AMBERNSENovember 07, 2025

Amber Enterprises India Limited

6,975words

103turns

15analyst exchanges

7executives

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Management on call

Jasbir Singh

EXECUTIVE CHAIRMAN AND

Daljit Singh

MANAGING DIRECTOR

Sudhir Goyal

GROUP CHIEF FINANCIAL OFFICER

Sanjay Arora

WHOLE-TIME DIRECTOR – IL JIN ELECTRONICS

Sachin Gupta

CHIEF EXECUTIVE OFFICER,

Ravi Kharbanda

HEAD OF INVESTOR RELATIONS

Rohit Singh

HEAD OF CORPORATE AFFAIRS

Key numbers — 40 extracted

28%

ith, we sincerely appreciate the GST reform by Government of India and the reduction of rate from 28% to 18% on RAC. The move will strengthen the industry growth by enhancing affordability, driving d

18%

sincerely appreciate the GST reform by Government of India and the reduction of rate from 28% to 18% on RAC. The move will strengthen the industry growth by enhancing affordability, driving deeper p

30%

ough the quarterly performance despite the sharp decline in the room air conditioning industry of 30% to 35% in quarter 2, owing to non-conducive weather and significant deferment of purchase by cust

35%

e quarterly performance despite the sharp decline in the room air conditioning industry of 30% to 35% in quarter 2, owing to non-conducive weather and significant deferment of purchase by customers i

INR1,647 crore

the announcement and implementation of GST rate cut, the company delivered almost flat revenue of INR1,647 crores as compared to previous year. This is reflective of resilience in our business strategy and ex

INR98 crore

tegy and expansion of Electronics and Railway division. The operating EBITDA for the quarter is INR98 crores, which has declined by 19% and the resultant loss after tax of INR32 crores. The PAT during the

19%

and Railway division. The operating EBITDA for the quarter is INR98 crores, which has declined by 19% and the resultant loss after tax of INR32 crores. The PAT during the period got impacted by the h

INR32 crore

DA for the quarter is INR98 crores, which has declined by 19% and the resultant loss after tax of INR32 crores. The PAT during the period got impacted by the higher financing cost owing to Power-One stake pu

INR1,000 crore

les going on. Further, during the quarter, Amber Enterprises raised equity funds of approximately INR1,000 crores through QIP from marquee investors, and we extend our sincere gratitude to the investors for the

rs,

Enterprises raised equity funds of approximately INR1,000 crores through QIP from marquee investors, and we extend our sincere gratitude to the investors for their confidence and support in Amber's g

13%

. We remain optimistic that this division, Consumer Durable division, should grow in the range of 13% to 15% for the year, driven by diversified product offering, adding wallet share within existing

15%

main optimistic that this division, Consumer Durable division, should grow in the range of 13% to 15% for the year, driven by diversified product offering, adding wallet share within existing custome

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Guidance — 20 items

Jasbir Singh

opening

“On the industry outlook, we are hopeful of the revival of room air conditioner industry in quarter 4 and expect industry to be flattish for this year.”

Jasbir Singh

opening

“We are pleased to announce that our application for Ascent multilayer PCB project has been approved under the ECMS scheme with an investment of INR991 crores planned over the scheme tenure.”

Jasbir Singh

opening

“The division continued the growth trajectory for H1 FY'26 with revenue of INR1,409 crores, reflecting growth of 60% and operating EBITDA of INR88 crores, increase of 30%, driven by both PCBA and PCB verticals.”

Jasbir Singh

opening

“We expect this division margins to be in the range of 8% to 9% by the year-end.”

Sudhir Goyal

opening

“We have already received INR370 crores in September and INR280 crores in October and remaining tranche of ChrysCapital of INR1,100 crores is under CCI approval, which we are expecting within this month, it will be received.”

Ankur

“Sorry, if you could just remind us what is the target on growth and margins?”

Jasbir Singh

“We expect the plant to be up and running by September of next year and the trials to begin in September and the mass production will start in quarter 3 of FY '27.”

Jasbir Singh

“Post that, the land will be handed over to us and then the construction process will start.”

Deepak Krishnan

“And maybe just on your AC growth that you still expect about 13% to 15% growth in the consumer durables business.”

Jasbir Singh

“And that's the reason why we are very confident that we will deliver 13% to 15% growth.”

Risks & concerns — 10 flagged

Let me take you through the quarterly performance despite the sharp decline in the room air conditioning industry of 30% to 35% in quarter 2, owing to non-conducive weather and significant deferment of purchase by customers in between the announcement and implementation of GST rate cut, the company delivered almost flat revenue of INR1,647 crores as compared to previous year.

— Jasbir Singh

The division's revenue declined by 18% against the sharp decline of 30% to 35% in the RAC industry.

— Jasbir Singh

We recorded quarterly operating EBITDA of INR98 crores against INR120 crores last year, registering a decline of 19%.

— Sudhir Goyal

For clarification, operating EBITDA is before impact of ESOP expenses and other nonoperating income and expenses.

— Sudhir Goyal

The Consumer Durable division reported revenue of INR873 crores in quarter 2 financial year '26 compared to INR1,069 crores in quarter 2 financial year '25, reflecting a decline of 18% year-on-year.

— Sudhir Goyal

One, on the Electronics segment, there seems to have been a slowdown at least relative to the past few quarters in terms of growth at about 30%.

— Ankur

Essentially, do you also see any impact of prebuying any that is sort of helping you in any form or do you think this is essentially going to be very Q4 heavy with Q3 still seeing a lot of inventory in the system.

— Deepak Krishnan

Consumer durable, we expect -- I mean, it's difficult to give you revenue guidance.

— Jasbir Singh

Just basic back calculation suggests that, I mean, because of the higher share of PCBA, the impact of higher price copper clad laminate or gold should not be that much on the overall segment.

— Keyur Pandya

So would it be very lumpy in fourth quarter given the third quarter is also going to be quite weak?

— Indrajit Agarwal

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Q&A — 15 exchanges

A couple of questions. One, on the Electronics segment, there seems to have been a slowdown at least relative to the past few quarters in terms of growth at about 30%. So maybe because of the higher base also, but what is driving that? And more importantly, how do you see the full year growth for this segment along with margins?

Jasbir Singh

Ankur, see, electronics, you all know the journey when we started. So this was a small company when we started only giving solutions in largely into the consumer durable space. So organically, it has grown pretty well. We are expecting a good growth. But still, there's a large chunk of business which is coming from consumer durables segment. If I look at the PCBA business, which is the volume driver for this division, that is still contributing majority of almost about 85% revenue is coming from PCBAs and the rest is contributing by PCB. And in PCBA, almost 58% to 60% revenue is still consumer

Just quickly, sir, on the cash flow side, I mean, we have seen a large decrease in payables, which is impacting operational cash flow. Any thoughts on that?

Jasbir Singh

Yes. So as we always maintain that we always have better terms from the customer as well as better terms from the creditors. And in the off-season, we need to pay all our creditors from whom we bought the material in the peak season. So that has made us reduce our creditors payable down. Right, right. Fair enough, fair enough. And sir, quickly on the printed circuit board side, regarding the Ascent capacity expansion, when do you see that contributing to our top line in FY '27, which quarter is H2? Is my understanding correct? Or it's earlier, any thoughts on that? Yes. So basically, this plan

Okay, sure.

Management

Yes. Just maybe just a follow-up from the previous question. Essentially, if mass production starts from Q3, and this would be for about INR600 crores out of the INR991 crores, INR650 crores. Is that understanding correct? And we would see half year revenue implying closing to 1.5x asset terms. Is that right? And essentially on Ascent Circuits also for the Korea Circuits also, if you can sort of classify the time lines by when we would sort of start commercial production, given that approval comes this quarter, should we assume it to be FY '27? Or how should we look at the first phase of INR1,

Jasbir Singh

So basically, on the Ascent Circuits, first, to answer your question, the asset turns are not 1.5x. These are almost 1x to 1.10x, depending on what layer of PCB you want to get into. Single layer, yes, it can be 1.4x, 1.5x, but we are largely investing in multilayer PCB board in Ascent Circuits. That's the expansion plan. Yes, it will start in quarter 3. So you can say that 1 quarter revenue will definitely come from the next plant. As far as Korea Circuit JV is concerned, which is -- we are expecting the cabinet approval by UP government within this month. And the land has been allotted that

First question is on your electronics margin. So you mentioned in your presentation that you will do double-digit margins in the next year. If you could just spell out the breakup of the PCB margins, the PCB assembly margins and the acquisition margins that you're expecting for the next year?

Jasbir Singh

Well, see, PCBA, I explained you last time also, I'll repeat it now. PCBA division of ours is in the range of 5% to 5.5% range. PCB is in the range of 17% to 19% range. It varies from quarter- to-quarter, depending on which models we are selling more. And the Unitronics company, which we have added, that is in the range of 25% to 28% EBITDA range. And the Power-One should be in the range of 15% to 18%. So these are the building blocks which we have done. And on a consolidated basis, we think that it can cross double digits by next year. So we are graduating slowly, gradually from 3% EBITDA in

Sir, my first question is again on the Electronics segment margins. So if I look at the core PCB assembly business, like as you said that the margins are generally in the range of 5%, 5.5%. But if I exclude the Ascent Circuits, our margins have been hovering at around 4%, 4.5% from the last 2, 3 quarters, which ideally should have moved up considering that we are now moving our portfolio more towards the industrial and automotive, etc. So what is contributing to this margin weakness, which ideally should have come up with this portfolio skewness? And how should we look at the margins going ahe

Jasbir Singh

So anyway, I've answered this question, but I'll repeat it. Largely we got impacted because of the copper clad laminate prices got increased by 13%, which is the basic raw material for PCB. And also the gold price also went up. So that has immediately -- and we are a B2B company. We have price variation clauses with all the customers. As you have seen in our other divisions also, we are able to pass on to our customer any price increase or decrease with a quarter lag. So from quarter 4 onwards, we expect the margins to bounce back. And that's the reason on the PCB front. On the PCB assembly si

Sticking to the Power-One question, what's the expectation for revenue contribution this year from Power-One? And what sort of growth? If I remember correctly, I think you were indicating 35% to 40% growth in that business for the next few years? And my second question is Unitronics, what was the price per share that you paid over there? And also will you be recognizing revenue from it or is it just the mark-to-market on the balance sheet?

Jasbir Singh

For Unitronics, we paid 27 a share to buy it. Shekel 27.75 per share we have paid. And it's a subsidiary for us. It's not a mark-to-market. It's not an investment only. It's a business investment, and we'll be doing a consolidation of the same as we got a management control over the affairs of the company. And Power-One is expected to deliver -- your second question was regarding Power-One. Power-One is expected to deliver in the range of INR265 crores to INR275 crores this year. We've started consolidating from August. 5th of August. 5th of August onwards. So on a pro rata basis, the numbers

My first question is related to the gross debt. So around INR2,500 crores, INR2,600-odd crores, out of that, around INR700-odd crores is related to the ILJIN or the subsidiaries. So INR650- odd crores, you had said INR370 crores and INR280 crores already received. So are you going to reduce this debt directly or for the expansion you are going to utilize? And also, if you can give some color like QIP money, which is coming in, how is that treatment the way forward?

Sudhir Goyal

So first on the QIP money, we already utilized it to reduce our debt, largely for the debt and partially for our capex and the issue expenses. On the ILJIN front, where we already received INR370 crores by September and INR280 crores in October. So the money which we have received is largely used for the acquisition currently. This INR1,100 crores we'll be keeping some part in the war chest for the future expansion and balance, we'll use it for the reduction in debt as well. So we are not going to see a significant reduction in the debt from here onwards from September '25? On the net debt lev

First, on capex, if you could give us some sense in terms of total capex for FY '26, '27 and '28 ballpark numbers? And if you could break it up in terms of the divisions, please?

Sudhir Goyal

Achal, this year, we are expecting a consol capex of between like INR700 crores to INR850-odd crores. I'm giving a range because sometimes construction gets delayed and the payment gets delayed. But this is the range for the consol capex this year. Next year, division-wise, I can explain like how it will be. For the Consumer Durable division, it will be in the range of around INR300 crores -- and if I talk about the electronics because we are doing a large capex in the PCB segment, where Ascent Circuit is we already explained that in the first phase, we'll be doing around INR650-odd crores. Ou

Sir, one clarification. You said the RAC industry will be flat and Amber will grow by 13% to 15%. Is that right?

Jasbir Singh

Yes. Amber Consumer Durable division is expected to grow in 13% to 15%. Got it. And sir, since we've already done 15% in first half, we expect to maintain that run rate. That's good. So just a little color here. Can you tell us how is the order book looking like in terms of the new BEE rated inventory? Is that a good order book? Yes, we have a decent order book in hand. And because of that order book visibility, we are giving you this guidance of 13% to 15% growth.

Based on your guidance of 13% to 15% on consumer durables, where do we see our PCBA and especially PCBA, which is about 56% as you said, where do you see this revenue for this year?

Jasbir Singh

Sorry, please ask your question again. Sir, given your guidance on the RAC about 13% to 15% growth, where do you see PCBA for this year? Only PCBA or Electronics division? For Electronics division - We have guided that we should be around INR3,200 crores plus, but only PCBA should be INR2,400 crores plus. Okay. And sir, we have been quite a few quarters, we have been saying that Sidwal and Railway division should double, whereas we haven't seen that traction yet. When do we start having that large chunk of orders or execution for the year going forward? See, all the delays of the Vande Bharat

Sir, just one question on the working capital. So this year, what should be the working capital for FY '26? And considering the changing mix, how should that be for FY '27? That is first question?

Sudhir Goyal

So working capital for the financial year '27 will be almost in the same range what we were having in the financial year '26. So we don't see much change in the working capital days apart from like 2, 3 days here and there. We are not expecting big change. And FY '26 should be around what range? It should be around 30, 35 days at consol level. Okay. Second question on the electronics margin. Just basic back calculation suggests that, I mean, because of the higher share of PCBA, the impact of higher price copper clad laminate or gold should not be that much on the overall segment. So probably o

Just one question. At the ILJIN level, since we have already started receiving the money in the past couple of months, can you share what is our stake down to now from the 90% what we used to have before the deal?

Sudhir Goyal

So we got the money in the form of CCPS and the conversion of the same is based on the future performance. So we'll update once it will get converted. But currently, it is in the form of CCPS. So as of now, should we assume that the stake remains at 90% only and it will go down only once the CCPS converts in the future? Yes, right.

Sorry for harping on the margins at Electronics again. So if I just do the back calculation number, it means that fourth quarter for Electronics, we can see more like a mid-teen kind of margin because we get the back rate for the cost inflation over there. So would it be very lumpy in fourth quarter given the third quarter is also going to be quite weak?

Jasbir Singh

See, fourth quarter, we'll have first full quarter for all the other box build capabilities, Power- One and Unitronics and also the PCB -- the correction on the cost side and all. So that's the reason we are hopeful that this should be in that range of 8% to 9% by the year-end. Sure. And based on your current estimate, what do you think the associate or JV loss could look like in FY '27? So expected loss to be in the tune between INR25 crores to INR30 crores. For the next year as well? For the current financial year, total. For next year? For FY '27, what kind of number? So next year, it shoul

Thank you, everyone, for joining the call. For any further information, please get in touch with our Head of IR, Ravi Kharbanda or our IR team of Strategic Growth Advisors, Investor Relations Advisors. Thank you so much. Have a good day ahead.

Management

Speaking time

Jasbir Singh

Moderator

Sudhir Goyal

Praveen Sahay

Indrajit Agarwal

Ankur

Vipraw Srivastava

Achal Lohade

Anupam Goswami

Nirransh Jain

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Opening remarks

Jasbir Singh

Hello. Good morning, all. On the call today, I'm joined by Mr. Daljit Singh, our Managing Director; Mr. Sudhir Goyal, Group CFO; Mr. Sachin Gupta, CEO of our RAC and CAC Division and Whole-Time Director; Mr. Sanjay Arora, 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. To begin with, we sincerely appreciate the GST reform by Government of India and the reduction of rate from 28% to 18% on RAC. The move will strengthen the industry growth by enhancing affordability, driving deeper penetration and supporting premiumization. Let me take you through the quarterly performance despite the sharp decline in the room air conditioning industry of 30% to 35% in quarter 2, owing to non-conducive weather and significant deferment of purchase by customers in between the announcement and implementation of GST rate cut, the company delivered almost flat revenue of INR1,647 crores as compa

Sudhir Goyal

Good morning, everyone. Let me first take you through the consolidated financial highlights. Let me take you through half year results for financial year '26 at consolidated level. We recorded consolidated revenue of INR5,096 crores, growth of 25% over last year, operating EBITDA of INR361 crores against INR320 crores last year with a growth of 13%. PAT for the H1 financial year '26 is INR74 crores versus INR96 crores last year. Now moving to quarterly performance. In quarter 2 financial year '26, we clocked consolidated revenue of INR1,647 crores, flattish over the last year same period. We recorded quarterly operating EBITDA of INR98 crores against INR120 crores last year, registering a decline of 19%. For clarification, operating EBITDA is before impact of ESOP expenses and other nonoperating income and expenses. Loss after tax of INR32 crores versus a profit of INR21 crores last year. Now let me take you through the divisional performance overview. Firstly, the revenue and operatin

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Amber Enterprises India Limited

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