This Small-cap EMS Inventory, engaged in offering built-in digital manufacturing companies, together with PCB design, meeting, and box-build options, serving industries globally with superior manufacturing and high quality programs, is in focus after the corporate revised its income steerage of 28-30 % for the monetary 12 months 2026
With a market capitalization of Rs. 6,975.04 crore, the shares of Avalon Applied sciences Restricted have been at the moment buying and selling at Rs. 1,045.20 per fairness share, rising almost 0.76 % from its earlier day’s shut worth of Rs. 1,037.30.
Q2 FY26 Outcome Walkthrough
Coming into the quarterly outcomes of Avalon Applied sciences Restricted, the corporate’s consolidated income from operations elevated by 38.91 % YOY, from Rs. 275 crore in Q2 FY25 to Rs. 382 crore in Q2 FY26, and grew by 18.27 % QoQ from Rs. 323 crore in Q1 FY26.
In Q2 FY26, Avalon Applied sciences Restricted’s consolidated web revenue elevated by 47.06 % YOY, reaching Rs. 25 crore in comparison with Rs. 17 crore throughout the identical interval final 12 months. As in comparison with Q1 FY26, the web revenue has elevated by 78.57 %, from Rs. 14 crore.
Administration Steerage
Avalon Applied sciences Restricted has elevated its full-year income development steerage from 23-25 % to 28-30 %, exhibiting confidence in its enterprise outlook. It additionally expects to take care of its gross margin at 33-35 %. This enchancment is supported by a robust order pipeline, ongoing enlargement of its infrastructure, and clear long-term targets. Moreover, the corporate is working towards doubling its income between FY24 and FY27, highlighting a robust development imaginative and prescient for the longer term.
Order E book
Avalon Applied sciences Restricted reported an order e-book of Rs. 1,863 crore as of September 2025, reflecting a 25.4 % year-on-year development from Rs. 1,485 crore in September 2024.
The corporate additionally secured long-term contracts price Rs. 1,168 crore, which will increase its whole enterprise visibility to round Rs. 3,031 crore. This robust order pipeline highlights constant demand, wholesome buyer relationships, and improved income visibility for the approaching years.
Future Outlook
Avalon Applied sciences Restricted can be supported by elevated manufacturing in vitality storage programs, together with railway subsystem manufacturing starting within the second half of FY26, whereas Part 2 of the Chennai brownfield enlargement is progressing and scheduled for completion by Q3 FY26.
The corporate can also be set to learn from aerospace cabin subassemblies and new industrial and defence packages within the US, serving to diversify income sources and strengthen enterprise momentum.
Avalon Applied sciences Restricted’s Kavach security system has accomplished testing and is predicted to maneuver into business manufacturing within the second half of FY27. Avalon has additionally superior its semiconductor gear manufacturing partnership, attaining prototype completion within the first half of FY26, with full-scale manufacturing focused for FY27.
As well as, the corporate has strengthened its design capabilities by means of its collaboration with Zepco within the energy and clear vitality segments. This partnership is targeted on design work, together with drone motor tasks for the Indian market, with manufacturing deliberate to observe as soon as the design section is accomplished.
Firm Overview
Avalon Applied sciences Restricted was established in 1999 and is a number one Indian electronics manufacturing companies (EMS) firm. It’s engaged in offering built-in manufacturing options, together with PCB design, meeting, testing, and box-build companies for numerous digital merchandise.
The corporate is engaged in manufacturing digital parts and assemblies for sectors like automotive, industrial, medical, and telecommunications. It gives end-to-end options from product conceptualization and design to manufacturing and after-sales help.
Additional, Avalon Applied sciences Restricted’s services embody printed circuit board assemblies (PCBAs), cable harness assemblies, system integration, and testing companies.
Monetary Highlights
Avalon Applied sciences Restricted’s income and web revenue have grown at a CAGR of 11.33 % and 39.33 %, respectively, during the last 5 years. By way of return ratios, the corporate’s ROCE and ROE stand at 12.8 % and 10.4 %, respectively. Avalon Applied sciences Restricted has an earnings per share (EPS) of Rs. 13.2, and its debt-to-equity ratio is 0.25x.
Written By – Nikhil Naik
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