Amber shares plunge 15.61% despite a third straight quarter of margin recovery
Margins improved as revenue grew faster than expenses, but remained 6.17 percentage points below the Consumer Discretionary peer median.
Filed 16 May 2026, 03:25 IST · after market close · Amber Enterprises India Ltd (AMBER)
Key takeaways
- Consolidated operating margin improved 0.79 percentage points year on year to 8.64% as revenue growth of 10.49% outpaced expense growth of 9.55%.
- Net profit rose 36.77% year on year, helped by a 13.85-percentage-point drop in the tax rate, while interest and depreciation increased 18.61% and 71.27%.
- The stock fell 15.61% after the results, far beyond its 3.05% median absolute move after the previous eight result announcements.
Price around the results
Q4 margin recovery continued, but the peer gap remained wide
Amber's consolidated revenue grew 10.49% year on year, while expenses rose 9.55%, lifting operating margin by 0.79 percentage points to 8.64%. This was the third straight quarterly improvement from the 5.54% margin in Q2FY26, after 8.36% in Q3FY26. The margin was still 6.17 percentage points below the 14.81% median for 93 Consumer Discretionary peers, placing Amber 18th from the bottom.
Commodity prices and currency pressure tempered operating leverage
Management said Q4FY26 margins were affected by a surge in commodity prices and currency depreciation, even though expenses grew slower than revenue. Interest expense rose 18.61% year on year and depreciation increased 71.27%, limiting the conversion of the 21.53% operating-profit growth into pre-tax profit growth of 12.05%. The company told investors that the Sidwal greenfield facility is in trial production, with commercial production scheduled to begin in Q1FY27.
Net profit benefited from a lower tax rate and other income
Net profit increased 36.77% year on year, well ahead of pre-tax profit growth, as the tax rate fell 13.85 percentage points to 23.35%. Other income represented 8.1% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution. Sequentially, the lower interest expense and the reversal from negative other income in Q3FY26 supported the sharp recovery in pre-tax profit and net profit.
Expansion pipeline is moving beyond air-conditioner components
Management said the new Ascent Circuits multi-layer PCB facility at Hosur is expected to begin trial production by September or October 2026. It also said Ascent-K plans to invest Rs 3,200 cr over the scheme tenure at Jewar, where construction is planned to start by June 2026 and trial production is expected by Q3FY28. The presentation also flags progress on the Pune PCB-assembly expansion and said the Yujin JV is ready for commercial production in H2FY27, subject to RDSO approval.
The market reaction was unusually severe for Amber
The stock fell 15.61% on the reaction day and was down 15.90% after one session, with volume at 6.94 times the reference level. That compares with a 3.05% median absolute move after the previous eight results announcements, during which the stock rose five times and fell three times. The reaction therefore marked a much larger-than-usual decline for this stock.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,148 cr | ₹2,943 cr | +40.94% | +10.49% |
| Other income | ₹17 cr | ₹-57 cr | — | +167.92% |
| Expenses | ₹3,789 cr | ₹2,697 cr | +40.52% | +9.55% |
| Operating profit | ₹358 cr | ₹246 cr | +45.56% | +21.53% |
| Operating margin (%) | 8.64% | 8.36% | — | — |
| Interest | ₹65 cr | ₹79 cr | -18.40% | +18.61% |
| Depreciation | ₹99 cr | ₹91 cr | +8.85% | +71.27% |
| Profit before tax | ₹211 cr | ₹19 cr | +1039.14% | +12.05% |
| Tax | ₹49 cr | ₹28 cr | +76.95% | -29.66% |
| Net profit | ₹162 cr | ₹-9 cr | — | +36.77% |
| EPS (₹) | ₹38.04 | ₹-7.75 | — | +10.84% |
Operating margin of 8.64% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -15.61% | -15.64% |
| Next session | -15.90% | — |
| 5 sessions | -11.97% | -13.62% |
| 15 sessions | -8.85% | — |
| 30 sessions | -12.10% | — |
Volume on the results session was 6.94× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The new Ascent Circuits multi-layer PCB facility at Hosur is expected to begin trial production by September or October 2026.
- Ascent-K plans to invest ₹3,200 crore over the scheme tenure for its Jewar facility.
- Construction of the Ascent-K Jewar facility is planned to start by June 2026, with trial production expected by Q3FY28.
- Construction is progressing for the PCB-assembly facility expansion in Pune.
- The Sidwal greenfield facility is in trial production and commercial production is scheduled to begin in Q1FY27.
- The Yujin JV facility is ready, with commercial production anticipated in H2FY27 after requisite RDSO approval.
New initiatives
- The company raised its Unitronics stake to 50.4% from an initial 40.2% stake in October 2025.
- Brakes were added to the Yujin Machinery JV product line-up, further enhancing wallet share.
Problems & risks
- Q4FY26 margins were impacted by a surge in commodity prices and currency depreciation.
What to watch
- Whether operating margin holds above 8.64% while commodity prices and currency movements remain a stated pressure.
- Progress toward Sidwal commercial production in Q1FY27 after trial production.
- Execution of the Ascent Circuits Hosur facility ahead of the September or October 2026 trial-production timeline.