The stock of Amber Enterprises is down 7% in trade today.
A huge fall or rise generally happens when there is some news flow in a stock. That is what seems to have happened even in the case of the stock.
The shares have fallen largely following a set of quarterly results declared on 16 May 2026. Before we get into some of the finer details, let’s tell you a little about the company itself.
This is not a stock recommendation.
About Amber Enterprises
The company has established itself as the market leader in the RAC (Room Air Conditioners) industry through its Consumer Durables division.
The company also specialises in manufacturing key components like heat exchangers, copper tubing, and plastic parts, ensuring superior quality and efficiency.
The Electronics division is a leading PCB & PCB Assembly solution provider that caters to multiple customer segments across various business.
It’s one of the leading manufacturers of bare-board PCBs, specialising in single-sided, double-sided, multi-layer, RF, flexible, and speciality PCBs.
What Works in Favour of the Company?
- Facility Expansion
In an earnings presentation released on 16 May 2026, the company has highlighted that the Ascent Circuit construction is progressing well at Hosur, T.N, and trial production expected by Q2FY27.
On the other hand, the Ascent-K Circuit construction on the 16 acres facility at YEIDA (U.P), near Jewar Airport (U.P) is to begin in June’26. These expansions could boost revenues going ahead.
- Balance Sheet Strengthened
The company has also strengthened its balance sheet. Amber Enterprises raised equity funds of Rs 10 bn through Qualified Institutions Placement. On the other hand, ILJIN Electronics raised funds of Rs 17.5 bn from marquee investors. This should help liquidity and expansion plans.
- Strong Growth in Electronics Division
The Electronics Division continues its growth journey, recording a revenue growth of 49% in FY26 against the previous year. Together with the company’s recent acquisitions i.e., Power-One, Unitronics, and Shogini acquisitions accelerates the Electronic Division’s journey towards balancing volume and value mix.
- Strong Order Book in Railway Sub-systems & Defence Division
The Railway Sub-systems & Defence division recorded a revenue growth of 19% in FY26 against previous year.
The management says that they remain confident of the division’s long-term growth, driven by a healthy order book visibility of Rs 26 bn plus and an expanding product portfolio.
Financial Numbers of Amber Enterprises
| Rs m | FY23 | FY24 | FY25 |
| Net Sales | 69,271 | 67,293 | 99,730 |
| Operating Profit | 4,706 | 5,472 | 8,370 |
| Net Profit | 1,638 | 1,395 | 2,512 |
| Net Margin | 2.4 | 2.1 | 2.5 |
Source: Equitymaster
The company delivered a strong financial performance reflecting resilience of the business despite the challenging RAC industry during FY26. The revenue for the year stood at Rs 121.86 bn, reflecting a growth of 22% YoY.
Operating EBITDA of Rs 9.7 bn, saw a growth of 22% YoY. The adjusted net profit of Rs 3.38 bn, (before the exceptional one-off impairment of investment in Shivalik and share of loss of JV of Rs 1.12 bn), grew 22% over previous year.
What to Expect from the Amber Enterprises Stock in Next Three Years?
The stock trades at a PE of 80.9 times and a PB of more than 6 times, which is not cheap.
During a concall in May 2026, Amber Enterprises management said that the company expects margin pressure of 50-100 basis points on a consolidated basis in the future. Costs of copper, aluminium, and electronic components can hurt profitability if Amber cannot pass on higher costs quickly.
The company also largely manufactures for brands like AC companies rather than selling under its own brand. OEM businesses typically have limited pricing power and thinner margins.
Also, Amber has been spending continuously on plants, capacity expansion, and acquisitions. This could lead to lower free cash flow and weaker return ratios like ROE and ROCE.
Capacity additions and diversification may support long-term growth. However, the business remains cyclical, capital intensive, and valuation-sensitive, so execution risks, margins, and debt levels should be monitored carefully.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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