Amber Enterprises India Limited — Q4 FY26 earnings call

Call held 18 May 2026

Management summary

Amber Enterprises India Limited reported a strong FY26, with consolidated revenue surpassing INR12,000 crores, driven by robust growth across all three diversified divisions. The Electronics division, in particular, saw significant expansion. The company is strategically investing in PCB manufacturing to strengthen its 'Atmanirbharta' in electronics. However, management anticipates temporary margin pressure in the near term due to rising commodity prices and wage increases.

Highlights

  • Consolidated revenue for FY26 reached INR12,186 crores, a 22% YoY growth.

  • Operating EBITDA for FY26 was INR970 crores, a 22% YoY growth.

  • Adjusted PAT for FY26 was INR338 crores, a 22% YoY growth.

  • Electronics division revenue grew 49% YoY to INR3,268 crores in FY26.

  • Secured INR4,500 crores total investment approvals under ECMS for PCB facilities.

  • Proactive inventory buildup to mitigate supply chain risks.

Concerns

  • Anticipated margin pressure of 50 to 100 bps at consolidated level due to high commodity prices, currency depreciation, and minimum wage revisions.

  • Increased input cost for bare PCB businesses (copper clad laminate prices up >60% in 1 year).

  • Gold prices increased by approximately 60% in 1 year, impacting PCB business.

  • Indian Railway contracts are fixed price, limiting pass-through of cost increases.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹4,148 Cr
    YoY +10%
  • Operating EBITDA
    ₹362 Cr
    YoY +15%
  • Adjusted PAT
    ₹162 Cr
    YoY +27%

FY26

  • Consolidated Revenue
    ₹12,186 Cr
    YoY +22%
  • Operating EBITDA
    ₹970 Cr
    YoY +22%
  • Adjusted PAT
    ₹338 Cr
    YoY +22%

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
₹12,186 Cr Total
  • Consumer Durable (FY26) ₹8,383 Cr 68.8%
  • Electronic (FY26) ₹3,268 Cr 26.8%
  • Railway Systems and Defense (FY26) ₹535 Cr 4.4%

Order book

high confidence

Total value

₹2,600 Cr

as of 2026-03-31 quantified

Composition

  • Railway Systems and Defense (segment) ₹2,600 Cr
  • Couplers (Yujin) (product) ₹178 Cr
Strong order book visibility for the Railway division and initial orders for Yujin.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹1,070 Cr Subsidies from ECMS (48% for Ascent-K P&M) and UP government incentives (42% for Ascent-K building P&M).
    • Ascent-K Circuit (HDI PCB) ₹1,200 Cr
    • Other entities ₹700 Cr
    So the overall capex is around INR1070crores. ... Ascent will be around INR1200-odd crores, including the capitalized portion out of this INR547 crores. And apart from that, there will be around INR700 crores to INR800 crores capex in all the other entities put together. ... we'll be getting about 48% on plant and machinery back from -- through ECMS scheme. And we have negotiated 42% incentives on building plant and machinery from UP government.
  • Debt Net ₹511 Cr
    On the balance sheet front, net debt stood at INR511 crores as of March '26 against INR780 crores in March '25.
  • M&A Power-One Microsystems Acquisition · Closed

    Consolidated financials include performance for partial period.

    Please note, we acquired Power-One Microsystems in August
  • M&A Unitronics Acquisition · Closed

    Achieving majority ownership.

    Increased stake to 50.4%. Consolidated financials include performance for partial period.

    Unitronics in October ... achieving the majority ownership. ... increased our stake in Unitronics, Israel to 50.4%
  • M&A Shogini Acquisition · Closed

    Consolidated financials include performance for partial period.

    Shogini in December.

Guidance & targets

Revenue

  • Electronics Division Growth Revenue · FY27 · High confidence 40%
    this division is expected to grow by around 40% in FY '27.

    — Jasbir Singh

  • Railway Division Growth Revenue · FY27 and FY28 · High confidence 30-35%
    we remain optimistic of division's growth of 30% to 35% for both FY '27 and FY '28.

    — Jasbir Singh

Volume

  • RAC Industry Volume Growth Volume · Q1 FY27 · Medium confidence 20%
    the industry expects to grow by somewhere around 20% in quarter 1.

    — Sachin Gupta

  • RAC Industry Volume Growth Volume · FY27 · Medium confidence 12-13%
    On the complete year side, we are estimating a growth of somewhere around 12% to 13% on the complete year.

    — Sachin Gupta

Pricing

  • RAC Price Hike Pricing · last year · High confidence 14%
    the price increase is somewhere around 14% versus last year.

    — Sachin Gupta

Margin

  • Consolidated Margin Pressure Margin · temporary · High confidence 50-100 bps
    we expect a margin pressure of 50 to 100 bps at consolidated level, which is of temporary in nature and expected to normalize as macro environment improves.

    — Jasbir Singh

  • Electronics Division EBITDA Margin Margin · FY27 · High confidence 9.5-10%
    the margins, what we are expecting right now should be in the range of 9.5% to 10% range.

    — Jasbir Singh

  • Railway Division EBITDA Margin Margin · FY27 · High confidence 16-17%
    the margins in the railway side, we expect in the range of 16% to 17%.

    — Jasbir Singh

Project Timeline

  • Ascent-K Circuits Construction Start Project Timeline · June 2026 · High confidence June '26
    Ascent-K Circuits, HDI PCB manufacturing facility is set to commence its construction by June of '26.

    — Jasbir Singh

  • Ascent-K Circuits Trial Production Project Timeline · Q3 FY28 · High confidence Q3 FY28
    With trial production expected by quarter 3 FY '28

    — Jasbir Singh

  • Ascent-K Circuits Mass Production Project Timeline · Q3-Q4 FY28 · High confidence Q3-Q4 FY28
    from quarter 3, quarter 4 onwards of FY '28, we will start the mass production of HDI plant.

    — Jasbir Singh

  • Ascent Hosur Commercial Production Project Timeline · February 2027 · High confidence mid-February 2027
    commercial production will start by February, mid of February of next 2027.

    — Jasbir Singh

  • Sidwal's Greenfield Facility Commercial Production Project Timeline · Q1 FY27 · High confidence current quarter
    commercial production is expected to begin from current quarter

    — Jasbir Singh

PLI Incentive

  • PLI Scheme Receipt PLI Incentive · FY26 · High confidence INR78 crores
    In the current year, we expect to receive INR78 crores under the PLI scheme for the financial year '26.

    — Jasbir Singh

What to watch in Q1 FY27

Consolidated Margin Normalization

next 1-2 quarters
Current Expected 50-100 bps pressure
Target Normalization as macro environment improves

Why it matters

To assess if the temporary margin pressure due to commodity prices and wages begins to ease as guided by management.

we expect a margin pressure of 50 to 100 bps at consolidated level, which is of temporary in nature and expected to normalize as macro environment improves.

Risks & concerns

  • Margin pressure from commodity prices, currency, and wage increases

    high

    High commodity prices (CCL, gold), currency depreciation, and minimum wage revisions (35% in Haryana, 22% in UP) are expected to cause 50-100 bps consolidated margin pressure, though temporary.

    Management acknowledged

  • Increased input costs for bare PCB businesses

    medium

    Copper clad laminate prices increased by over 60% in the last year, impacting bare PCB businesses, with a 2-quarter lag for cost pass-through.

    Management acknowledged

  • Fixed price contracts in Indian Railways

    medium

    Indian Railway contracts are fixed price, which limits the ability to negotiate and pass on cost increases, unlike metro project contracts.

    Management acknowledged

  • Supply chain disruption from geopolitical uncertainties

    low

    Proactive inventory buildup was undertaken to mitigate potential supply chain risks due to geopolitical uncertainties.

    Management acknowledged

Q&A highlights

8 direct
RAC Industry Volume Growth and Amber's Outlook Direct
So the heat is already very high in the North. So the demand is good. Against last year because the base was very weak, the industry expects to grow by somewhere around 20% in quarter 1. On the complete year side, we are estimating a growth of somewhere around 12% to 13% on the complete year.

Clarifies the company's and industry's volume growth expectations for the upcoming year, indicating a positive start to Q1 FY27 after a flat FY26.

Asked by Ankur with HDFC Life

Impact of Margin Pressure Across Segments Direct
Basically, first factor is the minimum wage increase, which happened of 35% in Haryana, which led to riots in Noida and UP government also in turn increased minimum wages to about 22%. ... Second is the commodities like copper clad laminate, the gold, which we use in PCB business. ... On Indian Railway, contracts are fixed term contracts.

Details the specific factors contributing to the anticipated 50-100 bps margin pressure and how different segments are affected, highlighting the lag in cost pass-through for PCB and fixed-price nature of railway contracts.

Asked by Ankur with HDFC Life

RAC Compressor Import Restrictions and Domestic Capacity Direct
We, at Amber, we are not producing or manufacturing compressors. We buy compressors from outside. ... there are 5 manufacturers who are catering to room AC industry at the moment. ... government has allowed to import 30% of last year imported volumes to cater to the shortage. ... for the commercial air conditioner sector, we don't see any big capacity coming up.

Addresses concerns about potential compressor shortages due to import restrictions, clarifying Amber's position as a buyer and the government's measures to manage supply, while noting a lack of capacity for commercial AC compressors.

Asked by Nattasha Jain with Phillip Capital

Inventory Build-up Strategy and Benefits Direct
we proactively increased our inventory level looking into the supply chain constraints. And we are not getting a very big advantage on the pricing side, but we are getting advantage on the supply side that we are able to fulfill our contracts on a timely basis to each and every customer.

Explains the rationale behind the increase in working capital days, emphasizing supply chain resilience and timely order fulfillment over pricing benefits.

Asked by Sameet Sinha with Macquarie

Strategic Focus on Higher-Margin vs. Volume Businesses Direct
what we are trying to attempt is we are trying to balance the left and right. So left side is the volume side business which are equally important to bring scale and to have a leverage on the purchase side. On the value side, there are more sticky businesses.

Clarifies the company's strategy to balance volume-driven businesses for scale and purchasing leverage with higher-margin, sticky businesses in industrial automation and defense.

Asked by Sameet Sinha with Macquarie

Capex Plan and Funding for FY27 Direct
FY '27, we are expecting that one is Ascent and one is the other than Ascent. Ascent will be around INR1200-odd crores... And apart from that, there will be around INR700 crores to INR800 crores capex in all the other entities put together. ... we'll be getting about 48% on plant and machinery back from -- through ECMS scheme. And we have negotiated 42% incentives on building plant and machinery from UP government.

Provides a detailed breakdown of the significant FY27 capex plan (INR1900-2000 crores) and highlights the substantial government subsidies and incentives that will reduce the net capital outlay.

Asked by Dhruv Jain with Ambit Capital

Electronics Division Organic Growth vs. Acquisitions Direct
there was 2 customers who shifted from purchasing agreement to job work agreements. So that's the reason on the top line side, you would have seen that it's organic expansion is looking a little subdued. ... But as given the guidance, we are very hopeful looking into the order book right now for the whole electronic division, we are positive, very confident to deliver about 40% of growth this year.

Explains the apparent subdued organic growth in Q4 FY26 for Electronics due to customer shifts, while reaffirming the 40% organic growth guidance for FY27.

Asked by Dhruv Jain with Ambit Capital

PCB Pricing and Cost Inflation Pass-through Direct
CCL is continuously increasing. It's touched 60% increase in last 1 year... First the first increase, which we got was 2 quarters back, which was about 15%. Then again, another 18% increase we got. But still, there is a remaining percentage of increase because on the other side, the currency is also depreciating.

Details the significant increase in raw material costs for PCBs and the partial success in passing on these costs, indicating ongoing margin pressure despite price hikes.

Asked by Indrajit Agarwal with CLSA

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Across Divisions

Amber Enterprises India Limited achieved a consolidated revenue of INR12,186 crores in FY26, marking a 22% year-on-year growth, despite a challenging year for the RAC industry. Operating EBITDA also grew by 22% to INR970 crores, with adjusted PAT reaching INR338 crores, up 22%. All three diversified divisions – Consumer Durable, Electronics, and Railway Systems & Defense – contributed to this robust growth.

Electronics Division as a Key Growth Driver

The Electronics division demonstrated robust growth, with revenue increasing by 49% year-on-year to INR3,268 crores and operating EBITDA surging by 89% to INR287 crores in FY26. This growth was fueled by strong PCBA and bare PCB businesses, alongside new acquisitions like Power-One Microsystems, Unitronics, and Shogini. The company expects this division to continue its strong momentum, targeting 40% growth in FY27 with EBITDA margins in the 9.5-10% range.

Strategic Investments in PCB Manufacturing

Amber is making significant investments to bolster India's electronics manufacturing ecosystem, securing INR4,500 crores in total investment approvals under ECMS for new PCB facilities. This includes Ascent-K Circuit for HDI PCB in Noida and Ascent Circuits in Hosur, and Shogini for multilayer PCB applications. Construction for Ascent-K Circuits is slated to begin in June '26, with trial production by Q3 FY28 and mass production by Q3-Q4 FY28, reinforcing India's 'Atmanirbharta' in electronics manufacturing.

Anticipated Margin Pressure in Near Term

Management foresees a temporary margin pressure of 50 to 100 basis points at the consolidated level. This is attributed to prevailing high commodity prices (copper clad laminate up >60%, gold up ~60%), currency depreciation, and minimum wage revisions (35% in Haryana, 22% in UP). The company noted a 2-quarter lag in passing on cost increases in the PCB business and fixed-price contracts in the Railway division, which limits immediate pass-through.

Proactive Inventory Management and Capacity Expansion

To mitigate supply chain risks from geopolitical uncertainties, Amber proactively built up inventory, leading to an increase in working capital days. The company also augmented its RAC production capacity at Sri City in South India. Sidwal's Greenfield facility for HVAC, Pantry, Doors, and Gangways in Faridabad is now ready, with trial production underway and commercial production expected to commence in the current quarter, backed by a strong order book visibility of INR2,600 crores.

Capital Expenditure and Debt Outlook

The company reported an overall capex of INR1,070 crores in FY26, with INR550 crores capitalized. For FY27, total capex is projected to be INR1,900-2,000 crores, including INR1,200 crores for Ascent and INR700-800 crores for other entities. Net debt stood at INR511 crores as of March '26, down from INR780 crores in March '25, but is expected to increase to INR700-800 crores by FY27 year-end due to ongoing capex, partially offset by government subsidies.

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