

Composition

Mix 3 segments

Railway 46%
Metro 35%
Defence 10%

Share of order book by segment· partial disclosure (91% of the book)

Strong order book visibility for the Railway Subsystem and Defense division, expected to drive significant revenue growth.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹800 Cr
- Next year's capitalized expenditure ₹1,100 Cr
- Hosur plant investment (machine and building) ₹700 Cr
- Korea Circuits first phase investment ₹1,200 Cr
- Shogini capex for coming financial year ₹55 Cr
So current year capex, we are expecting it should be around INR800 crores. And for the next year, the expenditure, which will be capitalized should be around, INR1,100 crores to INR1,200 crores.
Debt Debt disclosed

So finance cost has increased because of -- you know that there was some changes happening in the energy rating, and we have built some inventory at a lower cost in terms of copper as well as compressor, which has increased the cost of finance cost. ... But you will see that it will start coming down in the current quarter.
M&A Shogini Technoarts Acquisition · Closed · Consideration ₹[object Object] (cash)

broadens division reach to diverse customer base spanning across automotive, medical, industrial, power and other segments.
ILJIN purchased 80% stake, P&L includes 1-month results for Q3 FY26.

ILJIN purchased 80% stake in Shogini Technoarts, a Pune-based Printed Circuit Boards manufacturer with capabilities across single-sided, multilayer and flex PCBs.
M&A Unitronics, Israel Acquisition · Closed

strengthening its position in high-value Industrial Automation segment.
ILJIN increased its holding to 45.5%.

ILJIN has increased its holding in Unitronics, Israel, taking its current stake to 45.5% now.
Liquidity Undrawn ₹1,750 Cr ILJIN Electronics successfully concluded fundraise with the entire INR1,750 crores received from marquee investors.

On the balance sheet front, ILJIN Electronics has successfully concluded fundraise with the entire INR1,750 crores received from marquee investors.

Guidance & targets

Volume

Consumer Durable division volume growth Volume · full year basis · High confidence 13-15%

this division should grow in the range of 13% to 15% for the full year basis.

— Jasbir Singh

Margin

Electronics division EBITDA margins Margin · FY27 · High confidence double-digit number

expect FY '27 full year EBITDA margins to be in double-digit number.

— Jasbir Singh
Consumer Durable division margin impact from commodity prices Margin · next quarter · High confidence 0.25% to 0.5%

Well, in Consumer Durable division, we think that it will be maybe 0.25% kind of 0.25% to 0.5%, but which will be definitely we will change the costing. And as we have done in past, that happens at a quarterly lag that we come back.

— Jasbir Singh
PCB sector margin impact from CCL and gold price spike Margin · next quarter · High confidence 5%

But the customers have started giving the revised approvals, and we are hopeful that this will be completely passed on by next quarter -- after the next quarter.

— Jasbir Singh
Unitronics margin expansion Margin · at least 1.5 years from now · Medium confidence margin expansion

But answer is yes, there is a possibility of margin expansion. And that's both because of the purchase leverage as well as because of the new product segment. But to demonstrate on the balance sheet, I think it will require a little patience for at least 1.5 years from now.

— Jasbir Singh

Revenue

Railway Subsystem and Defense revenue Revenue · next 2 financial years · High confidence doubling

we remain optimistic of doubling the division's revenue over next 2 financial years.

— Jasbir Singh

Commercial Production

Sidwal greenfield facility commercial production Commercial Production · Q4 FY26 · High confidence begin

commercial production is expected to begin in quarter 4 FY '26.

— Jasbir Singh
Yujin Machinery JV commercial production Commercial Production · second half of FY '27 · High confidence commence

commercial production is expected to commence from second half of FY '27, following requested RDSO approvals.

— Jasbir Singh

Order Book

Defence order book Order Book · this year · Medium confidence INR50-odd crores

But this year, we expect that we will do about INR50-odd crores in the defence order book.

— Jasbir Singh

Contribution

Defence vertical contribution to Sidwal's books Contribution · next 2 financial years · High confidence at least 20%

defence vertical will start contributing at least 20% in the Sidwal's books.

— Jasbir Singh

Capex

Current year capex Capex · current year · High confidence INR800 crores

So current year capex, we are expecting it should be around INR800 crores.

— Sudhir Goyal
Next year's capitalized expenditure Capex · next year · High confidence INR1,100 crores to INR1,200 crores

And for the next year, the expenditure, which will be capitalized should be around, INR1,100 crores to INR1,200 crores.

— Sudhir Goyal

Growth

RAC industry growth Growth · next 4, 5 years · High confidence 12% to 15%

I believe that this industry should grow in the range of 12% to 15%, at least for next 4, 5 years.

— Jasbir Singh
RAC industry growth (post INR4,000 per capita income) Growth · thereon · Medium confidence 20% to 25%

And there on, once we cross INR4,000 per capita income, this will further grow at 20% to 25% range.

— Jasbir Singh
Sidwal growth Growth · next year · Medium confidence 40%

I believe we should see somewhere about 40% growth kind of a story in Sidwal next year itself.

— Jasbir Singh

Project Timeline

Hosur plant trial production Project Timeline · September of this 2026 · High confidence start

We should be starting our trial production in September of this 2026.

— Jasbir Singh
Hosur plant mass production Project Timeline · January 2027 · High confidence start

And by January 2027, we should be coming in the mass production scale.

— Jasbir Singh
Korea Circuits groundbreaking Project Timeline · March or April · High confidence do

And then that's when by March, we expect that we should be able to do the groundbreaking, March or April as our maps get approved.

— Jasbir Singh
Korea Circuits commercial production Project Timeline · after 18 months · High confidence start

So you can imagine that after 18 months, we will start the commercial production of that.

— Jasbir Singh
Pune organic expansion construction completion Project Timeline · March or April · High confidence over

I believe the construction will be over in the March or April. And May will be when it will start.

— Jasbir Singh
CCL joint ventures Project Timeline · from now · Medium confidence take about a year

I believe we have already got announcements of 2 companies making CCL. We at Amber are also right now exploring some joint ventures for the CCL, which may take about a year from now

— Jasbir Singh

Market Traction

Data center traction in Sidwal Market Traction · third year · Medium confidence good traction

I think somewhere about third year, we should see a good traction on the data center in Sidwal coming up.

— Jasbir Singh

Ecosystem Development

Component ecosystem for raw materials in India Ecosystem Development · 3 to 4 years from now · Medium confidence good component ecosystem

I believe in 3 to 4 years from now, we can see a good component ecosystem getting developed for raw materials in India.

— Jasbir Singh

What to watch in Q4 FY26

Sidwal Greenfield Facility Commercial Production

April or May (Q4 FY26)

Current Machine installation happening

Target Commercial production starts

Why it matters

Indicates progress on a key expansion project and potential for new revenue streams in the Railway division.

commercial production is expected to begin in quarter 4 FY '26.

Risks & concerns

Commodity cost inflation and currency depreciation
high

Sharp surge in commodity costs (copper, CCL, gold) and currency depreciation are causing margin pressure, particularly in the bare PCB vertical, with a 1-1.5 quarter lag for pass-through.

Management acknowledged
One-time impairment loss on Shivalik investment
high

An exceptional impairment loss was recognized for the investment in Shivalik as Titagarh Firema's turnaround did not materialize as envisioned.

Management acknowledged
Weak underlying room AC industry
medium

Despite strong performance, the underlying room AC industry is weak, with the company expecting it to be flattish this year.

Management acknowledged
Increased finance cost
medium

Finance costs increased due to inventory build-up ahead of BEE rating changes and recent acquisitions, though management expects it to come down.

Management acknowledged

Q&A highlights

8 direct

RAC industry outlook and Amber's growth Direct

I believe that this industry should grow in the range of 12% to 15%, at least for next 4, 5 years. And there on, once we cross INR4,000 per capita income, this will further grow at 20% to 25% range. This has been historic in all the countries. So we believe that on the calendar year '26 basis, industry should be in the range of at least 12% to 15% growth path.

Analyst sought clarity on the RAC industry's near-term and long-term growth prospects, and management provided specific volume growth targets.

Asked by Nattasha Jain

Impact of Mitsubishi Electric's backward integration on Amber Direct

No, there is no risk, Natasha, since you have all seen that 2021 when PLI got announced all 6 major brands announced, which are all our customers, their own factories. And industry -- I mean, markets did assume that Amber will not do well and our stock price was hit unnecessarily. But we could see that Amber moved into a different category. We started offering our products in the component shape, and we kept on growing more than the industry space.

Analyst raised a concern about a major client's backward integration, and management clarified that Amber's strategy of supplying components mitigates this risk.

Asked by Nattasha Jain

Increase in finance cost Direct

So finance cost has increased because of -- you know that there was some changes happening in the energy rating, and we have built some inventory at a lower cost in terms of copper as well as compressor, which has increased the cost of finance cost. ... But you will see that it will start coming down in the current quarter.

Analyst questioned the rise in finance cost despite a QIP, and management attributed it to inventory build-up and acquisitions, expecting a reduction in the next quarter.

Asked by Dhruv Jain

Drivers for Consumer Durable division's strong growth Direct

Well, Sonali, a couple of things. We've increased our wallet share in some customers. And our non-AC components is actually paying dividends now. That's and plus the new product categories, which we have launched. So all put together is delivering this number.

Analyst sought to understand the reasons behind the Consumer Durable division's outperformance, and management detailed multiple growth levers including wallet share and new product categories.

Asked by Sonali Salgaonkar

Shivalik impairment loss and future outlook Direct

And for Shivalik, now we have explained that there will not be any further loss in the Shivalik because we have taken a complete impairment of the investment. And we don't see now anything coming from the Shivalik, and we'll be focusing on our Indian operations and expanding the same.

Analyst inquired about the future of Shivalik after the impairment, and management confirmed no further losses and a shift in focus to Indian operations.

Asked by Sonali Salgaonkar

Electronics segment growth breakdown (organic vs. inorganic) Direct

In 9 months financial, about 12% is the inorganic growth contribution. Out of INR2,100-odd number, almost about INR240 crores is the inorganic and rest is organic.

Analyst asked for a breakdown of Electronics growth, and management provided specific figures for inorganic contribution, clarifying the impact of acquisitions.

Asked by Praveen Sahay

Scaling of Power-One and Unitronics businesses Direct

Unitronics, we feel that there is a geography expansion scope, bring those products to India. Second is the product expansion space. They do not have not manufactured any PLCs, HMIs used for the heating ventilation air conditioning applications. So we've -- after acquisition, we've already sent them samples and the team has visited India. And now they have started their R&D work.

Analyst questioned the strategy for scaling recent electronics acquisitions, and management outlined plans for geographic and product expansion, along with backward integration.

Asked by Tanay Shah

Data center products and market traction Direct

Well, I think that's a great announcement done in this budget, which it was a surprise for all of us. So we were very excited to hear that. I think it will take about 3 to 4 years for companies to shift their data centers here and take a leverage of this incentive scheme, which Government of India has given for 20 years. But it is positive for companies like us because we've already developed our products of in-row and in-rack cooling products.

Analyst inquired about the company's plans and timeline for data center products, and management discussed the market opportunity and their existing product development.

Asked by Sameet Sinha

2 min read 5 chapters

Detailed narrative

Robust Q3 FY26 Performance and Divisional Growth

Amber Enterprises reported a strong Q3 FY26 with consolidated revenue growing 38% YoY to ₹2,943 crores and operating EBITDA increasing 53% YoY to ₹247 crores. The Consumer Durable division saw a 27% revenue growth to ₹1,971 crores, driven by diversified product offerings and increased wallet share. The Electronics division demonstrated exceptional growth, with revenue surging 79% to ₹845 crores and EBITDA up 157% to ₹88 crores, benefiting from recent acquisitions and expanded product lines.

Strategic Expansion in Electronics and Manufacturing Footprint

The company is aggressively expanding its electronics ecosystem, securing approvals under the ECMS scheme for Ascent-K Circuits and Shogini Technoarts. ILJIN Electronics acquired an 80% stake in Shogini Technoarts, adding 4.5 lakh square meters of PCB capacity, and increased its holding in Unitronics, Israel, to 45.5%. Land allotments of 16 acres in Jewar for Ascent-K Circuit (HDI PCBs) and 100 acres for Amber Enterprises' future expansion underscore the commitment to strengthening India's manufacturing capabilities.

Railway and Defense Division Outlook

The Railway Subsystem and Defense division registered 20% growth in Q3 FY26, supported by a strong order book visibility of over ₹2,600 crores. Management aims to double the division's revenue over the next two financial years. The greenfield facility for Sidwal is expected to commence commercial production in Q4 FY26, while the Yujin Machinery JV anticipates commercial production in H2 FY27, following RDSO approvals.

Navigating Margin Pressures and Capital Allocation

Amber is facing margin pressure in the bare PCB vertical due to a sharp surge in commodity costs (CCL, gold) and currency depreciation, with a pass-through lag of 1-1.5 quarters. Finance costs also increased due to inventory build-up and acquisitions, though a reduction is expected next quarter. The company plans a current year capex of ₹800 crores and ₹1,100-1,200 crores for FY27, with significant investments in Hosur (₹700-800 crores) and Korea Circuits (₹1,200 crores for the first phase).

Long-term Vision and Ecosystem Development

Management maintains an optimistic long-term view for the RAC industry, projecting 12-15% volume growth for the next 4-5 years, potentially accelerating to 20-25% post-INR4,000 per capita income. The company is also developing in-row and in-rack cooling products for the data center industry, expecting good traction by the third year. Efforts are underway to foster a robust component ecosystem for raw materials in India, with significant development anticipated in 3-4 years.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript