Amber Enterprises shares skyrocket 20% to fresh high after Q2 numbers, up 103% YTD

Shares of Amber Enterprises India surged nearly 20% on Wednesday, October 23 to their all-time high of ₹6,815.85 apiece after the company's September quarter results for fiscal 2025 (Q2 FY25) exceeded market expectations.

In Q2 FY25, the company's consolidated revenue grew 82% year-over-year (YoY) to ₹1,685 crore, driven by strong consumer demand due to prolonged summers and lower channel inventories. Operating EBITDA saw an 85% YoY increase, reflecting the company's strategic focus on RAC and components, along with growth in the Electronics Division.

It reported a profit after tax of ₹19.24 crore, a significant turnaround from a ₹6.94 crore loss in the same period last year.

The company posted strong numbers across its divisions. The Consumer Durables division saw a 95% YoY revenue growth, driven by robust performance in both RAC and non-RAC components. The Electronics division surged 98% YoY, fueled by expansion into new business lines and advanced PCB manufacturing through a JV with Korea Circuit.

The Railway Subsystem & Mobility division experienced a 6% decline in revenue due to slower material uptake by Indian Railways.

In the Consumer Durable segment, the company continues to expand its product offerings, adding Tower Air Conditioners, Window Top Throw Inverter Series, Tropical High Efficiency Split Air Conditioners, and Cassette Air Conditioners. The revenue from the Consumer Durables division grew 95% YoY, driven by strong performance in RAC and non-RAC components. 

During the quarter, the company announced that it successfully converted a major MNC customer from a gas charging service to a full ODM (Original Design Manufacturing) solution and onboarded a new customer for its Tower AC segment, as per the company's Q2FY25 earnings filing.

In the Electronics Division, the company is diversifying into new business applications through PCBA and Bare PCB manufacturing. The expansion of Ascent Circuit's new plant and a JV with Korea Circuit open up new growth opportunities.

Meanwhile, the company's strong order book and new product additions in railway subsystems and defense provide long-term visibility on growth.

Stock surges over 103% YTD

Today's surge has boosted the stock's year-to-date (YTD) gain to 103.30%, marking its strongest annual performance since CY20. From its 2019 low of ₹621 per share, the stock has skyrocketed by 940% to date.

Notably, the stock embarked on a one-way rally in April 2023 and has maintained its upward momentum ever since, posting a remarkable gain of 250%.

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