Synopsis:
Avantel Ltd has secured two domestic orders worth ₹12.77 crores — ₹3.95 crores from the Indian Navy for Satcom Systems and ₹8.82 crores from Bharat Electronics for Power Amplifiers, and both orders are to be executed by FY26
The shares of the Defence company specializing in the business of designing, developing, and maintaining wireless and satellite communication products are in focus after securing two orders worth Rs. 12.77 crore from the Indian Navy and Bharat Electronics Limited.
With a market capitalization of Rs. 4,855.57 crores on Thursday, the shares of Avantel Limited jumped upto 0.74 percent, making a high of Rs. 188.15 per share compared to its previous closing price of Rs. 186.75 per share.
What Happened
Avantel Limited, engaged in the business of designing, developing, and maintaining wireless and satellite communication products, has received two work orders, one from the Indian Navy and another from Bharat Electronics Limited.
The company has received its first purchase order worth Rs. 3.95 crores (including taxes) from the Material Organisation, Indian Navy, Mumbai, for the supply of Satcom Systems. The order is domestic in nature and is to be executed by September 2026. A performance bank guarantee of 5% is required as part of the contract terms.
The company has received its second purchase order worth Rs. 8.82 crores (excluding taxes) from Bharat Electronics Limited for the supply of Power Amplifiers. This is a domestic manufacturing order, to be executed by March 2026, and includes a 3% performance bank guarantee. Avantel Ltd has secured two significant domestic purchase orders totaling Rs. 12.77 crores.
Financials & Others
The company’s revenue rose slightly by 0.29 percent from Rs. 51.76 crore to Rs. 51.91 crore in Q1FY25-26. Meanwhile, Net profit declined from Rs. 7.38 crores to Rs. 3.23 crores during the same period.
The company has a strong financial performance with a Return on Capital Employed (ROCE) of 37.1%, a Return on Equity (ROE) of 28.1%, and a low Debt-to-Equity ratio of 0.11. Over the past 3 years, its average ROE has been 31.5%, reflecting a solid track record of profitability and efficient use of equity.
Avantel Limited is a technology company headquartered in Andhra Pradesh, India, specializing in designing, developing, and manufacturing advanced wireless and satellite communication products, radar systems, defence electronics, and network management software applications. It has established strong expertise in embedded systems and radio frequency solutions for both defence and civilian telecom markets.
The company is known for providing innovative solutions, particularly tailored to the needs of the Indian Defence Services, including software-defined radios, mobile satellite service networks for ships and aircraft, satellite communication equipment, and real-time train information systems. Its offerings also extend to radar systems, RF/microwave subsystems, vehicle tracking, and a range of telecom-related software and hardware.
The company has a strong portfolio of marquee clients, including prominent organizations such as Boeing, Lockheed Martin, ISRO, DRDO, Indian Navy, Indian Air Force, Indian Railways, L&T, BARC, BEL, and several others across defense, aerospace, and research sectors.
The company currently has an order book of Rs. 210 crore and expects order inflows of at least Rs. 200 crore in FY26. Management anticipates securing large orders of over Rs. 100 crore in key verticals like RTAs, SDRs, and ground stations this year. Additionally, iDEX commercialisation is expected to bring in significant orders starting from FY27.
Written by Sridhar J
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