HDFC Securities has downgraded Amber Enterprises to 'Reduce' rating citing cost inflation and limited pricing pass-through, with a target price of ₹7,580. This represents a significant shift from the previous brokerage stance, as the company continues to face challenges from rising input costs and margin compression. The downgrade comes as part of HDFC Securities' latest Q4 results review, where the brokerage has shared mixed outlooks across a wide set of stocks including Amber Enterprises, Deepak Nitrite, KEC International, Balaji Amines, Greenpanel, Neogen Chemicals, and Symphony, with clear stock-specific calls spanning Buy, Add and Reduce ratings along with revised target prices.
Amber Enterprises reported a consolidated net profit of ₹134 crore for Q4 FY26, marking a 15% year-on-year increase from ₹116 crore in the corresponding period last year, as reported by ET Now. The company guided for EBITDA margins to compress by 50 to 100 basis points at a consolidated level in FY27 due to rising input costs and minimum wage increases. Management expects 13%-14% growth in consumer durables, 40% in electronics and 35% in mobility segment for FY27. HDFC Securities has cut revenue estimates by 7%-8% and margins by 50-120 basis points, leading to 12%-36% estimated EPS cuts over FY27-28. The margin compression is attributed to increased raw material costs including copper, clad laminates and gold, along with higher minimum wages in Haryana and Noida.
Nuvama has maintained a Buy rating on the stock with a target price of ₹7,154, stating they cut FY27E/28E EPS estimates by 16%/10% respectively while valuing the company on SotP basis assigning 50x/40x to Electronics/Consumer Durables and Mobility Mar'28 PAT, yielding a target price of ₹8,200 (₹9,040 earlier). Nirmal Bang has maintained a Hold rating on Amber's stock with a target price of ₹7,182. Motilal Oswal has maintained a Buy call on Amber's stock with target price of ₹8,450 (earlier ₹8,200). The company, which is part of the Nifty Smallcap 100 index and operates in the household appliances segment, continues to face challenges from project delays in the electronics segment that will affect expansion timeline.
JPMorgan highlighted delays in bare PCB projects that will affect the company's expansion timeline. According to CNBC TV18, Ascent Circuits trial production will start from September-October 2026 compared to previous guidance of Q2 FY27, while Korea Circuits expects construction to begin from June 2026 with trial production by Q3, compared to earlier guidance of H1 FY28. These delays in the electronics segment have contributed to the disappointing earnings guidance and analyst downgrades. Despite the challenges, management remains confident backed by a healthy order book in the electronics division, though the real story lies in what's driving that confidence despite shifting customer demand.
According to NDTV Profit reports, JPMorgan's Rajiv Batra highlighted Q4FY26 earnings that were broadly better than expected, with companies noting risks from macro, logistics, and pricing pressures. The brokerage maintains Nifty bear/base/bull case targets at 20,500/27,000/30,000 respectively, with Q1FY27 earnings potentially facing pressure from inflation and currency weakness. Industrials were upgraded to Overweight with positive sentiment on infrastructure, defence, and manufacturing themes. Amber's consumer durables segment guidance of 14% growth for FY27 appears conservative relative to stronger volume outlooks from branded RAC players, suggesting potential upside if industry demand sustains.
