Manufacturing Industry Overview
The Indian manufacturing industry represented a defining phase in the Financial Year 2025-26, underpinned by the governmentRs.s sustained focus and policy initiatives aimed at strengthening domestic component manufacturing and backward integration. This evolution reflects the maturation of the Rs.Make in IndiaRs. initiative, as the emphasis progressively shifts beyond assembly towards building component-led capabilities domestically.
Amid a complex geopolitical environment shaped by supply chain realignments, volatile commodity cycles, and evolving trade dynamics, the Indian economy demonstrated resilience, supported by increasing localisation, import substitution, and the development of domestic manufacturing capabilities across key sectors.
This structural shift was supported by strong domestic demand and the governmentRs.s continued thrust on capital expenditure across key sectors, alongside the Production Linked Incentive (PLI), Electronics Components Manufacturing Scheme (ECMS) and various other central and state government incentive schemes. Together, these measures augur well for a sustained cycle of investment, employment generation, and enhanced domestic value addition.
Room Air Conditioner (RAC) Market
The Indian Room Air Conditioner (RAC) continues to be one of the under-penetrated product categories among the Consumer Durable segment, increasingly transitioning from an aspirational purchase to a household necessity. While the industry is inherently seasonal and influenced by weather conditions, its low penetration combined with underlying macro drivers such as rapid urbanisation and rising temperatures, continue to gain momentum. During the year, demand remained subdued amid non-conducive weather conditions; however, the structural fundamentals of the market remain firmly intact.
The long-term outlook for the Indian RAC industry remains compelling, supported by favorable structural drivers such as rising incomes, increasing urbanisation, low penetration levels and the growing preference for energy-efficient cooling solutions.
| India GDP Per Capita Outlook | (US$) |
2024 |
2,591 |
| 2025 | 2,675 |
| 2026 | 2,812 |
| 2027 | 3,074 |
| 2028 | 3,369 |
| 2029 | 3,699 |
| 2030 | 4,047 |
| 2031 | 4,420 |
(Source: International Monetary Fund https://ycharts.com/indicators/india_gdp_per_capita_ outlook_current_prices https://www.imf.org/external/datamapper/NGDPDPC@WEO/IND/BGD )
Trend of Per Capita Income (Base Year 2022-23 Series)
(NNI) (H)
2022-23 1,59,557
2023-24 1,70,153
2024-25* 1,81,172
2025-26** 1,93,152
*FRE: First Revised Estimate, **SAE: Second Advance Estimate
(Source: Ministry of Statistics and Programme Implementation - MoSPI)
Note: The data presented above reflects MoSPIRs.s updated 2022-23 base year series released in February 2026 and hence previous yearRs.s figures have been restated for consistency. Additionally, in line with the new official framework, Per Capita Net National Income (NNI) replaces Gross National Disposable Income as the standard reporting metric.
Key Growth Drivers
RAC penetration in India remains significantly lower than in several comparable Asian markets. At around 12%, this relatively low penetration highlights the substantial headroom for growth in the Indian RAC market. Favourable demographic fundamentals and evolving consumption patterns are likely to support the growth, creating a significant multi-decade opportunity for the industry. IndiaRs.s middle class is expanding, and middle-class and affluent consumers are expected to account for 93% of total consumer spending by 2036. Rising affluence, urbanisation and the increasing prevalence of nuclear families is expected to accelerate residential housing demand, which, in turn, is likely to drive demand for Room Air Conditioners (RACs).
ly-for-lg-electronics-co-official/143172
https://www.weforum.org/stories/business/massive-urban-shift-in-india-consumer-growth-de-centralizing/)
The Government of India undertook a significant GST rationalisation initiative,
resulting in a reduction in GST rates across several categories, including RACs, where the
rate was reduced from 28% to 18%, effective September 2025. The rate cut has enhanced
affordability, supporting first-time adoption among price-sensitive consumers. It has also
improved access to premium, energy-efficient 5-star models, for the expanding middle
class, thereby strengthening the industryRs.s long-term growth prospects.
Over the years, evolving climatic conditions characterised by rising ambient
temperatures, extended summer seasons, and increasing occurrence of heatwaves across the
Indian subcontinent have fundamentally shifted consumer perception. Cooling is no longer
viewed as a discretionary luxury but a basic necessity for health, well-being, and indoor
productivity. Long-term climatic trends, with prolonged summers, are driving households to
place greater emphasis on air conditioning for enhanced comfort, thereby accelerating both
first-time adoption rates and the replacement cycle for older and less efficient units.
The sustained expansion in residential real estate, including the expansion of housing
societies in Tier II and III cities, combined with rapid urbanisation is creating a strong
structural demand for RAC installations. IndiaRs.s urban population has grown from ~31% in
2011 to ~36% in 2025 and is projected to exceed 40% by 2030. Rising lifestyle aspirations
and a demand for better indoor thermal comfort are effectively transitioning Room Air
Conditioners from a discretionary luxury to a fundamental household necessity, supporting
more sustained and broad-based demand for cooling solutions.
The economic purchasing power of the average Indian consumer is rising swiftly, with
Per Capita GDP climbing from ~US$ 2,591 in 2024 to a projected ~US$ 2,812 by 2026 and
further projected to hit US$ 4,047 by 2030. As disposable income crosses a critical
economic threshold, it enables accessibility to a broader segment of consumers, supporting
both first-time purchases and multi-room air-conditioning within the households. (Sources: International Monetary Fund
Distribution of Indian Households across Income Segments
219 293 356
1 (1%)
8 (3%)
35 (10%)
16 (7%)
51 (23%)
151 (69%)
61 (21%)
97 (33%)
127 (43%)
165 (46%)
136 (38%)
20 (6%)
2005
2018
2030/31 (P)
Total Households (Million) Lower-middle (Million, %)
High (Million, %) Low (Million, %)
Upper-middle (Million, %)
P- Projected (Source: PRICE Surveys, Deloitte Research)
The Production-Linked Incentive (PLI) Scheme for white goods has provided a significant impetus to accelerating investments, deepening supply chains, and strengthening IndiaRs.s position as a manufacturing destination. With an expected cumulative investment of Rs.11,198 Crore across the value chain, domestic value addition is targeted to rise from 20-25% to 75-80%.
(Source: http://pib.gov.in/PressReleasePage.aspx?PRID=2217743®=3&lang=1
)
Rising electricity consumption for cooling and increasing sustainability awareness are
accelerating the shift towards energy-efficient air conditioners. This transition has been
further supported by the implementation of the Bureau of Energy EfficiencyRs.s (BEE)
revised Star Labelling standards in January 2026, which mandate higher energy performance
benchmarks. As consumers increasingly prioritise energy savings and efficient cooling,
demand for energy-efficient RACs continues to strengthen. Outlook Looking ahead, the Indian Room Air Conditioner (RAC) market is positioned for
sustained, structural expansion over the medium to long-term. With current household
penetration at approximately 12%, the industry holds a visible runway, driven by cooling
increasingly being viewed as a necessity rather than a luxury. Alongside the rise of the
middle class and improving affordability, continued urbanisation, residential real estate
development and shifting temperature patterns, these factors are expected to further drive
the adoption of cooling solutions in the coming years, while also contributing to a longer
seasonal window for the RAC market. Electronics Industry Electronics Manufacturing Services (EMS) and ESDM The Electronic System Design and Manufacturing (ESDM) and EMS sectors is evolving from
assembly operations, with growing participation in component engineering and related
value-added activities. The domestic industry is steadily maturing, with Indian
manufacturers increasingly focusing on import substitution and deepening local value
addition to meet the growing demand across a wide range of end user segments. IndiaRs.s electronics manufacturing sector continues to benefit from strong domestic
demand, increasing adoption of outsourced manufacturing models, and supportive government
policy initiatives aimed at enhancing local value addition. In parallel, evolving global
supply chains are creating new opportunities for India to strengthen its position as a
preferred destination for electronics manufacturing and investment. Supported by these
structural growth drivers, the Indian ESDM market is expected to maintain a strong growth
trajectory over the coming years. Printed Circuit Board Assemblies (PCBAs) and Bare PCBs form the foundation of modern
electronic systems across a wide range of industries and customer applications. As India
strengthens its domestic electronics manufacturing ecosystem, both segments are witnessing
increasing growth opportunities, supported by rising localisation, expanding manufacturing
capabilities, and favourable government initiatives. 94 Annual Report 2025-26 Key Growth Drivers 3 Expansion of Automotive Electronics and the EV Ecosystem The accelerating shift towards connected mobility and adoption of Electric Vehicles
(EVs) are driving a structural increase in electronic content per vehicle, including
telematics, connectivity features, security features, infotainment, and powertrain
electrification. Rigorous quality compliance and industry qualification protocols create a
high threshold for participation, fostering a quality-driven and technologically advanced
manufacturing ecosystem. 4 Digitalisation and Digital Infrastructure Accelerating digitalisation and the expansion of digital infrastructure are emerging
growth opportunities for the electronics industry. The increasing adoption of cloud
computing, connected technologies, digital services and data centres is driving demand for
a broad range of electronic hardware, networking equipment, power management solutions,
and supporting infrastructure. These trends are expected to create opportunities across
the electronics manufacturing value chain, supporting its long-term growth. India PCB and PCBA Market Printed Circuit Board Assemblies (PCB-A), comprising circuit boards integrated with
electronic components, are standard elements in the functionality of modern electronic
systemRs.s across sectors such as consumer, industrial, automotive, energy,
telecommunications, Industrial Automation, Power Electronics, among others. IndiaRs.s
PCB-A ecosystem is gaining momentum as the country accelerates its domestic electronics
manufacturing capabilities through policy initiatives focused on import substitution and
localisation. Bare PCBs represent a key product category for India considering the growing local
assembly capabilities and expansion opportunities. Driven by the governmentRs.s focus on
domestic electronics manufacturing and integration into global value chains, the PCB
market is expected to witness strong growth, being a key component of the ecosystem. IndiaRs.s ambitious vision for strengthening its electronics manufacturing ecosystem is
expected to drive growth in the bare PCB market. As a foundational component across electronic devices and a category that remains substantially
import-dependent, bare PCBs present a favourable opportunity for localisation and domestic
value addition. Supported by the focus on domestic production and deeper integration into global value
chains, the Indian printed circuit board (PCB) market is poised for growth over the coming
years, reflecting a strong long-term expansion trajectory. The scheme aims to build a strong and self-sustaining ecosystem for electronics
component manufacturing in the country. Its focus is on promoting higher domestic value
addition, and positioning India as a key player in global electronics trade. It targets
cross-sectoral application such as mobile manufacturing, telecom, consumer electronics,
strategic electronics, automotive and IT hardware products. (Source: htt
Indian Railway Subsystems and Urban Mobility
The Indian railway subsystems and mobility market continues to benefit from the governmentRs.s sustained focus on modernisation, infrastructure development and improved passenger experiences. As a key enabler of IndiaRs.s Viksit Bharat vision, Indian Railways has been allocated a record capital expenditure of Rs.2.93 lakh crore, with investments focused on enhancing connectivity, strengthening freight infrastructure and improving safety. Plans for seven new high-speed rail corridors and the continued expansion of Vande Bharat services underscore the governmentRs.s long-term commitment
towards building a modern and efficient rail network.
To support this vision, Indian Railways is undertaking a broad upgrade of its existing ecosystem. This includes the introduction of premium trainsets, the continued deployment of Vande Bharat and Amrit Bharat trains, and the expansion of dedicated freight corridors, driving demand for advanced rolling stock, train control systems and specialised subsystems. Electrification and sustainability also remain key priorities, aimed at improving operational efficiency and reducing carbon emissions.
Alongside rail modernisation, urban mobility infrastructure is being progressively strengthened, aimed at enhancingconnectivityandurbanmobility. IndiaRs.s operational metro network crossed the 1,000-km milestone across 11 states and 23 cities, becoming the third-largest operational metro network in the world. This expansion unlocks multi-year opportunities for manufacturers and service providers in this space.
(Source: https://www.pib. gov.in/PressReleasePage. aspx?PRID=2298526®=48&lang=2)
Business Overview
Amber Enterprises India Limited (Rs.AmberRs., Rs.the CompanyRs. or Rs.Amber GroupRs. including its subsidiaries and joint ventures) has evolved into a diversified, backward integrated and technology-led B2B manufacturing solutions provider, with capabilities spanning across three business segments: Consumer Durables, Electronics, and Railway Subsystems and Defence.
Over the years, the Company has transitioned from a Room Air Conditioner (RAC)-focused manufacturer to a diversified B2B multi-industry solutions provider, underpinned by deeper value-chain integration, expanding technological capabilities, and calibrated vertical and horizontal expansion into high-growth segments.
The CompanyRs.s operating structure is anchored across three core business Divisions:
Consumer Durables: The Consumer Durables Division is a highly backward integrated B2B solution provider in the air conditioner segment, offering
Complete Built Units (CBUs) across Room and Commercial Air Conditioners along with a wide range of RAC and Non-RAC components. Backed by strong R&D capabilities and extensive backward integration, the Division commands deep manufacturing capabilities and cost competitiveness, positioning it as a trusted manufacturing partner to the leading MNC and domestic brands.
Electronics: The Electronics Division is evolving into a comprehensive electronics solutions provider, with capabilities spanning across EMS (PCB-Assembly & Box Build), Bare PCBs, Power Electronics solutions and Industrial Automation solutions, serving a broad and diversified customer base including consumer durables and consumer electronics, automotive, telecommunication, aerospace and defence, energy and power, and industrial applications. The Division is further strengthening its capabilities through capacity expansion in multi-layer bare PCBs and advancing towards the
precision manufacturing of complex High Density Interconnect (HDI) PCBs.
Railway Subsystems and Defence: The Railway Subsystems and Defence Division, operating through Sidwal, is a leading solution provider of advanced HVAC solutions for Railways, Metros and RRTS. Beyond the cooling solutions, the Division has significantly expanded its product offerings including Pantry Systems, Doors, Gangways, Couplers, Driving Gears, Pantographs and Brakes, substantially increasing its addressable market and strengthening its participation across the railway and mobility value chain.
The Company continues to scale its Defence vertical and is gaining traction in specialised cooling products for strategic applications.
Backed by R&D, strategic collaborations and a pan-India service network, the Division is well recognised for its reliability, engineering excellence and quality-oriented solutions.
The CompanyRs.s growth trajectory has been shaped by sustained growth in the Consumer Durable business and strategic diversification beyond RACs, into electronics and mobility-led segments. The journey is strengthened by targeted acquisitions, collaborations, and backward integration, enabling greater presence in the tech value chain and enhancing solution depth.
The Company currently operates a pan-India manufacturing footprint of 37 domestic facilities across 10 states, including one international presence, providing scale, flexibility, and proximity to key customers. The Company continues to strengthen its position as a trusted B2B partner, delivering integrated, high-quality solutions aligned with evolving industry requirements.
With a sharper focus on technology, localisation, and multi-sector participation, the Company is increasingly positioned at the intersection of IndiaRs.s manufacturing growth, electronics scale-up, and infrastructure-led demand.
Strategic Initiatives
In Financial Year 2025-26, the Company expanded its footprint through strategic investments and joint ventures:
Vertical and Horizontal Integration
Unitronics (1989) (R"G) Ltd, Israel Industrial Automation
Shogini Technoarts Pvt Ltd Bare PCB
Power-One Microsystem Pvt Ltd Power Electronics
Key Expansions
Ascent Circuits – Capacity expansion for Multi-layer PCB
Ascent-K Circuit – Greenfield facility for HDI PCBs
IL JIN Electronics – PCB Assembly
Collectively, by expanding capabilities across PCBs, Industrial Automation, Power Electronics, and advanced electronics components, these initiatives broaden the CompanyRs.s addressable market in the electronic value chain ecosystem.
Operational Performance and Revenue Mix
The progress of the CompanyRs.s diversification strategy is reflected in its evolving revenue mix. While the Consumer Durables segment continues to provide a strong and growing baseline, the strategic shift towards electronics and mobility-led segments is progressively reshaping the composition of the business.
Electronics
During the year, the Division recorded strong revenue growth^ of 49%, reaching Rs.3,268 Crore, compared to
Rs.2,194 Crore in Financial Year 2024-25. Operating EBITDA* registered a strong growth of 89%, reaching
Rs.287 Crore. This performance was supported by strong PCBA and Bare PCB businesses coupled with the incremental contribution from Power-One Micro Systems, Unitronics and Shogini Technoarts.
Railway Subsystems and Defence
During the year, the Railway Subsystems and Defence Division recorded a revenue growth^ of 19%, reaching
Rs.535 Crore, up from Rs.450 Crore in Financial Year 2024-25. Operating EBITDA* for the year stood at
Rs.90 Crore, reflecting a growth of 8% over the previous year. The Division continued to witness encouraging momentum across the Railway, Metro, and Defence segments, supported by an expanding product portfolio and healthy order book visibility.
^ Revenue: Does not include other income
* Operating EBITDA: Before impact of ESOP expense and other non-operating income and expenses Note: Revenue & Operating EBITDA are not comparable with published segment results
Financial Performance and Ratios
On a consolidated basis, total revenue^ stood at Rs.12,186 Crore in Financial Year 2025-26, compared with Rs.9,973 Crore in Financial Year 2024-25. Further, the Company achieved an Operating EBITDA* of Rs.970 Crore in Financial Year 2025-26, compared with Rs.796 Crore in Financial Year 2024-25. Reported PAT# stood at Rs.226 Crore in Financial Year 2025-26, compared with Rs.251 Crore in Financial Year 2024-25.
Key Financial Ratios
Particulars |
Financial Year 2025-26 |
Financial Year 2024-25 |
Debtors Turnover Ratio (Revenue from Operations/Average Debtors) |
6.10 | 6.01 |
Interest Coverage Ratio (EBIT/Finance Cost) |
2.64 | 2.92 |
Current Ratio (Current Assets/Current Liabilities) |
1.13 | 1.02 |
Debt-to-Equity Ratio [Total Debt (Long-term Borrowings + Short-term Borrowings)/Total Equity] |
0.40 | 0.84 |
Operating EBITDA Margin (%) [EBITDA (Before impact of ESOP expense and other non-operating income and expenses)/Revenue from Operations] |
8.0 | 8.0 |
Net Profit Margin (%) [Net Profit/Revenue from Operations] |
1.9 | 2.5 |
^ Revenue: Does not include other income
* Operating EBITDA: Before impact of ESOP expense and other non-operating income and expenses
# For Financial Year 2025-26, the PAT is after considering the one-off provision of Rs.9 Crore on account of the New Labour Code.
Opportunities and Threats
The macroeconomic and regulatory landscape in Financial Year 2025-26 presents a transformative array of opportunities, balanced by systemic risks that require agile management.
Threats
Supply Chain Vulnerabilities and Geopolitical Uncertainty
Impact of Weather Variability
Despite rising domestic value addition, the global supply chains today are highly interconnected and complex, with production networks spanning multiple geographies. This dependence exposes the sector to geopolitical disruptions and uncertain global trade networks, which could negatively impact supply chains, turnaround times, and input costs.
Unexpected shifts in weather patterns, fluctuating temperatures, or irregular seasonal changes, make it challenging for air conditioning businesses to predict consumer demand accurately. This unpredictability can lead to volatility in product sales and inventory misalignment.
Commodity Price and Currency Fluctuations
Market Competition
Short-term unpredictability in the global commodity prices including copper, aluminium, and crude derivatives poses a challenge to operating margins. Additionally, currency depreciation further compounds these challenges. Sustained cost inflation could also influence customer purchasing behaviour and demand patterns, particularly in price-sensitive segments.
The CompanyRs.s operations face pressure from both well-established players and new entrants. The evolving competition demands continuous innovation and strategic positioning to maintain market relevance and sustain long-term growth.
Evolving Technology Landscape
Rapid technological advancements and evolving customer requirements may render existing products, manufacturing processes, or capabilities less competitive over time. Keeping pace with emerging technologies, product innovations, and evolving industry standards remains critical to sustaining market relevance and long-term growth.
Risk Management
The CompanyRs.s risk management is built on a proactive and structured approach that ensures growth plans do not compromise its long-term financial stability. Continuous monitoring and proactive mitigation of strategic, operational, financial and compliance risks enable the Company to respond effectively to an evolving business environment while supporting sustainable growth.
Risk Impact Mitigation Measures
Transforming Market Environment
Coping with Changing Technology
Procurement-related Risk
Environmental Issues and Climate Change
Seasonality Risk
A dynamic and evolving competitive landscape may impact financial stability and market positioning.
Rapid technological advancements and evolving product requirements may require continuous portfolio realignment.
The Company operates in a complex and dynamic business environment marked by global macroeconomic uncertainty and evolving geopolitical dynamics. This
exposes its procurement and supply chain functions to a range of interconnected risks such as:
Increasing regulatory requirements, particularly around energy efficiency, may lead to higher compliance costs and operational challenges.
The Room AC (RAC) segment is highly seasonal and vulnerable to volatile and unpredictable weather patterns.
Divisions Consumer Durables, Electronics, and Railway Subsystems and Defence
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