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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
₹26,222 Cr
Market Cap
147.3
P/E
13.05
PEG
10.2%
ROCE
6.0%
ROE
0.51
D/E
6.8%
OPM
-17.1%
% from 52W High
48
α RS
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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

No concerns data yet.

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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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📊 MIXED Revenue up 10.5% YoY but OPM slips; PAT jumps 37% aided by other income
Revenue
Revenue grew 10.5% YoY and 40.9% QoQ to ₹4,148 Cr, driven by seasonal demand. However, operating profit growth lagged at 3.2% YoY.
Profitability
Net profit surged 37.3% YoY to ₹162 Cr, with EPS rising to ₹38.04 from ₹34.32. Profit growth was boosted by other income of ₹84 Cr and a lower tax rate of 23%.
Margins
Operating margin contracted 100 bps to 7% from 8% YoY and QoQ, indicating cost pressures or input inflation that offset revenue growth.
Cash Flow
Cash flow data not provided in this release.
Balance Sheet
Borrowings stood at ₹2,702 Cr with a debt-to-equity ratio of 0.77 and reserves of ₹4,337 Cr, suggesting a manageable but notable debt level.
Key Risks
1) Continued margin compression if input costs stay high. 2) High PE of 127 reflects elevated market expectations. 3) Profit growth reliant on other income, which may not be sustainable.
Outlook
Margins need to stabilize for sustainable earnings growth. Demand trends in consumer durables and cost management will be critical in coming quarters.
Generated by AI · Mar 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.

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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.

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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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