After a 15% fall yesterday, Amber shares now face sharp target price cuts from analysts

Brokerages turned cautious on Amber Enterprises India Ltd following the company’s Q4FY26 earnings call, with JPMorgan and CLSA lowering their target prices after management flagged margin pressure, slower growth expectations and delays in certain electronics projects.

The revised brokerage views came a day after Amber Enterprises shares had declined sharply following its Q4FY26 results and management commentary. The stock had closed at ₹7,153.50 on Monday, down 15.61%.

JPMorgan maintained its “Neutral” rating on the stock but cut its target price to ₹7,650. The brokerage said Amber’s FY27 revenue growth guidance came in below its expectations, especially in the consumer durables and electronics segments.

According to the brokerage, Amber guided for 12–13% growth in the consumer durables business against JPMorgan’s estimate of 16%, while electronics growth guidance stood at 40% versus the brokerage’s expectation of 59%.

JPMorgan also highlighted delays in the company’s bare PCB projects. Trial production at Ascent Circuits is now expected to commence in September-October 2026 instead of Q2FY27 earlier, while Korea Circuits is expected to begin construction from June 2026 with trial production likely by Q3FY28, compared to earlier expectations of first-half FY28.

The brokerage further noted that Amber expects consolidated EBITDA margins to compress by 50–100 basis points in FY27 due to rising raw material costs, particularly copper clad laminates and gold, along with higher minimum wages in Haryana and Noida.

Following the management commentary, JPMorgan cut its revenue estimates by 7–8% and reduced margin assumptions by 50–120 basis points, resulting in earnings per share cuts of 12–36% for FY27 and FY28.

CLSA also lowered its target price on Amber Enterprises to ₹8,100 while maintaining its “Outperform” rating. The brokerage said investor concerns appear to be centred around weak near-term margin guidance due to higher commodity prices and delayed pass-through of input costs, particularly in the electronics segment.

However, CLSA noted that Amber’s Q4FY26 operational performance remained ahead of estimates on the back of better growth and profitability. The company has guided for 13–14% growth in consumer durables, 40% growth in electronics and 35% growth in mobility for FY27.

The brokerage added that margins could recover in FY28 as input costs normalise and pricing pass-through improves.

Amber Enterprises had reported Q4FY26 revenue of ₹4,148 crore, up 10.5% year-on-year, while EBITDA rose 21.5% to ₹358 crore. Net profit increased 15.3% to ₹133.87 crore during the quarter.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Brokerage views mentioned are their own.