This Small-cap EMS Stock, engaged in providing integrated electronic manufacturing services, including PCB design, assembly, and box-build solutions, serving industries globally with advanced manufacturing and quality systems, is in focus after the company revised its revenue guidance of 28-30 percent for the financial year 2026
With a market capitalization of Rs. 6,975.04 crore, the shares of Avalon Technologies Limited were currently trading at Rs. 1,045.20 per equity share, rising nearly 0.76 percent from its previous day’s close price of Rs. 1,037.30.
Q2 FY26 Result Walkthrough
Coming into the quarterly results of Avalon Technologies Limited, the company’s consolidated revenue from operations increased by 38.91 percent YOY, from Rs. 275 crore in Q2 FY25 to Rs. 382 crore in Q2 FY26, and grew by 18.27 percent QoQ from Rs. 323 crore in Q1 FY26.
In Q2 FY26, Avalon Technologies Limited’s consolidated net profit increased by 47.06 percent YOY, reaching Rs. 25 crore compared to Rs. 17 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 78.57 percent, from Rs. 14 crore.
Management Guidance
Avalon Technologies Limited has increased its full-year revenue growth guidance from 23-25 percent to 28-30 percent, showing confidence in its business outlook. It also expects to maintain its gross margin at 33-35 percent. This improvement is supported by a strong order pipeline, ongoing expansion of its infrastructure, and clear long-term goals. Additionally, the company is working toward doubling its revenue between FY24 and FY27, highlighting a strong growth vision for the future.
Order Book
Avalon Technologies Limited reported an order book of Rs. 1,863 crore as of September 2025, reflecting a 25.4 percent year-on-year growth from Rs. 1,485 crore in September 2024.
The company also secured long-term contracts worth Rs. 1,168 crore, which increases its total business visibility to around Rs. 3,031 crore. This strong order pipeline highlights consistent demand, healthy customer relationships, and improved revenue visibility for the coming years.
Future Outlook
Avalon Technologies Limited will be supported by increased production in energy storage systems, along with railway subsystem manufacturing beginning in the second half of FY26, while Phase 2 of the Chennai brownfield expansion is progressing and scheduled for completion by Q3 FY26.
The company is also set to benefit from aerospace cabin subassemblies and new industrial and defence programs in the US, helping diversify revenue sources and strengthen business momentum.
Avalon Technologies Limited’s Kavach safety system has completed testing and is expected to move into commercial production in the second half of FY27. Avalon has also advanced its semiconductor equipment manufacturing partnership, achieving prototype completion in the first half of FY26, with full-scale production targeted for FY27.
In addition, the company has strengthened its design capabilities through its collaboration with Zepco in the power and clean energy segments. This partnership is focused on design work, including drone motor projects for the Indian market, with manufacturing planned to follow once the design phase is completed.
Company Overview
Avalon Technologies Limited was established in 1999 and is a leading Indian electronics manufacturing services (EMS) company. It is engaged in providing integrated manufacturing solutions, including PCB design, assembly, testing, and box-build services for various electronic products.
The company is engaged in manufacturing electronic components and assemblies for sectors like automotive, industrial, medical, and telecommunications. It offers end-to-end solutions from product conceptualization and design to manufacturing and after-sales support.
Further, Avalon Technologies Limited’s products and services include printed circuit board assemblies (PCBAs), cable harness assemblies, system integration, and testing services.
Financial Highlights
Avalon Technologies Limited’s revenue and net profit have grown at a CAGR of 11.33 percent and 39.33 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 12.8 percent and 10.4 percent, respectively. Avalon Technologies Limited has an earnings per share (EPS) of Rs. 13.2, and its debt-to-equity ratio is 0.25x.
Written By – Nikhil Naik
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