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Amber Enterprises India Ltd
NSE: AMBER BSE: 540902 INE371P01015 Consumer Discretionary Consumer 🔎 Screen
NIFTY 500 Smallcap 50 Smallcap 100 Smallcap 250 Consumer Durables
₹25,552 Cr
Market Cap
277.8
P/E
24.63
PEG
10.3%
ROCE
6.0%
ROE
0.62
D/E
7.0%
OPM
-19.3%
% from 52W High
41
α RS
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📈 Price History
Ratio Health
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By Category
Shareholding
About

Amber Enterprises India Ltd incorporated in 1956, has a 23.6% share in the total Room Air Conditioner market and is a prominent solution provider for the Air conditioner OEM/ODM Industry in India.

✓ Strengths 1
  • Company's median sales growth is 34.4% of last 10 years
! Concerns 3
  • Stock is trading at 5.97 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has a low return on equity of 7.73% over last 3 years.
Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Weak quarter: no financials reported; this is a special update on a new mobile manufacturing collaboration with Oppo, marking a strategic diversification but with low initial margins. quarter Investor Presentation One-Pager? Jun 2026
Key Metric
~8M units (Y1), 13-15M (Y2)
Expected volumes under Oppo collaboration; commercial production starts Q1 FY28.
What Went Right
  • Entered India's mobile phone market via collaboration with Oppo covering Oppo, OnePlus, Realme – three major brands.
  • Asset-light arrangement: sublease of existing facility, minimal capex (<₹50 Cr) for assembly and SMT; no Press Note 3 requirement.
  • Leverages existing manufacturing expertise: group already produces 9-10M smart watches, 15M PCBAs, and 5.5M AC units annually.
  • Clear backward integration roadmap: start with assembly+SMT, add HDI PCBs in year 2, target 30-35% local value addition over 5-6 years.
  • ROCE expected >30-35% on standalone basis; net working capital very low at 4-5 days.
What to Watch
  • Mobile assembly is a low-margin business – industry EBITDA of 1.5-2% (excluding PLI) is far below Amber's traditional high-margin AC business.
  • Domestic mobile phone market volumes are stagnant; growth depends on value addition and ASP increase, not unit expansion.
  • Revenue recognition structure (gross vs. job work) remains uncertain; bottom-line guarantee mentioned but top-line flexibility could distort reported revenues.
  • Management bandwidth needed: dedicated senior team required; no clear entity structure (Amber vs. IL JIN) decided yet, adding organizational complexity.
  • No concrete benefit from PLI yet – the second PLI scheme is only speculated; current scheme does not align with Amber's value-add timeline.
Management Guidance
  • Trial production to commence in Q4 FY27; commercial production from Q1 FY28.
  • Volume guidance: ~8 million units in first year, ramping to 13-15 million in second year.
  • Initial capex for assembly and SMT will be below ₹50 Crores.
  • Expected ROCE on standalone basis >30-35%; net working capital of 4-5 days.
Investor Lens
Amber's entry into mobile EMS is a bold diversification that reduces seasonal AC dependency, but the low-margin, high-volume model (1.5-2% EBITDA) will dilute near-term profitability. The asset-light structure and Oppo partnership de-risk execution, but the real value creation hinges on backward integration into components (PCBs, modules) over 5-6 years – a path Amber has successfully trodden in ACs. For the next 2-3 quarters, monitor: (1) progress from trial to commercial production, (2) any clarity on revenue recognition structure, (3) initial unit ramp against guidance, and (4) developments on PLI 2.0. The thesis is intact but weakened by margin dilution and market stagnation; long-term investors should watch for component-margin inflection.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Net profit crashes 97% to ₹3.1 Cr despite 12.7% revenue growth
Revenue
Revenue grew 12.7% YoY to ₹3,887.7 Cr, but declined 6.3% QoQ from ₹4,149 Cr in Mar 2026. The YoY uptick indicates demand resilience, while the sequential fall points to seasonal softness post-March.
Profitability
Net profit crashed 97.1% YoY to ₹3.1 Cr, with EPS at ₹6.31 versus ₹30.66 a year ago. The collapse was driven by a ₹75.1 Cr negative other income and an unusually high tax rate of 92.91%, which offset operating gains.
Margins
Operating profit rose 24.7% YoY, lifting OPM to 8.01% from 7.24% YoY and 7.02% QoQ. Margin improvement reflects better operating leverage and cost control, but it was insufficient to protect the bottom line.
Balance Sheet
Debt-to-equity stands at a moderate 0.51, indicating manageable leverage. ROCE of 10.2% and ROE of 5.95% suggest modest capital efficiency, with returns dragged by the sharp profit decline.
Key Risks
The 92.91% tax rate and negative other income of ₹75.1 Cr are major earnings risks, as they can erode profit despite operational growth. Also, a 6.3% QoQ revenue drop signals demand volatility in a seasonal business.
Outlook
Operating margin expansion and double-digit revenue growth are positive signals, but the profit collapse suggests one-off or non-operational drags may persist. Sustainable profitability depends on normalizing tax rates and other income, and on maintaining momentum through the peak season.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Consumer Durables Division
2,014
EBIT 144
3,032
EBIT 220
Electronics Division
845
EBIT 86
1,015
EBIT 109
Railway Sub-system & Defense Division
127
EBIT 18
153
EBIT 29
Total 2,987 4,200

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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