Amber Enterprises shares jump 5% despite widening Q2 loss to ₹80 crore; further pain ahead in FY27 guidance?

Amber Enterprises, one of India’s leading equipment manufacturers, shares surged 5% after the opening bell on Friday, November 13, as investors analysed the company’s weak July to September quarter (Q2) bottomline performance for the financial year 2026-27, against strong revenue growth at a time when the management predicts further pain in its full-year guidance.

NSE data showed that Amber shares surged 5% to hit an early market high of ₹6,520 apiece on Friday's market, in comparison to ₹6,209 apiece at the previous equity market close.

As per the latest NSE filing, Amber Enterprises’ net losses widened around 144% year-on-year (YoY) to ₹80 crore in the second quarter of FY27, in comparison to ₹33 crore net loss in the corresponding quarter of the previous year.

Despite the increase in bottomline losses, the company’s topline revenue from core operations growth remained robust, advancing 60% YoY to ₹2,627 crore in the period under review, from ₹1,647 crore in the same quarter a year ago, as per the consolidated statements.

The overall expenses also expanded nearly 61% to ₹2,737 crore, largely due to the sharp increase in raw material costs in the period, which also impacted the company’s margin growth and forward guidance.

Amber shares were in focus among investors on Friday’s market, as the company disclosed its Q2 FY27 earnings report with the exchanges after market operating hours and close to midnight on Thursday, November 12.

Margins under pressure

Data showed that the company’s gross margins declined around 170 basis points (bps) to 18.8% in Q2 FY27, from 20.5% in Q2 FY26, due to the impact of the rising cost of raw materials in the market.

The filings showed that Amber’s cost of raw materials increased by more than 55% to ₹1,975 crore in the second quarter, as per the consolidated statements.

The operating profits or earnings before interest, tax, depreciation, and amortisation (EBITDA), improved 30% YoY to ₹127 crore, in comparison to ₹98 crore in the corresponding quarter of the previous fiscal year.

However, this 55% rise in cost also impacted the company’s operating EBITDA margins, which contracted 110 bps to 4.8% in the September quarter, from 5.9% in the same period a year earlier.

As Amber’s bottomline losses expanded in the period under review, the profit margins also shrank to a -2.5%, from -2% in the period year.

What is Amber’s FY27 guidance?

The company’s management said that the consumer durables margins were impacted by commodity inflation, foreign currency volatility, minimum wage revision, and the Sri City new plant cost, which is in an expansion phase.

Amber expects the segment to deliver revenue growth broadly in line with RAC industry growth, with margins expected to be impacted by 50-100 basis points (bps) for the full year.

For its railway subsystems and defence business, Amber’s margins were impacted due to fixed-price contracts amid commodity price inflation, forex fluctuations, and minimum wage revision in Haryana.

“FY27 revenue growth expected to be around 15-20%, impacted by project delays,” Amber’s management informed the investors.

The segment margins are expected to rebound to normal levels in FY28, conditional on the delivery of the old projects.

Amber’s stock performance

NSE data showed that Amber Enterprises shares have been on a downtrend for the past one year, losing nearly 13% of their value, with nearly flat performance in the last two years on the Indian stock market.

On a year-to-date (YTD) basis, the stock is down 3.7% and has lost 6.4% in the past one-month period. The exchange data also showed that the stock has lost 3% in the last five market sessions.

However, in the long term, Amber shares have delivered more than 87% returns on their investment in the last five years, and more than 100% gains on their investment in the last three years.

The household appliance maker’s market capitalisation (m-cap) was at ₹21,897 crore as of the stock market close on Thursday, November 12.