AMBERNSEQ1FY26July 30, 2025

Amber Enterprises India Limited

9,032words
88turns
14analyst exchanges
5executives
Management on call
Jasbir Singh
EXECUTIVE CHAIRMAN AND
Daljit Singh
MANAGING DIRECTOR
Sudhir Goyal
GROUP CHIEF FINANCIAL OFFICER
Ravi Kharbanda
HEAD INVESTOR RELATIONS
Rohit Singh
HEAD OF CORPORATE AFFAIRS
Key numbers — 40 extracted
44%
isions, despite a challenging season for the room AC industry. The consolidated revenue grew by 44%, reaching to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores an
INR3,449 crore
challenging season for the room AC industry. The consolidated revenue grew by 44%, reaching to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, reco
31%
ted revenue grew by 44%, reaching to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, recording a 42% growth over previous year. The operati
INR263 crore
enue grew by 44%, reaching to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, recording a 42% growth over previous year. The operating EBITDA margin
INR106 crore
g to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, recording a 42% growth over previous year. The operating EBITDA margin was impacted due to divi
42%
e quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, recording a 42% growth over previous year. The operating EBITDA margin was impacted due to divisional mix and p
8%
divisional mix and product mix. However, we expect the consolidated margins to be in the range of 8% to 9% by FY '26 end. Let me now take you through the divisional performances. On the Consumer D
9%
onal mix and product mix. However, we expect the consolidated margins to be in the range of 8% to 9% by FY '26 end. Let me now take you through the divisional performances. On the Consumer Durable
rs,
iven by the following factors: A diversified product offering, adding wallet share in some customers, expanding component business, conversion of earlier gas charging customers into full ODM customers
10%
ar. We continue to remain optimistic about outperforming the RAC industry growth by a factor of 10% to 12% for the year, supported by our strong portfolio of finished goods and components to a dive
12%
e continue to remain optimistic about outperforming the RAC industry growth by a factor of 10% to 12% for the year, supported by our strong portfolio of finished goods and components to a diversified
INR766 crore
s division. The division continued the stellar growth trajectory, almost doubling the revenues to INR766 crores, reflecting growth of 97% and resultant operating EBITDA of INR49 crores w
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Guidance — 20 items
Jasbir Singh
opening
“However, we expect the consolidated margins to be in the range of 8% to 9% by FY '26 end.”
Jasbir Singh
opening
“On the Consumer Durables, this division continued the growth momentum in line with our earlier guidance of outpacing the industry for the year.”
Jasbir Singh
opening
“This expansion will be operational by November of this year.”
Jasbir Singh
opening
“We expect the closure of this transaction within the next 15 to 20 days.”
Jasbir Singh
opening
“We plan to close the transaction in the next 60 to 75 days.”
Jasbir Singh
opening
“With all the add-ups, we intend to take Electronics division to $1 billion by next 3 years with target EBITDA of 11.5% to 12% range.”
Dhruv Jain
qa
“So just wanted to understand how much of it will be driven by acquisitions?”
Jasbir Singh
qa
“So I think looking into that whole number of today, going to next 3 to 4 years, this will be almost double.”
Jasbir Singh
qa
“So what we are saying is that whatever the industry will be, normally, quarter 2 and quarter 3 are anyway the lean season for this industry.”
Jasbir Singh
qa
“I think depending on how the offtake will be in the festivities and in the quarter 3, that will define where the industry is going to head towards.”
Risks & concerns — 9 flagged
Please note, operating EBITDA is before impact of ESOP expenses and other non-operating income and expenses.
— Sudhir Goyal
What is the reason for the decline in the margins in railways because last year's base was low, which is why we are checking.
— Sonali
So very difficult to predict and even give the number.
— Jasbir Singh
But it's very difficult to predict the mix of the components and the finished goods.
— Jasbir Singh
So I think very, very difficult for us to give any number here.
— Jasbir Singh
So while there is slowdown in the AC business, a lot of OEMs as well as your peers have reported poor set of numbers, while we have grown at a healthy pace.
— Samyak Jain
Congratulations for a good set in a weak environment.
— Rahul Agarwal
The challenge essentially going forward could be managing people, having heads of department and then integrating all of this into the Amber's culture.
— Rahul Agarwal
So we don't see any big change and challenge on the management bandwidth.
— Jasbir Singh
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Q&A — 14 exchanges
Q
Congratulations on a good set of numbers. Sir, first question on your opening remarks, you mentioned that you're looking at Electronics business touching $1 billion revenue in the next 3 to 4 years. So just wanted to understand how much of it will be driven by acquisitions? How much by the bare PCB and PCBAs? And broadly, just want some color on how are you thinking about the individual scalability of these various components of the Electronics segment? That's my first question.
Jasbir Singh
Dhruv, thanks for the compliment. On Electronics division, see, it's a very big TAM today. If I tell you about the manufacturing footprint TAM of room air conditioning industry, that is about $5 billion today as a current year, right? But when we talk about PCB TAM, which is about $4 billion, PCBA is about $12 billion to $15 billion today under the $135 billion of electronics getting consumed in the country. Then we have added UPS inverter and battery storage space, which is another TAM of $4.75 billion. And plus, we have added VFD drives and HMIs and PLCs, which is about $6.5 billion TAM. So
Q
Many congratulations on a good set of numbers. Sir, first question related to the consumer durable. And in the consumer durable, you had also an indication of a commercial AC. There is a good expansion. So is it possible to quantify like any indication how much of the contribution that has reached to? Second question is, sir, related to the acquisition of Power-One. If you can give INR250-odd crores of revenue bifurcation in terms of the product mix, where it's largely coming from?
Jasbir Singh
So on the commercial AC front, we don't want to give a number because it keeps on changing, but it's growing pretty well. It has grown more than 40% for us because we've added product line. Now we can cater entire range from 3 tonnes to 17.5 tonnes, both in ductable and the packaged parts. Plus we also added cassette air conditioners and tower air conditioners, which are add-on, and we are now launching 2 more products by quarter 4. So -- but it is growing pretty well. I think that's given us a good growth story for -- good add-on what we've done in the sector. On the Power-One front, on the P
Q
Yes. Just quickly, firstly, on the EMS industry. So obviously, the long-term growth trigger is there, and we remain bullish on that. But sir, for this year, FY '26, what kind of growth you are seeing? Should we continue with the quarter 1 run rate or you are seeing any ramp-up in the coming quarters for the Electronics division?
Jasbir Singh
Well, see, in the Electronics division, largely right now, if you see the split, we are about 60%, 58% to 60% is still the consumer durable. And in consumer durable, the quarter 2 and quarter 3 are generally the lean seasons. So I don't think that we will be able to maintain this run rate of 100% growth for quarter 2. But on the overall year basis, yes, we are heading towards a very, very good growth because the automotive segment has started kicking in. Telecom has gained traction. Hearable wearable has gained traction. The smart meters is up and running. We believe that by year end, by year-
Q
A big congratulations to the team for such a stellar set of results. Sir, my first question is regarding the 2 applications that you have filed under ECMS, one worth about INR10 billion, one worth about INR32 billion via JV. Could you please help us understand the capex requirements for this over the period of next 5 to 6 years? And also how much of that do you expect to be subsidized from both the central and the state government? So in and I want to understand what's our capex outlook for FY '26, '27?
Jasbir Singh
Thank you, Sonali. Basically, on the 2 applications, first one is Ascent Circuits, we filed INR990 crores to be spent over a period of scheme, out of which the first phase we've already announced last year, INR650 crores, which is getting implemented and executed this year at new facility in Hosur. Second is -- the remaining portion of that, we will be investing after 3 years. Second application we have filed is the joint venture with the Korea Circuits, which is INR3,200 crores. In that, the first phase will be INR1,200 crores in the very first year, which will be -- we expect that the scheme
Q
Congratulations again. Sir, my first question is on the double-digit margin guidance for the Electronics division by next year. So is it fair to understand that this would primarily come from the uptick in the Ascent's new facility and the consolidation of the 2 acquired entities for whose benefit we might start seeing from third quarter this year itself? And also wanted to check on the Power-One margin guidance. So till FY '24 on the reported financials, the margins used to be in the range of 7% to 8%. So what is leading to the 17% to 18% guidance on the Power-One Micro Systems?
Jasbir Singh
On the Electronics margin guidance, you see, I'll just take you all through the journey of electronics, which is very important for all of you to understand when we acquired IL JIN, this was a INR300 crores company manufacturing printed circuit board assemblies for LG and IFB with 2.8% EBITDA. So this was what we started and inherited. For first 3 years, we were very focused in air conditioners and refrigerators and washing machine space. By 2021, the company grew to INR500 crores and the margins went to 4%. We were struggling to see that why we have not been able to cross 8%, 9% of the range.
Q
I wanted to get a sense how is your RAC component mix right now?
Jasbir Singh
It keeps on varying RAC components and the finished goods because we don't define the demand side from the customers. We give solutions to whatever is demanded to us. Sometimes, it is 60:40, sometimes it is reverse, 40:60. So very difficult to predict and even give the number. Understood. Got it. And sir, last question on the Unitronics. What sort of growth you are looking for next 2 to 3 years? Well, whenever we've acquired the companies in last 7 acquisitions, which we have done, our trend is that for first 6 quarters, which is about 18 months, we generally get into the company, we integrate
Q
Congratulations for fabulous growth. Sir, just on the margin part for the consumer durables, if you could give us some sense; for the quarter, we have seen a substantial revenue growth, but actually a margin contraction. So if you could explain for the first quarter and also give us some sense about the direction just the way you kind of highlighted for electronics business?
Jasbir Singh
On consumer durable margins, see, we have a profile of business starting from 6% EBITDA to about 9% because some of the components are higher range. The assembly part is at a little lower range, but on the mid-level. And then we have also non-room air conditioner components, which are at 10% EBITDA also. So that's the range. But it's very difficult to predict the mix of the components and the finished goods. And within the finished goods, there is a big range starting from 1 tonne to 1.5 and 2 tonne plus all the star rating. So I think very, very difficult for us to give any number here. But y
Q
Congratulation on a good set of numbers. So I have just one macro question. Like Amber today supplies 20% of India's RAC inverter. With India's EMS industry growing at a good pace, what local BOM share are you getting for an inverter AC assembly by upcoming years?
Jasbir Singh
If you're asking only about the inverter air conditioners, PCB applications, we are serving to many customers in inverter PCB applications. And on the industry side, if I see, I think we are controlling about 18% to 20% of India's inverter PCB board requirement. No, I was asking like your bill of material you will source in a local way, like as PLI scheme is promoting it? Yes. So on the -- right now, there's applications going on. Factories are yet to be established. Once the component ecosystem starts getting available from here, we will be more than happy to source it locally. Like in air co
Q
Yes. Sir, if you look at, let's say, now we are serving almost 70% of BOM for room AC, the only thing missing was compressor. But now with the GMCC coming in also, as you said in the opening remarks, so what kind of arrangement we have with the GMCC and how you see, let's say, can we supply overall compressor in the next couple of quarters? Or how that would be?
Jasbir Singh
So our relation with the GMCC was very old relations, but when we saw some of the noise on the shortage coming, though, we were not convinced with the market's noise. But still, we thought that it is better to stitch the deal. So we signed a cooperation agreement with GMCC, giving them our core plan of compressor requirement for next 3 years. And they've agreed to expand their capacities in India. The expansion is going on right now. And I think that new lines, which they are putting up, it is not exclusive to us. They will be serving other customers also. But they are putting this expansion b
Q
Just wanted to understand the unit economics for the 2 capex, especially the Korea Circuit, we're investing INR3,200 crores. Could you give some sense in terms of the revenue potential and the margin profile and also the working capital required for the project? And by when do you think we can ramp up this fully? I know it's coming up in phases. So maybe for Phase 1, if you could give us some color, that itself would be great.
Jasbir Singh
So Madhav, on the Ascent Circuits in the Hosur, INR650 crores is getting invested this year. I believe by quarter 4 or maximum by quarter 1 of next financial year, the plant will be up and running. That is for multilayer PCBs. For HDI, which is going to be put up in UP, that is -- we are waiting for -- we have applied to MeitY. I think they will take another 60 to 90 days' time to assess the applications and then approve the applications. After that, we have 15 months for our implementation and execution of the plant. So FY '28, first quarter is when we expect these plants to be up and running
Q
Sir, my question is on the 2 acquisitions that we have made. So on the face of it, it appears that it's a product company, whereas in our electronics, we are mostly contract manufacturing or supply components in our electronics division. So do you see any gaps in the capabilities that we currently have to grow the business for both the businesses that we have recently acquired?
Jasbir Singh
I'll give you a little brief of Amber's history. We started as a component manufacturer of air conditioners. The first component we produced for air conditioner was the outside sheet metal box for window air conditioner. That's where our journey began. And then that's when we started assembling the boxes, full air conditioners, then gradually, we backward integrated to create moats in the industry. And plus, we coupled up from 2012 onwards, the R&D capabilities also. So while you see the whole ocean of electronics getting consumed, it doesn't [inaudible 0:52:41] or it is semi knockdown or just
Q
Jasbirji, could you please highlight what was our Y-o-Y growth rate in RAC and RAC component and non-RAC component within the consumer durable segment for Q1?
Jasbir Singh
So it's about 30 -- sorry, it's about. So RAC has grown by 40%; RAC and RAC components both put together has grown by 40%. And non-RAC component within Amber has grown by around 10% and balance is the like motors and the injection molding for the various other applications, that has also grown by like 10% to 15%. Okay. So RAC and component is 40% and the remaining non-RAC component is around 10% to 15%. Is that understanding correct? Yes, yes. Okay. And sir, second question is on capex. I just want to double-click on that because earlier, I thought we were spending around INR350 crores on Hosu
Q
Congratulations for a good set in a weak environment. Sir, 2 questions. One is, it looks like very hyper growth for Amber in Electronics and railways ahead. My sense was you're also getting into larger merger and acquisitions now. The challenge essentially going forward could be managing people, having heads of department and then integrating all of this into the Amber's culture. As of now, I just wanted to understand what are the gaps you have filled to handle such a large revenue. The P&Ls are going to be very big going forward. And what are the gaps which are still left to be addressed? So
Jasbir Singh
So on the first question regarding the management bandwidth, what we do at Amber is the moment we start the due diligence process of any company - prospective company to be acquired, or to be partnered with, we, first of all, onboard who's going to lead that portion and who's going to integrate those companies after we acquire. So that is a proactive approach which we take. Just to give an example, when Ascent Circuits was acquired, parallelly Santosh was onboarded, who was MD and CEO of the company, large company catering in India, multinational company. And then parallelly, Mr. Agarwal joine
Q
Thank you, everyone, for joining on the call. For any further information, kindly get in touch with our Head of IR, Mr. Ravi Kharbanda or Rohit Singh from our IR team, or Strategic Growth Advisors, our Investor Relations Advisors. Thank you very much. Have a good day ahead.
Management
Speaking time
Jasbir Singh
27
Moderator
16
Sudhir Goyal
9
Deepak
5
Vipraw Srivastava
4
Dhruv Jain
3
Sonali
3
Keshav Lahoti
3
Achal Lohade
3
Madhav
3
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Opening remarks
Jasbir Singh
Hello, and good morning. On the call today, I'm joined by Mr. Daljit Singh, our Managing Director; Mr. Sudhir Goyal, our Group CFO. 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 robust performance during the quarter, driven by growth in all the 3 divisions, despite a challenging season for the room AC industry. The consolidated revenue grew by 44%, reaching to INR3,449 crores for the quarter and operating EBITDA grew by 31% to INR263 crores and PAT of INR106 crores, recording a 42% growth over previous year. The operating EBITDA margin was impacted due to divisional mix and product mix. However, we expect the consolidated margins to be in the range of 8% to 9% by FY '26 end. Let me now take you through the divisional performances. On the Consumer Durables, this division continued the growth momentum in line with our earlier guidance of outpacing the industry for the year. The growth is driv
Sudhir Goyal
Hello, everyone. Good morning. I'm pleased to report a strong performance for quarter 1 financial year '26. Let me first take you through the quarterly consolidated financial highlights. The consolidated revenue for quarter 1 '26 grew by 44% year-on-year to INR3,449 crores compared to INR2,401 crores in the same quarter last year and operating EBITDA increased to INR263 crores for the quarter compared to INR200 crores in quarter 1 financial year '25, reflecting a significant growth of 31% year-on-year. Please note, operating EBITDA is before impact of ESOP expenses and other non-operating income and expenses. We recorded PAT of INR106 crores, reflecting a growth of 42% year-on-year. Now let me take you through the divisional performance overview. Firstly, revenue and operating EBITDA details of the divisional performance are not comparable with published segmental results. The Consumer Durable division reported revenue of INR2,560 crores in quarter 1 financial year '26 compared to INR1
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