Amber Enterprises India (AMBER IN) – Q4FY26 Result Update – Temporary Margin Pressures: Growth Remains Intact – BUY
Published on 18 May 2026
Amber’s Consumer Durables (CD) segment reported ~7% YoY growth in Q4FY26. Management expects the RAC industry to grow ~13–14% in FY27, with Amber likely to grow broadly in line with industry trends, supported by cumulative RAC price hikes of ~14% YoY driven by commodity inflation and regulatory changes. The company guided for ~40% revenue growth in the Electronics division with EBITDA margins of ~9.5–10%, 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 ~INR26bn. We have revised our earnings estimates as we had factor in the consolidation impact of Unitronics Israel, in which Amber has increased its stake to 50.4%, strengthening its industrial automation business. Maintained ‘BUY’ rating and SOTP-based TP of Rs8,396 (Earlier 8,646) valuing its Consumer Durables segment at 23x EV/EBITDA Mar’28, which implies 20x EV/EBITDA Mar’28E and 44x Mar’28E earnings on consolidated basis. We estimate revenue/EBITDA/PAT CAGR of 22.5%/29.3%/75.4% over FY26-28E with EBITDA margin expanding by ~90bps to reach 8.7% by FY28E.
