Amber Enterprises India Limited — Q4 FY25 earnings call

Call held 19 May 2025

Management summary

Amber Enterprises delivered a landmark FY25, crossing the ₹10,000 crore revenue milestone driven by robust growth in the Consumer Durable and Electronics segments. The company successfully expanded its ROCE to 19.5% and optimized working capital to 9 days. Management is pivoting towards a high-margin, full-stack EMS and specialized railway component player, backed by significant capex plans in PCBs and new joint ventures.

Highlights

  • Total income crossed the ₹10,000 crores milestone in FY25, reaching ₹9,973 crores (up 48% YoY).

  • Operating EBITDA for FY25 grew 53% YoY to ₹796 crores; PAT surged 80% to ₹251 crores.

  • Achieved a high-teen ROCE of 19.5% in FY25, an improvement of 690 bps over the previous year.

  • Electronics division clocked stellar growth of 77% with revenue of ₹2,194 crores and 119% EBITDA growth.

  • Net working capital days significantly improved to 9 days from 13 days in the previous year.

  • Management plans to invest ₹3,000 crores in PCB categories over 5 years under the new ECMS scheme.

  • Railway division revenue expected to double over the next two financial years despite a muted FY25.

Key financials

  1. Revenue ₹9,973 Cr +48%YoY
  2. Operating EBITDA ₹796 Cr +53%YoY
  3. PAT ₹251 Cr +80%YoY
  4. ROCE 19.5%

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
₹9,973 Cr Total
  • Consumer Durable ₹7,329 Cr 73.5%
  • Electronics ₹2,194 Cr 22.0%
  • Railway Subsystem and Defense ₹450 Cr 4.5%

Guidance & targets

Market Share

  • RAC Industry Outperformance Market Share · FY26 · High confidence 10% to 12%
    we are well positioned to outpace the industry growth by a minimum margin of 10% to 12%.

    — Jasbir Singh, Executive Chairman

Margin

  • Electronics Division EBITDA Margin Margin · next 2 years · Medium confidence 10% to 12%

    From 7% today

    with an aim to reach 10% to 12% margin for this division over the next 2 years.

    — Jasbir Singh, Executive Chairman

Revenue

  • Railway Division Revenue Revenue · next 2 financial years · High confidence Double

    From ₹450 crores today

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

    — Jasbir Singh, Executive Chairman

  • Korea Circuits JV Revenue Potential Revenue · FY28 · Medium confidence ₹2,500 crores
    you will see the PCB itself giving a revenue generation of more than INR2,500 crores at 18% to 20% of EBITDA.

    — Jasbir Singh, Executive Chairman

Capex

  • ECMS Scheme Investment Capex · next 5 years · High confidence ₹3,000 crores
    In ECMS, we will be putting in an application of about INR3,000 crores, which is to be spent over a period of scheme in 5 years.

    — Jasbir Singh, Executive Chairman

Risks & concerns

  • Erratic Summer Rains

    medium

    Rains in South and West India have impacted early summer AC demand, though management claims North India remains strong.

    Analyst acknowledged

  • Railway Offtake Delays

    medium

    FY25 was muted due to delays in product offtake for Vande Bharat and Metro projects, though the order book remains strong at ₹2,000+ crores.

    Management acknowledged

  • Joint Venture Losses

    low

    JVs reported a loss of ₹13 crores in Q4; management expects this to reduce to ₹20-25 crores annually as they ramp up.

    Analyst acknowledged

Areas of evasion (1)

  • Specific customer names due to NDAs in the Electronics division.

Q&A highlights

3 direct
EMS Sector Growth and Margin Expansion Direct
we are adding industrials applications more now, and automobile is also adding up... which are more margin-accretive businesses than the current businesses.

Confirms the strategy to shift from low-margin consumer electronics to high-margin industrial and auto applications to reach 10-12% margins.

Asked by Vipraw Srivastava, PhillipCapital

Sustainability of Low Working Capital Days Direct
we feel that this is maintainable... at the year-end kind of a thing, we think that, yes, it should be in the range of 10 to 15 days on a consol level.

Investors were concerned if the 9-day working capital was a one-time anomaly; management confirms a new normal of 10-15 days.

Asked by Dhruv Jain, Ambit Capital

Korea Circuit JV Economics and Subsidies Direct
on a blended basis, if we see, it will be about 65% refund... INR1,000 crores capex for us implies INR350 crores of adjusted for the subsidy.

Clarifies the massive capex is heavily subsidized by central (MeitY) and state governments, reducing the actual cash strain on the company.

Asked by Madhav, Fidelity

2 min read 5 chapters

Detailed narrative

Landmark Financial Performance in FY25

Amber Enterprises achieved a significant milestone by crossing ₹10,000 crores in total income for FY25, with revenue from operations reaching ₹9,973 crores, a 48% YoY increase. Operating EBITDA grew by 53% to ₹796 crores, while PAT surged 80% to ₹251 crores. The company also delivered on its two-year-old guidance of reaching high-teen ROCE, finishing the year at 19.5%, a 690 bps improvement.

Electronics Division Evolution to Full-Stack EMS

The Electronics division has evolved from a component supplier to a unique full-stack EMS company, clocking 77% growth in FY25 with revenue of ₹2,194 crores. While current margins are around 7%, management is strategically adding margin-accretive applications in industrials, auto, aerospace, and defense. They aim to reach an EBITDA margin of 10% to 12% for this division within the next two years as the product mix shifts away from low-margin consumer durables.

Strategic PCB Expansion and Korea JV

Amber is making a massive bet on the PCB ecosystem, planning a ₹3,000 crore investment over five years under the government's ECMS scheme. This includes the expansion of Ascent Circuits in Hosur, which will more than double capacity, and a new joint venture with Korea Circuits. Management expects the Korea JV to generate over ₹2,500 crores in revenue at 18-20% EBITDA margins by FY28, serving marquee customers like Micron and Samsung.

Railway Subsystem Outlook and TAM Expansion

Despite a muted FY25 where revenue declined 6% to ₹450 crores due to project delays, management is optimistic about doubling revenue over the next two years. The Total Addressable Market (TAM) per passenger car has expanded 5x from ₹25 lakhs to ₹1.5 crores as the company added pantries, doors, gangways, couplers, and brakes to its portfolio. The order book for Sidwal stands robust at over ₹2,000 crores.

Consumer Durable Resilience and Market Share

The Consumer Durable division, including RAC and components, grew 46% YoY to ₹7,329 crores. Management remains confident in outpacing the industry growth by 10-12% in FY26. They highlighted that while summer demand started weakly in the South and West due to rains, North India has picked up significantly, and the shift from in-sourcing to outsourcing by major brands continues to favor Amber's ODM model.

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