Amber Enterprises shares jump 5%; Nuvama sees more upside post strong Q4 growth

Shares of Amber Enterprises India Ltd surged 5.14 per cent to hit a high of Rs 6,575 in Tuesday's trade. The stock was last seen up 3.17 per cent at Rs 6,450.50. At this price, it has slipped 15.92 per cent on a year-to-date (YTD) basis.

Nuvama Institutional Equities said Amber has delivered a robust performance in Q4 FY25. The company reported strong year-on-year (YoY) growth across key financial metrics, with revenue rising by 34 per cent, EBITDA increasing by 33 per cent, and PAT (profit after tax) growing by 23 per cent.

The domestic brokerage noted that the company has further solidified its leadership position in the room air conditioner (RAC) segment, increasing its market share by 100 basis points (bps) to 27 per cent. Looking ahead to FY26, the company is guiding for a 10–12 percentage point outperformance compared to the broader RAC industry, signalling continued momentum despite some sectoral headwinds.

Nuvama underscored that the electronics segment continues to be a major growth engine for Amber, recording 82 per cent YoY growth in FY25. It expects this segment to maintain strong traction in FY26, with estimated growth of 30–40 per cent YoY.

Despite trimming FY26E EPS estimates by 11 per cent to account for softer RAC industry growth, Nuvama has maintained its 'BUY' call on the stock, with a revised target price of Rs 7,980 for March 2026.

Nuvama mentioned that Ascent Circuits' Rs 650 crore Hosur expansion is on track and commercial production would start in Q4 FY26. "The company is in the land finalisation stages for the Korea Circuit JV with potential capex of Rs 3,000 crore over five years," it added. 

Amber Enterprises manufactures heating and ventilation equipment. It offers refrigerators, heat exchangers, air conditioners, home appliances, vacuum forming, and lighting products. Amber also produces auto parts, injection moulding and sheet metal components. As of March 2025, promoters held a 39.72 per cent stake in the company.