AMBER

Enters Investment Phase with Aggressive Expansion Plans

posted a robust operational rebound in Q3FY26, with revenue up 38% YoY and margin expansion across key segments. Electronics emerged as the primary growth driver, while Consumer Durables rebounded after a weak season. Despite strong operating performance, net profit was impacted by impairment charges, labour code provisions, and higher finance costs. Q3FY26 Performance Highlights - Revenue: +38% YoY, led by Electronics and Consumer Durables. - Operating margin: Expanded 110 bps YoY, driven by Railways and Electronics. - PAT: Net loss due to ₹94 crore impairment (Titagarh Firema), ₹9 crore labour code impact, and higher finance costs. Consumer Durables Division - Revenue: +27% YoY, supported by RAC rebound, portfolio expansion, and channel stocking ahead of BEE transition. - FY26 guidance: 13–15% growth, despite flat industry volumes. - Margins: Moderated 30 bps YoY due to commodity volatility and currency depreciation. Electronics Division - Revenue: +79% YoY, led by PCBA scale-up and acquisitions. - EBITDA margin: Expanded 330 bps YoY despite raw material pressures. - Strategic moves: - Acquisition of Ascent Circuits (multi-layer PCBs). - Hosur PCB facility (₹650 crore capex), trial by Sep ’26, mass production Q3FY27. - JV with Korea Circuit for HDI/flexible PCBs (₹3,200 crore expansion). - Acquisition of Shoguni Technocrats (₹506 crore). - Fundraise: ₹1,750 crore from marquee investors. - Medium-term target: $1 billion revenue, 11–12% EBITDA margins in 3 years. Railways & Mobility - Revenue: +20% YoY, driven by metro and Vande Bharat projects. - Partnerships: Titagarh Rail Systems, Yujin Machinery (braking systems). - Commercial production expected H2FY27; management targets doubling revenue in 2 years. Outlook & Valuation - Capex: ₹800 crore FY26, ₹1,100–1,200 crore FY27. - Strategy: Deepen localisation, backward integration, and move up value chain. - Valuation: ~45x FY28E earnings, factoring in recovery.