Avantel Q4 2025-26: Revenue Rises, Profits Dip, Analysts Bullish

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Avantel Q4 2025-26 Results: Revenue Grows Amid Profit Dip

By S Jha

New Delhi, April 19, 2025: Avantel Ltd., a leading player in satellite communications and defence electronics, announced its Q4 2025-26 financial results. It reported a modest revenue increase but a slight decline in net profit.

Decline in profits was attributed to higher operational costs and supply chain challenges. The results, shared with the BSE and NSE, have sparked discussions among analysts on X, with many expressing confidence in the company’s long-term growth potential driven by its robust order book and strategic positioning in India’s defence sector.

For the quarter ending March 31, 2026, Avantel reported consolidated revenue from operations at ₹82.45 crore, marking a 16.8% year-on-year (Y-o-Y) increase from ₹70.68 crore in Q4 2024-25, according to a company filing at NSE.

Net profit, however, dipped 6.2 per cent Y-o-Y to ₹18.83 crore from ₹20.08 crore in the same quarter last year, with EBITDA margins contracting to 43.1 per cent from 45.33 per cent, as per Business Standard.

The company attributed the profit decline to increased raw material costs and delays in order execution. But the company highlighted a 38.4 per cent revenue growth for the full fiscal year 2025-26, reaching ₹310.72 crore.

Analysts on X have been vocal about Avantel’s performance, balancing short-term concerns with optimism for its future. User @StockGuruIndia posted, “Avantel Q4 shows resilience with 16.8 per cent revenue growth despite profit dip. Defence orders from BEL, ISRO keep pipeline strong. Long-term bullish!” Similarly, @MarketMaverick noted, “Profit dip in Avantel Q4 is a hiccup. ₹679.2 Cr order from NewSpace India & L&T contracts signal big FY26. Buy on dips.”

These sentiments align with Avantel’s recent order wins, including a ₹445 million contract from Larsen & Toubro and a ₹93.9 million order from NewSpace India Limited in 2024, as reported by Equitymaster.

However, some analysts flagged concerns over margins. @InvestWise tweeted, “Avantel’s Q4 margins down to 43.1 per cent. Supply chain issues need fixing to sustain defence sector edge. Watching closely for Q1 FY27.”

Despite this, the company’s market capitalization stood at ₹2,950 crore, with shares trading at ₹120.15, up 1.3 per cent on April 19, 2025, per NSE India. The stock’s 5-year CAGR of 30.7 per cent and net profit growth at 48.7 per cent CAGR continue to bolster investor confidence, as noted in Equitymaster’s 2023-24 annual report analysis.

Avantel’s management remains upbeat, with Chairman Dr. Abburi Vidyasagar stating, “Our focus on innovation in SATCOM and radar systems, coupled with strategic partnerships, positions us well for sustained growth in India’s defence and telecom sectors,” as quoted by The Economic Times. The company also declared a final dividend of ₹0.25 per share, up from ₹0.20 in 2024, signaling financial stability.

As Avantel navigates short-term challenges, analysts on X and industry observers see its strong order pipeline and alignment with India’s self-reliance in defence as key drivers for future gains. The company’s next quarterly results, expected in July 2025, will be closely watched for signs of margin recovery.

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