Amber Enterprises Plunges 15% Amid Margin Pressure Concerns Following Q4 Results

Amber Enterprises India Shares Plummet 16% Amid Margin Pressure Concerns

Amber Enterprises India's shares experienced a sharp decline of nearly 16% in Monday's trade, despite the company reporting a March quarter performance that exceeded Street estimates. The company's shares were trading at Rs 7,230.50 on the National Stock Exchange (NSE), down Rs 1,246 or 14.70% in Monday's session.

The decline came after the company's management warned of temporary profitability pressure due to rising input costs in its electronics business. The company expects margin pressure of 50-100 basis points on a consolidated basis. This warning overshadowed the company's impressive March quarter performance, which included a net profit of Rs 134 crore, a 15.3% increase from Rs 116.07 crore a year ago.

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Amber Enterprises' revenue rose 10.5% year-on-year to Rs 4,147.52 crore, though it fell short of analyst expectations of Rs 4,238 crore. The company's EBITDA rose 21.5% to Rs 358.23 crore, beating estimates of Rs 330 crore. Margins expanded to 8.6% from 7.9%, ahead of Street expectations of 7.8%.

The company's electronics segment revenue rose 20.6% to Rs 1,015 crore during the quarter. Management expressed confidence in the segment's growth, stating that the "Electronics division is expected to grow at 40% in FY27." The company also outlined growth visibility in its railways business, with the "Railway division expected to grow at 30-35% in FY27 and FY28."

Amber Enterprises outlined its expansion plans, including the commencement of construction at Akcent Circuit by June 2026 and the increase of its stake in Unitronics to 50.4%. The company's management highlighted the remarkable growth of the company in FY26, driven by all three diversified divisions, strengthening both volume and value play through strategic acquisitions.

However, rising raw material costs remain a key concern, with the company stating that "For PCB and Bare PCB, Copper Clad Laminate prices have been rising sharply over the past year." This signals pressure on margins in the near term.

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The decline in Amber Enterprises' shares was not isolated, as other AC stocks such as Voltas and Blue Star also faced selloff pressure. The concern stems from a May 8 order issued by the Department for Promotion of Industry and Internal Trade, which has capped compressor imports for the current financial year based on companies' FY25 import volumes.