Amber Enterprises India Ltd delivered strong financial performance in FY26, posting 22% year-on-year revenue growth at ₹12,186 crore, driven by its consumer durables and electronics segments. However, according to reports from The Economic Times, the company is facing significant margin pressure in its core consumer durables business due to rising input and labour costs. The consumer durables division, which contributes nearly 72% of total revenue and includes room air-conditioners (RAC) and related products, remains the backbone of the company despite current challenges.
Despite Q4 being seasonally strong for AC companies, segment margins dropped to 7.5% in Q4FY26 from 8.4% in Q4FY25, as reported by The Economic Times. For the full year, margins slid to 7.1% in FY26 from 7.7% last year. The margin squeeze is attributed to soaring input costs, with copper-clad laminate and gold prices rising over 60% in the past year, while minimum wages have increased sharply in key states such as Haryana and Uttar Pradesh. Amber has implemented a cumulative RAC price hike of around 14%, but price pass-through typically takes one quarter for consumer durables and nearly two quarters for PCB manufacturing.
Amber is successfully repositioning itself as a broader electronics and industrial manufacturing company, with the electronics segment revenue growing 49% to ₹3,268 crore in FY26, while Ebitda surged 89%. According to Motilal Oswal Financial Services, revenue contribution from non-RAC businesses is expected to increase from 31.2% in FY26 to nearly 34.2% in FY27, partly offsetting commodity and labour cost pressures. The electronics segment margins expanded to 10.8% in Q4FY26, making it one of the company's highest-margin businesses, with the brokerage expecting the electronics business to grow around 40% in FY27.
The railway and mobility business is scaling up rapidly, with Amber securing an order book of over ₹2,600 crore and expecting 30–35% growth in FY27 and FY28. As reported by Nirmal Bang Institutional Equities, the revenue mix is expected to gradually shift from around 70:30 (consumer durables: EMS + mobility) in FY26 to 60:40 by FY28. This shift could act as a margin lever, given the relatively higher profitability of these segments compared to consumer durables. Amber plans ₹1,800–2,000 crore of capex in FY27 across PCB plants, RAC expansion and railway facilities.
The stock has declined nearly 17% since Q4FY26 and FY26 results were announced on 16 May, according to The Economic Times. Management has guided for a temporary margin decline of 50–100 basis points over the next few quarters, with the stock currently trading at around 34x FY28 estimated earnings. Nirmal Bang Institutional Equities noted that management's 14% growth guidance for the consumer durables segment in FY27 appears conservative relative to stronger volume outlooks from branded RAC companies, while the valuation appears expensive given ongoing margin pressures in the largest revenue segment.
