Amber Enterprises shares plunge 14% on reporting loss in Q2

Amber Enterprises post-market hours on Thursday reported a loss of ₹33 crore in the second quarter of the current financial year against a net profit of ₹19 crore in the same period last year. The company’s loss came on the back of weak performance by the room air conditioner vertical.

Its revenue from operations declined 2% in Q2 to ₹1,647 crore from ₹1,685 crore a year earlier.

The company reported weak operational performance, as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), also known as operating profit, declined 21% to ₹91 crore, and its operating profit margin contracted by 130 basis points to 5.53%.

"The room air conditioner (RAC) industry got impacted by non-conducive weather and deferment of purchase in between announcement & implementation of GST rate reduction. Despite the challenges, we delivered flattish revenue of ₹ 1,647 crore and operating EBITDA of ₹ 98 crore, reflecting a decline of 19% YoY and a loss after tax of ₹ 32 crore in Q2FY26. The PAT during the period got further impacted by the higher financing cost owing to the Power-One stake purchase & elevated inventory levels and the share of loss of JVs. On the way forward, inventories are getting to the normalised levels," said Daljit Singh, Managing Director.

As per the industry estimates, the RAC industry declined sharply by 35% during Q2 owing to non-conducive weather conditions and deferment of purchase in between announcement and implementation of GST reduction, Amber Enterprises noted.

Despite the challenging RAC industry, the Consumer Durables division recorded revenue growth of 15% in H1FY26 and a decline of 18% in Q2FY26 on a YoY basis. For the full year, we continue to remain optimistic of outpacing RAC industry growth, Amber Enterprises added.

The company's printed circuit board (PCB) vertical margins got impacted by the higher raw material prices, and the company expects to pass it on to customers starting in the fourth quarter.

As of 9:46 am, Amber Enterprises shares traded 12.75% lower at ₹6,833, underperforming the NIFTY50 index, which was down 0.65%.