Company Update : Amber Enterprises Ltd by Motilal Oswal Financial Services Ltd
Weaker-than-expected result
* Amber reported a weak set of numbers. 2Q is usually the weakest quarter for Amber, mainly due to monsoons.
* Consolidated revenue growth was broadly flat YoY at INR16.5b vs our expectation of 20% growth, mainly due to lower-than-expected demand in the consumer durables segment due to the monsoon and delayed purchases, led by GST 2.0.
* Gross margin increased 40bp YoY to 20.5% vs our estimate of 18.0%.
* Absolute EBITDA declined 20% YoY to INR913m (37% miss on our estimates), while margins contracted 130bp YoY to 5.5% vs our estimate of 7.2%, mainly due to weakness in the consumer durables segment.
* The company reported a net loss of INR329m vs. our estimate of a net profit of INR264m.
* For 1HFY26, revenue/EBITDA increased 25%/12% YoY, while PAT declined 23% YoY and EBITDA margin contracted 80bp YoY.
* For 1HF26, Amber reported a net operating cash outflow of INR7.7b vs. an outflow of INR2b last year, mainly due to a rise in working capital.
Other important disclosures for the quarter
* On 5th Aug’25, ILJIN acquired a 60% stake and majority control in PowerOne for INR2.6b and entered into put and call options to buy the remaining 40%. Power-One has now become a subsidiary of IL JIN and a step-down subsidiary of the holding company.
* IL JIN has subscribed to an additional 110,439,476 ordinary shares of NIS1 each, aggregating to NIS110.4m (equivalent to INR3b), and given an unsecured loan of NIS47.5m (equivalent to INR1.3b) on 6th Oct’25, to further invest in Elbit E.M.S. Electronics (1989) Ltd., a publicly traded company based in Israel.
* On 27th Jul’25, IL JIN signed definitive agreements to acquire a 40.2% controlling stake in Unitronics for NIS156m (INR4.2b). The acquisition was completed through ILJIN Holding on 9th Oct’25.
* During the quarter, Amber raised INR10b through a QIP of 1,257,861 equity shares at INR7,950 each. Proceeds were used to repay INR10b of outstanding borrowings
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