Stock Report

Avantel Limited Net Profit Climbs 67% Year-on-Year to ₹539.46 Lakh in Q1 FY27; Sequentially Up 13%

Posted On : 2026-07-12 11:09:35( TIMEZONE : IST )

Avantel Limited, a leading provider of telecom and defense electronics solutions, has announced its consolidated un-audited financial results for the first quarter of the fiscal year 2026-27 ended June 30, 2026. The company commenced the new fiscal year on a strong note, exhibiting solid double-digit expansion across its operational revenues and bottom-line profitability on both a year-on-year and sequential basis.

Income Growth and Top-Line Execution

For the first quarter of FY27, Avantel recorded a consolidated revenue from operations of ₹7,042.16 lakhs (~₹70.42 crore). This represents a robust 35.65% expansion against the ₹5,191.28 lakhs generated during the corresponding first quarter of the previous fiscal year (Q1 FY26). Sequentially, the company's operational revenue registered a steady growth of 10.33% over the ₹6,382.55 lakhs logged in the immediate preceding quarter ended March 31, 2026.

With other supplementary income contributing ₹12.08 lakhs during the three-month period, Avantel's Total Income settled at ₹7,054.24 lakhs, accelerating safely past the year-ago income of ₹5,195.80 lakhs.

Expense Layout and Operational Cost Analysis

The company's total consolidated expenditure for the opening quarter stood at ₹6,184.35 lakhs, reflecting increased raw material procurement and production scaling required to support a larger order pipeline.

A granular breakdown of the cost structure highlights:

Material & Inventory Outlays: Cost of materials consumed accounted for ₹2,544.90 lakhs, while changes in inventories of finished goods and work-in-progress recorded an offset of ₹(198.31) lakhs, indicating an accretion of stock values during the quarter.

Personnel & Administrative Expenses: Employee benefit expenses were kept optimal at ₹1,336.65 lakhs, dropping down sequentially from ₹1,460.97 lakhs. Other general operational overheads stood at ₹1,615.90 lakhs.

Financing & Assets: Depreciation and asset amortization charges climbed to ₹709.71 lakhs, reflecting ongoing capitalization of manufacturing infrastructure, while core financing leverage costs were noted at ₹175.50 lakhs.

Driven by these balanced operational outlays, Avantel recorded a positive Profit Before Tax (PBT) of ₹869.89 lakhs, representing a substantial jump over the ₹530.24 lakhs reported in Q1 FY26 and the ₹731.65 lakhs cleared sequentially.

Profitability and Shareholder Value

Following a total corporate tax outgo allocation of ₹330.43 lakhs under current tax provisions-with zero additional impact from deferred tax entries during the quarter-Avantel concluded the three-month period with a Net Profit of ₹539.46 lakhs.

This bottom-line figure marks an impressive 67.17% surge year-on-year compared to the ₹322.71 lakhs achieved in the corresponding quarter of the previous year. Sequentially, the net profit moved up 12.98% over the ₹477.47 lakhs cleared in the preceding March quarter.

With zero adjustments reported under other comprehensive income (OCI), the total comprehensive income matched the net profit perfectly at ₹539.46 lakhs. Against a split paid-up equity share capital base with a face value of ₹2 per share, basic and diluted Earnings Per Share (EPS) for the quarter stood at ₹0.20 per share.