Amber Enterprises Q4 Review: Strong Guidance, Electronics And Component Growth Drive Optimism
Amber Enterprises India Ltd. has received a vote of confidence from brokerages CLSA and Jefferies, with both highlighting robust fourth quarter performance, expanding margins, and strong potential in non-room air conditioner segments.
CLSA has upgraded the stock to ‘outperform' from ‘hold', raising the target price to Rs 7,275 from Rs 7,000. The upgrade is underpinned by solid fourth quarter results, strong growth guidance, and the potential for high-teen returns on capital employed from ongoing capex in the electronics segment under the government's PLI scheme.
Amber reported fourth quarter Ebitda of Rs 290 crore, in line with expectations, with revenue and Ebitda growing 30–40%. However, profit growth was impacted by weaker joint venture performance. CLSA noted that while room AC continued to face pressure, growth was strong in electronics that rose 74% year-on-year and consumer durables. Margins are expected to improve steadily, with CLSA highlighting that non-RAC segment expansion remains a key catalyst.
The brokerage expects double-digit revenue growth in durables and robust momentum in electronics, with 30–40% CAGR over two years. Electronics capex of Rs 300 crore is expected to significantly boost ROCE, with returns improving as backend capacity scales up. CLSA also expects India AC sales to move from 14–15 million units to 30–35 million units in five years, further benefiting Amber.
Jefferies maintained its ‘buy' rating, but slightly lowered the target price to Rs 8,600 from Rs 8,845, citing minor adjustments to fiscal 2026–2027 EPS estimates due to the impact of unseasonal rains in April–May 2025. Nonetheless, it remains bullish, projecting a +50% EPS CAGR over financial year 2025–2028, driven by margin-accretive component growth, new capex, and client additions.
According to Jefferies, electronics Ebitda more than doubled in fiscal 2025, aided by recent scaling of the Bare-PCB business. Meanwhile, mobility sales were affected by order delays, though recovery is expected.
Non-RAC segments continue to outperform, with component sales rising 31% year-on-year. Capex plans worth Rs 250 crore for fiscal 2026 are expected to support new customer wins and growth in emerging verticals such as electric vehicles and renewable energy.
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