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Amber enterprises had hosted a concall related to its entry in smartphone manufacturing

ICICIdirect Research 22 Jun 2026 DISCLAIMER

News: Amber enterprises had hosted a concall related to its entry in smartphone manufacturing, in partnership with Oppo wherein the group will manufacture smartphones for OPPO, OnePlus and Realme. Management stated they target ~8 mn volumes in FY28 and 13-15 mn in following year. The company will sub-lease an existing, fully operational manufacturing facility from OPPO. This avoids greenfield timelines, PN3 approval and keeps capex limited. The focus of the company is to eventually focus on value addition or the component part for which it also awaits PLI 2.0 details

View: Amber is steadily diversifying from its seasonal RAC business to other segments like electronics, railways and now the smartphone segment. Starting with assembly and limited capex places it well from risk-reward perspective to tap this opportunity. Initial capex expected to be sub 50 cr while working capital days shall be in single digit. Full commercial production will commence in Q1FY28. Expected EBITDA margin to be modest at 1.5-2.0% with eventual focus to move higher margin component side. Overall, the business segment has potential to contribute low double digit EBITDA proportion by FY29E.

Impact: Positive

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