Amber Enterprises India (AMBER IN) – Q3FY26 Result Update – CD Outperforms Despite RAC Weakness – BUY
Published on 10 Feb 2026
Amber’s Consumer Durables (CD) segment grew by 27% YoY in Q3FY26: despite weak RAC industry. Company expects RAC industry to be flat for FY26; however, RAC segment is expected to grow by 13-15% for FY26. Electronics division EBITDA margins expanded by 320bps to 10.4% as company has pass the higher input cost to the customer and expects double digit margin in FY27. Railway division grew by 20.2% in Q3FY26 with the orderbook of Rs 26bn+ in 9MFY26 and company expects to double the revenue in next two financial years. We upward revised our earnings estimate by 4.4%/3.1% for FY27/28E and Maintained ‘BUY’ rating and SOTP-based TP of Rs8,617 (Earlier 8,263) valuing its Consumer Durables segment at 23x EV/EBITDA Mar’28, which implies 20x EV/EBITDA Mar’28E and 41x Mar’28E earnings on consolidated basis. We estimate revenue/EBITDA/PAT CAGR of 21.2%/32.6%/59.7% over FY26-28E with EBITDA margin expanding by ~150bps to reach 8.8% by FY28E.
