Amber Enterprises India reports a significant rise in first-quarter profit and revenue, fueled by rapid growth in its electronics division and strategic partnership with Oppo, amid ongoing expansion plans and market opportunities.
Amber Enterprises India said first-quarter profit and revenue rose sharply, as the maker of air conditioners and electronics components leaned on faster growth in its electronics arm and steady demand in its core consumer durable business. In the three months to June 30, consolidated revenue increased 13% from a year earlier to INR3,888 crore, operating EBITDA climbed 28% to INR337 crore and adjusted profit after tax rose 19% to INR126 crore, according to the company’s earnings call disclosed by GuruFocus.
The strongest momentum came from electronics, where revenue advanced 29% and operating EBITDA more than doubled to INR107 crore, lifting the margin to 10.8%. Jasbir Singh, the company’s executive chairman and chief executive, said Amber remained on track with its collaboration with OPPO for mobile phone manufacturing, including brands such as OnePlus and Realme. Trial production is expected in the fourth quarter of fiscal 2027, with commercial production due in the first quarter of fiscal 2028. The initial run-rate is set at about 8 million units, rising to 15 million-16 million in the second year.
Singh also said Amber still expects electronics revenue growth of more than 40% this fiscal year, supported by its PCBA, PCB and power electronics businesses. The company recently broke ground on an HDI PCB facility at Jewar and is advancing a multi-layer PCB plant at Hosur, moves it says should deepen domestic manufacturing and reduce import dependence. The broader addressable market for those electronics verticals is expected to expand materially by the end of the decade, the company said on the call.
Not all parts of the group moved in step. The consumer durable division grew 8% in the quarter, which management described as strong against a high comparison base, while saying it expects full-year growth broadly in line with the room air-conditioner industry, estimated at 13%-15%. Amber said the railway subsystem and defence business posted 18% revenue growth, though operating EBITDA fell 26% because of product mix, higher commodity costs, currency weakness and wage increases in Haryana. Even so, the company kept its full-year revenue growth target for that segment at 30%-35%.
Profitability in the electronics chain was hit by a sharp rise in copper-clad laminate costs, which Amber said was squeezing bare PCB margins until price increases can be passed on to customers. Singh said that lag is typically about two quarters and that margins should normalise from the third quarter of fiscal 2027 if raw material prices do not rise further. The company also said it is adequately insured for the fire at its ILJIN unit and has shifted work to other sites to limit disruption. Still, net debt rose to about INR1,225 crore by June 30 from INR510 crore at the end of March, as Amber stepped up spending on expansion and acquisitions.
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