AMBERNSEMay 19, 2025

Amber Enterprises India Limited

8,763words

117turns

17analyst exchanges

7executives

Download PDF ↗AMBER stock page →

Management on call

Jasbir Singh

EXECUTIVE CHAIRMAN, CHIEF

Daljit Singh

MANAGING DIRECTOR

Sudhir Goyal

GROUP CHIEF FINANCIAL OFFICER

Sanjay Kumar Arora

WHOLE-TIME

Sachin Gupta

WHOLE-TIME DIRECTOR

Ravi Kharbanda

HEAD INVESTOR RELATIONS

Rohit Singh

HEAD OF CORPORATE AFFAIRS

Key numbers — 40 extracted

INR10,000 crore

erformance and the progression of the company. I'm delighted to report our total income crossed INR10,000 crores milestone and achieved ROCE of 19.5%, an affirmation of our long-term growth strategy and focuse

19.5%

I'm delighted to report our total income crossed INR10,000 crores milestone and achieved ROCE of 19.5%, an affirmation of our long-term growth strategy and focused execution. Let me talk about progres

48%

nce. FY '25 has been a landmark year with the revenue from operations recorded a robust growth of 48%, reaching INR9,973 crores, clocking record operating EBITDA of INR796 crores, growth of 53% year-

INR9,973 crore

s been a landmark year with the revenue from operations recorded a robust growth of 48%, reaching INR9,973 crores, clocking record operating EBITDA of INR796 crores, growth of 53% year-on-year and PAT of INR251

INR796 crore

ns recorded a robust growth of 48%, reaching INR9,973 crores, clocking record operating EBITDA of INR796 crores, growth of 53% year-on-year and PAT of INR251 crores with outstanding growth of 80% year-on-year

53%

th of 48%, reaching INR9,973 crores, clocking record operating EBITDA of INR796 crores, growth of 53% year-on-year and PAT of INR251 crores with outstanding growth of 80% year-on-year. As guided 2

INR251 crore

crores, clocking record operating EBITDA of INR796 crores, growth of 53% year-on-year and PAT of INR251 crores with outstanding growth of 80% year-on-year. As guided 2 years back, we achieved the high-teen

80%

of INR796 crores, growth of 53% year-on-year and PAT of INR251 crores with outstanding growth of 80% year-on-year. As guided 2 years back, we achieved the high-teen ROCE of 19.5% in FY '25, an impro

690 bps

r. As guided 2 years back, we achieved the high-teen ROCE of 19.5% in FY '25, an improvement of 690 bps over last year. Our net working capital days for the year stood at 9 days through the efficient w

46%

ts of RAC and its Components and CAC plus Non-RAC components. We delivered a remarkable growth of 46% year-on-year with revenue of INR7,329 crores driven by underlying RAC industry growth, conversion

INR7,329 crore

CAC plus Non-RAC components. We delivered a remarkable growth of 46% year-on-year with revenue of INR7,329 crores driven by underlying RAC industry growth, conversion of new customers from gas charging to ODM a

49%

e component business and CAC business. Blended growth of 46% is led by RAC, non-RAC vertical with 49% and 31% growth, respectively, and resultant record EBITDA of INR562 crores reflecting growth of 5

Advertisement

Guidance — 20 items

Jasbir Singh

opening

“First of all, we sincerely applaud the efforts of Ministry of Electronics and IT, MeitY, and Government of India for launching electronic component scheme, the scheme will be a key catalyst for development of robust component ecosystem, attracting new investment and generating employment in the country.”

Jasbir Singh

opening

“We plan to file an application under the PCB categories and finalizing our capex plan, which will be spent in phased manner over the scheme tenure.”

Jasbir Singh

opening

“Amber Enterprises India Limited May 19, 2025 Further, considering the robust growth potential in RAC industry, we plan to augment component capacity at Sri City within existing plant.”

Jasbir Singh

opening

“Moving to Electronics division, I'm pleased to report we have clocked a stellar growth of 77% with revenue of INR2,194 crores for the year, surpassing guidance of 55%.”

Jasbir Singh

opening

“Looking ahead, we are strategically adding margin-accretive applications such as industrials, auto, aerospace and defense, with an aim to reach 10% to 12% margin for this division over the next 2 years.”

Jasbir Singh

opening

“As guided earlier, that this will be a muted year, on the expected lines, owing to the delay in the offtake of the products.”

Sudhir Goyal

opening

“The revenue for the year increased to INR2,194 crores compared to INR1,241 crores in previous year, reflecting a noteworthy growth of 77% year-on-year, surpassing our earlier growth guidance of 55% for financial year '25.”

Sudhir Goyal

opening

“In the current year, we expect to receive INR49.5 crores under the PLI scheme for the financial year '25.”

Jasbir Singh

“And that's the reason why we guided that we are very confident that this division will be in above 10% range within next 2 years because we are adding industrials applications more now, and automobile is also adding up.”

Vipraw Srivastava

“On the PCB manufacturing side, which you are going for Ascent, that will be the first phase to be operational by FY '26, right?”

Risks & concerns — 7 flagged

The division reported a revenue of INR450 crores with a decline of 6%.

— Jasbir Singh

Please note operating EBITDA is before the impact of ESOP expenses and other nonoperating income and expenses.

— Sudhir Goyal

The revenue for the year stood at INR450 crores, reflecting a decline of 6% and resultant operating EBITDA of INR83 crores, EBITDA margin of 18.6%, impacted due to slower product offtake.

— Sudhir Goyal

So obviously, we've seen that summers have been weak from -- because of rains, etcetera.

— Dhruv Jain

Or do you think that if the non-AC contribution in durable vertical will be enough to kind of generate double-digit growth despite the weak summer?

— Dhruv Jain

So we understand FY '25 was a bit weak across the railway stocks, not just with us, but across multiple other sectors.

— Sonali Salgaonkar

Sonali, yes, I mean, one is the slowdown, which was there for Vande Bharat and Metro that is picking up the pace.

— Jasbir Singh

Advertisement

Q&A — 17 exchanges

Yes. Great results sir. Quickly on the margin expansion, which you have guided. So sir, firstly, what kind of growth are you envisaging for EMS sector for FY '26? Any color on that?

Jasbir Singh

Well, as explained, we are adding a lot of new applications. And that's the reason why we guided that we are very confident that this division will be in above 10% range within next 2 years because we are adding industrials applications more now, and automobile is also adding up. It's already added, but now the business is growing, which are more margin-accretive businesses than the current businesses. Sure, sir. And sir, anything on the top line growth? Top line, we can't tell right now. But yes, I think we are very optimistic of -- or at least 30% plus growth, 30% to 40% growth range for thi

Sir, I had one question on the consumer durables vertical. So obviously, we've seen that summers have been weak from -- because of rains, etcetera. In FY '24 also, we faced a situation similar to that. So do you think that FY '26 considerably will be declining or the RAC business will be flattish or something like that? Or do you think that if the non-AC contribution in durable vertical will be enough to kind of generate double-digit growth despite the weak summer? That's my first question.

Jasbir Singh

Dhruv, if you see, we are an aggregator of the demand. So yes, there are many news this time that AC is flattish. But just to tell all of you, we have done pretty well in April. May is also going very, very fine for us. And we feel that, yes, double-digit growth is very much possible for Amber's RAC business. And plus, we have added a lot of Non-RAC components and CAC business, which is doing very well. Great, sir. Sir, second question that I have was on working capital. So since another year that we've seen a very good working capital management, just wanted to ask, is this a new normal? Beca

I had two questions again on the room AC business. One was -- and you also did allude to this whole erratic rains that have happened both in the South, now also in the West, especially in the peak summer season. Would you want to take -- give us some guidance on how do you see industry volumes kind of playing out for FY '26? And more importantly, how do you see the inventory situation at this point in time, given what we understand is in Q4, there was a lot of inventory which was pushed into the system, given issues on compressors, etcetera. So one on the inventory situation currently and b, o

Jasbir Singh

Ankur, in last 25 years, I have seen many such good seasons and bad seasons. So I would request Amber Enterprises India Limited May 19, 2025 all of you that in case you want to recommend anybody putting in money in air conditioner sector, you should not focus on the quarterly basis because this is an industry, which is seasonal in nature. But let me give you numbers. 25 years back, 0.5 million air conditioners used to sell in the country, and we have already crossed 14 million mark. There are some reports which are referring to 14 million. There are some reports which are referring to 15 milli

So see, the strategy of in-sourcing, outsourcing continues to shift. But yes, all the plants which were supposed to become, they have already been executed by the brands. And since last year, it was a very good season. So definitely, yes, outsourcing concept, the propensity is towards now outsourcing more, which was towards in-sourcing for last 2 to 3 years, that's very right. And on the brands which are like Croma, Flipkart and other kind of brands, yes, they are also gaining traction. So that does make the outsourcing business model lucrative right now as compared to what it used to be 2 to

Jasbir Singh

No Pranay, I think probably the customers which we are catering to, their demand is growing. So -- I mean, yes, South is down for everybody, definitely because of the rains and all, but North has already picked up. The Western part -- some of the Western parts and the central part of India has picked up. There are some rains going on. But yes, overall, the customers which we are catering are moving positive as of now.

This is Sonali and congratulations on a great set of ROCEs. The expansion has indeed been quite notable year-on-year. Sir, my first question is a bit strategic related to the ECMS component manufacturing scheme. I know you alluded to the fact that you will be participating in the PCB. But apart from that, is there any other segment which you would like to even evaluate? And in conjunction of that, ex of ECMS, what is the FY '26 capex? And with the ECMS, what would you expect that to be?

Jasbir Singh

Well, thank you, Sonali. I think on the ECMS, our capex, what we are planning without ECMS, our capex will be somewhere about INR500 crores, which will be for our Railway division and our RAC division, Consumer Durable division. In ECMS, we will be putting in an application of about INR3,000 crores, which is to be spent over a period of scheme in 5 years. And I think this year, the capex will be somewhere about -- close to about INR800 crores to INR900 crores, which is ongoing Ascent Circuit capex because last year, only the land came in and now the building and machinery are going to be added

Sir, my first question is on the electronics business, wherein we saw very strong growth in fourth quarter. Clearly, there's a lot of momentum that the segment is picking up. Just wanted to understand, are there any new segments that we have commercialized within the EMS space? Any new large customers that you can speak about?

Jasbir Singh

Well, I'll not give a color on the customers because of the NDA signed. But yes, on the application side, I'll give you a brief. When we started in 2018, we had just started for consumer durable, particularly ranging in air conditioners and refrigerators. But today, we cater to hearable, wearable segment. We cater to smart meters segment. We cater to automobile sector, defense applications and telecom. These are the sectors which we are already catering to. What we are going to add in the next 2 years is industrials and aerospace and defense. And this pickup in growth that we get to see in fou

Sir, my first question is on the Electronics division. If you can give a little light on what are we currently doing? And where are we moving towards? And what kind of a market we can look at in that perspective? Also in your Railway division, sir, you said about 2x of your doubling the revenue, but a little on the more longer time horizon, again, what sort of TAM are we looking? And what are the projects we are currently working on and what would qualify to go more into this? That is all, sir.

Jasbir Singh

On Railway division, earlier, we were just catering to INR25 lakh in one passenger car. So normally, Vande Bharat Express has got 16 passenger cars, and one passenger car is costing about INR6 crores to INR6.25 crores. Out of that, we were catering only air conditioner part. But now we can cater to INR1.5 crores of what goes into it, as we added into Pantries, plus Doors and Gangways, Couplers, Brakes and Gears. So our TAM has expanded by 5x, while being in the same segment for metro and railway. That is one part. And on the Electronics side, PCB -- coming on what we do in the Electronics side

Sir, my first question is just some clarity on the capex number. So you have highlighted INR3,000 crores under this ECMS scheme to be spent over 5 years. So this would be for both the Korea Circuit JV as well as for the Ascent Circuit, right? So is there any breakup on how much are we planning to expand the Ascent Circuit over and above the INR650 crore capex that you have already -- which is already undergoing?

Jasbir Singh

So currently, we have announced INR650 crores capex, which is ongoing. Maybe we add -- looking into the demand scenario, we may add moving forward after 2 to 3 years' time, another INR500 crores in this. And rest is the Korea Circuit JV. And just to inform you all, we should note one more point, which is I would like to highlight that we have been able to successfully sign offtake agreement with Korea Circuits, where first 2 years of the production capacity will be offtaken to Korea Circuits by Korea Circuits team to their existing customers from India. So as we start the process, we don't hav

Yes. Congratulations for the number. Congratulations for good numbers. Sir, just wanted to check on the JV losses. If you could give some sense in terms of what has driven this increased losses? And how do we see it over the next couple of years?

Jasbir Singh

Well, these businesses take time for ramping up. This is a new business for us, both of them. And I think we are very confident that as we move ahead, we'll be able to take care of these losses. And the larger objective of getting into joint venture along with the Titagarh was particularly for gearing up for our new component sectors, which are the new categories, which we have added because these are very high entry barrier businesses. So if you want to supply products like doors and gangways or brakes or couplers, these are safety Level 2 and safety Level 4 products where the entry barriers

Sir, just two questions. In terms of the proposed PLI component scheme where you'll be participating for about INR3,000 crores of outlay, what is the expected return on capital on that investments or on that project? How should we look at it?

Jasbir Singh

Well, if you see out of INR3,000 crores, almost 60% to 65% will be funded back in the scheme by central and the state government together. So we'll be in the net capex side, we will be investing about 30% of that. So 30% to 35%. If I see on the net capex side, the ROCE level for this industry is more than 25 -- in the range of 25% to 30%. Okay, sir. So for that INR3,000 crores, which we'll be investing, is it fair to assume that you'll have an asset turn of maybe like 1x, 1.5x? How should we look at it? Generally, like-to-like, these are asset-heavy businesses. So single layer and double layer

Sir, first of all, congrats on a great set of numbers. Sir, I had two, three questions. The first one was, could you give us some idea as to what sort of capex are we planning to put in the Korea JV? And what sort of time line should we understand for the plan to get online and the revenue start to flow to our P&L?

Jasbir Singh

So in Korea circuit JV, we will be putting in an application of close to about INR2,500 crores, which is to be spent on a period of 5 years. And time line is that as per government, government has given 90 days' time to file an application. After that, I am assuming that another 60 days or so for approvals, and that's when the approvals will be granted. So post September, the work will start. So I am hopeful that by next financial year, quarter 4, it should be up and running. Understood. Understood. And sir, this -- the second question was with regards to Sidwal. So we have been talking about

Congratulations on a robust guidance. I have one question on the guidance on the Railway side. As you mentioned, doubling in the next 2 years, would it be more back ended? Would we see more growth in FY '27 and '28 or '26, you expect to be strong as well as per the order book that you have today?

Jasbir Singh

So FY '26 will be a slight growth over the period of last year because now the projects have started taking off. And just to tell you that the 200 Vande Bharat Express, which were to be rolled out 2 sets, both TMH and Titagarh they were supposed to be last year, which got delayed by an year. So that is happening this year, but the large numbers will start going from next year. So you will see a big traction next year onwards. Amber Enterprises India Limited May 19, 2025 Sure. And secondly, on the washing machine Resojet part, when do we see revenue accrual for us? So we have already supplied 2

Sir, one question on the Electronics side. So considering -- so what is the capacity available in Ascent? And in backdrop, what would be the growth driver for FY '26 for the overall Electronics division, both in terms of, sir, revenue profitability as well as working capital?

Jasbir Singh

Well, currently, Ascent is moving at almost 90% of capacity, and that's why we are putting up another 30,000 square meter plant. And Korea Circuits will be -- the first phase will be 10,000 square meter of HDI to begin with, and then we'll keep on adding as we move ahead. Sir, just one follow-up. So I mean, what will drive this 30%, 40% growth in FY '26? It could be our core EMS business, since Ascent is fully utilized. And just want to understand on the working capital side or the Ascent’s revenue potential of INR650 crores. So INR650 crores would fetch us INR600 crores, INR650 crores kind of

I just wanted to understand a bit on the Korea Circuit, the economics. So we're investing INR2,500 crores over 5 years. Could you give us some sense in terms of what could be the peak revenue potential of this project? You did mention the customer mix, but if you could give us some sense on the product mix as well, how the scale-up happens? Because it's a very large project -- probably the largest single location capex for Amber in my understanding. So if you could give us some more sense around the ramp-up time line, etcetera, that would be great.

Jasbir Singh

Madhav, yes, it will be like INR2,500 crores over a period of 5 years. So like the first part of that will be about INR1,000 crores or so. Generally, the asset turns in this sector are 0.85 to 0.9 and that's where we are going to grow. But if you see in a horizon of 2 to 3 years' time, because we have an offtake agreement, we feel that it can add about INR1,500 crores revenue over a period of -- after we start the production over a period of next 2 years. So when does the plant commission -- the INR1,000 crore Phase 1 capex, when does that commission? Amber Enterprises India Limited May 19, 20

And my question is in continuation with what Madhav asked. So one is the capex that you'll do. But is there any other sort of revenue threshold, etcetera, that you'll need to meet in order to get this incentive? Secondly, can we just discuss some rough time lines? For example, you do this capex now. What are the milestones the government would want to see before this subsidy comes to us? And thirdly, if there is a time gap between now and then, how are you going to be funding that particular piece?

Jasbir Singh

Pulkit, on the time line basically and the turnover, so it's a hybrid scheme for capex and TLI, turnover-linked incentive, scheme. So out of 48%, 25% will be reimbursed after the plant is commissioned and 23% will come in next 5 years after achieving the turnover-linked incentive Amber Enterprises India Limited May 19, 2025 and employee-linked incentives also. So there is employment generation also which we need to do. So once we meet those criteria, every year, we'll get -- we'll be -- it will be spread in -- 23% will be spread in 5 years. So that is how the time line on the subsidies are com

Just two questions from my side on the Electronics division again. I know that we have not mentioned this in the presentation, but wanted to check if we can give any order book for Electronics division, ballpark number by end of '25 and how this would have grown maybe Y- o-Y in this year? That's the first question. And second question is, are we incrementally seeing any export opportunities in the Electronics division, given maybe the other B2B company out there is focusing a lot on this export opportunities? Those are my two questions.

Jasbir Singh

Yes. Because of this tariff being spoken so much, there are many customers who started talking to us for exports. And we are talking, but let us see. I mean, I think we are not giving really great mileage to that. Maybe 2 years down the line, yes, we may see some big exports coming. Largely, we are focusing on domestic industry at the moment. If I talk about the order book, so generally, the contracts are long term in nature. So we've already done INR2,193 crores. If I speak about 2 years order book, we are already sitting at close to about INR5,000 crores of order book kind of a thing at the

Thank you, everyone, for joining on the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with our Head of IR, Ravi Kharbanda or Rohit Singh, from IR team, or Strategic Growth Advisors. Thank you very much. Have a good day ahead.

Management

Speaking time

Jasbir Singh

Moderator

Madhav

Vipraw Srivastava

Sonali Salgaonkar

Aditya Bhartia

Abhishek Ghosh

Dhruv Jain

Nirransh Jain

Achal Lohade

Advertisement

Opening remarks

Jasbir Singh

Hello. Good morning. On the call today, I'm joined by Mr. Daljit Singh, our Managing Director; Mr. Sudhir Goyal, our Group CFO; Sachin Gupta, CEO of RAC and CAC division Whole-Time Director; and Mr. Sanjay Arora, President of Electronics division and Whole-Time Director of ILJIN Electronics. We have uploaded quarterly presentation on the exchanges, and I hope everyone had an opportunity to go through the same. I'm pleased to report FY '25 has been a phenomenal year both in terms of the performance and the progression of the company. I'm delighted to report our total income crossed INR10,000 crores milestone and achieved ROCE of 19.5%, an affirmation of our long-term growth strategy and focused execution. Let me talk about progression. First of all, we sincerely applaud the efforts of Ministry of Electronics and IT, MeitY, and Government of India for launching electronic component scheme, the scheme will be a key catalyst for development of robust component ecosystem, attracting new inv

Sudhir Goyal

Hello, everyone. I'm pleased to report a strong performance of quarter 4 and full year financial year '25. Let me first take you through the quarterly consolidated financial highlights and the full financial year as well. So full year, financial year '25. Let me take you through the full year financials '25 financials. Revenue for financial year '25 increased to INR9,973 crores compared to INR6,729 crores in the previous year, recording a significant growth of 48%. Operating EBITDA increased to INR796 crores against INR519 crores with a growth of 53% year-on-year. PAT has increased to INR251 crores compared to INR139 crores in previous years, reflecting a noteworthy growth of 80% year-on-year. On the ROCE, we witnessed a strong performance, achieving a ROCE of 19.5% for the year, an improvement of 690 basis points over the previous financial year, reflecting capital efficiency and robust business fundamentals. On the balance sheet front, net debt stood at INR780 crores against INR615 c

Advertisement

← All transcripts AMBER stock page →

Amber Enterprises India Limited

Market Movers