Amber Enterprises Share Price Crashes After Weak Q2 Results

Market Performance

Stock market today saw sharp movement in Amber Enterprises as the stock slipped into one of the top losers of the session. The Amber Enterprises share price dropped 14% in early trade, sliding to a four-month low of ₹6,736.

The fall came right after the company reported its September quarter numbers, which missed expectations across major performance indicators. Sellers dominated the stock through the morning, pulling it down rapidly and adding pressure across discretionary manufacturing counters.

Main News: Amber Enterprises Q2 Results Trigger a Sharp Fall

The sentiment around the Amber Enterprises share turned fragile the moment the Q2 performance hit the exchanges. The September quarter marked a reversal from profitability, weighed down by challenges in key business segments.

Here are the financial details from the quarter:

• Net Loss: ₹32 crore (vs. net profit of ₹21 crore last year)
• Revenue From Operations: ₹1,647 crore, down 2% YoY
• EBITDA: ₹91.2 crore, down 19.2% YoY
• EBITDA Margin: 5.5% vs 6.7% last year (a contraction of 120 bps)

The shift into losses was primarily linked to weak traction in the room air conditioner (RAC) segment. Unseasonal rains and delays in purchases around the GST reduction timeline hurt demand during the quarter.

Rising financing costs further weighed on the company’s earnings. The company absorbed increased borrowing costs stemming from the Power-One stake purchase, elevated inventory levels, and the share of loss from joint ventures — all of which collectively dragged profitability.

Industry estimates show that the RAC category declined nearly 35% during Q2 due to the weather impact and purchase deferment. This broader industry slowdown added pressure on the company’s core consumer durables business, which reported an 18% YoY drop in revenue.

Company Details: Segment Performance & Business Update

Even as the RAC business struggled, other divisions displayed resilience and growth momentum.

• The electronics division grew 30% YoY, showcasing steady demand in component manufacturing.
• The Railway Sub-systems & Defense division reported 7% YoY revenue growth in Q2.

The company highlighted an improvement in visibility for its Railway Sub-systems & Defense order book, backed by a wider product portfolio. The division’s order book now stands at ₹2,600 crore, and it contributed 8% to total revenue in the quarter.

Summary

The Amber Enterprises share price crash reflects the market’s reaction to a quarter marked by a ₹32 crore net loss, lower margins, and pressure on the RAC segment. Revenue slipped 2%, EBITDA fell 19.2%, and margins tightened to 5.5%.

While certain divisions — electronics and railway systems — delivered healthy growth, the overall numbers for Amber Enterprises Q2 weighed heavily on sentiment in stock market today, pushing the stock down 14% to a four-month low.