Amber Enterprises crashes 15% after Q4: What brokerages are telling shareholders now

Shares of Amber Enterprises India Limited remained under pressure after the company reported its March quarter earnings, with major brokerages turning cautious on the stock amid concerns over slower growth guidance, margin pressure and delays in key electronics projects.

The stock closed at Rs 7,153.50 on May 18, down Rs 1,323 or 15.61 per cent. Despite the recent correction, the stock remains up 14.72 per cent over the past year and has delivered a strong return of 242.58 per cent over the last three years.

Amber Enterprises, which is part of the Nifty Smallcap 100 index and operates in the household appliances segment, has a total market capitalisation of Rs 25,259.62 crore.

The stock is currently trading about 20.29 per cent below its 52-week high of Rs 8,974 touched on May 7, 2026. However, it remains nearly 32.46 per cent above its 52-week low of Rs 5,400.50 recorded on January 27, 2026.

Q4 FY26 Financial Performance

The company on May 16 reported a consolidated net profit of Rs 134 crore for the fourth quarter of FY26, marking a 15 per cent year-on-year increase from Rs 116 crore in the corresponding period last year.

Revenue from operations rose 10.5 per cent year-on-year to Rs 4,148 crore during the quarter, while operating EBITDA increased 15 per cent to Rs 362 crore. EBITDA margins expanded to 8.6 per cent, supported by better operational efficiency and an improving product mix. Gross margins also improved to around 19 per cent.

Analysts Flag FY27 Outlook Concerns

Despite the earnings growth, analysts flagged concerns over the company’s FY27 outlook, especially around margins and execution timelines in the electronics business.

The brokerage JP Morgan maintained a ‘Neutral’ rating on Amber Enterprises and cut its target price to Rs 7,650 from Rs 8,500 earlier. Based on the current market price of Rs 7,153, the revised target implies an upside potential of around 7 per cent.

According to the brokerage, the company’s revenue growth guidance for FY27 came in below expectations. Amber guided for 12-13 per cent growth in its consumer durables segment and 40 per cent growth in its electronics business, both lower than JP Morgan’s earlier estimates.

Delays In PCB Projects And Margin Pressure

JP Morgan also highlighted delays in the company’s printed circuit board (PCB) projects. Trial production at Ascent Circuits is now expected to begin in September-October 2026 compared with earlier guidance of the second quarter of FY27. At Korea Circuits, construction is expected to begin in June 2026, while trial production is now likely only by the third quarter of FY28.

The brokerage further noted that Amber has guided for EBITDA margin compression of 50-100 basis points at the consolidated level in FY27 due to rising raw material costs, especially copper clad laminates and gold, along with higher minimum wages in Haryana and Noida.

As a result, JP Morgan said it has cut its revenue estimates by 7-8 per cent and reduced margin assumptions by 50-120 basis points, leading to earnings per share cuts of 12-36 per cent for FY27 and FY28.

CLSA Sees Better Long-Term Recovery

Brokerage CLSA maintained its ‘Accumulate’ rating on the stock but reduced the target price to Rs 8,100 from Rs 8,650. The revised target suggests an upside potential of nearly 13 per cent from current levels.

CLSA said the sharp decline in the share price after the earnings announcement was largely due to weak margin guidance linked to elevated commodity prices and a lag in passing on higher input costs, particularly in the electronics segment.

However, the brokerage said the March quarter results were ahead of estimates due to better-than-expected growth and profitability. The company has guided for 13-14 per cent growth in consumer durables, 40 per cent growth in electronics and 35 per cent growth in the mobility segment during FY27.

CLSA expects margins to recover in FY28 once commodity costs normalise and higher input prices are passed on to customers.

UBS And Goldman Sachs Turn Cautious

UBS also maintained a ‘Neutral’ stance on Amber Enterprises and trimmed its target price to Rs 7,800 from Rs 8,000 earlier. The revised target indicates an upside of around 9 per cent from the current market price.

Meanwhile, Goldman Sachs maintained a ‘Neutral’ rating and cut its target price to Rs 6,800 from Rs 7,360. The target implies a downside potential of nearly 5 per cent from current levels, making Goldman Sachs the most cautious among the major brokerages covering the stock.

Electronics Division Continues To Drive Growth

Amber Enterprises’ electronics division remained the key growth driver for the company during FY26, posting 49 per cent revenue growth and an 89 per cent rise in EBITDA. The consumer durables segment reported 14 per cent annual revenue growth.

Management, however, warned that profitability could remain under pressure in the near term due to rising costs of copper-clad laminates used in PCB manufacturing.

Regulatory And Working Capital Concerns Remain

Investor sentiment was also impacted by recent government regulations capping compressor imports, which could affect sourcing flexibility for the air-conditioner manufacturing ecosystem.

Another area of concern highlighted by analysts was the sharp increase in working capital days. Net working capital days rose from 9 days in March 2025 to 29 days in March 2026, largely due to inventory build-up undertaken by the company.

Market participants said that while Amber Enterprises continues to benefit from long-term opportunities in electronics manufacturing and localisation, near-term challenges related to margins, regulatory changes and execution delays may keep the stock range-bound.