Synopsis:
Avantel Limited has received a purchase order worth ₹9.92 Crores (including taxes) from Garden Reach Shipbuilders Limited for the supply of Satcom products.
The shares of the Defence company specializing in the business of designing, developing, and maintaining wireless and satellite communication products jumped upto 5 percent upon receiving a purchase order from Garden Reach Shipbuilders Limited.
With a market capitalization of Rs. 4,741.63 crores on Wednesday, the shares of Avantel Limited jumped upto 5.4 percent, making a high of Rs. 186.50 per share compared to its previous closing price of Rs. 176.90 per share.
What Happened
Avantel Limited, engaged in the business of designing, developing, and maintaining wireless and satellite communication products, has received a purchase order worth Rs. 9.92 crores (including taxes) from Garden Reach Shipbuilders Limited.
The order is for the supply of Satcom products, and the order is a domestic manufacturing contract, with a performance bank guarantee of 3%. The products are expected to be delivered between March 15, 2026, and June 15, 2026.
Along with it, it has received a Maintenance contract worth Rs. 1.94 Crores (including taxes) from M/s. Fleet Maintenance Unit. The contract, dated September 16, 2025, is for service-related work, and it is to be executed by September 19, 2027.
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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