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Informist, Friday, Feb. 6, 2026

 

MUMBAI – Amber Enterprises India Ltd. is expected to report a mid-teen on-year rise in its consolidated net profit for the December quarter. The growth in the company's electronics business along with the consolidation of new business in the segment are expected to help its overall topline for the reporting quarter. However, a rise in input prices are expected to weigh on the company's profitability.

 

The company is expected to report a consolidated net profit of INR 400.56 million for the December quarter, according to the average of estimates from nine brokerages. This implies a rise of nearly 12% on year. The company reported a loss of INR 328.57 million for the September quarter.

 

The company's December quarter consolidated revenue is expected to come in at INR 25.04 billion, according to the average of estimates. This implies a rise of over 17% on year and 52% on quarter. The estimates for its top line range from a low of INR 24.45 billion from YES Securities (India) Ltd. to a high of INR 25.63 billion from Nirmal Bang Equities Pvt. Ltd.

 

The company's consumer durable business witnessed advance buying ahead of the change in energy rating norms by the Bureau of Energy Efficiency, Nuvama Wealth Management Ltd. said. The new rating norms, which took effect from Jan. 1, have revised the star rating in which a five-star energy rating in 2024 has now been downgraded to a four-star rating and a four-star rating will be downgraded to a three-star rating and so on. This change involves increasing the minimum Indian seasonal energy efficiency ratio values for each rating, making air-conditioners with current ratings less efficient by comparison, according to a report from SMIFS Ltd.

 

The rise in the company's revenue comes despite the room air conditioner industry facing challenges, according to brokerages. The segment accounted for 53% of the company's top line in the September quarter. Even though demand seems to have recovered on a quarterly basis, the room air conditioner business is still dealing with heavy inventory, according to brokerage Motilal Oswal Financial Services Ltd.

 

The on-year growth in the company's consumer durables segment is expected to be limited to a single digit due to a 5?ll in the company's room air conditioner segment, Prabhudas Lilladher Pvt. Ltd. said. The segment was affected by an extended monsoon and subdued demand, the brokerage said.

 

The growth in the company's existing electronics business paired with the consolidation of acquisitions are expected to help the company's overall revenue, according to brokerages. Nuvama expects the company's electronics segment's revenue to rise over 40% while Kotak Securities expects a rise of 59%. Kotak Securities also expects an 18% growth in the company's railways business, which will boost the company's revenue in the reporting quarter. The electronics segment of the company accounted for 39% of the company's top line in the September quarter and the Railway segment accounted for 8%.

 

The company, through its subsidiary IL JIN Electronics (India) Pvt. Ltd., acquired a stake of 40% Unitronics for INR 4.03 billion in July and a stake of 60% in Power-One Micro Systems Pvt. Ltd. for INR 2.62 billion in August. The company also acquired an 80% stake in Shogini Technoarts Pvt. Ltd. through its electronics arm for INR 5.06 billion in December.

 

The estimates for the company's net profit vary from a low of INR 261 million from Prabhudas Lilladher to a high of INR 618 million from Motilal Oswal. Brokerages Prabhudas Lilladher, HDFC Securities Ltd., and YES Securities (India) Ltd. expect the company's bottom line to fall on year, in contrast to the other six brokerages that expect a rise in the profit. HDFC Securities expects subdued demand for room air conditioners to weigh on the company's performance.

 

Prabhudas Lilladher expects the company's profitability to be adversely affected by a contraction in its margins, due to the increase in input costs and the slowdown in the consumer durable segment. YES Securities expects the gross margins of the company to contract by 90 basis points due to sequential lag in passing on raw material prices to consumers.

 

The steep hike in raw material prices is seen as a reason for concern by other brokerages as well. Motilal Oswal expects the company's earnings before interest, tax depreciation, and amortisation margin to contract on account of the steep increase in copper prices.

 

Nuvama expects the rise raw material prices for the company's consumer durables business to more than offset the improvement in margins of its electronics segment. The improvement in the company's margin for its electronics segment is expected to be helped by the consolidation of its acquisitions, which have relatively higher margins. The continued pressure on the margin of its step-down subsidiary, Ascent Circuit Pvt. Ltd., due to the rise in prices of copper-clad laminates is also expected to limit the improvement of the margin, the brokerage said.

 

The company's earnings before interest, tax, depreciation, and amortisation are seen at INR 1.68 billion for the December quarter, according to the average of eight estimates. This implies a rise of over 3% on year and nearly 71% on quarter. The lowest estimate is INR 1.45 billion from Prabhudas Lilladher and the highest is INR 1.82 billion from Nirmal Bang Equities Pvt. Ltd. 

 

The company's EBITDA margin is expected at 5.5-7.0?sed on six estimates. Nirmal Bang has the highest estimate for the metric and Nuvama has the lowest estimate. The company reported an EBITDA margin of 7.6% in the year-ago quarter and an EBITDA margin of 5.9% in the September quarter.

 

Amber Enterprises is business-to-business solution provider that operates across three businesses of consumer durables, electronics, and railway subsystems and defence. The company will announce its December quarter earnings Monday.

 

Investors are expected to monitor company updates on the acquisitions made during the year, commentary on its railway segment, planned expansions, and the improvement in revenue due to its expanded portfolio, according to Motilal Oswal. Demand for room-air conditioners, outlook on growth in its electronics segment, and margin sustainability are also some of the key aspects that should be tracked, according to the brokerage.

 

Friday, shares of the company ended nearly 4% higher at INR 6,640 on the National Stock Exchange. Shares of the company have fallen over 8% since the company announced its September quarter results on Nov. 6.

 

Out of the 10 brokerage reports on the company available with Informist, nine have a 'buy' recommendation on the stock, with an average target price of INR 8,629 which is nearly 30% higher than the current market price. One brokerage has a 'hold' recommendation on the stock.

 

The following are the Oct-Dec earnings estimates for Amber Enterprises India, from nine brokerages, in descending order of net profit in INR million:

 

 

Brokerage Firm	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd.	25,355	618	1,685
Nirmal Bang Equities Pvt. Ltd.	25,629	512	1,823
Mirae Asset Sharekhan Ltd.	25,070	450
JM Financial Institutional Securities Pvt. Ltd.	25,363	413	1,816
Nuvama Wealth Management Ltd.	24,665	412	1,668
Kotak Securities Ltd.	24,747	378	1,530
YES Securities (India) Ltd.	24,451	288	1,715
HDFC Securities (India) Ltd.	25,185	273	1,713
Prabhudas Lilladher Pvt. Ltd.	24,908	261	1,454
Average	25,041.44	400.56	1,675.50

 

End

 

Edited by Deepshikha Bhardwaj

 

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