Amber shares tank 14% on weak Q2 results; should you buy, hold or sell?

Amber Enterprises Q2 earnings: The room air condition (RAC) industry got impacted by non-conducive weather and deferment of purchase in between announcement & implementation of GST rate reduction.

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Share price of Amber Enterprises today

 

Shares of Amber Enterprises (Amber) tanked 14 per cent to ₹6,737.35 on the BSE in Friday’s intra-day trade after the company reported a disappointing operational performance for the second quarter of the financial year 2025-26 (Q2FY26).

 

With today’s decline, the stock price of the household appliances company has slipped 22 per cent from its 52-week high of ₹8,625 touched on October 29, 2025. It had hit a 52-week low of ₹5,238.45 on February 18, 2025.

 

Amber’s Q2 results

 

In Q2FY26, Amber delivered flattish revenue of ₹1,647 crore, and operating earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹98 crore, reflecting decline of 19 per cent year-on-year (YoY). EBITDA margins declined by 128 bps YoY and 190 bps QoQ at 5.5 per cent to subdued revenue contribution and operational deleverage. 

 

The company posted a loss after tax of ₹32 crore in Q2FY26, against a net profit of ₹21 crore over the same quarter of previous year. The earnings during the period got further impacted by the higher financing cost owing to Power-One stake purchase & elevated inventory levels; and share of loss of joint ventures (JVs).

 

The room air condition (RAC) industry got impacted by non-conducive weather and deferment of purchase in between announcement & implementation of GST rate reduction. Amber reported a weak set of numbers. Q2 is usually the weakest quarter for Amber, mainly due to monsoons

 

On the way forward, inventories are getting to the normalised levels. The GST reform and the reduction of GST on RACs from 28 per cent to 18 per cent will strengthen the industry growth by enhancing affordability, driving deeper penetration, and supporting premiumisation. 

 

ICICI Securities view on Amber

 

Overall air conditioner segment remained weaker during this quarter due to overhang of inventory across channels however the company has been able to manage the EBITDA margins due to its improved product mix. Consumer durable segments remained subdued due to weak demand however other segments registered strong growth. Amber has been positioning itself from an RAC manufacturer to a diversified EMS player with capex undergoing for PCB and copper clad manufacturing, ICICI Securities said in a note. 

 

The brokerage firm believes that the inventory overhang and subdued demand of air conditioners due to seasonality is a temporary challenge. With upcoming plans of expansion company holds strong potential to showcase robust growth supported by diversification, ICICI Securities maintains BUY on Amber.