Amber Enterprises India Limited (NSE: AMBER) Q3 2026 Earnings Call dated Feb. 10, 2026
Corporate Participants:
Jasbir Singh — Executive Chairman, Chief Executive Officer, and Whole-time Director
Sudhir Goyal — Chief Financial Officer
Analysts:
Natasha Jain — Analyst
Dhruv Jain — Analyst
Sonali Salgaonkar — Analyst
Indrajit Agarwal — Analyst
Pulkit Patni — Analyst
Tanay Shah — Analyst
Praveen Sahay — Analyst
Keshav Lahoti — Analyst
Rahul Agarwal — Analyst
Sameet Sinha — Analyst
Nirransh Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the amber Enterprises India Limited Q3 and 9 months FY26 earnings conference call. 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 the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jasbir Singh, Executive Chairman, CEO and Whole Time Director of Ambar Enterprises India Limited.
Thank you. And over to you sir.
Jasbir Singh — Executive Chairman, Chief Executive Officer, and Whole-time Director
Hello. Good morning everybody. On the call today I’m joined by Mr. Daljeet Singh, our MD Mr. Sudhir Gol Group CFO Mr. Sanjay Roda, full time Director of Hilgene Electronics. We have uploaded our quarterly presentation on the exchanges and I hope everyone had an opportunity to go through the same. We extend our appreciation to the honorable Finance Minister for the enhanced outlay of rupees 40,000 crores towards the ECMS scheme. This scheme will serve as a catalyst for accelerating the growth of a robust electronics ecosystem in our country and creating significant employment opportunities. Further, we extend our sincere gratitude to Ministry of Electronics MITEE for granting approval under the ECMS scheme for Ascent K Circuits HDI PCB application and Shoguni Technocrats Multi layer PCB application.
These approvals are in addition to the earlier clearance received for Ascent’s multilayer PCB application. The expansion reinforces our long term commitment and to strengthening India’s ATU Nirbharta in electronics manufacturing ecosystem. We are pleased to share that land allotment of 16 acres have been secured in JWAR near New Noida Airport for SNK Circuit to establish state of art manufacturing facilities for HDI PCBs and we look forward to shortly do groundbreaking to commence construction. Additionally, Amber Enterprises has been allotted hundred acres of land in Jewar Airport near New Noida Airport enabling the company’s future expansion plans. We extend our gratitude to the Government of Uttar Pradesh for fast cabinet approvals of both projects and timely allotment of land parcels.
Let me now take you through the quarterly performance. Consolidated revenue for the quarter stood at 2,943 crores reflecting a growth of 38% over previous year. Despite weak underlying room AC industry, our operating EBITDA for the quarter stood at rupees 247 crores. Growth of 53% PAT before exceptional one time impairment of Shivalik grew by 128% to 84 crores. Let me now take you through the divisional performances firstly on the Consumer Durable Division, the Consumer Durable Division recorded revenue growth of 27% in quarter three FY26 and EBITDA growth of 22%. The growth is driven by the diversified product offering, adding wallet share within existing customers, expanding product portfolio.
The Room AC industry has transitioned to the Revised higher efficiency BE star rating norms effective 1 January 2026 marking a key shift toward enhanced energy performance and sustainable cooling solutions and the quarter witnessed a channel filling ahead of BE rating upgrade. We continue to deepen and strengthen our customer base both in Room AC and Commercial ac. During this quarter we are cautious about sharp surge in commodity costs and and currency depreciation. While we are navigating these challenges, the pass through will happen with a quarterly lag. As we have seen earlier on the outlook, we believe industry will be flattish this year while we continue to remain optimistic that this division should grow in the range of 13 to 15% for the full year basis.
Coming to the Electronics division, Iljin purchased 80% stake in Shoguni Techno Arts, a Pune based printed circuit boards manufacturer with capabilities across single sided, multi layer and Flex PCBs. Shoguni brings a sizable 4.5 lakh square meter capacity boost and broadens division reach to diverse customer base spanning across automotive, medical, industrial, power and other segments. Coupled with ascent expansion JV with Korea Circuit and Shoguni lays a strong foundation to emerge as India’s most comprehensive printed circuit board manufacturer offering solutions from single layer PCBs to advanced HDI products across the value chain. Further strengthening its position in high value industrial automation segment, Iljin has increased its holding in Unitronics Israel taking its current stake to 45.5%.
Now moving to the performance, the Electronics division continued its growth momentum with revenue of 845 crore reflecting growth of 79% driven by printed circuit board assembly, vertical PCBA, bare PCB board and new additions of in power electronics and automation electronics. The division recorded EBITDA of 88 crores, recorded growth of 157%. Despite the margin pressure in the bare PCB vertical, the PCB vertical continues to face headwinds of CCL and gold price spike and as a Tier 2B 2B supplier our ability to pass on comes with an inherent lag of almost 1 to 1.5 quarters and we are confident to pass on these to our customers.
Looking ahead, Driven by strong growth momentum and portfolio of high value margin accretive products. We expect FY27 full year EBITDA margins to be in double digits number. The Electronics division which began to address the shift of fixed speed AC to inverter AC in 2018 is now evolving into a full stack EMS company. It features PCB assemblies serving diverse customer segments and comprehensive bare printed circuit board solutions and box build solutions for hairable, wearable power electronics and industrial automation products. Now coming to the third division Railway Subsystem and Defense. The record CAPEX allocation in railway budget and announcement of seven high speed rail corridors positions India firmly on the path towards faster and future ready mobility which augurs well for the sector.
On the performance, the division registered a growth of 20% driven by railways, metro projects and defence solutions. On the expansion front, the construction is progressing well for Sidwal’s greenfield facility for H Vac products, pantries, doors and gangways and the facility is under machine installation phase now and commercial production is expected to begin in quarter four. FY26 with regards to Eugene Machinery joint venture for Pentografs brakes, driving gear couplers, this facility is now ready. Currently the product development is underway and commercial production is expected to commence from second half of FY27 following requested RDSO approvals. Special cooling products for defense applications are also gaining traction and are expected to contribute meaningfully in coming years.
Backed by a strong order book, visibility of rupees 2,600 crores plus and product portfolio expansion, we remain optimistic of doubling the division’s revenue over next two financial years. During the quarter one time exceptional impairment loss has been recognized for our investment in Shivalik through which we had invested in Titagarh firma Italy. The Shivalic investment was done primarily with two objectives. One to have strategic association with leading rolling stock manufacturer. Together we have been actively contributing to some of the country’s most prominent mobility initiatives including key Metro projects and Vande Bharat. Our collaboration with Titagarh has translated into business visibility worth about 700 crore for heating, ventilation, air conditioning products as well as new products which were launched doors and gangways and which shall continue to grow in future as well.
Secondly, the objective was to open export opportunities for Sidwal through Italy venture. However, Pitagat firma turnaround did not materialize in the manner we had envisioned due to the operational and other challenges and to curtail future losses. One time Exceptional impairment loss has been recognized during this quarter. Now let me hand over to Sudhir Goel, our CFO for financial highlights. Thank you.
Sudhir Goyal — Chief Financial Officer
Yeah hi, good morning everyone. Let me first take you through the Consolidated Financial highlights for the quarter three financial year 26 we clogged a consolidated revenue of 29. 43 crores up by 38% over last year. We recorded quarterly operating EBITDA of 247 crores, a growth of 53% year on year. For clarification, operating EBITDA is before impact of ESOP expenses and other non operating income and expenses. Profit for the quarter stood at 84 crore before impairment of investment in Shivaliks of 94 crores reflecting a growth of 128%. However pad is after considering one of provision of 9 crore pertaining to new labour codes.
Let me take you through 9 months financial year 26 financial performance at the consolidated level we recorded consolidated revenue of 8039 crores growth of 29% over last year, operating EBITDA of 608 crores resulting in a growth of 26% year on year and profit before impairment loss of 158 crores reflecting a growth of 19%. Now let me take you through the Divisional Performance overview. Firstly, revenue and operating EBITDA details of the divisional performance are not comparable with the published segmental results starting with the Consumer Durable Division. The Consumer Durable Division reported revenue of 1971 crores in quarter three financial year 26 compared to 1,555 crore in quarter three financial year 25 reflecting a growth of 27% year on year.
Operating EBITDA for the quarter increased by 22% year on year and stood at 141 crores compared to 116 crores in quarter three financial year 25. Coming to the electronic division performance, the revenue for the quarter increased to 845 crores in Q3 financial year 26 compared to 472 crores in the same quarter last year reflecting a growth of 79% year on year driven by PCBA, vertical beer, PCB and new additions. I would like to emphasize we acquired Shoguni on 1st of December and consolidated P&L includes result for one month only in respect of Shoghini Operating EBITDA for the quarter recorded growth of 157% year on year and stood at 88 crore compared to 34 crore in Q3 financial year 25.
Moving to railway System, Railway subsystem and Defence Divisional performance, the revenue for the quarter increased to 127 crores compared to 106 crore in Q3 financial 25 reflecting a growth of 20% year on year and the resulting operating EBITDA of 18 crore growth of 49% year on year With a robust order book and expanding product portfolio we remain confident in doubling the divisional power revenue of over the next two financial years. On the balance sheet front, Ilgene Electronics has successfully concluded fundraise with the entire 1750 crores received from marquee investors. As we embark on a growth path in our electronic division we stand on a strength of robust balance sheet.
Thank you. Now I request the operator to please open the floor for the Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star n1 on their touchtone telephone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. In order to ensure that the management is able to address questions from all the participants in the conference call, please limit your questions to 2 PER. Participants will wait for the question queue to assemble. The first question is from the line of Natasha Jain from Philip Capital.
Please go ahead.
Natasha Jain
Thank you and good morning team. Congratulations on a very good set of numbers. So my first question is on rac. Given that there was a push in the third quarter on account of DE and then there was low cost inventory, how should we see fourth quarter? I mean from a very near term perspective. And then calendar 26 given that there is high amount of inflation and the entire GST benefit probably is written off and the cost could be even higher than that. So how should we read calendar 25 from 26 from an RSE point of view?
Jasbir Singh
Good morning Natasha. See this is how we look at room AC sector in the country and as an industry we feel that if you see quarter one was minus five 10% then quarter two was minus 35%. We saw a little growth in the industry in quarter three with the primary sales moving ahead in lieu of the energy rating. So we feel that the industry should be flattish this year. Whereas we have again and again maintained our guidance and we are hopeful to deliver about 14 to 15% kind of a growth. Let me give you a little background on you know air conditioning industry Natasha that in last 25 years we have seen seven bad seasons in this industry and two Covid waves hit us both in March.
So nine bad years for the industry in last 25 years. 25 years back market size was half a million number, just 5 lakh numbers and now we are at 14 to 15 million number, 1.4 to 1.5 crore number. So I expect that you know in future also These kind of issues will keep on coming on the currency and commodity issues be table revisions. But looking into the households, looking into the per capita income growth, looking into the adequacy of power and the desire of comfort living, I believe that this industry should grow in the range of 12 to 15% at least for next 4, 5 years and thereon once we cross 4000 per capita income this will further grow at 20 to 25% range.
This has been historic in all the countries. So we believe that on the calendar year 26 basis industry should be in the range of at least 12 to 15% growth path.
Natasha Jain
So this would be value growth that you’re talking about or just RAC volume.
Jasbir Singh
Now I’m talking about volume growth. Value may be little higher because of higher increase in the cost.
Natasha Jain
Understood sir. And my second question is very recently Mitsubishi Electric had announced that they are doing a 2100 crore capex on backward integrating into RAC and compressors. Now given that all Japanese and Korean brands are our prime customers, just want to understand how should we read this from Amber’s point of view? Because I believe Mitsubishi is one of our biggest clients and does it entail any risk for us?
Jasbir Singh
No, there is no risk Natasha. Since you have all seen that 2021 when PLI got announced or six major brands announced, which are all our customers, their own factories and industry, I mean markets did assume that Amber will not do well and our stock price was hit unnecessarily. But you know we could see that Amber moved into a different category. We started offering our products in the component shape and we kept on growing more than the industry space. So this Mitsubishi Electric. Yes, it’s our client. This was told by them two years back and we have already gone into supplying the components for the factory which was inaugurated.
We are very much part of this and our association continues from here on with Mitsubishi Electric Group.
Natasha Jain
Got it. Great to hear that sir. Thank you and all the very best.
Jasbir Singh
Thank you Nitasa.
operator
Thank you. The next question is from the line of Dhruv Jain from Ambit Capital. Please go ahead.
Dhruv Jain
Thank you so much for the opportunity and congratulations team for a very good set of numbers. So my first question is an extension of what you said, right? So you mentioned that the industry should grow at 12 to 15% CAGR going forward and with the brands, I mean with the PLI now getting over and over the last four or five years we’ve seen that the brand’s share of overall manufacturing has gone up. Should we now given that EMI is getting over and for growth for you guys should be AZ+ industry because you gain, you know, EMS gains share Dhruv.
Jasbir Singh
You know as Umber’s B2B capability on components and on the finished goods capability side we have seen this kind of shift in house outsourcing three times now in last 25 years. Whenever this kind of shift has happened we’ve moved in tandem to the industrial industries or our brands or our customers. You know, policy change and we have established 24 factories now in vicinity, two customers. So any customer who would like to manufacture on their own we are very happy to supply them the components. I’ll just give you example of automobile in a true reference. If Toyota puts up a factory they will do engines on their own, car chassis on their own, car bodies on their own and assembly line on their own.
But will Toyota ever produce tyres for their own audiovisual systems, glasses, seats, bumpers. So similarly in our category also whenever a brand puts up a factory they do some kind of a backward integration plus assembly and plus labs. But other components are required to be supplied just in time by suppliers like us. So we have a very comprehensive solution for the customers. If they want to buy full boxes we can give full boxes. If they want to buy only components, we are happy to supply components only. And that’s what we have done in last 25 years.
Moving forward, this trend will continue. We don’t control the change of policy of a customer whether they want to in source or outsource. We are there as a backbone of them as a supply chain solution provider. Plus what we are doing over and above is we are expanding our product portfolio into the commercial air conditioning space. We have already successfully launched our tower series, cassette series, duct table series from 3 ton to 17.5 ton and we are also bringing some new products as we go ahead. So that is over and above and plus plus to this is our non room AC components which we deliver as a solution for refrigerator, washing machine, microwave ovens and etc.
So all these three things put together, I think we will continue to outnumber industry maybe in a year, two years time, three years time we may move in tandem to industry. But you know, eventually we have seen that we have surpassed the industry by the numbers. Good numbers every time.
Dhruv Jain
Fair enough. Sir, my second question is on finance cost, right? So despite the qip, we have seen the finance cost go up marginally on a Q O Q basis. So if you could just help us understand the reason for the same.
Sudhir Goyal
Yeah, so. Hi Dhruv, this is Sudhir So finance cost has increased because of you know that there was some change is happening in the energy rating and we have built some inventory at a lower cost in terms of copper as well as compressor which has increased the cost of finance cost. Plus we have acquired Shoguni in the 1st on 1st of December when we have paid around 175575 crores payout to acquire that entity. So finance includes that as well. And also we increase our stake in Unitronics post our acquisition on 9th of October when we acquired 40.2% and now we are at 45.5%.
So that has led to an increase in finance cost but you will see that it will start coming down in the current quarter.
Dhruv Jain
If you could just give the numbers of Ascent Shoguni.
Sudhir Goyal
Dhruv since you know Unitonix is a listed entity in Israel and their results are not still come out. So it is difficult for us to give you in the electronic division anti device numbers because that will be insider information and it’s. It’s not wise to give you that number. We’ll give you once those numbers are out individually.
Dhruv Jain
Okay sir, thank you so much.
Sudhir Goyal
Thank you.
operator
Thank you. The next question is from the line of Sonali from Jefferies. Please go ahead.
Sonali Salgaonkar
So thank you for the opportunity and congratulations to the team for a great set of numbers. So my first question is, you know the consumer durable division with a growth of about 26% year on year on sales is far ahead of most of the peers who have reported including the branded or the contract manufacturing. So it’s a very positive thing. But would you like to help us understand what drove this?
Jasbir Singh
Well Sonali, couple of things. We’ve increased our wallet share in some customers and our non AC components is actually paying dividends now and plus the new product categories which we have launched so all put together is delivering this number. I think team has worked very diligently on all fronts to increase product portfolio to increase the wallet share in existing customers to work on non AC components where injection molding has done pretty well. We have started supplying to customers in telecom sector and to energy meter customers. Plus of course the refrigerator and washing machine and microwave customers are also gaining traction and our duct table ranges of commercial ACs are also growing.
So all put together has led to this kind of a number.
Sonali Salgaonkar
So great to hear that. Just an extension to this on the AC industry after the liquidation that we saw in December. What is the current inventory level and are there any initial trends you fathom of the upcoming summer?
Jasbir Singh
Well inventory is varying from customer to customer I think. But overall at an industry level, if we sum up, we summit up, I think industry is reached to almost a normalized inventory level at the moment. So if there’s a spike in summer we will see a good, good summers ahead.
Sonali Salgaonkar
So great to hear that. So my second question is regarding the capex outlook for 26 and also 27. If we could help and how should we look at the journey of Shivalik from here on now that we have taken the impairment loss.
Sudhir Goyal
Yeah. Hi Sonali, this is Sudhir. So current year capex we are expecting it should be around 800 crores. And for the next year the expenditure which will be capitalized should be around 1200 crores. 11 to 1200 crores. And for Shivalik, now we have explained that there will not be any further loss in the Shivalic because we have taken a complete impairment of the investment and we don’t see now anything coming from the Shivaliks and we’ll be focusing on our Indian operations and expanding the same.
Sonali Salgaonkar
So great to hear that and all the best to the team and congratulations once again.
Sudhir Goyal
Thank you.
operator
Thank you. I request to all participants please restrict your questions to two questions per participant. For more questions please rejoin the queue. The next question is from the line of indarjeet Agarwal from CLSA. Please go ahead.
Indrajit Agarwal
Hi. Thanks for the opportunity. Two questions. First, when we look at your guidance of 13 to 15% that implies a mid single digit kind of growth for racs in fourth quarter. So would you still think that the industry would actually end up being flattish or negative in the fourth quarter as a result?
Jasbir Singh
Well, I mean I think if you sum it up Indrajit, for all the four quarters, quarter one I explained it was minus five. Quarter three, quarter two was minus 35. Quarter three has been little, slightly above zero. It’s like three and five number. So quarter four should be flattish at least. I mean even if they do well overall it will come to be like a flattish number. You know, that is. That is our estimate looking into it.
Indrajit Agarwal
Sure. Thank you. Sorry.
Dhruv Jain
Please sir.
Jasbir Singh
And I believe that, you know, I have always guided that in air conditioners due to the heat waves, the sales move up one month ahead or it get postpones. So I would urge everybody not to look at RAC sector on a quarterly basis rather than on a complete financial year basis. I think that will be a relevant way to look at the RSE sector stocks.
Indrajit Agarwal
Sure, this is helpful. Second, Sudhirji talked about inventory built up of copper and compressors ahead of be table change. I just want to understand what does the regulation state? Does it state that post 31st December you cannot sell to the brands or retailers or the retailers cannot sell. When can we manufacture older be norm aircons?
Jasbir Singh
Yeah. So basically the norm says that the manufacturing cannot happen for the old products post the 1st of January. Whereas the manufacturer can supply the old inventory for 3 months. Coming to the retail part, the retailers are allowed to sell the old inventory for six months. So that is how the government’s norms are. So we cannot manufacture. So first before 31st we’ve stopped, we have to stop all the old models.
Indrajit Agarwal
Sure. So the inventory that we have built up will be utilized in the next. We will see that the inventory drawdown when we see March quarter results. Is that understanding correct?
Jasbir Singh
That’s right. Yeah, yeah, yeah.
Indrajit Agarwal
All right.
Jasbir Singh
Especially on the primary.
Indrajit Agarwal
Sure. Thank you sir.
operator
Thank you. The next question is from the line of Pulkit from Goldman Sachs.
Pulkit Patni
Please go ahead sir. Thank you for taking my question. Sir, two questions. First, could you give a rough breakdown of consumer durables between AC, AC components and non AC components?
Jasbir Singh
It sits right now it varies from quarter to quarter. This time this quarter it has been about 60, 40, 60% has been finished goods and 40% have been components.
Pulkit Patni
Answer within components AC and non AC.
Jasbir Singh
Now almost we have reached to 50, 50 split.
Pulkit Patni
Okay, so it’s 60, 20, 20 for the quarter. Okay, that’s useful.
Jasbir Singh
But it keeps on varying. You know, don’t make a generic view about that. It will continue every quarter it changes.
Pulkit Patni
Sure, sure. So my second question is, I remember this was maybe two or three years back where we had seen some commodity price inflation. And while theoretically obviously it’s a full pass through business, but we’ve seen whenever brands are under pressure there is some pressure felt by OEMs. Also, is it fair to assume that consumer durables, especially air conditioner margins could be under pressure next year given the magnitude of commodity price increase that we have seen? Or do you think it’s going to be a complete pass through though with a lag of 1/4?
Jasbir Singh
So I think from a B2B company’s perspective it will happen with a quarter lag. Whereas I think for our customers because the be table has changed, it’s an opportunity for them to change maybe from February or March onwards.
Pulkit Patni
But you don’t think there’s going to be any margin impact for you because of the commodity price inflation?
Jasbir Singh
There will be slight margin impact but not, not very big impact for us.
Pulkit Patni
Okay. Sir, that’s useful. Thank you so much.
operator
Thank you. The next question is from the line of Tanesha from DAM Capital. Please go ahead.
Tanay Shah
Hi sir. Good morning and congratulations on a great set of numbers on the electronics piece. Right. I mean we’ve acquired Power one now and even a Unitronics. If you could just spend some couple minutes here on how we’re looking to scale these businesses up because Unitronics currently is not present in India. So what are our plans for you know, scaling these businesses up and you know to what opportunity can we possibly.
Jasbir Singh
Take it to see Power one and Unitronics both are in the industrial power electronics space. Unitronics, we feel that there is a geography expansion scope bring those products to India. Second is the product expansion space. They do not have not manufactured any PLCs, HMIs used for the heating, ventilation, air conditioning applications. So we’ve after acquisition we’ve already sent them samples and the team has visited India and now they have started their R and D work. I think within 15 to 18 months time. We are hopeful that we will add new product category on the heating ventilation which will be launched worldwide.
Because Unitronics almost 55 to 60% growth comes. Sales comes from US markets and remaining comes from the European markets. So India will be their expansion on geography. Second will be product expansion strategy. And third will be of course due to the Umbers balance sheet there will be some purchase leverage which will come. And fourth is the backward integration. Unitronics they only assemble the products because they are the designers of the products. They develop the software and they assemble the products in Israel. But they buy the printed circuit boards from outside. They buy printed circuit board assemblies from outside, even the injection molding required from outside.
So that is what we are exploring right now gradually that the growth of Unitronics can be catered by India by supplying these components as a backward integration. So these are the four things as a synergy which we are looking into the Unitronics coming to Power One products which are UPS solar inverters, both off grid, on grid and battery energy storage systems and EV chargers. So it’s a both B2B and B2G business, they apply in tenders, they apply directly to OEMs. And what we are doing right now is again similar case, they were assembling not manufacturing components.
So there is a scope of Elgin and Amber put together supplying the boxes, the sheet metal boxes, injection molding components and PCB and pcba. That is first thing. Second is purchase leverage and they are largely south based. We are now bringing them to north because it’s a voluminous product. So we are planning to expand in existing facility as a brownfield expansion. One of their facilities in Noida for catering the clients from Noida. So that is what power electronics is. But these both the TAM of both the products Power electronics, the audience of Power1 Products and unitronics product is almost about current level is $6.5 billion.
You know I’ll just give you a heads up on PC what we are doing in electronics, PCBA we are doing. We are doing printed circuit boards. We are doing power electronics and industry automation. If you sum it up, the TAM of all the four today out of 155 billion dollar electronics getting consumed in the country at the moment the Tam of these four things are about 16 to 17 billion dollars. Now where is this 155 billion dollars going ahead in next five years as a business as usual the growth is expected to be about 350 odd billion.
Whereas government of India has taken a very good target of touching $500 billion. So you can imagine if we concentrate on India as operation, it’s a good place to be in. And these are all value added capabilities which we have added. So in value added PCBA is volume based things. PCB and power electronics and unitronics are all value based things. So as a B2B supplier you have to balance volume and value. Volume will give you purchase leverage and scale and value based proposition will give you bottom line and also stickiness and entry barriers. And that is what we are trying to do in the electronics division.
Tanay Shah
Absolutely sir. Thank you for that explanation. And my second question is Sudhir mentioned that we do around 1100-1200.
operator
Mr. Shah but can you please rejoin the queue for more questions as there are more participants left in the queue. Thank you. The next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Yeah. Thank you for opportunity. My first question is related to the electronics segment out of a 79% of a growth. If you can give some color on. How much is organic and how much is an inorganic growth in that in. 9 months financial about 12% is the inorganic growth contribution out of 2100 odd number almost about 240 crore is the inorganic and rest is organic. Okay. And the second question related to the. Sidwal out of this time 20% of a growth. And also you had said all the. Three segment railway, metro and defense contribution. So how is the defense contribution in the growth as well as if you. Can give the order book bifurcation of a 2600 crore. How much is the difference?
Jasbir Singh
Defense. We started our endeavor in Defense Vertical about four years back. And we are seeing some green shoots right now. Now earlier we were doing about 4 to 7 crores in Sidwal for defence applications. But this year we expect that we will do about 50 odd crore in the defence order book. But as far as the 2,600 crore is concerned, I think almost about railway contribution will be about 46%. Metro is about 35% and defense will be about 10% at the moment. But what we are doing is we have been visited by very marquee defense customers and that continues.
We hope that in next two financial year defense vertical will start contributing at least 20% in the Sidwal’s books. Thank you sir.
Praveen Sahay
And all the best. 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. As you have highlighted nine month inorganic growth possibly can you highlight the same for the Q3? And lastly just want to understand what is the impact of the inorganic on the margin front. What would be possibly the organic and inorganic because your inorganic is a, you know, high margin business and electronics we have seen hitting, you know, double digit margin which we were supposed to hit FY27 slightly ahead of the target. So what is the EBITDA margin guidance for FY27 for electronics division?
Jasbir Singh
Well, we’ve guided earlier also and we’ll reiterate that we should be hitting a double digit number in FY27 for electronics division. This is the first quarter ever where we have seen about 10.5% EBITDA for our electronics division. Both volume and value play could could be exhibited here. But as our CFO told you that because of Unitronics is a listed entity, we will not give able to give you a breakup of this. Once they declare the result, definitely we can give you the numbers on all the subsidiaries.
Keshav Lahoti
Understood, thank you. One last question from my side. As you have highlighted, normally you know, copper and TCB prices it is there. Can you please quantify what would be the impact of margin because of this in this quarter and when will it get normalized?
Jasbir Singh
Well, in consumer Durable division we think that it will be maybe 0.25% kind of a 0.25, 2.5% but which will be definitely, you know we will change the costing and as we have done in past, that happens at a quarterly lag that we come back on the CCL front only in the PCB sector, not in pcba, not in the power electronics and other places, but only in the PCBA. Right now there is an impact of about 5% on the pricing. But the customers have started giving the revised approvals and we are hopeful that this will be completely passed on by next quarter after next quarter.
Keshav Lahoti
Got it. That is helpful.
Natasha Jain
Thank you.
operator
Thank you. The next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Rahul Agarwal
Hi sir, Good morning. Thanks for the opportunity. Good morning. So given, you know, given the constraints on asking questions I’ll just summarize everything what I wanted to know in one question. We have different projects going on into electronics. We’ve not discussed KCC in detail on this call apart from the ascent capex and stuff like that. So if you just summarize for us across three segments the project status in terms of execution, how do you think you will spend money over the next two years? What are the timelines for these projects? And for all three segments if you just summarize the growth outlook for fiscal 2728, just ballpark number one margins that will really help to basically get a full understanding on the entire company.
That’s the only question I have. Thank you.
Jasbir Singh
So I’ll give you detailed analysis on the projects. Ongoing projects in the electronics sector. First expansion we are doing in Koshur in Tamil Nadu where the groundbreaking ceremony happened and it was blessed by the Chief minister of Tamil Nadu for the groundbreaking. Construction is moving perfectly on time as guided. We should be starting our trial production in September of this 2026 and by January 2027 we should be coming in the mass production scale. That is on the Hosur side there is an investment coming up for total investment coming. Land we already acquired last year. The building major building part will come now and I think on the complete capex about close to about 700, 800 crore will come this year on the machine building plus the plant and machinery now coming to Korea circuits.
The KCC which has been allotted. We have been allotted the land. We have deposited 10% of the land and they have yet to give us the possession. The allotment has been done. I think coming week we will. We should be able to get the possession and then that’s when by March we expect that we should be able to do the groundbreaking. March or April as our maps get approved. Total 15 months time for the construction. First phase of investment is 1200 crores which is it? And it’s a 7030 JV. So we are expecting about 60, 40 or 70, 30 kind of ratio for equity and debt.
And that’s where our partners are also going to infuse funds. And after 15 months there will be trial production period of three months. So you can imagine that after 18 months we will start the commercial production of that Offtake agreement has already been signed. The first two years complete capacity offtake will be done by KCC themselves. So we are not bothered about the top line as soon as we start the project. After that of course there will be customers. And the ecosystem of complete semiconductor and OSAT businesses are getting established in the country. So they will be both domestic and export.
Then there is another expansion going on in the Pune. For organic expansion we bought adjoining land in Pune and that’s the construction going on. I believe the construction will be over in the March or April and May will be when it will start. And that is on the electronic side. These are three ongoing projects on electronics. Fourth investment which we are doing is in Sidwal, which is almost the building is ready. Machine installation is happening in the greenfield facility for doors, gangways and pantries and heating, ventilation, air conditioning. I expect that by March the trial production will start and April or May will be the commercial production start for that plant for Eugene.
The factory is already done. Now we have applied to RDSO for requisite approvals. Because these are all safety products, it will take time for approvals. We expect that in H2 of Next Financial year we should be able to do the trial production. And in quarter four, I think the commercial production will also start. So these are the status of all the projects going on.
Rahul Agarwal
Would you like to summarize the guidance on growth and margins just medium term?
Jasbir Singh
Well, I think all the divisions are doing pretty good. I believe as we have already guided that in Consumer Durable we expect to do about 15% kind of a growth. Despite markets being flattish and electronics is doing pretty good. All the divisions are doing very good. We expect that it will be a good growth story for next year also because of all the projects adding up. And in Sidwal we are on a good growth path. I believe we should see somewhere about 40% growth kind of a story in Sidwal next year itself. And we have guided and we maintain our guidance that we will reach a number of doubling the revenue of Sidwal in next two financial years.
Rahul Agarwal
Thank you. Thank you so much, Jasbir and best wishes for the rest of the year. Thank you.
operator
Thank you. The next question is from the line of Samit Sinha from Maguire Capital. Please go ahead.
Sameet Sinha
Yes, thank you, Jasvir. As you were thanking the finance Minister, I was hoping to hear about the 20 year moratorium on taxes for the data center industry and that you’d have your products ready. But in the context that the defense sector took you, let’s say four years to get up to 50 crores, can you kind of give a sense of where the data center products, how could that progress and is that also going to take four or five years to get there or it could be much faster?
Jasbir Singh
Well, I think that’s a great announcement and in this budget which it was a surprise for all of us. So we were very excited to hear that. I think it will take about three to four years for companies to shift their data centers here and take a leverage of this incentive scheme which government of India has given for 20 years. But it is positive for companies like us because we’ve already developed our products of INRO and in rack cooling products. Liquid cooling and immersive cooling is under development at the moment. So which we feel that it will be developed by next 12 months time period and that’s where we will do the kind of trial productions.
But in the Indro and Indrack we have cracked two good customers and they gave us a very small share of business for the first year which was about 5 to 7% of their requirement. But now next year we expect Lidl to grow little bit bigger. So to summarize your question, I think somewhere about third year we should see a good traction on the data center in Sidwal coming up.
Sameet Sinha
Got it. Okay. The second question is obviously the story of commodity prices going up and down has a big impact. When do you think that that ecosystem develops in India with CCL and other products which will kind of give you that visibility and probably pricing integrity as you plan your business. How long will that take?
Jasbir Singh
India government has done a great job as a rule of physics. First to bring our assembly business seven years back. We were not even assembling our phones here and now we have seen because of pli, you know, we are exporting billions dollars of outside India. Now second phase, they have come up with the component scheme. Third phase will be the raw material like CCL and glass fiber and other raw material required for the components. I believe we have already got announcements of two companies making ccl. We at Ember are also right now exploring some joint ventures for the CCL which may take about a year from now.
But we would like to finally because we are, we are coming up with a big capacity on the PCB side. You know, we Would like to add that going forward maybe in two to three years time. But overall if I see once the component ecosystem, semiconductor ecosystem, assembly, ecosystem starts building up in the country automatically the raw material supply base will continue. But from my point of view personally if I see this is my personal opinion I believe in three to four years from now we can see a good component ecosystem getting developed for raw materials in India and that will.
That will still. I mean but the issue of commodity prices will still take care of only on the currency side. You know right now for air conditioning industry we have started buying copper tube from India. Medtube has put up facilities, There are other companies who have put up facilities but the LMA fluctuates. That’s international fluctuations.
Sameet Sinha
Got it? Thank you very much.
operator
Thank you. A request to all participants, please restrict your question to one per participant. The next question is from the line of Niranj Jain from BNP Paribas. Please go ahead.
Nirransh Jain
Yeah, hi sir. Firstly congratulations on a very good quarter. Sir, my question is related to the CAPEX announcement. So in a recent exchange notification we have mentioned that for this 100 acres land we’ll be doing 6,800 crores worth of investment for two manufacturing facilities. So now since we know the details on the Korea circuit with the 3200 crore capex, maybe know the details of the balance figures around 3600. What are our plans for there? I mean of course this is would be over the period of four or five years but any broader sense on where this will go into and secondly also want to check on Shoghini since we have got a ECMS approval and the slide also mentioned about 500 crores worth of investment outlays.
So what’s the timelines for this expansion there?
Jasbir Singh
Okay, so on the Yeda front first of all I would like to tell all the participants that the expansion which we have received we will be getting two sets of incentives. One from ECMS scheme on the HDI which is about 48% and second is from the government of UP which is about 42%. Now 42% is minus the land on building plant and machinery. 48% is only on the plant and machinery. So net capex which will eventually be happening will be much lesser than what we are putting up in the initial phase. So please look into the net CAPEX kind of a thing.
Initially yes, we will have to do capex but these are very good incentive schemes which government, both central as well as the state governments have given. Secondly we will be getting about 30% top up on the central scheme incentive by UP government but everything will happen after the fifth year after we complete the whole 3200 crore expansion so similar the scheme is very long scheme is about 78 years scheme so you have to do the capex over the period of scheme and that’s how we are distributed but on the Korea circuit it will happen earlier it will happen in 3 to 4 years time in the phases as we explained that first phase will be 1200 crores as far as Shoguni is concerned it is 500 crore of application and we have 4 to 5 years to do that number for that the eligibility is four to five years so at the moment we are not anticipating any big capex it’s about about I think 55 to 60 odd crore capex which we’ll be doing in coming financial year that’s all we have planned for Shoguni at the moment.
Nirransh Jain
Sure sir and secondly also want to check on Power one and Unitronics so these are already very high margin accredited businesses already operating at roughly 28% for unitronics so with your plans for further backward integration where we’ll be integrating our PCB and PCB assembly solutions do you think there is further scope of margin expansion into these businesses?
Jasbir Singh
Well it varies I mean I think 28% was in one of the quarters another quarter there was 22% depending on which geography is selling what products but on average it is 24, 25% on a maintainable basis at the moment I am not anticipating we are little, we are going little slow because this is our first full acquisition outside India I believe our team is already there from India for our purchase leverage project task force formation and we believe that it will take about a year or year and a half for us to demonstrate purchase leverage capabilities coming on the table because of Amber and also because of the backward integration but answer is yes there is a possibility of margin expansion and that’s both because of the purchase leverage as well as because of the new product segment but to demonstrate on the balance sheet I think it will require little patience for at least one and a half years from now.
Nirransh Jain
Sure sir that’s all from my side thank you and all the best.
Jasbir Singh
Is operator there. Or we are disconnected? Yeah. Hello Hello. Hello. I’ll request everybody to be present I think there’s some problem at chorus level technical issue they are trying to fix it. So we’ll be I think let’s close the call thank you everyone for joining on the call for any further information kindly get in touch with our head of ir Ravi Karbanda or Rohit Singh or Strategic Growth Advisor, our investor relations advisors. Thank you very much and have a good day ahead. Happy to address any queries further. If any one of you have, please contact Ravi for that.
Thank you. Thanks.