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Informist, Friday, Aug. 14, 2026

 

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--Amber Ent: Oppo mobiles mfg trial to begin from March quarter FY27
--CONTEXT: Comments by Amber Ent mgmt in post-earnings analyst call
--Amber Ent: Commercial production of Oppo mobiles to start in Q1FY28
--Amber Ent: Margin pressure to sustain through H1FY27
--Amber Ent: Able to pass on price increases to customers
--Amber Ent: Got permission to reconstruct UP facility that saw fire mishap
--Amber Ent: To achieve FY27 guidance for electronics mgmt svcs segment
--Amber Ent: Railway division FY27 margin seen 15-16%
--Amber Ent: Growth in consumer durables to be in line with industry's
--Amber Ent: Standard printed circuit board margins now 12% vs 16?rlier
--Amber Ent:Printed circuit board margin to rebound Q3 if copper price stable
--Amber Ent: Seeing growth in all three segments of electronics division
--Amber Ent: To focus on medical, defence, aerospace sectors over 3-4 years
--Amber Ent: Clarity on revenue share of Oppo likely in 15-20 days
--Amber Ent: To finalise revenue share for Oppo tie-up before mid-Sept
--Amber Ent: Net debt on Mar 31 at INR 12.35 bln vs INR 5.10 bln yr ago
 

 

By Sunil Raghu and Ruchira Kagita

 

AHMEDABAD/MUMBAI – Amber Enterprises Ltd. Friday said it is likely to begin trial production of Oppo mobile phones in the March quarter, with commercial production likely to commence from the June quarter of 2027-28 (Apr-Mar), senior company officials said in a post-earnings analyst call on Friday.

 

The officials said they expect to begin with production capacity of around 8 million units in the first year and scale it to 15–16 million units in the second year of operations. Amber Enterprises signed the manufacturing pact with Oppo in June 2026 to manufacture Oppo, OnePlus and Realme phones at its existing facility at Noida, Uttar Pradesh, with capital expenditure of about INR 500 million.

 

The company officials said they were in the final stages of discussions with Oppo on the revenue-recognition and revenue-sharing formula for the proposed manufacturing tie-up and expect clarity on the structure in the next 15–20 days. The officials said they need to finalise the revenue-share arrangement before mid-September. The company is also evaluating whether the business will be booked at Amber's group level or through its subsidiary, IL JIN Electronics (India) Pvt. Ltd.

 

The Oppo partnership is part of Amber Enterprises' strategy to expand its electronics manufacturing services business and diversify beyond consumer durables. Amber officials said they are in discussions with Oppo on potential export opportunities, but there is nothing concrete on this yet. The company plans to focus on domestic production initially.

 

The company expects growth across all the three segments of its electronics division - electronics manufacturing services, printed circuit board, and industrial or power electronics. It is confident of achieving its full-year guidance of over 40% growth in the electronics manufacturing services business despite near-term softness. Margins in this segement, however, are expected to remain under pressure through the first half of FY27 though top executives said they have had no issues in passing on rising input costs to customers.

 

Within the electronics manufacturing services vertical, growth was impacted by high customer inventory and some customers shifted from sales to job-work arrangements. The electronics division's revenue rose 29% on year to INR 9.85 billion in the June quarter, while its operating earnings before interest, taxation, depreciation and amortisation more than doubled to INR 1.07 billion, and the EBITDA margin was 10.8%.

 

The company's printed circuit board margins remain under pressure from higher copper-clad laminate costs. The margin for standard printed circuit boards currently stands at around 12%, against 16?rlier, the company said. It expects margins to recover and get "normalised" again at around 15-16% from the December quarter, with a caveat that there are no further copper price increases. The company officials claimed that while rising input costs were being passed on to customers, the printed circuit board division had a longer lag for paas-throughs. 

 

The company began constructing its high-density interconnect printed circuit board facility at Jewar in Uttar Pradesh, with a planned investment of around INR 32 billion. It is also investing nearly INR 10 billion on the upcoming printed circuit board facility at Hosur. This facility is expected to be operational in the current financial year, the top executives said.

 

Beyond its three divisions, the company plans to expand its electronics business to include medical, defence and aerospace infrastructure over the coming three to four years. This, company officials said, is aimed at increasing the share of value-added business to sustain double-digit margin growth.

 

For consumer durables, the company officials said they expect growth to remain broadly in line with the industry growth of 13-15%. Meanwhile, the railway sub-systems and defence division is expected to post 30-35% revenue growth in FY27, with margins seen at 15-16%.

 

Amber Enterprises' net profit came in at INR 222.70 million due to an exceptional cost amounting to INR 1.23 billion. The exceptional cost was due to Amber Enterprises' material subsidiary IL JIN increasing its stake in its subsidiary Ascent Circuits Pvt. Ltd. to 97.50% from 60% in 2024. Adjusted for the one-time expense, the company reported a net profit of INR 1.26 billion. The company's total revenue from operations for the quarter under review rose almost 13% on year but fell over 6% on quarter to INR 38.88 billion.

 

Responding to a question related to a fire at its subsidiary IL JIN's unit, the company said it received permission to reconstruct their Uttar Pradesh facility. The fire had led to the death of two local fire authority personnel, injuries to three other fire authority personnel, and minor injuries to a personnel at the subsidiary. "Operations in the affected area of the facility have been temporarily impacted". The officials had said that the loss due to the fire was completely insured.

 

The officials also shared inputs on net debt of the company, saying that as on Mar. 31, it stood at INR 12.35 billion, up from INR 5.10 billion a year ago, reflecting higher investment and working-capital requirements as the company expands its electronics and other business.

 

At 1224 IST, shares of Amber Enterprises were at INR 7,272.50 apiece on the National Stock Exchange, up nearly 2% from Thursday.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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