Synopsis: A defence electronics manufacturer has secured a fresh order for communication systems from a major government defence PSU. The update has drawn investor interest as the company continues to build momentum in the aerospace and defence space.
A defence stock opened steady after the company announced a new communication systems order from a key defence client. Investor sentiment was supported by the company’s continued traction in government-led defence procurement.
Avantel Limited, with a market cap of Rs. 4,010.31 crore, opened at Rs. 149.75 compared to the previous close of Rs. 149.80 and hit an intraday high of Rs. 154.10. This marks an increase of 2.86 percent, reflecting positive trading interest.
What’s the News?
Avantel Limited has received a purchase order worth Rs. 17.55 crore, including taxes, for the supply of communication systems from Bharat Electronics Limited, as per a contract dated 25 November 2025. The contract mandates a performance bank guarantee of 5 percent and falls under the manufacturing category. The order is scheduled to be executed by March 2026.
The company continues to serve a strong list of strategic clients, including the Indian Navy, Bharat Electronics Limited, Lockheed Martin, DRDO, New Space India Limited, the Indian Coast Guard, and Indian Railways, along with other key central government organisations across the aerospace and defence sectors.
Financial Snapshot – Q2FY26
Quarter-on-Quarter, revenue increased from Rs. 51.91 crore to Rs. 55.42 crore, up 6.7 percent. Operating profit rose from Rs. 10.45 crore to Rs. 11.32 crore, higher by 8.3 percent. Profit before tax improved from Rs. 5.30 crore to Rs. 6.21 crore, registering a gain of 17.1 percent. Net profit strengthened from Rs. 3.23 crore to Rs. 4.27 crore, rising 32.2 percent.
Year-on-Year, revenue declined from Rs. 77.42 crore to Rs. 55.42 crore, a drop of 28.5 percent. Operating profit fell from Rs. 34.69 crore to Rs. 11.32 crore, down 67.4 percent. Profit before tax reduced from Rs. 31.50 crore to Rs. 6.21 crore, lower by 80.2 percent. Net profit decreased from Rs. 22.90 crore to Rs. 4.27 crore, showing a decline of 81.3 percent.
About the Company
Established in 1990 by Dr. Abburi Vidyasagar, Avantel has evolved into a significant player in the defence electronics industry over the past three decades. The company focuses on designing, developing, manufacturing, and supporting a wide range of defence electronics systems. Its expertise spans wireless and satellite communications, RF system design, embedded systems, signal processing, network management, software development, engineering services, and integrated IT solutions for mission-critical applications.
-Manan Gangwar
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