The Amber Enterprises share price witnessed a sharp fall on Monday, May 18, after the company warned about margin pressure in its room air-conditioner (RAC) business despite posting strong quarterly earnings. The stock plunged nearly 16% during early trade, making it the steepest single-day decline for the company since May 2022.
At around 10:00 am, shares of Amber Enterprises India were trading at Rs 7,122, down Rs 1,357.50 or 15.98% from the previous close.
Why Amber Enterprises Share Price Is Falling
The sharp correction in the Amber Enterprises share price came after the company’s management highlighted possible pressure on future margins due to rising copper prices. Copper is a key raw material used in air-conditioners, and the increase in costs is expected to impact profitability in the RAC segment going forward.
Although the company delivered better-than-expected EBITDA margins in the March 2026 quarter, investors remained concerned about the sustainability of earnings growth in the coming quarters.
The company also reported a one-time impairment related to its investment in Shivalik, along with losses from a joint venture, which further affected market sentiment.
Amber Enterprises Q4 FY26 Results
Amber Enterprises reported strong financial performance for the March 2026 quarter. Consolidated net sales rose 10.49% year-on-year to Rs 4,147.52 crore compared to Rs 3,753.70 crore in the same quarter last year.
Net profit increased 15.34% to Rs 133.88 crore from Rs 116.07 crore a year ago. Meanwhile, EBITDA climbed 20.54% year-on-year to Rs 378.33 crore, compared to Rs 313.85 crore in the corresponding quarter last year.
Earnings per share (EPS) also improved significantly to Rs 38.04 from Rs 34.32 in the year-ago period.
Despite these strong numbers, the Amber Enterprises share price remained under pressure as investors focused more on future margin risks rather than current earnings growth.
EBITDA Margins Beat Street Estimates
One of the biggest positives in the quarterly earnings was the improvement in operating margins. The company’s overall EBITDA margin expanded by 70 basis points year-on-year to 8.6%, beating Street expectations of around 7.8%.
Amber Enterprises also posted its highest EBITDA margin in the last 20 quarters.
Gross margins improved by 220 basis points to 18.8%, supported by the successful integration of acquisitions such as Shogini Technoarts, Power One Electronics, and Unitronics.
Segment-Wise Performance
The consumer durable business reported relatively muted growth during the quarter. Revenue from the segment increased 6% year-on-year, while margins declined by 40 basis points to 7.2%.
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However, the electronics division delivered a strong performance. Revenue from the segment jumped 21%, while margins expanded sharply by 480 basis points to 10.8%.
The railway sub-system business also showed healthy momentum, reporting 22% revenue growth. However, margins in this segment declined due to a higher base effect.
FY27 Outlook Remains Positive
Despite the sharp correction in the Amber Enterprises share price, the company remains optimistic about future growth. Management stated that the electronics division is expected to maintain strong momentum and could deliver nearly 40% revenue growth in FY27.
The railway business is also projected to grow between 30% and 35% in FY27 after reporting 19% growth in FY26.
For FY26, the consumer durable segment recorded 14% revenue growth, in line with the company’s guidance.
Broader Market Weakness Added Pressure
The fall in the Amber Enterprises share price also came amid broader weakness in Indian equity markets. Selling pressure intensified across large-cap, mid-cap, and small-cap stocks on Monday morning.
At around 10:02 am, the NIFTY 50 was down 1.19% at 23,363, while the BSE SENSEX slipped nearly 900 points to around 74,339.
The broad-based decline reflected cautious investor sentiment amid rising global and domestic concerns.