Why Amber Enterprises shares crashed after Q4 results: What worried the Street?

Shares of Amber Enterprises Ltd recorded a sharp decline in Monday's trade, despite the company posting a strong set of numbers in Q4 FY26, with beats across revenue, EBITDA, and reported PAT. The stock tumbled 16.81 per cent to hit a day's low of Rs 7,047.65.

Motilal Oswal Financial Services Ltd (MOFSL) noted that Amber's consolidated revenue grew 11 per cent year-on-year (YoY) to Rs 4,150 crore, 10 per cent above its estimate.

"This was supported by growth seen across all the segments. Gross margin expanded 220bp YoY to 18.8 per cent vs. our estimate of 17.4 per cent. Absolute EBITDA increased 22 per cent YoY to Rs 360 crore, indicating a beat to our estimates by 22 per cent, while margins expanded 70bp YoY to 8.6 per cent vs. our estimate of 7.8 per cent due to better-than-expected margins across all segments," it added.

Although, the brokerage highlighted that adjusted PAT declined 39 per cent YoY to Rs 70.4 crore, as against its estimate of Rs 110 crore. 

"While revenue and EBITDA expanded, Adj PAT declined mainly due to heavy losses booked by one of its JVs due to unexpected and unforeseen developments that were outside and beyond the control of the JV entity. These included challenges in certain legacy contracts and disputes raised by one of its largest customers, who suspended payments of all invoices, which resulted in significant operational and financial stress. Adjusting for that, PAT rose 16 per cent YoY to Rs 130 crore (~15 per cent above our est.)," MOFSL stated.

"For FY26, revenue/EBITDA/PAT increased 22 per cent/25 per cent YoY, and Adj. PAT declined 11 per cent YoY, while EBITDA margin expanded 10bp YoY," it further stated.

With that being said, MOFSL has assigned a 'Buy' call on Amber.

From a technical perspective, Virat Jagad, Senior Technical Research Analyst at Bonanza, said, "Amber Enterprises has witnessed a sharp correction after facing rejection near the upper boundary of its long-term rising channel around Rs 8,700–8,800, indicating profit booking at higher levels. The stock has also slipped below its short-term moving averages, while RSI has dropped sharply near the bearish zone, reflecting weakening momentum."

He added, "The trend remains cautious in the near term unless the stock reclaims the Rs 7,650–7,800 zone. Immediate support is placed near Rs 7,000, followed by a stronger support around Rs 6,400–6,500, which coincides with the lower channel support. On the upside, resistance is seen near Rs 7,650 and then Rs 8,400–8,800 levels."