The Nifty Consumer Durable index dropped around 10.52% in the past year, from around 41,300 to 36,871 points. In the past month alone, it slipped 3%. (Source: NSE)
The sector has been performing poorly despite the GST cuts and low inflation rate, which usually increases consumer spending.
During Q2FY26, Foreign Institutional Investors (FIIs) dumped consumer durable stocks at an astounding pace. They sold consumer durable companies’ stocks worth ₹11,130 crore (net). On the contrary, domestic institutional investors (DIIs) showed faith in the potential effect of GST cuts and reducing the inflation rate, and continued to invest in the sector at a moderate pace.
Nifty Consumer Durables Index – Change in FII & DII Holding in Q2FY26
| Name | Chg in DII Hold % | Chg in FII Hold % |
| Voltas | 2.47 | -0.9 |
| Amber Enterp. | 2.38 | 2.02 |
| Crompton Gr. Con | 2.31 | -3.64 |
| Dixon Technolog. | 2.25 | 0.14 |
| Havells India | 2.17 | -2.31 |
| Blue Star | 1.95 | -0.16 |
| Cera Sanitary. | 1.49 | -1.35 |
| Titan Company | 1.4 | -1.43 |
| V-Guard Industri | 1.25 | -0.1 |
| Kalyan Jewellers | 1.22 | -2.71 |
| PG Electroplast | 0.74 | -1.57 |
| Century Plyboard | 0.21 | -0.15 |
| Bata India | 0.04 | 0 |
| Whirlpool India | -0.24 | 0.83 |
| Kajaria Ceramics | -1.39 | -0.98 |
However, there is one stock that both FIIs and DIIs bought at an equal pace.
The stock is Amber Enterprise India Limited.
FIIs increased their stake in the company by 2.02% points, taking the total holding to 30.6%. DIIs raised their stake by 2.38% points, and now their total holding in the company stood at 20.20% at the end of Q2FY26.
Why is this company the center of attraction for FIIs and DIIs? Let’s dig in.
Amber Enterprise – The Backbone of India’s AC Boom
Amber Enterprise India Ltd. is a leading Air conditioner manufacturer (AC) in India, catering to all the major AC brands, including Indian Railways. It has around 26% market share in the Room Air conditioner (RAC) manufacturing market.
The company offers a wide range of products, which include both commercial AC (CAC) and RAC, including all variants such as split AC, inverter AC, Window AC, Tower AC, Cassette AC, and Ductable AC as well.
Apart from the finished products, it also offers AC components, which include copper tube, sheet metal, motor, tools, injection molding, heat exchanger, and others.
The RAC segment, mainly the complete finished products themselves, caters to around 43% (as of FY25) of the total revenue. Over the years, the company has successfully diversified its revenue stream further. For context, in FY17, RAC used to contribute to almost 72% of the total revenue.
Apart from the air conditioners and their components, the company also offers non-AC components for refrigerators, microwaves, washing machines, water purifiers, automobiles, energy meters, set-top boxes, and others.
Transition to Complete Electronic Manufacturing Services (EMS)
While the core business of the company is manufacturing AC and AC components, it is now expanding its electronics business as well. It already has 6 manufacturing facilities where Printed Circuit Boards (PCBs) and Bare PCBs are mainly manufactured. Though PCBs contribute to the main share of the electronics business, the company is also into Box-build, industrial automation, and power electronics products and services.
The company is now expanding in Hosur, Tamil Nadu, and in Jewar, Uttar Pradesh, for developing Ascent Circuits and Ascent-K Circuits. The new multi-layer PCB facility is already being constructed at the Hosur facility. This has a planned investment of around ₹991 crore, and the trial production is expected to begin by Q2FY27.
At the Jewar facility, Ascent-K circuits will be manufactured, and it is a joint venture between ILJIN Electronics* and Korea Circuit for flex, High-Density Interconnect (HDI), and semiconductor substrates PCBs. This project has a planned investment of around ₹3,200 crore.
*Note: ILJIN Electronics is a part of Amber Enterprise, which the latter acquired back in 2017.
Solar & EV Entry: The Power-One Acquisition
During the July-September quarter, ILJIN Electronics acquired a 60% stake in Power-One Micro Systems, which specializes in solar inverters, UPS systems, battery energy storage systems, and EV chargers.
The acquisition is expected to result in the expansion of Amber Enterprise into the high-potential sectors. Backward integration can be fueled with ILJIN’s electronic manufacturing experience, combined with Power-One’s new-age product manufacturing expertise.
The Railway & Defence Play
Amber Enterprise is a market leader in offering integrated solutions of critical sub-systems for the railways and defence. They specialize in customized Heating, Ventilation, and Air-conditioning (HVAC) solutions that cater to Indian railways and metros as well. Apart from HVAC, they offer a whole bunch of products for the railways, such as doors, brakes, couplers, and more.
Amber Enterprise is expanding its railway business with two new manufacturing facilities. One is the Sidwal greenfield facility, and the trials are expected to begin in this current quarter itself, with commercial production expected to begin from Q4FY26. The products to be manufactured are railway doors and gangways.
Another facility is a joint venture between Amber Enterprise and Yujin Machinery, and in this facility, the commercial production is expected to begin from H1FY27. In this facility, the products that will be manufactured are couplers, brakes, driving gears, and pantographs for railways and defence.
Steady Financial Performance
Sales in Q2FY26 slipped marginally from ₹1,685 crore in Q2FY25 to ₹1,647 crore. It incurred losses during the quarter of ₹32 crore, compared to the profit of ₹21 crore in Q2FY25.
Despite the losses in the July-September quarter, FIIs and DIIs raised their stake, perhaps due to the long-term steady growth that the company has showcased.
In the last ten years, the company’s sales and profits increased sharply and consistently. In FY16, the sales stood at ₹1,652 crore, which has gone up to ₹10,983 crore for the trailing twelve months (TTM). The net profit for the period has surged from ₹24 crore in FY16 to ₹229 crore (TTM).
Management Guidance
Management expects the RAC industry to revive in Q4FY26; however, that would depend on how long and hot the Indian summer is expected to be. The consumer durable segment of the business is expected to grow at 13% to 15% despite the industry’s sluggishness due to a diversified product range and the expansion of the components business as well.
The Earnings before interest, tax, depreciation, amortization and tax (EBITDA) margin for the electronics segment is expected to be within 8% to 9% by the end of FY26, and for FY27, the management is expecting the electronics segment margins to be in double digits.
Valuation
The stock is trading at a Price/Earnings (PE) of 105x, which is way higher than the industry median of 50.2x, indicating a premium valuation.
1-year share price chart of Amber Enterprise India Ltd.
Dixon Technologies (India) Ltd.: There is another stock within the Nifty Consumer Durable Index in which both FIIs and DIIs invested during the Q2FY26; however, the FII investment was very limited. FIIs increased their stake by only 0.14% points, while DIIs raised their stake by 2.25% points.
Wrapping Up
Amidst a sharp correction in the consumer durables space during the past year, DIIs and FIIs both invested in Amber Enterprise, which is quite interesting in itself. Perhaps its expansion plans, steady business growth over the years have been playing the key roles in attracting the institutional investors even when the sector is sluggish. However, only time will tell how this investment will turn out.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
Disclaimer:
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
