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.