Amber Enterprises India Limited (NSE: AMBER) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Jasbir Singh — Executive Chairman, Chief Executive Officer, and Whole-time Director
Sudhir Goyal — Chief Financial Officer
Analysts:
Unidentified Participant
Dhruv Jain — Analyst
Praveen Sahay — Analyst
Vipraw Srivastava — Analyst
Sonali Salgaonkar — Analyst
Nirransh Jain — Analyst
Keshav Lahoti — Analyst
Achal Lohade — Analyst
Vishal Dudhwala — Analyst
Arafat Saiyed — Analyst
Madhav Marda — Analyst
Samyak Jain — Analyst
Deepak Dharmavaram — Analyst
Rahul Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 conference call of Amber Enterprises India Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that your conference is being recorded. I now hand the conference over to Mr. Jasbir Singh, Executive Chairman and CEO and whole time Director of Ember Enterprises India Limited. Thank you and over to you sir.
Jasbir Singh — Executive Chairman, Chief Executive Officer, and Whole-time Director
Hello and good morning. On the call today I’m joined by Mr. Daljeet Singh, our Managing Director, Mr. Sudhir Goyal, our Group CFO. We have uploaded quarterly presentation on the exchanges and I hope everyone had an opportunity to go through the same. I’m pleased to report robust performance during the quarter driven by growth in all the three divisions. Despite a challenging season for the room AC industry, the consolidated revenue grew by 44% reaching to 3,449 crores for the quarter and operating EBITDA grew by 31% to 263 crore and PAT of 106 crore recording a 42% growth over previous year.
The operating EBITDA margin was impacted due to divisional mix and product mix. However, we expect the consolidated margins to be in the range of 8 to 9% by FY26 end. Let me now take you through the divisional performances on the consumer durable. This division continued the growth momentum in line with our earlier guidance of outpacing the industry for the year. The growth is driven by the following factors. A diversified product offering, adding wallet share in some customers, expanding component business, conversion of earlier gas charging customers into full ODM customers and robust growth in our commercial AC vertical.
We also onboarded one more multinational customer in commercial AC vertical during quarter one which will contribute a decent growth in quarter four and thereafter. Further, we have signed a strategic cooperation agreement with gmcc, the largest compressor manufacturer of the world, ensuring compressor supplies for three years as per our plans. Based on our cooperation agreement, GMCC is expanding its capacities in India. This expansion will be operational by November of this year. We continue to remain optimistic about outperforming the RSE industry growth by a factor of 10 to 12% for the year supported by our strong portfolio of finished goods and components of to a diversified customer base.
Additionally, on the washing machine front, quality control orders is getting implemented by October 2025 on this product. We are now revisiting this strategy considering the CAPEX required due to this quality control order of washing machines. Coming to Electronics Division, the division continued the stellar growth trajectory almost doubling the revenues to 766 crores reflecting growth of 97% and resultant operating EBITDA of 49 crores with growth of 62%. The performance is driven by both printed circuit board assemblies and bare printed circuit board vertical spanning across the customer segments in consumer durables, arable and wearable, telecom, automotive energy meters and defense.
On the strategic front, we have filed two applications under the Electronic Manufacturing Component Scheme, one for multi layer PCBs through assigned circuits of 990 crore to be spent over the span of the scheme. Second HDI High Density Interface PCBs through Korea Circuit JV for 3200 crores to be spent in phased manner over the scheme. The JV will cater to HDI and flex PCBs bringing advanced technology in country which so far has heavily relied on imports and the buyback arrangement with Korea Circuits offers us early visibility on the revenue. On the strategic front, I am pleased to share that Ailgene Electronics has signed two definitive agreements, one with Power One Microsystems Bangalore and second Unitronics Israel Strengthening the Industrial Segment of the electronics portfolio Talking about the Power one first, it’s prominent player in rapidly growing battery energy storage systems, solar inverter space including on grid, off grid and hybrid solar inverters, EV chargers and industrial ups catering to customers in large public sector units and large corporates.
The industrial segment complements to our well spread portfolio of electronic division. From the financial standpoint it’s a debt free company and clocked impressive EBITDA margin of 17 to 18% on the revenue base of approximately 245 crore in FY25 and is expected to reach 325 crore in revenue in FY26. This partnership enables the following direct synergy to our electronics division. It adds a portfolio of high margin power electronics and energy sector modules. Given the multibillion dollar TAM of this sector, it is highly scalable business. We shall be leveraging the group’s purchasing power and also the capabilities of the component ecosystem such as printed circuit board assemblies, printed circuit board and sheet metal fabrication enabling it to backward integrate and manufacture at scale in tranche 1.
We will pay 262 crores plus a deferred consideration basis on FY26 numbers. We expect the closure of this transaction within next 15 to 20 days. Moving to Unitronics Israel it’s an Israel based listed company and a prominent lead player offering comprehensive solutions in industrial automation and control systems such as programmable logical controllers, Human Machine interface, HMIS PLC is integrated with HMIS VFDS and software solutions. On the financial front, Unitronics command our impressive EBITDA margin profile of about 30% on the revenue base of approximately 57 million, deriving almost 95% of the business from US and European region.
Furthermore, it is a dividend paying company, almost debt free company and generating business ROCE of 60%. This partnership enables the following for us entry into rapidly growing sector of industry automation and control systems, access to global markets like US and Europe, expansion of Unitronics products in the Indian market, leveraging backward integration of printed circuit board assemblies and bare PCB boards and leveraging the purchasing power of the group. The total consideration converted into Indian rupee is expected to be around 403 crore rupees for approximately 40.24% controlling stake. We plan to close the transaction in next 60 to 75 days.
To sum up, both the companies operate in fast growing niches of industrial electronics applications complementing with the strategy of strengthening the industrial portfolio and have rich margin profile which will enhance the divisional profitability and returns and these partnerships will augment the domestic manufacturing in the country aligned with atim Nirvar Bharat Vision. Both these add ons balances volume and value play in our Electronics division. The Electronics division which began by addressing the shift from fixed speed to inverter air conditioners in 2018 and is now evolving into a full stack EMS company. It features printed circuit board assemblies, vertical serving diverse customer segments and a bare printed circuit board vertical offering a range of products including HDI, Flex PCBs and substrates.
Furthermore, the division has expanded its capabilities to include complete box build products into multi billion dollar power electronics, energy market and automation market for industrial applications. With all the add ups we intend to take electronic division to a billion dollar by next three years with target EBITDA of 11.5 to 12% range coming to Railway division, this division delivered a strong performance due to offtake in the Metro projects. The division recorded revenue of 123 crores registering strong growth of 29% and operating EBITDA of 22 crores reflecting growth of 8%. On the expansion front, the construction is progressing well for Sidwal’s Greenfield facility for H vac, pantry doors and gangways and expected to commence operations by quarter four of financial year 26.
With regards to Eugene Machinery Joint venture, new facility for pantographs, driving gear, couplers and brakes is to begin product trials By September of 25, our data center products developed by this division have also started gaining traction. Special cooling products for missile launchers and other defense applications are also gaining traction and are expected to contribute meaningfully in the coming years. Backed by the strong order book and product portfolio expansion, we remain optimistic of doubling the division’s revenue over next two financial years. Now let me hand over to Sudhir Goyal, our CFO for financial highlights. Thank you.
Sudhir Goyal — Chief Financial Officer
Hello everyone. Good morning. I am pleased to report a strong performance for quarter one financial year 26. Let me first take you through the quarterly consolidated financial highlights. The Consolidated revenue for Quarter 126 grew by 44% year on year to Rupees 3,449 crores compared to 2401 crores in in the same quarter last year and operating EBITDA increased to rupees 263 crore for the quarter compared to rupees 200 crore in quarter one financial year 25 reflecting a significant growth of 31% year on year. Please note, operating EBITDA is before impact of ESOP expenses and other non operating income and expenses.
We recorded PAT of rupees 106 crore reflecting a growth of 42% year on year. Now let me take you through the divisional performance overview. Firstly, revenue and operating EBITDA details of the division performance are not comparable with published segmental results. The Consumer Durable Division reported revenue of rupees 2560 crores in quarter one financial year 26 compared to rupees 1918 crores reflecting a growth of 33% year on year. Despite the challenging season for RAC industry, strong performance was achieved on the back of a strong product portfolio including RAC and CAC and continued traction in component vertical Operating EBITDA for the quarter increased by 28% year on year and stood at Rs.
192 crores compared to 150 crore in Q1 financial year 25. Coming to the electronic division performance, the revenue for the quarter increased to rupees 766 crores compared to rupees 388 crores in the same quarter last year reflecting a robust growth of 97% year on year. Operating EBITDA for the quarter increased by 62% year on year and stood at Rupees 49 crore compared to Rs. 30 crores in quarter one financial year 25. If we look at the performance of Ascent, it recorded a revenue of 100 crores in quarter 126 highlighting a growth of 37% against quarter 1 financial year 25 moving to railway systems and Defence Divisional Performance the revenue for the quarter increased to Rs.
123 crores compared to 95 crore in Q1 Financial 25 reflecting a growth of 29% year on year and the resulting operating EBITDA of Rs. 22 crore translating into a growth of 8% year on year, the business delivered strong performance particularly in Metro projects. With a robust order book and an expanding product portfolio, we remain confident in doubling the division’s revenue over the next two financial years. In summary, with all the key Divisional performance strongly consumer durable, delivering robust growth driven by deepening customer engagement and traction in new categories Electronic continuing its strong growth in trajectory and the Railway subsystem and Defense division portfolio expansion, the company is well positioned for a strong growth phase.
This growth momentum coupled with strategic actions like BRPCB expansion and inorganic growth is expected to drive significant growth and lead to a structural improvement in our margin profile over the coming years. Thank you and now I request Operator to please open source for the Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow up question, we would request you to rejoin the queue.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
Thank you for the opportunity and congratulations on a good set of numbers. Sir, first question on your opening remarks you mentioned that you’re looking at electronics business touching a billion dollar revenue in the next three to four years. So just wanted to understand, you know, how much of it will be driven by acquisitions or how much by the barebone PCB and PCBA broadly. Just want some color on how are you thinking about the individual scalability of of these various components of the electronic segment? That’s my first question.
Jasbir Singh
Good morning and thanks for the compliment on electronics division. See it’s a very big TAM today. If I tell you about the manufacturing footprint TAM of room air conditioning industry, that is about 5 billion today as a current year, right? But when we talk about PCB TAM which is about $4 billion PCBA is about 12 to $15 billion today. Under the $135 billion of electronics getting consumed in the country. Then we have added, you know, UPS inverter and battery storage space which is another TAM of $4.75 billion. And plus we have added VFD drives and HMIs and PLCs which is about $6.5 billion times.
So we’ve jumped into ocean on the addressable market side for the products which we are offering now in the electronic space, PCBA, PCB, the industrial parts of HMI and PLCs and drives and the UPS and battery energy sources, it’s about 22 to 25 billion dollars TAM. So I think looking into that whole number of today going to next three to four years, this will be almost double. So out of that billion dollar achieving and I think it’s very much visible the kind of customer profile which we have built on a billion dollar kind of a thing, we should be about 2,000, 2,200 or 2,500 crore in the PCB front by that time.
And largely driven by PCB applications and the industrial portfolio which is HMA PLC’s and inverters plus the other one should be contributing around 1300-1400 crore by that time.
Dhruv Jain
My second question is on the computer durables vertical. So we have seen that has significantly outperformed the industry this quarter and trying to maintain that 10 to 12% outperformance for the full year. Some brands are talking about inventory buildup in the channel at this point of time. So you see that your business in the durables segment sort of slows down in the second and third quarter. Given the fact that there is some still some inventory in the system.
Jasbir Singh
On the inventory numbers generally the inventories are 1.4 to 1.5 million. That’s a standard inventories which the industry carries on. But now the numbers which we have is about 2.5 to 3 million. I mean different research reports are stating different numbers, but that is the inventory. So it’s almost double the inventory what is normally kept by the brands because of the bad season or things. So what we are saying is that whatever the industry will be, normally quarter two and quarter three are anyway the lean season for this industry. That’s a historic trend. In this quarter one and quarter four are the large quarters which contributes about 65% of the revenue.
I think depending on how the offtake will be in the festivities and in the quarter three that will define where the industry is going to head towards and whatever the industry will head if it is flattish we expect that we should be about 15% growth level. If it is negative we will outnumber that number. And if it is positive by 10% we should be there. Because nobody can predict where the quarter four and how good or bad the season will be. But what I would like to tell all of you is that in last 25 years of my experience we have seen seven bad seasons plus two Covid seasons which were impacted in the March of 2020 and March of 2021.
So we have witnessed the disruption because of bad season plus Covid nine years. Nine seasons out of 25. 25 years back the industry was half a million mark. Today industry is 15 million marks. So despite of this I would only request all of you not to see the room air conditioner stocks from a quarterly numbers you will end up buying at the wrong quarter and selling at the wrong quarter. It is to be seen from a long term perspective. You know one bad season is not an impediment for the longer term outlook of this sector.
We are very bullish, we are very optimistic. I believe personally and my team also believes and if you map the number of current households, the division of hnis middle class, lower middle class and BPL families this complete curve is shifting in next five years in the households you can map the number. The number of 15 million should be about 35 million by 2030. So that talks about 2.5x kind of a thing. Of course there will be one or two bad seasons during the time. But on the longer outlook we are very optimistic.
operator
To the question queue for follow up question as there are several participants waiting for their turn. The next question is from the line of Praveen Sahai from Prabhu Das Leeladhar Capital. Please go ahead.
Praveen Sahay
Yeah, thank you for opportunity and many congratulations on a good set of numbers. Sir, first question related to the consumer durable and in the consumer durable you had also an indication of a commercial ac. There is a good extension. So is it possible to quantify like for any, you know indication how much of the contribution that has a reach to. Second question is related to the acquisition of a power one. If you can give you know 350 or crore of a revenue bifurcation in terms of the product mix where it’s largely coming from.
Jasbir Singh
So on the commercial AC front we don’t want to give a number because you know it keeps on changing but it’s growing pretty well. It has grown more than 40% for us because we’ve added product line. Now we can cater Entire range from 3 ton to 17 and a half ton both in the duct tables and the package parts. Plus we also added cassette air conditioners and tower air conditioners which are add on and we are now launching two more products by quarter four. But it is growing pretty well. I think that’s given us a good growth story for good.
Add on that we have done. On the power one front. On the power one. Your second question. Basically we will not be able to give the whole bifurcation of this. What we have the number is that they are targeting 325 crores. Last year it was 245 crores. So it’s going on a good growth. Solar installations and the requirement for battery energy storage space. I think this company has a very big potential of growing almost more than 40% for next three, four years.
Praveen Sahay
So it’s a largely in the solar segment only whether it’s solar inverter or EV charger kind of
operator
We request that you return to the question queue for follow up as there are several participants waiting for their turn. Thank you. Our next question is from the line of Viprao Srivastava from Philip Capital. Please go ahead.
Vipraw Srivastava
Hi sir, I’m audible, right?
Jasbir Singh
Yes, audible.
operator
Yes.
Vipraw Srivastava
Yeah, just quickly. So firstly on the EMS industry so. You know obviously the long term growth. Trigger is there and we remain bullish in that. But so for this year FY26, what kind of growth you are seeing? Should we continue with the quarter 1 run rate or you are seeing any. Ramp up in the coming quarters for the electronics division?
Jasbir Singh
Well see in electronics division largely right now if you see the split we are about 60%. 58% to 60% is still the consumer durable and in consumer durable the quarter two and quarter three are generally the lean seasons. So I don’t think that we will be able to maintain this run rate of 100% growth for quarter two. But on the overall year basis, yes, we are heading towards a very very good growth because the automotive segment has started kicking in. Telecom has gained traction, hairball wearable has gained traction. The smart meters is up and running.
We believe that by year end, by year end we should be bringing the banking of consumer durable to as low as 45% and in next three years to as low as 25% while growing the other segments.
Vipraw Srivastava
Got it sir, the second question quickly. On the financial so you know in. The segmental breakup the other unavocable expenditure has gone up. Reason for that and secondly, why is. The tax rate so high?
Sudhir Goyal
Expenses has gone high. Okay, so I, I think we’ll talk on the list separately. I need to check on this.
Vipraw Srivastava
Okay.
Sudhir Goyal
So since we have some MAD credit available with us. So in the main entity we are still using the old regime of the taxation which is 35% and plus we are getting some additional benefit on the additional depreciation. So we are largely calculating our taxes based on the actual net cash outflow in Texas. So we will shift to the new region once all that benefit has gone away.
Vipraw Srivastava
Sure. Thank you.
Jasbir Singh
Thanks.
operator
Thank you sir. The next question is from the line of Sonali from Jeffrey. Please go ahead sir.
Sonali Salgaonkar
Thank you for the opportunity and a big congratulations to the team for such a stellar set of results. So my first question is regarding the two applications that you have filed under ECMS. One worth about 10 billion, one worth about 32 billion. Via Jeevi. Could you please help us understand the CAPEX requirements for this over the period of next five to six years. And also how much of that do you expect to be subsidized from the central and the state governments? So in an I want to understand what’s our capex outlook for FY26 27.
Jasbir Singh
Thank you Sonali. Basically on the two applications, first one is SM Circus. We filed 990 crores to be spent over a period of scheme out of which the first phase we’ve already announced last year 650crore which is getting implemented and executed this year at new facility in Hasura. Second is the remaining portion of that will we be investing after three years. Second application we have filed is the joint venture with Korea circuits which is 3200 crore. In that the first phase will be 1200 crores in the very first year which will be. We expect that the scheme, the announcements of the approval from the applications filed will be done by maximum October or November by government and then 15 more months for start of production.
So the real I think output, tangible output from this new JV will start coming in maybe quarter four of FY27. And this is the first phase is 1200 crores. Then after two years another 1200 crores. And then last year which is about fifth year will be another remaining portion. Now coming to the incentive scheme in HDA 48% will be given back by the Ministry of electronics and IT and we have negotiated 42% of the incentives by the state governments which is to be reimbursed over period of the scheme. So nutshell. But there is a. There is a catch here.
The MITEI scheme is only applicable on the plant and machinery. The state government schemes are available only on building, plant and machinery. So on a net basis if you will see we will be able to get back almost about 70% of the net invested capital. But this is not a pari passi scheme. First we will have to arrange funds and organize and implement, execute and then apply for this. Out of 48% from MIT, 25% is the capital subsidy which will be given after the start of commercial production. And remaining 23% is to be spread like.
It’s a hybrid of top line incentive and employee linked incentive. It’s a hybrid of TLI and ELI which will be given up in a span of six years. And so are the cases with the state governments. Their incentive also starts from third year and spreading to next five years. So that’s how we will get about 70% back.
Sonali Salgaonkar
So that’s very clear. So is it fair to understand that per annum over at least the next two years our capex in our consolidated balance sheet could be about 5 to 7 billion per annum and not more than that.
Jasbir Singh
If you see on the net capex side I think it will be little more because 650 is being spent this year in ascent. Then we are putting up 150 crore out of the 350 crore announced in the railway division. And then there is a further expansion of the three city plant in this and then Korean JV Korea circuit JV will be will be buying the land piece in this financial year. So these all capex will come here and the remaining portion of the courier circuit JV will come to next.
Sonali Salgaonkar
Understood. Got it. Sandra’s one last question. What is the reason for the decline in the margins in railways? Because last year’s base was low which is why we are checking.
Jasbir Singh
So this is basically because of the product mix. Because metro we have sold more in metro little we have little less margins in the metro in railway we have a little more. But nothing changes on the outlook of Sidwal for the financial year. You have seen these margins getting dipped because of commodity issues and because of the product mix. And even our bus air conditioning division is little bit at a less margin but whereas our defense is at a high margin. So generally in quarter four defense our AMC business and our railway business is more and that’s what brings the whole margin of railway division back to 20% plus range.
Sonali Salgaonkar
Got it. So very clear and congratulations again and all the best.
Jasbir Singh
Thank you.
operator
Thank you. The next question is from the line of Niranj Jain from BNP Paribas. Please go ahead.
Nirransh Jain
Yeah. Hi sir. Good morning and Congratulations again. So my first question is on the double digit margin guidance for electronics division by next year. So is it fair to understand that this will primarily come from the uptick in the essence new physical and the consolidation of the two acquired entities for whose benefit we might start see from third quarter this year itself. And also wanted to check on the Power 1 margin guidance. So till FY24 on the reported financial, the margins used to be in the range of 7 to 8%. So what is leading to the 17 to 18% guidance on the Power One Microsystems.
Jasbir Singh
On the electronics margin guidance? You see, I’ll just take you all through the journey of electronics which is very important for all of you to understand. When we acquired Iljin, this was a 300 crore company manufacturing printed circuit board assemblies for LG and IFB with 2.8% EBITDA. So this was what we started and inherited. For first three years we were very focused in air conditioners and refrigerators and washing machine space. By 2021 the company grew to 500 crores and the margins went to 4%. We were struggling to see that why we are not been able to cross 8, 9% of the range.
And then we realized that we need to balance the volume and the value play. So the large part of the printed circuit board assembly, if you want to be in the highest range of the margins, you need to be in the defense and aerospace. Now that is a high entry barrier business, very sticky business. Net working capital days are little stretched in that business. But margin profile is very good. Second comes the industrials which is again in the range of 15 to 20%. Now industrial itself is a very big ocean. You can divide it into the power electronics part like power one products starting from ups battery energy storage space, you can divide it into hmi, plc, automation related products.
Even the smart meters comes into that. Even railway signaling also comes under industrial. So these are large portions which are in the range of 15 to 20%. Again high entry barriers, sticky businesses, little networking capital stretched, but good decent rocs. Third comes is the medical sector which is again 12 to 14% range. Then comes the automobile sector. Automobile can be further divided into four categories. EV, non EV, two wheeler, four wheeler with two wheeler non EV which is like a high volume business, it’s about 7%. But if you can go for four wheeler EV you can make about 8, 9%.
Then comes the telecom, Then comes a reable wearable and lowest is the consumer durable and appliances. So when we realize this that we are not doing anything wrong, if we Continue to be in consumer durable. Our margins will be in the range of 4 4.5% range. But we have to balance the volume and value play. That’s where the strategy of bringing new applications started. 2022 we added hearable variable 23 we added automobile 24 we added smart meters and defense and now we have added defense this industrial application by inorganic growth. So we are taking gradual steps, careful steps, bringing portfolio very cautiously and then we backward integrated it into PCB to give more solutions and increasing our TAM while being focused in the electronic space which is into PCB sector which is a business of 15 to 20% range depending on what kind of PCB you deliver.
So this is our journey and that’s why we are confident that we will be able to deliver you double digit number by next year. And on the power one margins I think Sudhir. I’ll ask Sudhir to answer that.
Sudhir Goyal
Yeah. Hi. So on the power one, if you see their declared results for financial 24 they used to give their revenue including the GST and GS2 gets adjusted in the notes to the accounts. So if you eliminate that then it is around 9 to 10% plus there is a sum more salary they used to take which is not maintainable after this transaction. So they normally draw the larger salary during the before the transaction. So that will become a maintainable salary and that will bring the EBITDA level to around 70 to 18%.
Nirransh Jain
Sure sir. And so lastly on the funding plan. So out of 4200 crore capex plus another 700800 crore outlay for the acquisitions. So how are we looking at the. Current funding plans especially for the time gap before we start receiving the subsidies.
Jasbir Singh
Well, you must have seen we filed an enabling resolution for the AGM for 2,500 crore of QIP. And our AGM is on 11th of August. And we believe that after the clearance that is one portion, one direction we can take. Second direction is a lot of private equity funds who are chasing to invest in in the electronic division and that could be the second portion to be begin with. So we will see, we will take a right step at the right time and we’ll keep you updated as as an any event happens.
Nirransh Jain
Sure sir. Thank you and all the best.
Jasbir Singh
Thank you.
operator
Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Keshav Lahoti
Thank you for the opportunity. I wanted to get a sense how. Is your RAC component mix right now?
Jasbir Singh
It keeps on varying RAC components and the finished goods because we don’t define the demand side from the customers. We give solutions to whatever is demanded to us. Sometime it is 60, 40, sometime it is reverse 40 60. So very difficult to predict and even give the number.
Keshav Lahoti
Understood, Got it. And so last question on the unit. Round, what sort of growth you are making for next two to three years?
Jasbir Singh
Well, whenever we’ve acquired the companies in last seven acquisitions which we have done, our trend is that for first six quarters, which is about 18 months, we generally get into the company, we integrate our systems, our cultures, we. We understand the company and the possibilities and then drive the growth from there onwards. So I believe currently situation in Israel, they have just moved out of the war, there are still tariff issues happening. So I believe it will be going muted this year while maintaining their EBITDA margins. But yes, very big tam, they don’t have presence in India.
We’ve already hired a very dedicated team for bringing those products in India. India itself has a $6.5 billion total addressable market for the products of unitronics. And secondly is the backward integration in the printed circuit board assembly and pcb. These two things we will start early but larger tangible output of the growth you will see after about six.
Keshav Lahoti
Understood. Just to follow up on this, but the Power One is a different case. That way we continue to grow, you. Know, whatever, upwards of 40% from acquisition only. But I understand.
Jasbir Singh
Yeah, Power One is growing company. It is. They have all the possible, all the required eligible criteria for participating in the government tenders. Their customer profile is very niche like Power Grid Corporation of India, beml, bhel, ntpcl, all of them and the large solar installations. So I believe that they will continue to grow in about 40% range.
Keshav Lahoti
Understood. Thank you so much.
operator
Thank you. Our next question is from the line of Mr. Achal Loharde from Nuvama Institutional Equities. Please go ahead.
Achal Lohade
Good morning sir. Thank you for the opportunity. Congratulations for fabulous growth. So just on the margin part for the consumer derivatives, if you could give us some sense for the quarter we’ve seen a substantial revenue growth but actually a margin contraction. So if you could explain for the first quarter and also give us some sense about the direction, just the way you kind of highlighted for electronics business.
Jasbir Singh
On consumer durable margin, we have profile of business starting from 6% EBITDA to about 9% because some of the components are higher range. The assembly part is at little lower range but on the middle level. And then we have also non room air conditioner components which are at 10% EBITDA also. So that’s the range but it’s very difficult to predict the mix of the components and the finished goods. And within the finished goods there’s a big range starting from 1 tonne to 1 and a half and 2 ton plus all the star rating community. So you know I think very very difficult for us to give any number here.
But yes we should be in the range of 7 to 8% range in the consumer side of the business. But on the electronics we have already explained why we feel that we should be hitting 10% plus range next year. And our railway segment is already at about 20% which we continue to maintain. So overall basis we are very confident that the console balance sheet will move towards about 8.5 times to 9% range.
Achal Lohade
Got it. And just one more question if I may with respect to the accounting part of this for these new ventures, you know will this the depreciation will be on the gross spend or will be only on the net spend if you could give us some sense.
Sudhir Goyal
So depreciation will be on the field valuation of all the assets. So there will be a PPA which will be done for both the acquisitions as per the India’s and whatever is the real value comes fair value comes based on that definitely will be charged. At the console level. At the standalone level the same definitely will continue.
Achal Lohade
Understood. And just on these HD and PCB you know where the subsidies are available this the depreciation will be on the gross value or the net of subsidies.
Sudhir Goyal
So it will be first on the gross value and as and when we are getting so there are two type of subsidies. One is Capex subsidy, one is OPEX subsidy. So Capex subsidy will be reduced from the gross block and then the definitely charge on the after the adjustment of the subsidy and on the OPEX office will be rooted to the P and L account.
Achal Lohade
Understood. Perfect. This is very helpful. So thank you and wish you all the best.
Jasbir Singh
Thank you.
operator
Thank you. Our next question is from the line of Vishal from three Netra asset managers. Please go ahead.
Vishal Dudhwala
Am I audible?
Jasbir Singh
Yes.
Vishal Dudhwala
Thank you for the opportunity and congratulations on a good side of numbers. So I have just one macro question like amber today supplied 20% of India’s RIT inverter. With India EMS industry growing at a. Good pace what local bond share are you waiting for? Inverter AC SM by upcoming events.
Jasbir Singh
If. You are asking only about the inverter air conditioners PCB applications We are serving too many customers in inverter PCB applications. And on the industry side if I see I think we are controlling about 18% to 20% of India’s inverter PCB board requirement.
Vishal Dudhwala
You know I was asking like your. Bill of material you will source in a local way like as PLI means promoting it.
Jasbir Singh
Yeah. So on the we right now there’s, there’s applications going on, factories are yet to be established. Once the component ecosystem start getting available from here, we will be more than happy to source it locally. Like in air conditioners case because of pli. Cross flow fans, inverter, PCB boards, motors, valves, copper tubes, they have started even compressors, they have started getting available from India and we have started sourcing from India. And I believe that is one of the most successful PLIs of the government because the main objective was to increase the value addition.
Currently in 2020 it used to be 25% and now it has touched to almost about 68% local valuation in the air conditioner space and we are buying locally. So similarly, as the PLI announced, PLI scheme has been announced for the component in the electronic space. The moment factories are up and running, we’ll definitely assess them.
Vishal Dudhwala
Okay, thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Arafat Syed from Reliance Nippon Light. Please go ahead.
Arafat Saiyed
Yeah, hi sir. Thanks for taking a question. I hope I’m audible.
Jasbir Singh
Yes, very audible.
Arafat Saiyed
Yeah, yeah. So if you look at let’s say now we are serving almost 70% of warm for room AC, the only thing missing was compressor. But now with the GMCC coming in also as you said in the opening remarks, so what kind of arrangement we have with the GMC and how you see, let’s say can we supply overall compressor in the next couple of quarters on whole that would be.
Jasbir Singh
So our relation with the GMCC was very old relations. But when we saw some of the noise on the shortage coming though we were not convinced with the market’s noise but still we thought that it is better to stitch the deal. So we signed a cooperation agreement with GMCC giving them our core plan of compressor requirement for next three years and they’ve agreed to expand their capacities in India. The expansion is going on right now and I think that new lines which they are putting up, which is not only exclusive, it is not exclusive to us, they will be serving other customers also.
But they are putting this expansion based on these strategic cooperation agreements that will be up and running by November. So till three years we don’t anticipate any short overall from 70% bomb. Yes. We don’t have compressor with us. We don’t have refrigerant. We don’t have copper tubes and aluminum and wiring harness. These are the new categories which we don’t have right now which contributes another 30% of it. As we move ahead and as the markets are moving ahead we will do some, we are currently doing some feasibilities of increasing our bill of material. And as soon as the decision is arrived and the feasibility reports is positive, we will definitely let all of you know.
Arafat Saiyed
And my second question is on again let’s say outsourcing versus insourcing. So in last couple of quarters many, many brands now focusing on in housing insourcing. But now to some extent I think that is not back seated. So how you think, how you think that insourcing and outsourcing pay for the next couple of quarters?
Jasbir Singh
I have seen this strategy being shifted by customers three times in last 20 years. And though market saw it for the first time so we were not. Our business model is that we have mitigated two broad risks as a B2B company. One is brands changing their strategies of insourcing and outsourcing and second is brands exchanging market shares between them. We have seen earlier Korean companies were the leader, then one Indian brand became the leader. And in future we don’t know how that will pan up. But we are suppliers to everybody in the market. We are the solution, integrated solution providers.
Whenever the insourcing or outsourcing shift happens we shift our strategy by supplying components to them. So that’s our mitigation strategy. And we have 24 plants in India supplying components and finished goods out of which 4 are finished goods and remaining 20 are component plants which are located in vicinity to all the customer clusters. So that’s what Amber has developed in last 15 years and that’s what is paying dividend to us today.
Arafat Saiyed
Thanks. That’s it for myself.
operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Madhav Marda
Hi, good morning. Thank you so much for your time. Just wanted to understand the unit economics for the two capex especially the Korea circuit one we’ve been missing 3200 crores. Could you give some sense in terms of the revenue potential and the margin profile and also the working capital required for this project and by when do you think, you know we can ramp up this? I know it’s coming up in phases so maybe for phase one if you could give us some color that itself should be great.
Jasbir Singh
So Madhav on the Ashant circuit in the Hosur 650 crore is getting invested this Year I believe by quarter four or maximum by quarter one of next financial year the plant will be up and running. That is for multi layer PCBs for HDI which is going to be put up in up. That is we are waiting for. We have applied to mite. I think they will take another 60 to 90 days time to assess the applications and then approve the applications. After that we have 15 months for our implementation and execution of the plant. So FY28 first quarter is when we expect this plant to be up and running.
And we the asset terms in this business is about close to about 0.75 to 1 different ranges. But we have offtake arrangement with Korea circuits already signed up. The moment we sign we expect that very first year we should be able to reach to at least 0.75 times of the asset. So in the first phase we are going to implement 1200 crores investment. So you can say that in the very first year we should be getting a top line of almost about 750 to 800 crores from the time it begin the production.
Madhav Marda
So what about the margin profile and the working capital cycle for this kind of business.
Jasbir Singh
Margins normally in the multi level PCB board is somewhere about 15 to 20% range. And on the HDI depending on applications which you serve, it ranges from 15 to 30%. Also if you are catering to defense application, aerospace application you can go to 25% class. But if you are serving to the IT, laptops or telecom products it is in the range of about 15 to 20% and the working capital cycle is almost about 60 to 70 days in this case.
Madhav Marda
Okay, so basically.
operator
For the follow up question, the next question is from the line of Samya Jain from Marcellus. Please go ahead.
Samyak Jain
Good morning sir. Sir, my question is on the two equations that we have made. So on the face of it it appears that it’s a product company. Whereas in our electronics we are mostly contract manufacturing of supply components in our electronics division. So do you see any gaps in the capabilities that we currently have to grow the business? Both the businesses that we have recently acquired.
Jasbir Singh
I’ll give you a little brief of Amber’s history. We started as a component manufacturer of air conditioners. The first component we produced for air conditioner was the outside sheet metal box for window air conditioner. That’s where our journey began. And then that’s when we started assembling the boxes full air conditioners. Then gradually we backward integrated to create modes in the industry. And plus we coupled up from 2012 onwards the R and D capabilities also. So while you see the whole ocean of electronics getting consumed, you know it’s or it is semi knockdown or just the assemblies part of it.
Yes, you are right. We started our journey from printed circuit board assembly. First we grew different applications in that assembly business and then we backward integrated into PCB and now we have started coming into fully box built capabilities also. But within the PCB I would like to highlight that we are already doing box build for telecom, we are doing 4G and 5G equipments, we are doing box build for smart meters and we are doing full box build for Bluetooth speakers and smart watches. So this is already in line. So nothing new, it is just the addition and the type of business which we have added.
Samyak Jain
So what I meant. Got it sir. So what I meant was currently it’s more of a contract manufacturing that we are doing in this businesses. It would be a customer facing B2B kind of wherein we would be directly dealing with all the customers who are consuming this product. So is there any difference or any understanding gap in my, in my understanding?
Jasbir Singh
No, you see like in, in railways it is a business B2G business we have and then we have a business with OEM such as lstom, Bombardier, you know, Siemens, Geeta, Gurd, Bamil and all. In air conditioners we have business with OEMs such as Daikin, Panasonic and all here the unitronics products, they are largely have a business relation with companies like Ingersoll, Rand who are manufacturing compressors, companies who are manufacturing machines, you know, they are their users. So it’s not a consumer facing box built businesses. Similarly, when you come to power one electronics there it’s a B2G combination of B2G business plus projects business.
On B2G business they apply for the tenders, they give solutions for airports, they give solutions for Power Grid Corporation, for bml, for bhl. And on the other side on the solar panel installation, they take tenders for that. So it’s a B2G and B2B businesses, not directly B2C. So there is no business which we’ve added is directly consumer facing.
Samyak Jain
Got it sir. And my second question is on the consumer durables. So while there is slowdown in the AC business, lot of OEMs as well as your peers have reported poor set of numbers while we have grown at a healthy pace.
operator
Request you to rejoin the queue for the follow up questions. The next question is from the line of Deepak from Sundaram Mutual Funds.
Deepak Dharmavaram
Thank you for the opportunity. I’M audible.
Jasbir Singh
Yes.
Deepak Dharmavaram
Jasmine Ji, could you please highlight what was our YOY growth rate in RSE and RAC component and non RSE component within the consumer durable segment for Q1?
Jasbir Singh
So it’s about 30. Sorry, it’s about…
Sudhir Goyal
So RAC has grown by 40%. RAC and RAC both put together is has grown by 40% and non rac component within number has grown by around 10%. And balance is the like motors and the injection molding for the various other applications that has also grown by like 10 to 15%.
Deepak Dharmavaram
Okay so so racing component is 40% and the remaining non RHC component is around 10 to 15%. Is it understanding correct?
Sudhir Goyal
Yes. Yes.
Deepak Dharmavaram
Okay. And so second question is on CapEx. I just want to double click on that because earlier I thought we were spending around 350 crore on Hosu project in FY26 and then again the half of it in FY27. But now you’re talking about spending 650 crore of project in FY26 itself. Right. And then subsequently around 200 crore in phase one for that Korean circuit JV in FY27. So just want to double check what is our consolidated capex plan for FY26 and 27? Could you please break it down by segment within consumer durable, EMS and railway?
Jasbir Singh
No. So let me give you clear picture. On Hosur project out of 650 crore, the land parcel was acquired last year. The remaining portion is getting spread into financial year. The large part of the building and some part of the machinery will come this year which will be around 350 crores or maximum 400 crores. The remaining portion of the capex which will be the last payments of the machines when the machines arrive will be in quarter one of the next year. So technically it got spread in three financial years. The land came last year building and some part of machinery this year and the remaining part of the machinery next year.
Deepak Dharmavaram
Okay, so 350 to 400 this year and the balance would be next year, correct?
Jasbir Singh
That’s right. That’s right.
Deepak Dharmavaram
Okay. And so on this Korean circuit, how.
operator
Would that you to rejoin the queue for the follow up question? The next question is from the line of Rahul Agarwal from Ikigai Assets. Please go ahead.
Rahul Agarwal
Hi Nasgurji. A very good morning. Congratulations for a good sec in a weak environment. So two questions. One is, you know, looks like very hyper growth for andor in electronics and ahead. You know my sense was, you know you’re also getting into larger margin acquisitions now. You know the challenge essentially going forward could be managing people, you know, having heads of department and then integrating all of this into, you know, the ambus culture as of now. Just wanted to understand what are the gaps you filled, you know, to handle such a large, you know, revenue.
The P and LS are going to be, you know, very big going forward and what are the gaps, you know, which are still left to be addressed. So that’s the first question. And secondly on cash flow, I think there are a lot of questions revolving around, you know, how much is going to be the capex purely because there are going to be timing mismatches once you raise the funds, whenever, in case the board approves that, you know, just wanted to be double sure that what is the peak debt Amber plans, you know, over the next, let’s say just by March 26, you know, how does the balance sheet shape up for Amber? Confirm if Sudhir can help us on understanding the overall cash outflow for the business over the next nine months and what could be the peak debt, that will actually calm down the nerves a bit mainly because till then we’ll have full clarity on what is the equity funding plan and then we can work around the further numbers.
So those are my two questions. Thank you.
Jasbir Singh
So for the first question regarding the management bandwidth, what we do at Amber is the moment we start the due diligence process of any company, prospective company, to be a quality acquired or to be partnered with. We first of all onboard who is going to lead that portion and who is going to integrate those companies after we acquire. So that is a proactive approach which we take. Just to give an example, when SM Circuits was acquired parallelly Santosh was onboarded who was MD and CEO of the company, Large company catering in India, multinational company and then parallel Mr.
Agrawal joined us who’s taking care of the electronics division with Sanjay Aurora. And now since Power One and Unitronics have been onboarded already, the team leaders who will be heading this have been onboarded from large multinational companies. They have already joined. In fact most of the vetting of the products and also the technical due diligence has been done by our own team now. So this is proactive approach which we take and you know, and good part of these both two acquisitions is that both the promoters are, they are traveling our journey further with us. So you know, they will be with us for the next five years and we don’t think any big change coming in and the large part of the CEOs of the company, they have agreed to continue with us so we don’t see any big change on the and challenge on the managing bandwidth as far as the Korea circuit JV Skepex is concerned and the numbers on the debt levels what you were asking.
I would like to tell all of you that that at Amber I would like to guide this to all of you that at Amber we have taken a very strategic decision that we should be net debt free company by next financial year end. So that is our plan in case we have though we have a policy and principle approved at the board level that we will never ever cross two times of debt ebitda but looking into the current situation and the capex plans we will be raising some funds and we’ll keep you all posted. I think we are aiming to be a net debt free company by next financial year.
Rahul Agarwal
Thank you for clarifying that and all the best for the rest of the year.
Jasbir Singh
Thank you.
operator
Thank you ladies and gentlemen. Due to time constraints that was the last question for today. I now hand the conference over to management for closing comments.
Jasbir Singh
Thank you everyone for joining on the call. For any further information kindly get in touch with Our head of IR Mr. Ravi Kharbanda Rohit Singh from his team, from our IR team, our strategic growth advisor, our investor relation advisors. Thank you very much. Have a good day.
operator
On behalf of amber Enterprises India Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.