Amber Enterprises’ shares will continue to be in focus after brokerage firm Elara trimmed its target price by nearly 10 per cent to Rs 8,630 following the company’s Q4FY26 results, citing rising margin pressures despite a steady operational performance. While the company reported a 10.5 per cent year-on-year rise in revenue to Rs 4,148 crore and a 15 per cent growth in EBITDA, Elara flagged concerns over elevated input costs and weak room air conditioner (RAC) demand, leading to a 15 per cent cut in its FY27 and FY28 earnings estimates. The brokerage, however, retained its ‘Buy’ rating, highlighting long-term growth prospects driven by strong momentum in the electronics and Sidwal segments.
The company’s revenue from operations rose 10.5 per cent year-on-year to Rs 4,148 crore during the quarter, while operating EBITDA increased 15 per cent to Rs 362 crore. EBITDA margins expanded to 8.6 per cent, supported by better operational efficiency and an improving product mix. Gross margins also improved to around 19 per cent. Amber Enterprises’ topline looks subdued but margins are holding firm and the outlook still stays strong.
Management remains confident on growth ahead, backed by a healthy order book in the electronics division but the real story is what’s driving that confidence despite shifting customer demand.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
