Amber Enterprises Ltd. experienced a sharp decline in its stock value on Monday, with shares tumbling 16.81 percent to a day's low of Rs 7,047.65. This downturn occurred despite the company reporting robust financial performance for the fourth quarter of fiscal year 2026 (Q4 FY26), surpassing analyst expectations across revenue, EBITDA, and reported profit after tax (PAT).
Strong Revenue Growth, But Profit Hit by JV Issues
Motilal Oswal Financial Services Ltd (MOFSL) noted that Amber's consolidated revenue surged 11 percent year-on-year (YoY) to Rs 4,150 crore, exceeding their estimate by 10 percent. The growth was broad-based across all segments, accompanied by a significant expansion in gross margin by 220 basis points (bp) YoY to 18.8 percent.
Absolute EBITDA also saw a healthy 22 percent YoY increase, reaching Rs 360 crore, which was 22 percent above MOFSL's projections. EBITDA margins expanded by 70 bp YoY to 8.6 percent, driven by better-than-expected margins across all operational segments.
However, the positive financial indicators were overshadowed by a crucial factor: a substantial 39 percent YoY decline in adjusted PAT, settling at Rs 70.4 crore, significantly below MOFSL's estimate of Rs 110 crore. This decline was primarily attributed to heavy losses incurred by one of Amber's joint ventures (JVs).
The brokerage highlighted that these JV losses stemmed from unexpected challenges, including disputes with one of its largest customers who suspended payments on all invoices. This situation led to considerable operational and financial stress for the JV entity. MOFSL clarified that had it not been for these specific JV issues, the adjusted PAT would have actually risen by 16 percent YoY to Rs 130 crore, surpassing their estimates by approximately 15 percent.
Analyst Outlook and Technical Levels
Despite the Q4 adjusted PAT dip, MOFSL has maintained a 'Buy' rating on Amber Enterprises for the long term. For the full fiscal year 2026, Amber reported a 22 percent increase in revenue, a 25 percent rise in EBITDA, and a 10 bp expansion in EBITDA margin, though adjusted PAT for the year declined by 11 percent YoY.
From a technical standpoint, Virat Jagad, Senior Technical Research Analyst at Bonanza, observed a sharp correction in Amber Enterprises shares. The stock faced rejection near the upper boundary of its long-term rising channel, around the Rs 8,700–8,800 zone, indicating profit booking. Jagad noted that the stock has fallen below its short-term moving averages, and the Relative Strength Index (RSI) has entered the bearish zone, signaling weakening momentum.
Jagad advised caution in the near term, stating that the trend remains negative unless the stock reclaims the Rs 7,650–7,800 range. Immediate support is identified near Rs 7,000, with stronger support anticipated around Rs 6,400–6,500, which aligns with the lower channel support. On the upside, resistance levels are seen near Rs 7,650, followed by the Rs 8,400–8,800 range.