The top line surged. The bottom line bled.
Amber Enterprises India Ltd. reported a widened net loss of ₹66 crore for the second quarter of FY27, missing consensus expectations even as overall revenue scaled past street estimates. The contract manufacturer had posted a net loss of ₹32 crore in the corresponding quarter last year, while consensus forecasts penciled in a narrower loss of ₹57 crore.
Revenue from operations jumped 60% year-on-year to ₹2,627 crore, easily crushing market projections of 19% growth. Yet operational profitability cracked under severe input pressures.
| Financial Metric | Q2FY27 Reported | Year-Ago Period (Q2FY26) | Market Estimate |
|---|---|---|---|
| Net Revenue | ₹2,627 crore | — (+60% YoY) | +19% growth |
| Net Profit / (Loss) | (₹66 crore) | (₹32 crore) | (₹57 crore) |
| EBITDA Margin | 3.7% | 5.5% (-180 bps) | 7.1% |
| Gross Margin | 19.0% | 21.0% (-200 bps) | — |
| Electronics Revenue Growth | +94% YoY | — | +30% growth |
The electronics division served as the operational engine for the quarter. Segment revenue spiked 94% year-on-year, blowing past the estimated 30% growth threshold.
Then came the drag.
The consumer durables unit—which accounts for approximately 47% of Amber's total revenue mix—slipped into a loss at the PBIT level. That reversal dragged company-wide EBITDA margin down 180 basis points year-on-year to 3.7%, falling far short of the 7.1% market estimate. Gross margin shrank 200 basis points to settle at 19%.
Management linked the margin collapse in consumer durables to four distinct cost burdens: raw material price inflation, foreign currency swings, revised statutory minimum wages, and ongoing operational ramp-up expenses at its Sri City manufacturing hub.
Market Context: Contract manufacturers face severe margin compression during capacity expansion cycles. When currency swings and raw commodity spikes hit simultaneously, early-stage facilities like Sri City act as an operational drag until volume throughput achieves scale economies.
Full-year margin visibility remains cautious across primary product lines.
Amber indicated that revenue growth in consumer durables will track pace with the broader room air conditioner industry. But margin headwinds will linger. Segment margins are slated to absorb a full-year compression of 50 to 100 basis points as absorption costs continue.
And rail mobility offers partial relief. Amber projected FY27 revenue growth of 15% to 20% for its railway sub-systems division.
On the bourses, Amber Enterprises shares ticked up 0.23% to close at ₹6,209 on Thursday ahead of the numbers. The stock has dropped roughly 4% year-to-date, with trading desks set to price in the Sri City cost overhang and widened quarterly deficit as markets reopen on Friday, November 13.