AVALON - Avalon Tech
📢 Recent Corporate Announcements
Avalon Technologies Limited has announced the allotment of 7,188 equity shares to employees following the exercise of stock options under the AVALON - Employee Stock Option Plan 2022. The allotment was approved via a circular resolution by the Nomination and Remuneration Committee on March 12, 2026. The shares were issued at exercise prices of INR 20 and INR 500. This action has marginally increased the company's total paid-up equity share capital to 6,67,66,163 shares.
- Allotment of 7,188 equity shares of face value Rs. 2 each upon ESOP exercise
- Exercise prices for the allotment were set at INR 20 and INR 500 per share
- Total paid-up capital increased from INR 13,35,17,950 to INR 13,35,32,326
- Total outstanding equity shares rose from 6,67,58,975 to 6,67,66,163
- Allotment conducted under the AVALON - Employee Stock Option Plan 2022
Avalon Technologies Limited has officially released the transcript for its Q3 FY26 earnings conference call, which was held on February 05, 2026. This document provides a detailed record of management's discussion regarding the company's financial performance for the quarter ended December 31, 2025. The filing is a standard regulatory requirement under SEBI Listing Obligations. Investors can now access the full dialogue to gain deeper insights into the company's operational strategies and future outlook.
- Official transcript released for the earnings call held on February 05, 2026.
- Covers financial and operational performance for the quarter ended December 31, 2025 (Q3 FY26).
- Compliance filing under Regulation 30(6) of SEBI (LODR) Regulations, 2015.
- The document is accessible via the company's official investor relations portal.
Avalon Technologies Limited has announced the resignation of Mr. Bhaskar Srinivasan from his role as a Non-Executive (Non-Independent) Director, effective February 10, 2026. As a co-founder who has been with the company since its inception, Mr. Srinivasan is stepping down to focus on personal priorities and other professional interests. He has explicitly confirmed that there are no material reasons for his resignation other than those stated. The company has formally accepted the resignation and expressed appreciation for his long-term contribution to the firm's growth.
- Mr. Bhaskar Srinivasan (DIN: 02561215) resigned as Non-Executive Director effective February 10, 2026.
- The outgoing director is a co-founder of Avalon Technologies and has been associated with it since inception.
- Reasons cited for resignation include personal priorities and the pursuit of other professional opportunities.
- The director confirmed there are no other material reasons for his departure.
- The company has placed on record its appreciation for his services rendered over the years.
Avalon Technologies has officially released the audio recording of its earnings conference call for the quarter ended December 31, 2025. The call, which took place on February 05, 2026, provides detailed management commentary on the company's Q3 FY26 financial performance. This filing is a mandatory disclosure under SEBI (LODR) Regulations to ensure transparency for all shareholders. Investors can access the full audio via the company's investor relations portal to understand the business outlook.
- Earnings call for the quarter ended December 31, 2025, was successfully conducted on February 05, 2026.
- Audio recording is now publicly accessible via the company's official website link.
- The disclosure is in compliance with SEBI Regulation 30(6) regarding institutional investor meets.
- The recording contains management's discussion on the financial results and operational highlights for Q3 FY26.
Avalon Technologies reported a robust Q3 FY26 performance with revenue growing 48.7% YoY to ₹418 Cr and PAT increasing 35.9% YoY to ₹33 Cr. The company achieved its sixth consecutive quarter of sequential improvement, with EBITDA margins expanding 139 bps QoQ to 11.5%. A significant highlight is the order book reaching ₹2,016 Cr, providing strong revenue visibility for approximately 14 months. Operational efficiency also improved, with Net Working Capital days reducing from 131 to 118 days during the quarter.
- Revenue grew 48.7% YoY to ₹418 Cr, while PAT increased 35.9% YoY to ₹33 Cr in Q3 FY26.
- Order book stands at ₹2,016 Cr as of Dec 31, 2025, reflecting a 26.5% YoY growth.
- EBITDA margins improved sequentially by 139 bps to 11.5% compared to Q2 FY26.
- Net Working Capital cycle improved by 13 days, dropping from 131 days in Sep'25 to 118 days in Dec'25.
- Box-build services, a high-value segment, now contribute 53% of total revenue.
Avalon Technologies reported a strong Q3 FY26 with revenue growing 48.7% YoY to ₹417.5 crore, marking its sixth consecutive quarter of sequential growth. Net profit increased by 35.9% YoY to ₹32.6 crore, supported by robust performance in India manufacturing which saw EBITDA margins of 16.7%. While YoY margins saw a slight compression, sequential (QoQ) EBITDA margins improved significantly from 10.1% to 11.5%. The company also demonstrated operational efficiency with Net Working Capital days reducing from 131 to 118.
- Revenue from operations grew 48.7% YoY to ₹417.5 Cr and 9.2% QoQ.
- PAT increased 35.9% YoY to ₹32.6 Cr with a PAT margin of 7.7%.
- EBITDA grew 38.5% YoY to ₹48.0 Cr; sequential EBITDA margin improved by 139 bps to 11.5%.
- Net Working Capital days improved significantly to 118 days from 131 days in the previous quarter.
- 9M FY26 PAT surged 83.3% YoY to ₹71.8 Cr, reflecting strong full-year momentum.
Avalon Technologies reported a strong financial performance for Q3 FY26, with consolidated revenue from operations growing 48.7% YoY to ₹4,175.42 million. Net profit for the quarter rose by 35.9% YoY to ₹326.02 million, driven by robust demand in the Electronics Manufacturing Services (EMS) segment. On a sequential basis, revenue grew by 9.2% while PAT saw a significant jump of 30.5% compared to Q2 FY26. For the nine-month period ended December 2025, the company's profit nearly doubled to ₹717.95 million from ₹391.62 million in the previous year.
- Consolidated revenue grew 48.7% YoY to ₹4,175.42 million in Q3 FY26.
- Consolidated PAT increased 35.9% YoY to ₹326.02 million from ₹239.89 million.
- 9M FY26 PAT surged by 83.3% to ₹717.95 million compared to ₹391.62 million in 9M FY25.
- Basic EPS improved to ₹4.89 in Q3 FY26 from ₹3.63 in the corresponding quarter last year.
- Finance costs decreased significantly to ₹29.59 million from ₹45.15 million YoY, aiding margin expansion.
Avalon Technologies Limited has announced its participation in the 'Advantage India - Axis Capital's Flagship India Conference' scheduled for February 11, 2026. The event will take place in Mumbai from 9:00 AM to 5:00 PM as a physical group meeting. The company may also engage in one-on-one interactions with institutional investors and analysts during this window. Management has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during these sessions.
- Participation in Axis Capital's Flagship India Conference on February 11, 2026
- Full-day engagement scheduled from 09:00 AM to 05:00 PM in Mumbai
- Interaction format includes physical group meetings and potential one-on-one sessions
- Compliance disclosure confirms no unpublished price sensitive information will be shared
India Ratings and Research (Ind-Ra) has revised the outlook on Avalon Technologies Limited's bank loan facilities to Positive from Stable. The agency affirmed the company's long-term rating at 'IND A-' and short-term rating at 'IND A1'. This rating action covers bank loan facilities totaling INR 1,415 million. The shift to a positive outlook indicates an improving credit profile and the potential for a rating upgrade in the near future.
- Outlook revised to Positive from Stable by India Ratings and Research (Ind-Ra).
- Long-term rating affirmed at 'IND A-' and short-term rating at 'IND A1'.
- The rating applies to bank loan facilities with a total issue size of INR 1,415 million.
- The revision reflects strengthening financial stability and creditworthiness of the company.
Avalon Technologies Limited has announced its earnings conference call for the third quarter ended December 31, 2025. The call is scheduled to take place on Thursday, February 5, 2026, at 3:30 PM IST following the release of its financial results. This session will allow management to discuss the company's standalone and consolidated performance for Q3 FY26. Such calls are critical for investors to understand management's commentary on the Electronic Manufacturing Services (EMS) sector trends and the company's order book.
- Earnings call scheduled for February 5, 2026, at 3:30 PM IST.
- The call pertains to the unaudited financial results for the quarter ended December 31, 2025.
- Management will discuss both standalone and consolidated financial performance.
- Dial-in details are provided via the company's official investor relations website link.
Avalon Technologies Limited has submitted its quarterly compliance certificate under SEBI Regulation 74(5) for the period ending December 31, 2025. The company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirmed that no requests for dematerialization or rematerialization were received during the quarter. The company maintains a 100% dematerialized shareholding structure, which has been the case since its listing on April 18, 2023. This is a standard procedural filing required by Indian stock exchanges to ensure the integrity of the share register.
- Confirmed 100% of equity shares are held in dematerialized form.
- Zero requests for dematerialization or rematerialization received for the quarter ended December 31, 2025.
- Compliance certificate issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited.
- The company has been listed on BSE and NSE since April 18, 2023.
Avalon Technologies Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting December 31, 2025. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations ahead of the upcoming Q3 FY2025-26 financial results. The window will remain closed until 48 hours after the unaudited standalone and consolidated financial results are declared. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window for designated persons closes effective December 31, 2025.
- Closure pertains to the review of financial results for the quarter ending December 31, 2025.
- Trading restriction will lift 48 hours after the official announcement of quarterly results.
- Notification sent to all designated persons and relatives on December 30, 2025.
Avalon Technologies Limited has allotted 24,946 equity shares to employees following the exercise of options under the AVALON - Employee Stock Option Plan 2022. The shares were issued at an exercise price of INR 20 per share on December 24, 2025. This allotment has increased the company's total paid-up equity capital to INR 13,35,17,950. The total number of outstanding equity shares now stands at 6,67,58,975.
- Allotment of 24,946 equity shares of face value Rs. 2 each to employees.
- Exercise price fixed at INR 20 per share under the ESOP 2022 scheme.
- Total paid-up capital increased from INR 13,34,68,058 to INR 13,35,17,950.
- Total outstanding equity shares increased to 6,67,58,975 following the allotment.
Financial Performance
Revenue Growth by Segment
Revenue grew 26.6% YoY in FY25 to INR 1,098 Cr. Segmental shifts saw Industrials grow to 30% of revenue (up from 28%), Mobility/Transportation to 27% (up from 26%), and Clean Energy to 20% (up from 18%), while Communications dropped to 8% (from 13%). Q2 FY26 revenue reached INR 382 Cr, a 39.1% YoY increase.
Geographic Revenue Split
India operations accounted for 87% of revenue in FY25, serving both domestic and global clients. The US business serves as a strategic beachhead, with over 50% of US customers transitioned to Indian manufacturing to optimize costs.
Profitability Margins
Gross Margin was 35.8% in FY25 (-55 bps YoY) and 34.3% in Q2 FY26 (-252 bps YoY). PAT margin improved significantly to 5.7% in FY25 (up from 3.2%) and reached 6.4% in Q2 FY26 (+13 bps YoY) due to operational efficiencies and scale.
EBITDA Margin
EBITDA margin stood at 10.5% in FY25, an increase of 325 bps from 7.2% in FY24. In Q2 FY26, EBITDA margin was 10.1%, down 86 bps YoY but up 85 bps sequentially from Q1 FY26.
Capital Expenditure
Capex for Q2 FY26 was INR 14.8 Cr and INR 24.4 Cr for H1 FY26. Investments are focused on the export-focused Chennai plant and Phase 2 brownfield expansion in Chennai, expected to complete by Q3 FY26.
Credit Rating & Borrowing
Finance costs were INR 17 Cr in FY25 on total debt of approximately INR 141 Cr, implying an effective interest rate of ~12%. Net Debt to EBITDA improved to 0.1x in FY25 from -0.3x in FY24.
Operational Drivers
Raw Materials
Key materials include metals, electronics, polymers, and specialized components. Cost of raw materials consumed was INR 719 Cr in FY25, representing 65.5% of total revenue.
Import Sources
Sourced globally across multiple geographies to reduce dependency on single vendors; specific countries are not disclosed but include a strategic sourcing framework for global procurement.
Key Suppliers
Not disclosed by specific company names; Avalon utilizes a strategic sourcing framework with multiple suppliers to mitigate monopoly risks.
Capacity Expansion
Current facilities span 575,000+ sq. ft. across 15 units in the US and India. Planned expansion includes Phase 2 of the Chennai brownfield facility to be completed by the end of Q3 FY26 to meet rising domestic demand.
Raw Material Costs
Raw material costs increased 28.1% YoY to INR 719 Cr in FY25. Procurement strategies include long-term contracts to lock in prices and substituting high-risk materials with stable alternatives.
Manufacturing Efficiency
Asset turnover improved to 8.7x in Q2 FY26 from 7.5x in FY25. ROCE improved to 18.4% in H1 FY26 from 15.7% in FY25, driven by better capital utilization.
Strategic Growth
Expected Growth Rate
39.10%
Growth Strategy
Growth is driven by a 'dual-shore' model (US/India), expanding the order book (INR 1,485 Cr as of Sep 2025), and entering high-potential segments like semiconductor equipment. The company is transitioning US customers to India-based manufacturing to capture higher margins and scaling new projects in Clean Energy and Industrials.
Products & Services
Electronic Manufacturing Services (EMS) including Printed Circuit Board Assemblies (PCBA), Cable Assemblies, Wire Harnesses, Sheet Metal Fabrication, Machining, Magnetics, and full Box Build integration.
Brand Portfolio
Avalon Technologies, Sienna, Sienna ECAD.
New Products/Services
Entry into the semiconductor equipment space and expansion into advanced technology segments; specific revenue contribution % for these new lines is not yet disclosed.
Market Expansion
Expanding global presence through strategic market entries and increasing domestic capacity via the Chennai Phase 2 expansion by Q3 FY26.
Strategic Alliances
Collaborates with emerging pioneers in sunrise sectors like Clean Energy; specific partner names are not disclosed.
External Factors
Industry Trends
The EMS industry is seeing structural growth driven by 'China+1' strategies and increased electronics content in Industrials and Clean Energy. Avalon is positioning itself in high-mix, low-to-medium volume segments which offer higher barriers to entry.
Competitive Landscape
Operates in a competitive EMS market but differentiates through niche market support and prototyping-to-scale transitions.
Competitive Moat
Moat is built on a 'dual-shore' presence, integrated capabilities (design to box-build), and specialization in high-mix, low-volume manufacturing which is less commoditized than high-volume EMS.
Macro Economic Sensitivity
Sensitive to global trade dynamics, tariffs, and macroeconomic shifts affecting global manufacturing trends and EMS demand.
Consumer Behavior
Shift toward clean energy and industrial automation is driving demand for Avalon's specialized electronic assemblies.
Geopolitical Risks
Geopolitical conflicts and changes in trade policies are identified as critical risks that could disrupt supply chains or impact cost structures.
Regulatory & Governance
Industry Regulations
Must comply with statutory norms, quality, hygiene, and sustainability standards for factories and products; operates within SEZ and DTA regulations.
Taxation Policy Impact
Effective tax rate was approximately 26.4% in FY25 (INR 23 Cr tax on INR 87 Cr PBT).
Risk Analysis
Key Uncertainties
Raw material availability and price volatility (impacts 65.5% of costs); regulatory changes could disrupt incentive benefits.
Geographic Concentration Risk
87% of revenue is derived from Indian manufacturing operations, though it serves a global customer base.
Third Party Dependencies
High dependency on suppliers for critical electronics and specialized components; mitigated by a strategic sourcing framework.
Technology Obsolescence Risk
Mitigated by entering advanced segments like semiconductor equipment and investing in automation and Six Sigma.
Credit & Counterparty Risk
Trade receivables stood at INR 316 Cr in FY25 with a receivable cycle of 84 days, up slightly from 79 days.