Amber Enterprises shares plunged nearly 18% on Monday, marking what could be the company's worst single-day drop in nearly four years. According to reports from The Economic Times, the decline came after the company released its results for the January-March quarter of FY26. Despite the share price crash, the company reported solid financial performance with consolidated net profit of ₹134 crore for Q4 FY26, representing a 15% year-on-year increase from ₹116 crore in the corresponding quarter of the previous financial year.
Amber Enterprises expects margin pressure of 50-100 basis points in FY27 due to multiple cost pressures across its business segments. As reported by NDTV Profit, the company faces higher minimum wages in north India with Haryana increasing by 35% and Uttar Pradesh by 22%, adding significant pressure on manufacturing costs. The company also reported that copper-clad laminate prices have risen more than 60% over the past year, while gold prices increased by about 60% during the same period. Executive Chairman Jasbir Singh noted that "prevailing high commodity prices, currency depreciation, and minimum wage revision in UP and Haryana poses headwinds in the consumer durable and electronic division."
The company's revenue from operations grew over 10% YoY to ₹4,148 crore during the quarter under review, compared to ₹3,754 crore in the year-ago period. As reported by The Economic Times, Amber Enterprises reported a 15% YoY growth in operating EBITDA to ₹362 crore, while gross margins improved to around 19%. The consumer durables division recorded revenue growth of 14% in FY26 against the previous year, despite a challenging RAC season, while the electronics division saw revenue growth of 49%. According to NDTV Profit, the electronics division reported FY26 revenue growth of 49% to ₹3,268 crore, with operating EBITDA rising 89% year-on-year to ₹287 crore.
During a conference call, Amber Enterprises management indicated that the company expects margin pressure of 50-100 basis points on a consolidated basis in the future, according to reports from The Economic Times. The company's Railway Sub-systems & Defense Division recorded revenue growth of 19% in FY26, which ended on March 31, 2026. The adjusted profit after tax declined significantly due to JV losses, contributing to investor concerns about future profitability despite the strong quarterly performance. As reported by NDTV Profit, the PCB business faces slower cost pass-through due to its Tier-2 supplier status, with price increases taking about two quarters to pass through to customers.
Amber indicated that its electronics expansion will remain capital-intensive over the next two years as it builds PCB manufacturing capacity. According to NDTV Profit, FY27 capital expenditure could reach ₹1,800 crore to ₹2,000 crore, including spending on Ascent and Ascent-K Circuit projects. The company expects FY28 cash outflow for capex to remain at ₹1,400 crore to ₹1,500 crore. Despite margin pressures, the company expects the electronics business to grow around 40% in FY27 with margins of 9.5%-10%, while also guiding for industry volume growth of 12%-13% for the full year and around 20% growth in the June quarter due to rising temperatures from mid-April onward.
