Avantel Ltd

NSE: AVANTEL · Aerospace & Defense

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52W Range₹117 – ₹198

Snapshot

Unlock Avantel Ltd's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Avantel Limited is an Indian technology company specialising in the design, development, and manufacturing of wireless communication products, satellite systems, and radar solutions. Its portfolio serves critical sectors including defence, aerospace, and Indian railways, alongside providing specialised engineering and testing facilities.

Business Model

The company generates revenue through the sale of proprietary hardware and software solutions, including software-defined radios and satellite communication equipment. It also provides value-added engineering, testing, and assembly services to support its core product offerings.

Growth Outlook

Growth is primarily driven by the increasing indigenisation of defence equipment in India and the modernisation of critical infrastructure such as the Indian railways. The company continues to expand its capabilities in satellite communication and advanced radar systems to capture emerging demand in the aerospace and defence sectors.

Key Risks

  • Customer Concentration. A significant portion of revenue is derived from government and defence contracts, making the company vulnerable to changes in public procurement policies.
  • Technological Obsolescence. The rapid pace of innovation in wireless communication and radar technology requires continuous R&D investment to maintain market competitiveness.
  • Execution Risk. Delays in the execution of complex defence and aerospace projects could adversely impact the company's financial performance.
  • Regulatory Compliance. Operating within the highly regulated defence sector subjects the company to stringent licensing and security requirements.

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Key Metrics

REVENUE

₹260 Cr

TTM · consolidated

+14.6%YoY

NET PROFIT

₹20 Cr

TTM · consolidated

-41.4%YoY

EPS

₹0.73

TTM · consolidated

-45.9%YoY

RETURN ON EQUITY

5.9%

TTM · consolidated

-7.0 ppYoY

RETURN ON CAPITAL EMPLOYED

11.2%

TTM · consolidated

-8.6 ppYoY

P/E

184.6×

Q2 FY27 · consolidated

184.6 vs 60.5x5Y avg

EV/EBITDA

55.6x

Q2 FY27 · consolidated

55.6 vs 63.6x5Y avg

EBITDA MARGIN

25.5%

TTM · consolidated

-4.2 ppYoY

NET PROFIT MARGIN

9.2%

Q2 FY27 · consolidated

+1.5 ppYoY

DEBT TO EQUITY

0.3x

Q2 FY27 · consolidated

+0.22xYoY

Peers · Aerospace & Defense

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Avantel LtdAVANTEL
₹3,583 Cr184.6×55.5814.6%25.5%5.9%11.2%-21.4%
Rossell TechsysROSSTECH
₹5,128 Cr202.0×71.0046.0%14.0%17.8%41.1%+109.8%
Ideaforge Technology LimitedIDEAFORGE
₹3,124 Cr726.4×67.94221.1%16.5%0.7%-0.2%+32.4%
Jaykay Enterprises LimitedJAYKAY
₹2,545 Cr12.6×49.93117.5%19.5%34.8%33.5%-13.2%
CFF Fluid Control LimitedCFF
₹1,926 Cr———28.0%——+30.4%
Krishna Defence And Allied Industries LimitedKRISHNADEF
₹1,814 Cr———22.0%——+55.7%

As of Q2 FY27

Financials