Amber Enterprises shares in focus after Q2 loss of ₹33 crore, margins contract

Shares of Amber Enterprises Ltd. are in focus on Friday, October 7, after the company reported weak set of earnings,missing estimates on all fronts.

The company's revenue declined slightly and it slipped into a loss in the second quarter compared to a profit in the base quarter. Overall, its margins declined 120 basis points, and were under pressure in all three segments — consumer durables, electronics, railway sub-sytem & defence.

Amber Enterprises reported a net loss of ₹32.9 crore in the September quarter compared to a net profit of ₹19.2 crore in the year-ago period. A CNBC-TV18 poll of analysts had forecast a 9% growth.

Its revenue from operations declined 2.2% to ₹1,647 crore from ₹1,684 crore in the second quarter last fiscal.  The Street had estimated the revenue to be at 1,841 crore.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) declined 20% to ₹91.2 crore from ₹113.7 crore in the previous year. The Street had estimated an EBITDA of ₹125 crore.

Its EBITDA margin contracted to 5.5% in the second quarter from 6.7% in the year-ago period.

Amber Enterprises reported a loss due to muted performance in the room air conditioner (RAC) segment on account of GST-related delay, lower RAC demand, slower electronics growth, and the impact of unseasonal rains.

Consumer durables (RAC) is a key division and it forms 53% of the mix for Amber Enterprises. This segment's revenue fell to ₹886 crore from ₹1,085 crore in the previous year. Its margin declined by 120 basis points to 3.7% from 4.9% in the year-ago period.

Brokerages were expecting weakness in consumer durables, which was likely to be offset by the electronics division.

The electronics division too showed lower growth than estimates, with its revenue increasing 30% to ₹642 crore from ₹492 crore in the second quarter last year and its margin contracting by ₹190 basis points to 5.8% from 7.7% last year.

The railway sub-system & defence division's revenue increased 6% to ₹132 crore from ₹124 crore in the previous year. However, its margin contracted ₹140 basis points to 16.1% from 17.5% in the year-ago period.

Meanwhile, Amber Enterprises' profit after tax declined 21% in the first half of the financial year 2026 to ₹72 crore from ₹91.5 crore in the same period last year.

Its revenue for the first half increased 25% to ₹5,096 crore from ₹4,086 crore in the previous year. Its EBITDA increased 66% to ₹348 crore from ₹210 crore, while its margins for the first half expanded to 6.8% from 5.1% in the year-ago period.

Shares of Amber Enterprises ended the previous session 0.6% up at ₹7,841 apiece. The stock has gained 31% in the last six months.

With inputs from Upasana Bhatt

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