Shares of Amber Enterprises India plunged more than 16% on Monday, marking the stock’s steepest single-day decline since May 2022, even as the company reported better-than-expected EBITDA margins for the March quarter.
At 11:16 AM, the stock was trading sharply lower after witnessing heavy selling pressure during the session.
The company’s revenue performance remained broadly in line with Street expectations, while profitability exceeded estimates. However, weakness in the consumer durable segment and pressure on room air-conditioner (RAC) margins weighed on investor sentiment.
Amber Enterprises reported subdued growth in its core consumer durable business, with segment revenue rising 6% year-on-year during the quarter. In contrast, the electronics division and railway sub-system business delivered stronger performance, recording revenue growth of 21% and 22%, respectively.
On the operational front, overall EBITDA margin improved 70 basis points year-on-year to 8.6%, ahead of the Street estimate of 7.8%. The company also posted its highest EBITDA margin in the last 20 quarters.
Gross margins expanded 220 basis points year-on-year to 18.8%, aided by the full integration of acquisitions including Shogini Technoarts, Power One Electronics and Unitronics.
Within segments, margins in the consumer durable business declined 40 basis points to 7.2%, impacted by elevated copper prices that continued to pressure RAC margins. Meanwhile, the electronics division saw a sharp margin expansion of 480 basis points to 10.8%. Margins in the railway sub-system business declined due to a higher base effect.
The company also reported an exceptional one-time impairment related to its investment in Shivalik, along with losses from a joint venture during the quarter.
Looking ahead, management said the consumer durable segment recorded 14% revenue growth in FY26, in line with guidance. The electronics business is expected to maintain strong momentum, with the company projecting nearly 40% revenue growth in FY27.
The railway division posted 19% revenue growth in FY26, while management expects the segment to grow between 30% and 35% in FY27.