Amber Enterprises shares jumped more than 9% on November 13, 2026, even though the company reported a widened net loss of ₹80 crore for the second quarter (Q2) of the financial year 2026-27. This increase in loss came despite a strong 60% growth in revenue, showing mixed financial results for the equipment manufacturer.
- Amber's Q2 net loss widened 144% year-on-year to ₹80 crore.
- Revenue grew 60% to ₹2,627 crore in Q2 FY27.
- Rising raw material costs increased expenses by 61%.
- Gross margins declined by 170 basis points to 18.8%.
- EBITDA improved 30% to ₹127 crore but margins contracted.
- Management expects 15-20% revenue growth in FY27 with margin pressure.
Why did Amber Enterprises’ net loss increase despite higher revenue?
Amber Enterprises reported a net loss of ₹80 crore in Q2 FY27, which is a 144% increase compared to the ₹33 crore loss in the same quarter last year. The loss widened mainly because the company’s expenses rose sharply by 61%, reaching ₹2,737 crore. This increase was largely due to a 55% rise in raw material costs, which negatively affected the company’s profit margins.
How did revenue perform in the second quarter?
The company’s revenue from core operations grew strongly by 60% year-on-year, reaching ₹2,627 crore in Q2 FY27 compared to ₹1,647 crore in Q2 FY26. This growth shows that Amber Enterprises was able to increase its sales significantly despite the challenging cost environment.
What happened to Amber’s profit margins and operating profits?
Amber’s gross margins declined by 170 basis points, falling from 20.5% in Q2 FY26 to 18.8% in Q2 FY27. The operating profit, measured as earnings before interest, tax, depreciation, and amortisation (EBITDA), improved by 30% to ₹127 crore. However, the EBITDA margin contracted by 110 basis points to 4.8% due to increased costs. The net profit margin also worsened, dropping to -2.5% from -2% the previous year.
What factors affected Amber’s margins?
The company’s margins were impacted by several factors including commodity inflation, foreign currency volatility, minimum wage revisions, and costs related to the expansion of a new plant in Sri City. These factors increased the cost base and pressured profitability in the consumer durables segment.
What is Amber Enterprises’ outlook for FY27 and beyond?
Management expects revenue growth of around 15-20% for the full financial year 2026-27, although this growth is expected to be affected by project delays. Margins are anticipated to be lower by 50 to 100 basis points due to ongoing cost pressures. The company’s railway subsystems and defence business also faced margin challenges because of fixed-price contracts amid inflation and wage increases. However, margins in this segment are expected to recover to normal levels in FY28 if project deliveries improve.
How has Amber Enterprises’ stock performed recently?
Amber Enterprises shares have faced a downtrend over the past year, losing nearly 13% of their value. Year-to-date, the stock is down 3.7%, and it declined 6.4% in the last month. Despite recent declines, the stock has delivered strong long-term returns, gaining over 87% in the last five years and more than 100% in the last three years. As of November 12, 2026, the company’s market capitalization stood at ₹21,897 crore.
