The sharp decline in Amber Enterprises India Ltd. shares was part of a broader market selloff that significantly impacted Indian equity markets. According to DNA India, the selloff erased ₹7 lakh crore from BSE-listed firms, pulling the total market capitalisation down to ₹454 lakh crore. This widespread selling pressure contributed to the company's significant stock decline, with Amber Enterprises experiencing its biggest single-day drop since May 2022. The broader market weakness, with the Nifty 50 down 1.19% at 23,363 and the Sensex slipping nearly 900 points to around 74,339, created an unfavorable environment for the stock's recovery.
The company reported consolidated net sales of ₹4,147.52 crore for the March 2026 quarter, representing a 10.49% increase from ₹3,753.70 crore in the same period last year. Quarterly net profit rose 15.34% to ₹133.88 crore from ₹116.07 crore a year ago. EBITDA increased 20.54% year-on-year to ₹378.33 crore from ₹313.85 crore, with EPS improving to ₹38.04 from ₹34.32 in the year-ago quarter. The company reported its highest EBITDA margin in the last 20 quarters during the quarter, with overall EBITDA margin improving 70 basis points year-on-year to 8.6%, ahead of Street estimates of 7.8%.
Revenue from the consumer durable segment rose 6% year-on-year, while the electronics division and railway sub-system business reported growth of 21% and 22% respectively. On the margin front, the consumer durable segment saw margins decline 40 basis points to 7.2%, while margins in the electronics division expanded sharply by 480 basis points to 10.8%. The railway sub-system business margins declined due to a higher base effect. Overall EBITDA margin improved 70 basis points year-on-year to 8.6%, ahead of the Street estimate of 7.8%. Growth in the consumer durable business remained muted during the quarter, with the segment facing pressure from higher copper prices affecting room air-conditioner margins.
Gross margins expanded 220 basis points year-on-year to 18.8%, supported by the full integration of acquisitions including Shogini Technoarts, Power One Electronics and Unitronics. However, room air-conditioner (RAC) segment margins remained under pressure due to elevated copper prices, while railway margins were impacted by a high base. The company also reported its highest EBITDA margin in the last 20 quarters during the quarter. Despite the strong margin expansion, investors appeared worried about future profitability due to the management's guidance on margin pressure in the RAC business.
For FY26, the consumer durable segment reported revenue growth of 14%, in line with management guidance. The company expects the electronics division to continue its strong momentum and deliver around 40% revenue growth in FY27. The railway division reported 19% revenue growth in FY26, and management expects the business to grow 30% to 35% in FY27. The quarter also included an exceptional one-time impairment related to investment in Shivalik, along with losses from a joint venture. Despite the strong financial performance, the stock's sharp decline reflects investor concerns about the company's ability to maintain margins in the face of rising input costs and competitive pressures.
