Amber Enterprises Flags 50-100 bps FY27 Margin Hit From Wage, PCB Cost Spikes
Amber guides consolidated margin compression of 50-100 bps in FY27 as Haryana wages jump 35%, UP wages 22%, and copper-clad laminate and gold prices surge 60%. RAC volumes still expected to grow 12-13%, with Q1 tracking ~20%. Stock cratered 17.6% to Rs 6,980. Capex of Rs 1,800-2,000 cr earmarked for PCB expansion in FY27.
What happened
Amber Enterprises guides 50-100 bps consolidated margin pressure in FY27 from north India wage hikes, copper-clad laminate and gold cost spikes, despite RAC
Key facts
- 50-100 bps margin pressure FY27
- shares down 17.6% to Rs 6,980
- RAC industry volume growth 12-13% FY27
- Q1 growth ~20%
- Haryana wages +35%
- UP wages +22%
- copper-clad laminate +60%
- gold +60%
- FY27 capex Rs 1,800-2,000 cr
- FY28 capex Rs 1,400-1,500 cr
- electronics FY26 revenue Rs 3,268 cr (+49%)
- EBITDA Rs 287 cr (+89%)
- electronics FY27 growth ~40%, margin 9.5-10%
- consumer durables +14% FY26
Why this matters
Amber's PCB capex push and input-cost squeeze open a window to negotiate backward-integration JVs or bolt-on laminate/component suppliers while its valuation is reset.