Why did Amber Enterprises reported loss despite 80% QoQ increase in revenue?

Synopsis: Amber Enterprises reported strong Q3 FY26 revenue growth of 79% QoQ and 38% YoY, driven by robust performance across consumer durables, electronics, and railway divisions. However, a Rs 103 crore exceptional charge, including investment impairment and labour code impact, led to a net loss, overshadowing operating growth.

The shares of this company, which has a decent share in the total room air conditioner market and is a prominent solution provider for the air conditioner industry in India, had its shares in focus after the company announced its Q3 results with growth in revenue but ended with a loss.

With the market cap of Rs 26,100 crore, the shares of Amber Enterprises India Ltd have gained about 6% and reached a high at Rs 7,450, compared to their previous day’s closing price of Rs 7,043.40. The shares are trading at a PE of 112, whereas its industry PE is at 51.

About the Q3 Result highlights

The revenue from operation for the company stood at Rs 2,943 crore when compared to Rs 2,133 crore in Q3 FY25, growing by about 38 per cent on a YoY basis and on a QoQ basis increasing by 79 per cent from Rs 1,647 crore in Q2 FY26.

The PAT fell when you compare the Q3 FY26 loss at Rs 9.34 crore to the Rs 37 crore profit in Q3 FY25 and, on a QoQ basis, has reduced from the Rs 32.15 crore loss in Q2 FY26.

Why the loss despite such revenue growth?

Exceptional charges amounting to approximately Rs 103 crore have affected profitability to a great extent, as it is a one-time charge directly influencing profit and loss accounts. The major factor is related to the write-down of an extraordinary amount of Rs 93.77 crore, being related to the Group’s Investment and Loan Advances in Shivaliks Mercantile Limited due to financial problems faced by its associate company, Firema, in Italy. Due to a lack of clarity on recoverability, restructured loans following the Italian Crisis Code, and operational issues, a conservative view was taken in writing off this amount, which directly affects pre-tax profit.

Moreover, an additional amount of around Rs 9.33 crore relates to the incremental financial impacts due to India’s newly notified labour codes, mainly impacting higher gratuity and compensated long-term absence costs. Although this is regulatory-driven and non-recurring, this impacts employee costs; hence, it is immediately expensed and reduces earnings for this quarter.

Essentially, these two items add up to approximately Rs 103 crores, thus substantially impairing the profit figures, as these are largely non-operational in nature. Though these exceptional items do not point towards a reduction in the operating performance, these are substantially impacting the bottom-line figures, as these are taken into consideration as exceptions.

Management Commentary on the 3 Main segments:

Mr Daljit Singh, Managing Director, said: 

Consumer Durables Division 

“Despite a challenging RAC industry, the Consumer Durable division recorded a revenue growth of 27% in Q3FY26 on a YoY basis. The RAC industry has transitioned to the revised, higher-efficiency BEE star-rating norms effective 01 January 2026, marking a key shift toward enhanced energy performance and sustainable cooling solutions. On the full-year outlook, we continue to remain optimistic of outpacing the RAC industry.”

Electronics Division 

“The Electronics Division continues its growth journey, recording a revenue growth of 79% in Q3FY26 on a YoY basis. Together with our recent acquisitions, i.e., the Power-One, Unitronics, and Shogini acquisitions, it accelerates the Electronic Division’s journey towards diversified, margin-accretive, and value-orientated solutions. “

Railway Sub-systems & Defense Division 

“The Railway Subsystems & Defence division recorded a revenue growth of 20% in Q3FY26 on a YoY basis. We remain confident of the division’s long-term growth, driven by a healthy order book visibility and an expanding product portfolio. Overall, our focused strategic initiatives across divisions position us well to enter the next phase of the company’s growth.”

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Why did Amber Enterprises reported loss despite 80% QoQ increase in revenue? appeared first on Trade Brains.