Synopsis:
Avantel Ltd, advanced after securing an amended order worth Rs. 9.88 crore, inclusive of taxes, from the Department of Atomic Energy. The revised mandate replaces the earlier Rs. 4.96 crore order issued in April 2025, strengthening Avantel’s presence in strategic communications.
An aerospace and defense stock gained ground after news of a government contract amendment. The stock gained as investors reacted positively to the increased order size.
Avantel Ltd, with a market capitalization of Rs. 4,644.92 crore, opened at Rs. 170.25 against the previous close of Rs. 170.45. The stock climbed to an intraday high of Rs. 177.50, marking a gain of 4.13 percent from the previous close.
What’s the News?
The company has received an amended purchase order worth Rs. 9.88 crore, inclusive of taxes, from the Department of Atomic Energy, as communicated on September 8, 2025. This revised order supersedes the earlier purchase order of Rs. 4.96 crore dated April 2, 2025. The contract requires a performance security deposit bank guarantee of three percent and is scheduled for completion by September 30, 2026.
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Financial Snapshot
On a quarter-on-quarter basis, revenue increased from Rs. 49.26 crore to Rs. 51.91 crore, reflecting a growth of 5.4 percent. However, operating profit declined from Rs. 11.61 crore to Rs. 10.45 crore, down 10 percent.
Profit before tax fell from Rs. 8.49 crore to Rs. 5.30 crore, registering a decline of 37.6 percent, while net profit slipped from Rs. 6.08 crore to Rs. 3.23 crore, a drop of 46.9 percent.
On a year-on-year basis, revenue remained largely flat, moving from Rs. 51.76 crore to Rs. 51.91 crore, up just 0.3 percent. Operating profit contracted from Rs. 14.16 crore to Rs. 10.45 crore, a decline of 26.2 percent. Profit before tax dropped from Rs. 10.96 crore to Rs. 5.30 crore, lower by 51.6 percent, while net profit decreased from Rs. 7.38 crore to Rs. 3.23 crore, down 56.2 percent.
About the Company
Avantel Ltd operates in the aerospace and defense sector and specializes in the design and manufacture of wireless front-end systems, satellite communication equipment, embedded systems, signal processing solutions, network management platforms, and software development. It also provides related customer support services and houses an in-house research and development facility.
Written By Manan Gangwar
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