Synopsis:
Avantel jumped sharply after it received an order worth Rs 13 crore from Bharat Electronics for the supply of Satcom Products. With a Rs. 210 crore order book, it expects order inflows of at least Rs. 200 crore in FY26, and it is at the forefront of securing more orders in the future.
The shares of this leading defence-based company are in focus after the company secured a key order from a significant PSU. In this article, we will dive more into the details of this order.
With a market capitalization of Rs 4,881 crore, the shares of Avantel Ltd made a day high of Rs 184.40 per share, up by 6 percent from its day’s low of Rs 174.45 per share. Over the past five years, the stock has delivered a robust return of 2,712 percent, outperforming the NIFTY 50’s return of 121 percent.
About the order
Avantel Limited has notified the stock exchanges that it has received a purchase order from Bharat Electronics Limited, valued at Rs. 12.51 crores (including taxes). The order, which is for the supply of Satcom products, is to be completed by March 2026. A performance bank guarantee of 3 percent has been mentioned as part of the order conditions.
Satcom stands for satellite communication systems, which are the technologies that facilitate secure and reliable voice, data, and video communications through satellites, commonly employed in the areas of defense, aerospace, and remote connectivity.
A performance bank guarantee is a financial security provided by the supplier’s bank to the buyer (Bharat Electronics in this case), who then has the assurance that the supplier will complete the order as per the agreed terms. If the supplier defaults, the buyer can demand the bank provide compensation.
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.
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Financials Highlights
The company’s revenue for Q1 FY26 came in at Rs 51.91 crore, slightly up by 0.30 percent from Rs 51.76 crore in the same quarter last year. Additionally, on a sequential basis, revenue grew by 5 percent from Rs 49.26 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit decline of 56 percent to Rs 3.23 crore in Q1 FY26 as compared to Rs 7.38 crore in Q1 FY25. Additionally, on a QoQ basis, it declined 47 percent from Rs 6.08 crore.
The company has delivered a superior ROE and ROCE of 28.12 percent and 37.06 percent respectively, and is currently trading at a high P/E of 93.35x as compared to its industry average of 75.94x.
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.
Written by Satyajeet Mukherjee
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