Defence and satellite communications equipment maker Avantel Ltd reported a strong set of earnings in the June quarter of financial year 2027 (Q1FY27), with consolidated net profit rising 67.4% year-on-year (YoY), supported by healthy revenue growth and improved operating margins.
The company's consolidated net profit stood at Rs 5.4 crore in the first quarter of FY27, compared with Rs 3.2 crore in the corresponding period last year.
Revenue from operations increased 35.7% year-on-year to Rs 70.4 crore, up from Rs 51.9 crore a year earlier, reflecting steady execution across its defence communication and wireless solutions business.
Operating performance also improved considerably. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 66.7% to Rs 17.4 crore, compared with Rs 10.5 crore in the year-ago quarter. EBITDA margin expanded 360 basis points (bps) to 24.7% from 20.1%, indicating better operational efficiency and cost management.
The latest quarterly performance marks a sharp recovery from the weak June quarter last year, when profit had declined amid margin pressure despite largely stable revenue.
Avantel develops mission-critical communication systems, satellite communication products, wireless solutions and network management software, with a major share of its business catering to the Indian defence sector, including the Navy, Army and aerospace applications.
The company has remained active on the order inflow front. In late June, Avantel informed exchanges that it had received a fresh purchase order worth Rs 83.80 crore from Zetwerk Manufacturing Businesses Limited, further strengthening its order book.
Under this deal, the company will be responsible for the supply of Satellite Communication Equipment's, along with one year comprehensive onsite warranty. Avantel is expected to execute the contract by March, 2027.
On Friday, Avantel shares settled 0.19% higher at Rs 180.20 per share. In comparison, the BSE Sensex index ended 1.08% higher at 77,569.39 levels.
The 52-week high of Avantel share is Rs 215, while its 52-week low is Rs 117.70.
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