Whalesbook
Amber Enterprises reported resilient Q4 FY26 results, navigating industry headwinds effectively. Revenues climbed 10% year-over-year to ₹4,148 crore, with adjusted profit after tax surging 27%. However, operating margins tightened by about 50 basis points year-over-year, driven by rising commodity costs and currency depreciation.
Electronics Division Leads the Way
The Electronics division was a standout performer, achieving 49% year-over-year revenue growth for FY26. This growth was driven by scaling up PCBA manufacturing, strategic acquisitions, and shifting to a full-stack Electronic Manufacturing Services (EMS) model. Amber expects this segment to grow another robust 40% in FY27, supported by capacity expansions and new partnerships in high-growth PCB areas.
Railway Segment Shows Strong Momentum
Amber's Railway Sub-systems & Mobility segment also showed strong momentum, growing 22% year-over-year in Q4. This rebound was fueled by improved execution on key metro and Vande Bharat projects. New facilities for critical components, such as braking systems, are nearing commercial production, positioning the segment for an expected 30-35% revenue growth in FY27.
₹1,800-2,000 Crore Capex Planned for FY27
Looking ahead, Amber Enterprises is set for a significant investment phase. The company plans a gross capital expenditure of ₹1,800-2,000 crore for FY27. These funds will support expanding PCB manufacturing, localizing electronics production, and strengthening its railway division, reflecting a strong commitment to India's manufacturing localization efforts.
Valuation Appears Reasonable Despite Margin Pressure
While near-term margins could face pressure from ongoing commodity inflation and wage adjustments, Amber expects to pass these costs on within the next two quarters. The long-term prospects in electronics and import substitution remain compelling. Valued at approximately 41 times projected FY28 earnings, the company's valuation is considered reasonable given its clear long-term growth visibility and strategic positioning.