Amber Enterprises rises 3% in trade; Motilal Oswal, Nuvama retain 'Buy'

Amber reiterated its strong FY26 revenue growth guidance of 40-45 percent for electronic segment, with margins expected between 8-9 percent

Amber Enterprises shares climbed 2.8 percent, logging an intra-day high at ₹6,810 per share on BSE. At 9:56 AM, Amber Enterprises share price was trading 1.52 oer cent higher at ₹6,725 per share. In comparison, BSE Sensex was down 0.35 per cent at 84,967.13.  Nuvama Institutional Equities and Motilal Oswal Financial Servies have reiterated their ‘Buy’ rating on Amber Enterprises. While Nuvama maintained its target price at ₹9,100, Motilal Oswal adjusted its target downwards to ₹8,000 from ₹8,400. These analyses follow recent interactions with Amber's management and analysts.

Amber Enterprises management commentary highlights:

Consumer Durables: Management is targeting double-digit growth in FY26 for this segment. However, near-term margins could face pressure from elevated copper prices, INR depreciation, and the upcoming shift to a new energy-rating regime effective January 1, 2026. Over the medium term, the division is projected to achieve a 15–17 percent Compound Annual Growth Rate (CAGR), driven by premiumisation, increased inverter penetration, expansion in commercial Heating, ventilation, and air conditioning (HVAC), and greater original equipment manufacturer (OEM) outsourcing.    CATCH STOCK MARKET LIVE UPDATES TODAY

 

Electronics Business: Amber Enterprises reiterated its strong FY26 revenue growth guidance of 40–45 percent, with margins expected between 8–9 percent. The company aims for $1 billion in revenue by FY29E, targeting an operating Earnings before interest, tax, depreciation and amotisation (Ebitda) margin of 11–13 percent. Margin improvement from the current 8 percent to 11–13 percent in the medium term is anticipated, fueled by backward integration, synergy benefits, product mix optimization, and operating leverage.  Mobility Division: Management expects the segment to remain largely flat this year. However, it foresees significant growth from next year, with substantial contributions from the Vande Bharat and metro rail programs. The company is confident in doubling Mobility revenues by FY28 as these projects scale up.

Key risks

Motilal Oswal has flagged lower-than-expected demand growth in the Room Air Conditioner (RAC) industry, change in  Bureau of Energy Efficiency (BEE) norms making products costlier, change in announced capex policy, and increased competition across the RAC, mobility, and electronics segments as key concerns for Amber Enterprises.

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