Shares of Amber Enterprises India tumbled nearly 16 per cent in Monday’s trade after the company flagged near-term margin pressure during its post-earnings conference call, despite reporting a March quarter performance that was largely ahead of Street estimates.

As per NSE, shares of Amber Enterprises India were trading at Rs 7,230.50 on NSE, down Rs 1,246 or 14.70 per cent in Monday’s session.

The sharp fall came after management warned of temporary profitability pressure due to rising input costs in its electronics business. “Temporarily, expect margin pressure of 50–100 basis points on a consolidated basis,” the company said during its earnings call.

For the March quarter, Amber Enterprises reported a net profit of Rs 134 crore, higher than Street estimates of Rs 129 crore and up 15.3 per cent from Rs 116.07 crore a year ago. Revenue rose 10.5 per cent year-on-year to Rs 4,147.52 crore from Rs 3,753.7 crore, though it came in below analyst expectations of Rs 4,238 crore.

EBITDA rose 21.5 per cent to Rs 358.23 crore from Rs 294.76 crore in the year-ago period, beating estimates of Rs 330 crore. Margins expanded to 8.6 per cent from 7.9 per cent, also ahead of Street expectations of 7.8 per cent.

The company’s electronics segment revenue rose 20.6 per cent to Rs 1,015 crore during the quarter. Management said, “Electronics continued strong growth momentum in FY26, driven by PCB and Bare PCB segments,” adding that the “Electronics division is expected to grow at 40% in FY27.”

Amber also outlined growth visibility in its railways business. “Railway division is expected to grow at 30–35% in FY27 and FY28,” management said, while adding that the “Sidwal greenfield facility is ready, and commercial production will begin in the current period.”

On expansion plans, the company said, “Akcent Circuit is set to commence construction by June 2026,” and also disclosed that its “stake in Unitronics has been increased to 50.4%.”

Highlighting the broader business outlook, Amber management said, “FY26 has been a remarkable year for the company,” adding that “growth was driven by all three diversified divisions, strengthening both volume and value play through strategic acquisitions.”

However, rising raw material costs remain a key concern. “For PCB and Bare PCB, Copper Clad Laminate prices have been rising sharply over the past year,” the company said, signalling pressure on margins in the near term.

Not only Amber, other AC stocks such as Voltas and Blue Star also faced selloff pressure.

The concern stems from a May 8 order issued by the Department for Promotion of Industry and Internal Trade, which has capped compressor imports for the current financial year based on companies' FY25 import volumes.

Under the new norms, manufacturers can import refrigerator compressors up to 40 per cent of their FY25 import volumes, while imports of air-conditioner compressors have been capped at 30 per cent for units with capacities of up to two tonnes - a category that accounts for more than 85 per cent of industry sales.

Stocks of Blue Star fell 3.70% to Rs 1,596.75, while Voltas declined 1.44% to Rs 1,213.40. EPACK Durable slipped 2.02% to Rs 235.60, while PG Electroplast Limited dropped 5.02% to Rs 462.70.