Amber Enterprises India (AMBER IN) – Q1FY27 Result Update – Margin Pressures Temporary; Growth Remains Intact – BUY
Published on 15 Aug 2026
Amber’s Consumer Durables (CD) segment reported ~7% YoY growth in Q1FY27. Management guided that RAC segment is expected to grow broadly in line with the industry at ~13–15% in FY27, supported by its focus on premium/high-value ACs and increasing contribution from light commercial ACs. The company has maintained its guidance of ~40% revenue growth in the Electronics division, while the Railways division is expected to deliver ~30–35% revenue growth with margins of ~16–17% in FY27, backed by a robust order book of ~INR27.5bn. AMBER is progressing with its Oppo partnership, targeting trial production in Q4FY27 and commercial production from Q1FY28, with initial volumes of ~8mn units and a ramp-up to ~15–16mn units in the second year. We downward revise our earnings estimates for FY27/28E by 1.4%/1.1% and Maintained ‘BUY’ rating and SOTP-based TP of INR 9,244(Earlier 8,646) valuing its Consumer Durables segment at 23x EV/EBITDA Mar’28, which implies 21x EV/EBITDA Mar’28E and 46x Mar’28E earnings on consolidated basis. We estimate revenue/EBITDA/PAT CAGR of 41.8%/32.6%/79.7% over FY26-28E.
