Amber eyes 8M Oppo phones in FY26 at 1.5-2% EBITDA margins
The EMS player targets 30-35% ROCE on the mobile business with an asset-light model. Commercial output starts Q1 FY26.
— 4 earlier stories on Amber Enterprises India Ltd. →What's new
- Amber targets 8M phone units in FY26 for Oppo, OnePlus, and Realme; 13-15M in FY27.
- EBITDA margins guided at 1.5-2% initially, improving as component integration deepens over 5-6 years.
- Capex for assembly and SMT is under ₹50 cr; model is asset-light and working-capital efficient.
Why this matters
Amber enters a massive addressable market—Oppo India alone had ₹31,981 cr in FY25 revenue. But the 1.5-2% EBITDA margin is wafer-thin for a company trading at 157x P/E. The math works only if volumes scale and component integration drives margin improvement over time.
What we're watching
- Whether Amber hits the 8M unit run rate by Q4 of the current fiscal year.
- Initial margin trajectory any sign of improvement beyond the 1.5-2% band.
- Component integration milestones over the next 2-3 years.
The full read
Amber Enterprises is getting into phone making in a big way. By Q1 FY26, it will start commercial output for Oppo, OnePlus, and Realme through a dedicated facility. The first-year target is 8 million units at an EBITDA margin of just 1.5-2%. That is not much. But management sees this as a multi-year play as Amber integrates more components locally over time, margins should climb. The initial capex is light — under ₹50 crore for assembly and SMT. The model is working-capital efficient, targeting 30-35% ROCE. For a company already doing ₹4,148 crore in quarterly revenue, this is a new growth engine. The market already knew about the Oppo deal; now it has the numbers. The key unknown is how fast Amber can move from assembling phones to making them profitably.
Questions answered
- When does Amber start commercial production of phones for Oppo?
- Trial production begins in Q4 of the current financial year, with commercial output starting in Q1 FY26.
- What are the volume targets for the first two years?
- Amber targets 8 million units in FY26 and 13-15 million units in FY27.
- What is the expected EBITDA margin on this business?
- Initially 1.5-2%, with gradual improvement over a five- to six-year horizon as component integration deepens.
- How capital intensive is this partnership?
- Capex for the assembly and SMT phase is less than ₹50 crore, with further investment staged for later component stages. The model is asset-light and working-capital efficient.
- What ROCE does Amber target on the mobile business?
- Management guides for 30-35% ROCE on a standalone basis.
- Was this partnership already announced?
- Yes, the partnership was announced on June 18. This concall adds specific volume, margin, and capex guidance that was not previously disclosed.
Amber Enterprises India Ltd.
Latest quarter · Mar 2026
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All notes on AMBER →- 22 Jun 2026 · 11:09 AM IST Amber eyes 8M Oppo phones in FY26 at 1.5-2% EBITDA margins
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