Amber Enterprises India Limited Q3 FY26 Earnings Call Summary

Summary

Amber Enterprises India Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026 10:00 A.M. IST

Event Participants

Executives 6 Daljit Singh, Jasbir Singh, Ravi Kharbanda, Rohit Singh, Sanjay Arora, Sudhir Goyal

Analysts 8 Dhruv Jain, Indrajit Agarwal, Keshav Lahoti, Nattasha Jain, Nirransh Jain, Pulkit Patni, Praveen Sahay, Sameet Sinha, Sonali Salgaonkar, Tanay Shah

Financials & KPIs

Geographic & Segment Commentary

• Consumer Durables: Performance outperformed the flattish industry trend through increased wallet share and a 50-50 split between AC and non-AC components. Management noted a channel filling trend ahead of the BEE star rating transition effective January 2026, though they remain cautious of short-term commodity cost surges.
• Electronics Division: Transitioned into a full-stack EMS provider with the acquisition of Shogini Technoarts (bare PCBs) and increased stake in Unitronics (industrial automation). The segment is benefiting from high-value products in automotive, medical, and power electronics, aiming for double-digit margins in FY27.
• Railway Subsystem & Defense: Sidwal is expanding its footprint into doors, gangways, and pantries with a new facility starting commercial production in Q4 FY26. Defense cooling products are gaining traction, with revenue expected to grow from ₹7 crores historically to ₹50 crores this year.

Company-Specific & Strategic Commentary

• Infrastructure Expansion: Secured 116 total acres in Jewar (Noida) for Ascent-K Circuit and future Amber expansions. The Ascent-K facility will focus on state-of-the-art HDI PCBs.
• Incentive Advantage: Projects are eligible for cumulative incentives of ~90% (48% from Central ECMS and 30%-42% from UP State Government), significantly lowering the net capex burden over the long term.
• Acquisition Integration: Completed the acquisition of Shogini and Unitronics to deepen backward integration. Strategic focus is on “purchase leverage” by sourcing PCBs and molding in-house for these subsidiaries.
• Product Diversification: Launched commercial AC ranges (Cassette, Ductable up to 17.5 tons) and entered the data center cooling market with in-row and in-rack solutions.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

RAC Market Dynamics

• Question: How will the Mitsubishi Electric backward integration impact Amber? (Nattasha Jain)
• Answer: No material risk; Amber has shifted to supplying components to brands that in-source assembly. Mitsubishi remains a client for components (Jasbir Singh).

Inventory & BEE Norms

• Question: What is the impact of the BEE star rating change? (Indrajit Agarwal)
• Answer: Manufacturing of old-norm units stopped Dec 31st. Inventory buildup in Q3 was strategic to utilize lower-cost components before the transition (Jasbir Singh).

Financial Position

• Question: Why did finance costs increase despite the QIP? (Dhruv Jain)
• Answer: Driven by ₹575 crore payout for Shogini acquisition and inventory buildup of copper/compressors ahead of price hikes (Sudhir Goyal).

Electronics Strategy

• Question: What is the synergy with Unitronics and Power-One? (Tanay Shah)
• Answer: Synergies include geography expansion (bringing products to India), product expansion (PLCs for HVAC), and backward integration of PCBs from Amber’s facilities (Jasbir Singh).

Key Takeaway

Amber Enterprises delivered a robust Q3 FY26 with consolidated revenue growing 38% YoY to ₹2,943 crores, significantly outperforming a flattish room AC industry. The company successfully navigated a transitional quarter marked by BEE star rating upgrades and commodity volatility, maintaining a strong operating EBITDA of ₹247 crores (+53% YoY). Strategically, Amber is pivoting toward a high-margin “full-stack” electronics and railway components player, evidenced by the acquisition of Shogini and industrial automation firm Unitronics. While the company took a one-time ₹94 crore impairment on its Italian venture Shivalik to curtail future losses, the domestic outlook remains strong with a ₹2,600 crore railway order book and massive capex plans in Jewar backed by government incentives. Management expects to double the railway division’s revenue in two years and achieve double-digit EBITDA margins in the electronics segment by FY27.