Avalon Technologies Limited — Q3 FY26
Avalon Technologies delivered a strong Q3 FY26 with revenue of ₹418 crore (up 48.7% YoY) and PAT of ₹33 crore (up 35.9% YoY), marking the sixth consecutive quarter of growth.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
46%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Implied Q4 revenue growth of 20-21% from 40% guidance? Conservatism or high base?
Asked by Summit Nha, Mcquaryy
Admitted conservatism but did not confirm or deny the implied 20-21% growth figure.
no specific number givenblamed tariff uncertainty
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Question
the guidance implication, 40%, that's obviously uh very strong, but that implies like fourth quarter revenue growth of about 20 21%. Is that your uh continued conservatism or are you thinking about it from a high base perspective?
Management (unidentified)
yes we are conservative. Okay, because the different programs cut in at different times for us and um and this last 9 months is been tariffs, no tariffs, what tariff, you know what percentage.
Partial answer
Medium priority
Are operational investments done? When will reinvestment be needed for FY27 growth?
Asked by Summit Nha, Mcquaryy
Acknowledged investments are flat but did not quantify when reinvestment is needed.
vague timelineno specific reinvestment trigger
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Question
you obviously went through a series of investments to increase your uh operational capacity. Are those investments done? ... when do you need to probably reinvest to kind of uh continue to grow at a at a high pace in fiscal 27?
Management (unidentified)
you can see that in our numbers itself uh it's you know it's been flat quarter to quarter ... for the existing programs we are well covered but our hope is that we get much larger programs in the future so we'll have to focus on basically people based investments.
Partial answer
High priority
What was the rupee leakage from 99% tariff recovery? How much could margins expand?
Asked by Summit Nha, Mcquaryy
Provided margin impact in bps but refused to disclose absolute tariff leakage.
no absolute rupee number given
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Question
this 99% recovery of tariffs. Is there a rupee number that you can give us like what was the leakage? I'm just trying to understand if that goes away that doesn't become a headwind how much your margins could expand next year.
Management (unidentified)
Typically we do not share a tariff absolute number over there but just to give you a heads up on that uh let's say without tariff our gross margin percentage would have been better by 100 bits.
Answered
Medium priority
Confirm US revenue percentage and manufacturing split for Q3.
Asked by Danesha, Dam Capital
Confirmed exact percentages as asked.
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Question
we said that revenues from um, uh, US this time was around 64%. Is that right for the for the third quarter?
Management (unidentified)
That's correct. ... in FI26 US manufacturing is 22% and India manufacturing is 78%.
Evasive
Medium priority
Highlight growth areas and applications driving incremental growth.
Asked by Danesha, Dam Capital
Did not provide any specific applications or verticals; deflected to broad-based growth.
no specific applications namedvague on segments
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Question
could you potentially highlight, uh, what are the particular clients which you're sort of working for, not in terms of names, but rather applications and, uh, going forward, how do we expect that?
Management (unidentified)
So that's a tough one to answer when you're chasing broad-based growth. ... we are seeing you know uh growth in a lot of our segments where we are focused and we're going to go deeper into the segments.
Answered
High priority
Update on US margin improvement and path to profitability.
Asked by Danesha, Dam Capital
Provided specific loss figures and explained improvement drivers.
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Question
would you sort of give some update on uh how we're looking to improve uh you know the US uh burn which we're kind of seeing right now quarteron quarter?
Management (unidentified)
the pack losses are at around - 7 crores. If you look at the last couple of quarters, it was approximately at around - 9 cr each quarter. ... We believe the the next year uh with the growth in energy storage systems ... can help in that direction.
Partial answer
Medium priority
Outlook on US manufacturing share and client stickiness after tariffs.
Asked by Archett Sha, BNK securities
Reiterated 80/20 goal but did not commit to a specific US manufacturing percentage.
no specific target for US sharevague timeline
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Question
what is the outlook on clients especially on the stickiness and their comfort level after being better off in terms of geography versus our Asian others or Asian peers. Are we specific to increasing US manufacturing or are we keeping it at 20% around?
Management (unidentified)
The ideal goal for us is you know 80/20 we've always kind of said that ... today we have a set of customers who are come to us some of them want to stay in the US ... they have decided to next two years uh they're going to make it there.
Partial answer
High priority
Why does US margin remain negative despite scale? Sustainable India margin?
Asked by Archett Sha, BNK securities
Provided current margins but did not quantify required scale or confirm India margin sustainability.
no specific scale target for US breakevenno explicit sustainability commitment for India margin
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Question
despite our US manufacturing base increasing to think 192 crores uh our margin seems at negative 7% only yet ... what kind of scale do we need to achieve to you know start seeing the declining trend and secondly on India margin 16.7% are very strong. So are those sustainable numbers?
Management (unidentified)
our India manufacturing revenues which constitute 78% of our business delivered 16.7% AIDA and 12.2% PAT. ... US manufacturing also within later part of next fiscal year uh can get much better than where it is today.
Partial answer
Medium priority
Why order book growth (25%) lagged revenue growth? Expect Q4 pickup?
Asked by Vlog Shastawa, Philip Captain
Defended order book growth but did not explain the gap or give Q4 guidance.
did not directly address revenue vs order book growth gapno explicit Q4 outlook
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Question
we have seen uh 25% growth on the order book side whereas revenue has grown by more than that. So any reason why this slowdown or we are expecting a pick up in quarter four.
Management (unidentified)
For me we believe the order book has done really well ... it's grown 26% uh look at on your basis the business is growing faster but the key is you know we're not tying all the orders ... we have an order book of 2016 crores.
Declined
Medium priority
Revenue opportunity and market size for semiconductor equipment under ISM 2.0?
Asked by Santo Shashadri, Aendespar
Explicitly declined to provide any market size or revenue opportunity.
refused to size opportunitydeferred to future
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Question
what is the sort of revenue opportunity and cam size that you're talking about uh with respect to uh uh your capital equipment uh manufacturing?
Management (unidentified)
Now we don't want to go there since it's you know we have our own calculation of where we need to be but uh let us get the approvals the production going you know and then we'll probably comment on that.
Evasive
Medium priority
How big is semiconductor opportunity and what products are targeted?
Asked by Karan Sanwal, Dish
Refused to quantify opportunity and gave only generic product description.
no size givenvague product description
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Question
how big is the opportunity that we are anticipating uh in this semiconductor space and what exactly what products exactly are we targeting?
Management (unidentified)
So what we're doing is um part of their larger system. We're not making the whole equipment. ... we don't want to give a number the opportunity.
Partial answer
High priority
Can FY27 growth sustain at 25-30% with sustainable margins?
Asked by Ju Punjabi, Invest Techco Capital
Expressed confidence but refused to give specific FY27 guidance.
no explicit guidancedeferred to budget completion
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Question
would it be fair to assume that the growth rates in FY27 sustain at the same levels they've done in 26? like I mean would be fair to kind of think a 25 30% topline growth and sustainable margins over the next 12 18 months?
Management (unidentified)
I believe uh that you know we will do that number you mentioned and more we are conservative in approach but we don't just want to come out and tell the numbers.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India manufacturing EBITDA margin 16.7% in Q3 | 16.7% | 11.5% | Overstated vs filing |
| India manufacturing PAT margin 12.2% in Q3 | 12.2% | 33% | Understated vs filing |
| Average growth last six quarters approximately 46% | 46% | 48.7% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.