Ladies and gentlemen, good day, welcome to the Q4 and FY 2026 earnings conference call of Amber Enterprises India Limited. 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 this conference call, please signal an operator by pressing star then zero on your touch-tone 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 Amber Enterprises India Limited. Thank you, and over to you, sir.
Hello. Good morning, everybody. On the call today, I am joined by Mr. Daljit Singh, our Managing Director; Mr. Sudhir Goyal, Group CFO; Mr. Sanjay Arora, Whole Time Director of ILJIN Electronics; and Mr. Sachin Gupta, Whole Time Director of Amber. We have uploaded our presentation on the exchanges, and I hope everyone had an opportunity to go through the same. I'm pleased to report FY 2026 has been a remarkable year for the company as our consolidated revenue surpassed INR 12,000 crore milestone despite the RAC industry witnessed a challenging year on the account of weather conditions. While Amber Group demonstrated resilience with growth driven by all three of its diversified divisions and each engine propelling the growth forward. Let me reflect briefly on the strategic initiatives taken in Electronic Division during the year.
We strengthened the volume and value play by expanding both horizontally and vertically through our partnerships with Power-One, Unitronics, and Shogini. On the expansion front, we have got more than INR 4,500 crore total investment approvals under ECMS for Ascent-K Circuit in Noida for HDI PCB, along with Ascent Circuits in Hosur and Shogini in Pune for multi-layer PCB applications. On the way forward, Ascent-K Circuit's HDI PCB manufacturing facility is set to commence its construction by June of 26 month. With trial production expected by quarter three FY 2028, this will be a state-of-art facility strategically located near new Noida Airport. The bare PCB business, collectively with Ascent, Shogini, and Ascent-K, is well-positioned to emerge as India's largest and most comprehensive PCB manufacturer, offering solutions from single-layer PCBs to advanced HDI products.
This reinforces our long-term commitment to strengthening India's Atmanirbharta in electronics manufacturing ecosystem. Further strengthening our foothold in the promising and fast-growing industrial automation space, we have now increased our stake in Unitronics Israel to 50.4%, achieving the majority ownership. Switching to performance, the consolidated revenue of Amber grew by 22%, reaching INR 12,186 crores for the year and recorded operating EBITDA of INR 970 crores with growth of 22%. Adjusted PAT stood at INR 338 crore, recording a growth of 22% over previous year. Let me now take you through the divisional performances. Firstly, on Consumer Durable division. Owing to weather conditions, Room AC industry has remained largely flattish during the year. In line with our guidance, the division outperformed the industry, recording a growth of 14% over previous year.
The performance is driven by a diversified product portfolio, deepening of wallet share, and continued expansion of our product offerings. Further, considering the robust growth potential in Room AC industry, we have augmented our RAC production capacity at Sri City in South India. On inventory front, considering the geopolitical uncertainty, we have proactively built inventory to mitigate for any supply chain risk. Coming to our Electronics Division. The division continues its strong growth momentum in FY 2026, with revenue of INR 3,268 crore, reflecting a growth of 49% year-on-year basis, driven by strong PCBA business along with bare PCB business and addition of new businesses. The division reported operating EBITDA of INR 287 crore with growth of 89%. Continuing the strong growth momentum, this division is expected to grow by around 40% in FY 2027. Coming to Railway Division.
This division delivered a strong growth of 19% revenue during FY 2026. Operating EBITDA grew by 8%, supported by increased offtake driven by metro, railway, and defense solutions. On the expansion front, Sidwal's greenfield facility of HVAC, pantry, doors, and gangways in Faridabad is now ready. Trial production is underway, and commercial production is expected to begin from current quarter. Backed by strong order book visibility of INR 2,600+ crore and product portfolio expansion, we remain optimistic of division's growth of 30%-35% for both FY 2027 and FY 2028. As we look ahead, FY 2027 holds the promise of strong growth momentum. However, on the margins front, prevailing high commodity prices, currency depreciation, and minimum wage revision in U.P. and Haryana poses headwinds in consumer durable and electronic division.
For bare PCB businesses, there has been increase in input cost of copper clad laminate. Prices has increased by more than 60% in last one year and still increasing. Gold prices have also increased by approximately 60% in last one year, and prices still continue to increase. On the railway division side, the Indian railway contracts are fixed price contracts, whereas the metro project contracts are the pass on mechanism is there. To sum up, we expect a margin pressure of 50 - 100 basis points at consolidated level, which is of temporary in nature and expected to normalize as macro environment improves. Now let me hand over to Sudhir Goyal, our CFO, for financial highlights.
Hi, good morning, everyone. Let me take you through the consolidated financial highlights. Starting with the full year performance, revenue for financial year 2026 increased to INR 12,186 crores compared to INR 9,973 crores in the previous year, recording a growth of 22%. Operating EBITDA increased to INR 970 crores against INR 796 crores, reflecting a growth of 22% year-on-year. For clarification, operating EBITDA is before its impact of ESOP expenses and other non-operating income and expenses. Adjusted PAT for the year stood at INR 338 crores against adjusted PAT of INR 277 crores in financial year 2025, reflecting a growth of 22%.
Adjusted PAT is prior to the exceptional one-off impairment of investment in Shivalik and share of loss of Shivalik JV amounting to INR 112 crores in financial year 2026 and INR 26 crore in financial year 2025. It is after considering the one-off provision of INR 9 crore of new labor code and other JV losses of INR 8 crores. Coming to the quarterly performance, for quarter four financial year 2026, we clocked a consolidated revenue of INR 4,148 crores, up by 10% over last year. We recorded quarterly operating EBITDA of INR 362 crores, a growth of 15% year-on-year. Adjusted PAT for the quarter stood at INR 162 crores versus INR 128 crores last year, reflecting a growth of 27%.
While there was no adjustment of loss of JV on account of Shivalik in quarter four financial year 2026, whereas quarter four 2025 is adjusted back for loss of INR 9 crore. To clarify, in quarter four, share of loss of Shivalik JV is INR 64 crore from 1st January 2026 till 30th March 2026, the date of sale of Shivalik shares. Since we have already impaired investment through exceptional item in quarter three, accordingly, we have reversed the impairment of INR 64 crore as exceptional item and recorded it as a loss from JV of INR 64 crore. Importantly, there is no net impact on the P&L in quarter four on account of Shivalik, as a reversal of the exceptional item and the recognition of the JV loss offset each other. Going forward, there won't be any impact of Shivalik in our financials.
Now let me take you through the full year 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 INR 8,383 crores in financial year 2026 compared to INR 7,329 crores in FY 2025, reflecting a growth of 14% year-on-year. Operating EBITDA for the year increased by 6% year-on-year and stood at INR 593 crores compared to INR 562 crores in financial year 2025.
Coming to electronic division performance, revenue for financial year 2026 increased to INR 3,268 crores compared to INR 2,194 crores in financial year 2025, reflecting a strong growth of 49% year-on-year, driven by strong PCBA business along with bare PCB and the addition of new businesses. Please note we acquired Power-One Micro Systems in August, Unitronics in October, and Shogini in December. Hence, the consolidated financials include performance of these three entities for partial period only. Operating EBITDA for the year recorded growth of 89% year-on-year and stood at INR 287 crores compared to INR 151 crore in financial year 2025. Moving to railway system and defense divisional performance.
The revenue for financial year 2026 increased to INR 535 crore compared to INR 450 crore in financial year 2025, reflecting a growth of 19% year-on-year and the resulting operating EBITDA stood at INR 90 crore, a growth of 8% year-on-year. The division is expected to deliver 30%-35% revenue growth in FY 2027. On the balance sheet front, net debt stood at INR 511 crore as of March 26, against INR 780 crore in March 25. Our net working capital days stood at 29 days as of March 26 compared to nine days in March 25. Please note that the net working capital days calculation is considering acceptances as part of trade payables. The increase in working capital days was primarily driven by proactive inventory buildup, considering the supply chain disruptions from geopolitical uncertainties.
On the incentive front, we have received the PLI amounting amount of INR 49.5 crores in April pertaining to financial year 2025. In the current year, we expect to receive INR 78 crores under the PLI scheme for the financial year 2026. Thank you. I request the operator to please open the floor for Q&A.
Thank you. Our first question comes from the line of Ankur with HDFC Life. Please go ahead.
Yeah. Hi. Good morning. Thanks for your time as always. two questions. One on the RAC side. Just basically, you know, how do you see the industry volume growth, you know, given whatever we've seen. It's been kind of a, you know, some heat waves. It will be rainfall in the beginning of the season in April. Things seem to be getting better as we head into May. Overall, you know, if you could just help us both for Q1 and also for the full year, what is that the industry growth could be? More importantly, you know, how is Amber kind of seeing growth for this year? That's number one. Number two, on the margin front, as you said, there could be an impact of 50 - 100 basis points.
If you could just try and help us understand, which segments would see most of these pressures, and some guidance there, on the margin front across segments, if possible.
Good morning, Ankur. I'll ask Sachin to reply to your first question, and then I'll answer the second question. Sachin, over to you.
Yeah. Ankur, coming to the volume side, obviously 2025, 2026, as everyone knows, the quarter one and quarter two were very, very flattish. They were like down by 30%. Quarter three and quarter four saw the recovery, the complete year is probably on a flattish side. The quarter one has started at a very positive note for 2026, 2027. Initial 10 days of April were very sluggish because of the rains and all that. Since [April 18], you can see that the south, west and north all have kicked in. The heat is already very high in the north. The demand is good. Against last year, because the base was very weak, the industry expects to grow by somewhere around 20% in quarter one.
On the complete year side, we are estimating a growth of somewhere around 12%-13% on the complete year side.
In volumes. Okay. Price hike could be another 10% +. Is that fair?
Price hike versus last year. There were two incrementals. One was in the month of January because of the star rating change. One is in the month of February, majorly driven because of commodity increase. Both together, we can say that the price increase is somewhere around 14% versus last year.
Okay.
Ankur, on the second question on the margin side, as explained in my commentary, you know, there are three, four forces which are in play right now. I would like to clearly give more brief on those forces. Basically, first factor is the minimum wage increase which happened of 35% in Haryana.
Which led to riots in Noida, U.P. government also in turn increased minimum wages to about 22%. You know, other states are also now looking to increase. That is one part. Second is, commodities like copper clad laminate, the gold which we use in PCB business. What we have seen in the PCB front is in Amber we are tier one. In tier one we directly deal with the customers and we can increase the pass on or reduction of commodity and currency risk within a quarter one, at a quarterly lag basis. In the PCB business we are tier two. We don't supply directly to Maruti or Hyundai. We supply to tier one guys.
That's where the inventories has to be taken care at two levels and hence the lag in the PCB business to increase the cost is about two quarters. This has been our learning in last one year as far as the PCB is concerned. On Indian railway contracts are fixed term contract. They don't negotiate because these are tender documents. Whereas other contracts like defense contracts or telecom contracts or the data center air conditioning contracts which are now signed, getting signed, those are the contracts which have gotten pass on through. That's the reason why we gave a just update to everybody that this is temporary of course.
You would have seen in last seven years we have been able to pass on, you know, and we will continue to pass on. Since it is momentary, we thought that we should be it's our duty to inform everybody that next one or two quarters should be you could see this hit coming in.
Understood. Thank you.
Thank you so much for all the questions.
Thank you.
The next question comes from the line of Natasha Jain with PhillipCapital. Please go ahead.
Thanks for the opportunity and good morning, gentlemen. I just have one question. Recently there was a news article that government has imposed import restriction on RAC compressors and even other appliance compressors. Sir could you help us understand the industry dynamics? What is the manufacturing capacity in India? How much Amber as a company manufactures? Do you think this and next year could see some pain in terms of shortage there?
Natasha basically, you know, there are room AC category of compressors required 2 ton and below compressors, whereas commercial air conditioners industry require 2 ton and above compressors. There are 2 categories of compressors. Then the third compressor which kicks in is in for refrigerators, right? We at Amber, we are not producing or manufacturing compressors. We buy compressors from outside. We have a long-term agreement with GMCC who's supporting us on the compressor, and we also buy from other manufacturers like LG and other compressor manufacturers. We don't see any shortages on the compressor front. To just give a brief on quality control order, which was in the news.
There were quality control orders imposed on the compressor industry. We are seeing because of the production-linked incentive scheme, five investments have kicked in in India in last three years, which is basically LG has put up a plant, Daikin has put up a plant, Mitsubishi has put up a plant. GMCC has increased its capacity. Haier is also thinking of increasing its capacity. These are five manufacturers who are catering to room AC industry at the moment. Coming to commercial air conditioner division, there are companies like Copeland or Danfoss who are manufacturing compressors for those category of compressors. You don't need only 2 ton, but you need 3 ton, 4 ton, 7.5 ton, 5 ton, 8 ton, 11 ton, 12 ton capacities of compressors.
Right now, the manufacturing capacities which have been built in country are below 2 ton. That's why the quality control order says that. There is still a shortage in terms of the capacity built up versus the growth in the country for the room AC. That's the reason why government has allowed to import 30% of last year imported volumes to cater to the shortage. Coming on the 2 ton in front, that they have extended it for one year. The complete compressors can be imported from outside India, because right now we don't see any big capacity coming up for the commercial air conditioner sector. Coming to refrigerator compressor model, I mean, there are some very specific compressors which are not getting manufactured here, just like dispensers and other categories of refrigeration compressors.
On a overall basis, there looks to be a adequate capacity. Still, some industry players feel that some particular compressors are of shortage. Hence the QCO order was released to clarify and extend the imports. I believe that the way things are moving, we will see that further capacity increases will also come from new players also, and existing players will also expand. We don't see any big problem coming out of this place because of compressors.
Just one follow-up here. Can you say at least for this calendar year or rather FY 2027, there will still be a shortage of about 40%, given industry will grow at 12% in terms of volumes?
We don't think so, because, if you map each and every manufacturer's capacity versus, the requirement in the industry, looking at a CAGR of about 13% -1 5% growth, I believe it is adequately placed. The capacities are adequate enough. I mean, of course, the shortage part has been addressed by the 30% allowance of import of compressors below 2 tons. That bridges the gap.
Understood. Thank you so much, sir, and all the best.
Thank you.
The next question comes from the line of Sameet Sinha with Macquarie. Please go ahead.
Yes, thank you very much. Two questions. First one on the inventory side. From my understanding, you're talking about inventory that's built up, that's basically the components and the parts, not the finished products, because you said the demand was strong. On that front, you know, by frontloading this, you know, what sort of benefit do you think you got in terms of if you could quantify how much savings would that be in current component prices? That would be appreciated. My second question is, in terms of, whenever we've spoken, you always mention how actually we've seen the progression about going towards higher margin businesses. Does that still stand or do you think at this point you'd be open to going towards high volume, low margin but high ROC business?
If you can talk about that. Thank you.
Coming on the first question on the inventory buildup, yes, we proactively increase the inventory level looking into the supply chain constraints. We are not getting a very big advantage on the pricing side, but we are getting advantage on the supply side that we are able to fulfill our contracts on timely basis to each and every customer. As far as our endeavor on going towards the higher business model goes, I'll just give you a brief of what we have done in electronics. We had acquired IL JIN in 2018 when this was a INR 300 crore company with about 3% of EBITDA.
This last year we have crossed about close to about 8.8% of EBITDA in the electronics division, and we have crossed INR 3,200 crore of top line. We expect a 40% growth while getting closer towards the double-digit EBITDA numbers. Our endeavor on going towards the value side of the businesses, because in B2B business, what we are trying to attempt is we are trying to balance the left and right. Left side is the volume side business, which are equally important to bring scale and to have a leverage on the purchase side. On the value side, they are more sticky businesses. There are entry barriers in those businesses like industrial electronics, industry automation electronics, power electronics or aerospace and defense going forward, medical electronics.
These are more sticky businesses, more entry barriers and high margin businesses. We will continue to balance both volume and value play while are attempting to build a very strong diversified B2B company. On the railway side also we are doing the same things. We started with small company, INR 157 crore with about 13% EBITDA. Now EBITDAs are more about 17%-18% type. We are growing in that on more value oriented products. We've gone into metro side, we've gone into doors and gangways. We've deep dived more into the BOM of railways. Now we are developing data center cooling solutions. We've cracked almost four customers there, and we've already executed three projects, very marquee projects in India on the data center, in rack and in-row cooling side. Those are all value propositions which we are doing.
As a B2B company, you know, there are two pulses which we feel. The two pulse is basically scale and second is efficiency. The scale team is responsible to balance volume and value team. While the efficiency teams are the operational teams which have to bring in efficiency on the plant side, on the purchasing side, on the R&D side, and so on so forth.
Got it. Thank you.
Thank you. Our next question comes from Dhruv Jain with Ambit Capital. Please go ahead.
Hi. Thanks for the opportunity. My first question is on CapEx. You know, in last quarter you had said that your CapEx would be about INR 800 crores, but, you know, this number has been much higher. Just wanted to get a sense that is it some front-ending of CapEx that you've done and, how should we look at FY 2027 CapEx?
Yeah. Hi, Dhruv. This is Sudhir. Rightly said that there is some front-ending of a CapEx. If you see our overall CapEx, out of the overall CapEx, capitalized CapEx is only INR 550 crores. The balance is under CWIP, which is under process and which will get operational in the current financial year. The overall CapEx is around INR 1,070 crores.
Okay. How should we think about FY 2027 CapEx, sir?
FY 2027, we are expecting that to, one is Ascent and one is the other than Ascent. Ascent will be around INR 1,200 odd crores, including the capitalized portion out of this INR 547 crore. Apart from that, there will be around INR 700 crore-INR 800 crore CapEx in the all the other entities put together.
See, Dhruv, I'll add to what Sudhir has answered. These are all asset heavy businesses where the CapEx is going, largely the printed circuit board. This is exactly like OSAT and ATMP business, where asset turns are about 0.8x to 1x time. What we are looking at as a team is the net CapEx, which we'll end up doing after deducting the subsidies from government, both center and state. In this case, like Ascent-K Circuits, we'll be getting about 48% on plant and machinery back from through ECMS scheme. We have negotiated 42% incentives on building plant and machinery from U.P. government. This will come with a lag. First we have to invest and then we have to apply it, and it'll come in five to six years.
If we have to build a self-resilient, you know, self-reliant, I would say, electronic component ecosystem, these asset-heavy businesses are good to have, good ROC business on a long-term basis, and we are taking a very cautious call to develop this. It's an import substitution story for us, and it's, we've already taken leadership in the country in the PCB sector, and we want to continue to maintain that, through joint ventures as well as through our collaborative approach, what we are doing. We believe that I would request all of you to see the net CapEx at the end of the year.
Got it, sir. Sir, my second question is on EMS. You know, this quarter, if we strip off the acquisition, growth seems to be, you know, bit under the means. What causes and, you know, just in connection to that, the operating growth guidance that you have given, how should we think of organic growth and growth coming through the various under acquisitions? Okay, thanks.
Dhruv, there was 2 customers who shifted from purchasing agreement to job work agreements. That's the reason on the top line side you would have seen that its organic expansion is looking little subdued. On the margin side, if you have seen, this quarter has delivered 10.8% margin. You know, we are pretty much on line to deliver what we've spoken. In future also, these kind of shifts can happen. You know, we don't control what customer wishes from us. We serve them in whatever shape and form they want us to serve, in case of sub-assemblies or components or just job work basis or, you know. This keep on changing with the management changes.
As given the guidance, we are very hopeful looking into the order book right now. For the whole electronic division, we are positive, very confident to deliver about 40% of growth this year.
Sir, what would be the split of organic and, you know, acquisition business?
Dhruv, now everything is organic because we've already acquired them.
Okay. Okay. All right. Thanks a lot and all the best.
Thank you.
Our next question comes from Praveen Sahay with PL Capital. Please go ahead.
Yeah, thank you for opportunity. Sir, my first question is a clarification on the CD, consumer durable segment. In that you had given 47% of your revenue for FY 2026 comes from the RAC, CBU. How is the growth? If I look at the 47% of the total revenue, it gives me around 33% of the growth. How that's a number to, you know, look at. Is that the full, you know, complete built up unit has grown faster than the component? Is more on the realization front growth is there, or how is the volume? Can you just give us some detail on that?
This keeps on changing because, you know, sometimes customer wants us full boxes, sometimes they want semi-knocked down conditions, and sometimes only the components. It varies from customer to customer and, you know, quarter to quarter. Very difficult. If you see the trajectory and the history, you know, we were about 80% banking on finished goods when we got listed in FY 2018. Now, despite the growth in the top-line side on the consolidated basis, the whole FG has come down to as low as maybe 40% or something like that.
40%.
You know, you know, it's basically Sachin, you would like to add something?
Yeah. Basically in 2025, 2026, as you were saying that there is a impact of the realization, the contribution has gone up. It's not because of the realization, it is majorly because of the conversion of the gas charging customers to the ODM solutions. That we have been updating in all of our quarterly calls. We, like onboarded them in 2024, 2025, but that was like in the last quarter. Now in 2025, 2026 it has been for the whole year. The gas charging customers converted to the ODM, that is why the finished good contribution has come up.
Okay. Okay. Got it, sir. Second questions are related to the electronics segment, where you have now consolidated Unitronics as well. Now if you can give us some color on how is the Because the Shogini and the Ascent is also there. How is the mix of a PCB versus, you know, the PCBA segment?
PCBA is growing. I mean, out of, I think, INR 3,268 crore, which we have delivered.
PCA.
PCBA. How much is this?
Organic inorganic.
Okay. PCBA is INR 2,281 crore, almost INR 2,300 crore. Total on the other side is about INR 596 crore, which is PowerOne, Unitronics and Shogini. Ascent Circuits crossed INR 402 crore. Almost about INR 1,000 crore is the other. Out of which, if you see Shogini plus PCB will be about INR 500 crore.
INR 600.
Around INR 600 crore is PCB. INR 2,200 crore is organic PCBA. Around INR 600 crore is PCB, and remaining is power electronics and industry automation electronics.
Any indication on the margin front for both the segments, PCB and PCBA?
PCB, in PCBA, we are at about 5%. In PCB we are at about 12%-13%. This generally business is about 16%-17% business, but because of CCL and because of gold prices and currency that they result, but they are taking price increases from the customer. That's on the way. We think that by from next 2 quarters we should be able to get it. We are getting positive responses. As far as PowerOne is concerned, it's about 15%. As far as Unitronics is concerned, because it's a listed entity, we cannot tell. I think you can look into Unitronics after 2 weeks once the results are declared. It's a good, positive company which we have added.
Thank you, sir, and all the best.
Thank you. The next question comes from the line of Indrajit Agarwal with CLSA. Please go ahead.
Hi. Thank you for the comments. I have a couple of questions. First, if you can throw some light on the pricing of PCBs, both globally and India, given that the cost inflation would have been felt by everyone across the geographies.
Pricing on PCBs is basically, you know, right now 90% is getting import and 10% is India. Whereas you would have seen that there's an anti-dumping duty imposed by government to a tune of 30%. Despite of this commodity increase of CCL and gold has been a global phenomenon, it's not particularly to India. Even Chinese import or Taiwanese PCB imports have gone expensive. You know, it's just. It is from up to 6 year it is protected through the anti-dumping duty. That's why the demand has not shifted from India to China or other nations. It's very much intact.
My question is the price increase that has happened globally and also in India not enough to offset the cost inflation?
CCL is continuously increasing. It has touched 60% increase in last 1 year, you cannot go to customer every time. They have given us improve increases. We have got increases. First, the first increase which we got was 2 quarters back, which was about 15%. Again another 18% increase we got. Still there is a remaining person or percentage of increase because on the other side the currency is also depreciating. You know, it's a moving part. We are standing in front of customer now every quarter. Whereas we used to meet them very, maybe after a year or so. Because of these things, we have started meeting them very often. We are getting positive responses. Earlier, when we started asking for price increase, there was a big backlash.
There was, like, a very strong opposition towards this. When they started comparing costs from the global suppliers also, they thought that it is better to give to increases, and they have started giving increases.
Sure. My second question is if you can, talk a little bit more about the key projects in terms of the delays, all those small delays. For example, as you mentioned, there has been some delay in the multilayer PCB Ascent-K Circuits and also ILJIN JV and railways. What is the kind of confidence you have in the timelines now?
There is no large delay. I mean, it's about a delay of a quarter in the construction of Ascent in Hosur. The construction got delayed because there was a issue in the release of consent to establish by Pollution Department, and that was because of ambiguity due to a Supreme Court guidance. There was some river going off in a diameter of 3.5 kilometers away from this land. Tamil Nadu Government was very fast in formalizing a committee, deciding it for us and then giving it up. It took about 1.5, 2 months for clarification, and that's how the construction got delayed in Ascent. I think it's moving perfectly fine after that. There's no another further delay we are anticipating.
We expect that the trial productions will start by Q3. Commercial production will start by February, mid of February, of next 2027. As far as Ascent K-Circuit is concerned, because this was dependent on the ECMS clearance. Post ECMS clearance, we approached U.P. government and they released land parcel to us. It has been registered now finally in our name. Possession has been granted, and the team is right now preparing to get the maps approved. That's why we have mentioned in our commentary that we are thinking of doing a groundbreaking ceremony in the month of June. We expect the construction to finish in 15- 16 months, which will start the trial production.
We have kept about three to four months for the trial production. From quarter three, quarter four onwards of FY 2028 we will start the mass production of HDI plant. As far as ILJIN is concerned, there is no delay in ILJIN. ILJIN factory came up as expected. It's under the RDSO approval. Approval, as informed earlier in the quarterly calls, it's a process of close to about 12- 15 months. That is underway. We have received INR 178 crore order book in ILJIN for couplers, and we are now expecting the first order on the pantographs also. The first order on the brakes also has been received. Those approvals will happen from Korea and then move to India when once the RDSO approval is done.
Thank you so much. If I may squeeze in one more. If you can throw some light on the Sumitronics JV, what is the plan over there and what kind of opportunities is it?
There is no Sumitronics JV. There's an alliance which has happened. It's a cooperation agreement with Sumitronics. They have large customers on the automobile sides and they want to collaborate with us to participate for the automobile PCBA businesses, and that's the collaboration. There's no joint venture happening with Sumitronics. We are excited with this collaboration because it gives us an edge. We already have experienced supplier worldwide with us now. Earlier we were seeing that there was large entry barriers for ILJIN to enter because we did not had a big, I would say, experience in the automobile sector. That was keeping our customers little on the side. They were reluctant to onboard us.
Now with Sumitronics, that barrier has been broken.
That's all from my side. Thank you so much. All the best.
The next question comes from the line of Achal Lohade with Nuvama Institutional Equities. Please go ahead.
Good morning, sir. Thank you for the opportunity. Sir, first if you could clarify, you know, in terms of the growth, you said 40% revenue growth for the electronics business. If it's post the conversion, what you talked about, and hence the growth, the revenue growth number is weaker. In that case, can you also clarify the margin for that division? Within that, if you could also clarify, you know, if it could be driven by PCBA or PCB business in terms of the margins.
What conversion are you talking about?
The job work, thing what you said.
Considering the job work change, we are expecting a 40% growth on the top line. The margins, what we are expecting right now should be in the range of 9.5%- 10%.
Understood. number two, in terms of the, you know, the RAC business, the consumer durables, how do you see the margins there, you know? Is it fair to say that the percentage appears lower because of the price inflation or there is impact in actually rupees per unit margin as well?
Percentage, yes, will look dipped because whenever the prices increases happens because now 14%, as Sachin explained, there has been increase of 14% in the finished goods side, you know. Whereas we work on the absolute number with our customer. The real term of real basically impact of commodity currency we pass on to our customers, and that is happening from last so many years we have demonstrated it year and year again, which happens on a quarterly lag basis. Whatever changes are happening this month, this quarter will be passed on to the customers for the next quarter. That's how historically our sector has been.
Just to clarify, sir, you mean the rupees per unit margin is intact? Is that fair understanding?
Yes, that's right.
In percentage terms there will be impact because the price increase will increase the finished goods price. Whereas we have a fixed price margin per unit. Overall fixed margin will remain same in terms of value, but in percentage term it will look a little less because of the higher base.
Whenever it.
You know in past also, whenever commodities have eased off, the percentages started looking better.
Yes.
We don't take credit for that.
No fair point, sir. Just a quick clarification. In terms of the non-AC component, how large is that now of the CD business, sir?
Of CD business it's about 25% right now.
Right.
-it's also maintaining a good growth. Like just [PICL] has delivered a good growth on the bottom line basis. They are already touched 13% EBITDA now. Our other businesses of refrigerator and washing machine, that's also doing fine.
Got it. 47% of the CD business is-
Sir, sorry to interrupt. I would request you to conclude.
Just a clarification.
Our next question comes from the line of Rahul Agarwal with Ikigai Asset Manager Holdings. Please go ahead.
Hi. Good morning, everyone. Thank you so much for the opportunity. We're just clarifying whatever we have discussed so far. I think for the CD business, we're talking about 25% revenue growth, and some bit of, you know, percentage margin decline. On electronics, you already mentioned 40% growth after the job work adjustment with 9.5%-10% range. For railways, the growth is clear, about 30%-35%. Margins you could clarify. We don't know the order book breakdown between Indian Railways and Metro Railways. Just clarify that. Second is a question on Sudhir, with Sudhirji, just on CapEx.
You know, my sense is that given where we are right now and whatever CapEx is pending on the new project side, you should end up spending like INR 1,800 crores-INR 3,000 crores, assuming, you know, the Korea Circuit JV CapEx also comes through. If you could just clarify, and you can ignore the capitalization part to it, that from a cash flow perspective, INR 1,800 crores-INR 2,000 crores for fiscal 2027 and about INR 1,200 crores-INR 1,300 crores, 2028, based on the current CapEx pipeline on the new project. Is that number correct? Those are the two questions. Thank you.
Let me answer the first question, and Sudhir will take up for the second one. On the CD front, we've informed that the markets are expecting to grow in about range of 13%-14% range, and that's how we are also expecting to move in tandem with the markets. It's not 24%, 25% growth. On electronics, you are right. It's, we expect that post our conversion of job work basis, we expect the number to be around 40% range bound and margin in the range of 9.5%-10%. On electronic in railways, 30%-35% looks doable if there is no disruption offtake from Indian Railway and Metro. Currently it's going smooth and we don't anticipate at the moment.
In case there is some changes, we will let you know. The margins in the railway side we expect in the range of 16%-17%. That's how the whole part of it. Now over to Sudhir.
Hi, Rahul. On the CapEx, yes, we'll be doing around INR 1,800 crore-INR 2,000 crore of overall CapEx, including Ascent new project, some part of Ascent-K and the other divisions. From the cash flow perspective, since we have negotiated better terms, long-term terms from the many suppliers of Ascent Circuit, for PCB, we are expecting that the cash outflow will be much lesser than INR 1,800 crore-INR 2,000 crore. It should be around INR 1,100-INR 1,200 you can expect from the cash flow perspective.
Okay. On fiscal 2028, if you have a budget from a cash flow perspective?
It will be same because in 2028 our new Ascent-K Circuit larger CapEx will happen. There also we'll have a better, much larger pay terms from the CapEx suppliers. You can expect that similar or little higher, around INR 1,400 crore-INR 1,500 crore kind of a cash outflow for the CapEx in terms of cash.
Perfect. Thank you so much, and wish you all the best, Jasbirji and Sudhirji. Thank you.
Thank you.
A reminder to all participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions you may rejoin the queue. Our next question comes from the line of Santhosh Seshadri with Avendus Spark. Please go ahead.
Hi, sir. Good morning. Thanks for the opportunity. I have a question on net debt position. How should we think about overall gross debt and net debt relative to forward relevance, considering the, you know, CapEx spending and maybe the working capital associated with the project ramp-up. What would be the impact of that on interest cost and other income in FY 2027? That's my first question.
FY 2026, we have reported a net debt of INR 511 crore. Looking into the CapEx, what we are doing and the cash flow, I may say slight increase in the net debt position by year-end. It could be more by INR 200 crore-INR 300 crore. We will be generating a cash cash flow, and then we'll be spending out of that. Cash generation might be little less than what we are generating from the overall business. You can expect around INR 700 crore-INR 800 crore on net debt by year-end.
Thank you very much. My second question is on the consumer durables division. Sorry if this is a repetition. Your earlier commentary suggested, you know, 20% growth in first quarter and 12%-13% growth in FY 2027. Just to clarify, is this for the broader industry or are this for talking specifically about for the consumer durable divisions?
No, we were mentioning about the broader industry trend because, post 12th of April, we have seen a positive offtake of goods because of the heat wave in South and West and North.
Last year base.
Last year base was also very less. Quarter two and quarter three are generally lean quarters for the industry. That's why we expect that the industry will be in the range of 12%-13% growth phase this year.
For the overall revenue growth for consumer durable business in FY 2027, what would be the.
We should move in tandem with our industry.
All right. All right. Thank you very much, sir.
Thank you. The next question comes from the line of Neeraj Jain with BNP Paribas. Please go ahead.
Yeah. Hi, sir. Good morning. Sir, my first question is on the non-controlling interest. Just wanted to check, as per the schedule, it's written that INR 1,750 crores fund raise that we took in ILJIN has been accounted in the balance sheet. If you can help us understand that how much percentage stake dilution is being considered already in this in CF. Based on the CCPS conversion, how much could there be further dilution upon the conversion?
Nothing is being considered as a dilution on CCPS. Nothing, no dilution has till now happened due to CCPS. It will happen in future based on the future multiple and valuation. Currently the, on a conservative side, the auditor has considered the diluted percentage and calculate the NCI. This is a maximum amount that they have considered looking into the agreements. This is on a maximum side. It will be much lesser than what than the actual conversion will happen in the equity.
Sir, can we get that, what's that maximum percentage dilution that the auditor has considered?
I think they have considered around 30 odd percent.
Sir, secondly, just wanted a clarification on the CapEx side. Do we expect to receive any capital subsidy also for the next year or do we expect it to get it in FY 2028 once we commission the Ascent?
Capital subsidy we have already got in terms of land, because land subsidy already taken into consideration and we got a value at a lesser price at around 25%. Balance CapEx subsidy of building and other CapEx will come over the period of five to six years, once we start the commercial production. You can expect the subsidy will start flowing in from next year onwards, like financially at 2028 onwards, for Ascent.
Thank you. Ladies and gentlemen, due to time constraints, we would take that as the last question for today. I would now like to hand the conference over to Mr. Jasbir Singh for the closing remarks.
Thank you everyone for joining on the call. For any further information, kindly get in touch with our Head of IR, Mr. Ravi Kharbanda, or SGA as investors or investor relation advisors. Thank you very much and have a good day ahead. In case you have further queries, you can reach out to both the gentlemen. Thank you.
Thank you, sir. Ladies and gentlemen, on behalf of Amber Enterprises India Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.