This small-cap Defence Stock, engaged in designing, developing, and manufacturing advanced communication, defence electronics, and satellite systems for defence, space, and government sectors in India, jumped 6 percent after receiving multiple orders worth Rs. 25 crore from DRDO and Mazagon Dock Shipbuilders Limited.
With a market capitalization of Rs. 4,332.13 crores, the share of Avantel Limited has reached an intraday high of Rs. 164.90 per equity share, rising nearly 6.39 percent from its previous day’s close price of Rs. 155.
Since then, the stock has retreated and is currently trading at Rs. 163.50 per equity share. Over the last month, the stock has delivered an impressive return of more than 27.59 percent.
Avantel Limited has received a purchase order worth Rs. 11.06 crores from Mazagon Dock Shipbuilders Limited. The order is for manufacturing work and will be carried out between April 2026 and August 2029.
Additionally, Avantel Limited has also received a purchase order worth Rs. 13.67 crores from the Defence Electronics Applications Laboratory, DRDO. The order is for manufacturing Software Defined Radios (SDRs) and will be completed by August 2027. These orders reinforce Avantel’s position in the defence manufacturing sector and support its long-term revenue visibility and growth outlook.
Avantel Limited was established in 1990 and is headquartered in Visakhapatnam, India, and is an Indian technology company specialising in the design, development, and manufacture of advanced telecom and defence electronics products. The company primarily serves the aerospace, defence, and strategic sectors, delivering innovative, network-centric solutions that comply with military standards.
The company offers a wide range of products, including Software Defined Radios, satellite and HF/UHF communication systems, radar and defence electronics, and network management software. It also provides mobile satellite services for ships and aircraft, RF testing equipment, and has advanced manufacturing facilities.
Avantel Limited serves key Indian defence forces and government organisations such as DRDO, ISRO, DPSUs, Shipyards, Ordnance Factories, and Indian Railways. It also works with research institutes and major private and public companies, including L&T and NewSpace India Limited, in the defence and space sectors, showing its strong and diverse client base.
Coming into financial highlights, Avantel Limited’s revenue has increased from Rs. 41.76 crore in Q4 FY24 to Rs. 49.26 crore in Q4 FY25, which has grown by 17.96 percent. The net profit has decreased by 49.96 percent, from Rs. 12.15 crore in Q4 FY24 to Rs. 6.08 crore in Q4 FY25.
Avantel Limited’s revenue and net profit have grown at a CAGR of 33.35 percent and 45.98 percent, respectively, over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 37 percent and 28.6 percent, respectively. Avantel Limited has an earnings per share (EPS) of Rs. 2.26, and its debt-to-equity ratio is 0.11x.
Written By – Nikhil Naik
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