Amber Enterprises’ near-term woes bring more focus on electronics delivery

Subscribe to enjoy similar stories. Amber Enterprises India Ltd is entering a transition year, one that will test investor patience. Its core room air-conditioner (RAC) business is expected to grow 10–15% in FY26— ahead of industry—management said at a recent analyst meet.

While consumer durable demand has improved sequentially, FY26 is shaping up to be a largely flat year for RAC volumes. Channel inventory overhang, unseasonal weather disruptions and higher product prices following energy-efficiency upgrades are weighing on demand. Rising copper prices and currency pressures add to the challenge, clouding near-term margin visibility.

Unsurprisingly, several brokerages trimmed their forecasts after the analyst meeting. Motilal Oswal Financial Services cut its estimates by 10%, 9% and 5% for FY26, FY27 and FY28, respectively, to factor in slightly weaker margins. Even so, it expects revenue, Ebitda and profit to grow at a healthy compound annual rate of 20%, 28% and 46% over FY25–28.

Management expects demand to recover in the second half of FY26, led by the March quarter. But air-conditioners may not be the primary driver. Consumer durables, including RAC, still account for about two-thirds of Amber’s revenue, electronics contribute close to 27%, and railways and defence make up the rest.

Amber is rebuilding itself as an electronics manufacturer. Over the past year, it has assembled a broader electronics platform through acquisitions such as Shogini, Power One, and Unitronics, while also committing fresh capital to printed circuit board (PCB) manufacturing under government incentive schemes. Management believes the electronics segment can grow 35–40% annually and deliver double-digit margins by FY28—far superior to the