Amber Enterprises On Track To Double Railway Revenue In Three Years: CEO Jasbir Singh

Amber Enterprises India Ltd. is set to double its revenue in the railway division over the next three years, supported by portfolio expansion and a venture into foreign markets, according to Executive Chairman and Chief Executive Officer Jasbir Singh.

Amber Enterprises posted a sharp 81% year-on-year increase in its revenue from operations in the Q2 earnings released on Oct. 22. The company’s revenue from operations for Q2 stood at Rs 1,685 crore, up from Rs 927 crore in the year-ago period.

Talking to NDTV Profit, Singh said that this growth was a result of Amber Enterprises’ focus on portfolio diversification.

“We have been working on diversifying our portfolios in consumer durables, electronics and railway applications. I think that is fructifying now,” he said.

Though Amber Enterprises experienced a 6% YoY dip in the railway subsystem and mobility segment during Q2, Singh suggested that it was not a cause of concern. The company's revenue from the railway subsystem and mobility segment in the second quarter of the current financial year dropped to Rs 123.6 crore from Rs 131.6 crore in Q2 of FY24.

The top executive emphasised that from Q4 FY26 onwards, the company would see a J-curve in the railway division. He remained bullish about the segment after the company's latest product portfolio expansion.

“Apart from air conditioners, we have added doors and gangway; and pantry systems. Plus, we have done a joint venture with Yujin Machinery of South Korea for gear couplers and pantographs. But all these are now getting built and the factories are under construction. The new factories will be up and running next year,” he said.

The CEO revealed there was a minor slowdown in the company’s Vande Bharat order book because of the changes in the formation of the coaches, and there was a delay in one of the Metro projects as well.

“But nothing changes the outlook of Amber Enterprises on the railway division. We are very bullish,” Singh said.

“I would like to reiterate my guidance. We would like to double the revenue in the next three years, and we see a very positive growth of Railways coming in,” he said.

Amber Enterprises is also venturing into the US and UK markets with its railway applications' offerings, the top executive revealed.

The new offerings in the railway applications portfolio have also increased the total addressable market of the company, Singh said.

“Earlier we were offering just 3 to 4% of the passenger car business. Now, we will be able to offer 15% of the passenger car business. So, we have increased the total addressable market by four to five times within the existing customers,” he said.

Shares of Amber Enterprises hit an intraday high of Rs 7,159 apiece, up 11.7% from the previous day’s close of Rs 6,408.05 on the NSE. The stock was trading 8.87% higher at Rs 6,976.15 per share at 12 p.m., compared to the benchmark Nifty 50’s drop of 28.65 points or 0.12% to 24,406.85.