Amber Enterprises Reports Q2 Net Loss of ₹32.9 Crore Amidst Revenue Dip and Higher Costs

Amber Enterprises India Ltd has reported a consolidated net loss of ₹32.9 crore for the second quarter of the fiscal year ending September 30, 2025. This marks a reversal from the net profit of ₹19.2 crore recorded in the corresponding quarter of the previous fiscal year. The company's revenue from operations experienced a decline of 2.2%, falling to ₹1,647 crore from ₹1,684 crore year-on-year.

Management attributed this downturn to several factors, including escalating operational costs and subdued demand across several of its core business segments. The company also noted the influence of seasonality and a slower pace of orders from clients following a robust performance in the summer quarter. Despite the quarterly setback, the company's shares closed 0.6% higher on Thursday, and its year-to-date gain stands at 2.21%.

In contrast, Amber Enterprises had a strong first quarter of the current fiscal, reporting a 44% increase in net profit to ₹104 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 31% to ₹256 crore. However, profit margins saw a slight decrease to 7.4% from 8.2% in the prior year, influenced by pressures across all three business segments.

Impact: This negative earnings report could lead to cautious investor sentiment and potentially affect the company's stock price in the short term. Investors will closely monitor management's strategies to address cost pressures and demand challenges in upcoming quarters. Rating: 6/10

Difficult Terms Explained: Consolidated Net Loss: The total loss incurred by a parent company and its subsidiaries after all expenses, taxes, and interest have been paid, reflecting the overall financial health of the group. Revenue from Operations: The total income generated from the company's primary business activities, excluding other income sources. Fiscal Year: A 12-month period used for accounting and financial reporting purposes, which may not necessarily align with the calendar year (January-December). EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization is a measure of a company's operating performance, indicating profitability before accounting for financing decisions, accounting decisions, and tax environments. Margins: Profit margins (e.g., EBITDA margin) indicate the percentage of revenue that remains after deducting specific costs, showing the company's profitability efficiency.