Archive · 7 Nov 2025
Amber Enterprises Reports ₹32 Crore Net Loss in Q2 FY26
Amber Enterprises, a company that makes air conditioners and other products, had a tough quarter.
Instead of making money like they did last year, they lost ₹32 crore.
Their sales also dropped a little.
This happened because the weather wasn't great for selling air conditioners, and some people waited to buy them because of changes in a tax called GST.
The company also had to pay more for borrowing money and had too many parts stored up.
Some of the companies they work with also lost money.
However, one part of their business that makes things for trains is doing well and has lots of orders.
The company also expects to do better than the air conditioner market for the whole year.
They also got approval for a new investment in making circuit boards.
Amber Enterprises reported a net loss of ₹32 crore for Q2 FY26, a significant shift from a ₹21 crore profit in the same period last year.
Revenue from operations declined by 2% year-on-year to ₹1,647 crore during the quarter.
The company cited industry-wide challenges in the RAC segment, including unseasonal weather and GST-related purchase deferrals, as key reasons for the performance.
Higher financing costs, elevated inventory levels, and joint venture losses also impacted the profit during the period.
Despite the Q2 downturn, Amber Enterprises remains optimistic about outpacing RAC industry growth for the full fiscal year and sees strength in its Railway Sub-systems & Defence division.
- Who
- Amber Enterprises
- What
- Reported a net loss of ₹32 crore for the September quarter (Q2 FY26) and a 2% decrease in revenue.
- When
- November 7, 2025 (reporting for the July-September quarter)
- Where
- India
- Why
- Impacted by non-conducive weather, purchase deferrals due to GST changes, higher financing costs, and elevated inventory levels affecting the residential air-conditioner industry.
Company's Explanation
Market Interpretation
Q2 Performance Factors
Company's Explanation
Amber Enterprises attributes its net loss of ₹32 crore and a 2% revenue drop to industry-wide challenges in the RAC segment, including unseasonal weather, purchase deferrals due to GST rate changes, higher financing costs from the Power-One stake purchase, elevated inventory levels, and losses from joint ventures.
Market Interpretation
The market reacted negatively to the company's Q2 results, indicated by a significant drop in share price, suggesting investor concern over the reported financial downturn and the factors contributing to it.
Future Outlook for RAC Segment
Company's Explanation
The company remains optimistic about outpacing RAC industry growth for the full fiscal year, expecting GST reforms and rate reductions to boost industry growth by improving affordability and supporting premiumization.
Market Interpretation
Despite the company's optimism, the immediate market reaction implies skepticism about the speed of recovery and the company's ability to achieve its projected growth amidst ongoing industry challenges.
- Company
- Amber Enterprises
- Reporting Period
- Q2 FY26 (July-September)
- Net Profit/(Loss)
- Net loss of ₹32 crore (compared to a ₹21 crore profit in Q2 FY25)
- Revenue from Operations
- ₹1,647 crore (down 2% year-on-year)
- Key Challenges Cited
- Unseasonal weather, GST-related purchase deferrals, higher financing costs, elevated inventory levels, share of loss of JVs
- Consumer Durable Division Performance (H1 FY26)
- 15% revenue growth
- Railway Sub-systems & Defence Division
- Strengthened order book visibility
- ECMS Approval
- Received approval for Ascent Circuit's multi-layer PCBs application for investment of ₹991 crore
Sources
Amber Enterprises slips into loss in Q2 as revenue dips slightly
Amara Raja Energy’s Q2 net up 17% at ₹276 cr
Amber Enterprises shares tumble 14% on weak Q2 earnings; details here
Amber Enterprises share price crashes 14% to four-month low after weak Q2 performance. Time to sell?
