Home / Business and Economy / Amber Enterprises Stock Tumbles 18% on JV Losses
Amber Enterprises Stock Tumbles 18% on JV Losses
18 May
Summary
- Amber Enterprises shares fell nearly 18% on Monday.
- Net profit rose 15% to Rs 134 crore, but adjusted profit declined.
- Company anticipates future margin pressure of 50-100 basis points.
Shares of Amber Enterprises experienced a sharp decline of nearly 18% on Monday, marking its most significant single-day drop in approximately four years. This downturn followed the company's financial results for the January-March quarter of FY26.
For the fourth quarter of FY26, Amber Enterprises reported a consolidated net profit of Rs 134 crore, a 15% increase from the previous year. Revenue also grew by over 10% to Rs 4,148 crore. Operating EBITDA increased by 15% YoY to Rs 362 crore, with gross margins improving to around 19% in FY26.
Despite these positive figures, the adjusted profit after tax declined significantly due to substantial losses incurred by one of its joint ventures. These losses stemmed from unforeseen challenges in legacy contracts and disputes with a major customer, which led to suspended payments.
Looking ahead, Amber Enterprises management has projected potential consolidated margin pressure of 50-100 basis points. This outlook, coupled with the JV losses, contributed to the stock's steep fall on Monday.
