Avalon Technologies Ltd — Q4 FY26
Avalon delivered a strong Q4 FY26 with revenue of ₹480 crore (+40% YoY) and PAT of ₹41 crore (+69.5% YoY), capping a year where revenue doubled to ₹1,603 crore (+46% YoY), ahead...
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.
71%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
Medium priority
Potential supply chain disruptions and impact on margins.
Asked by Tan Sha, Dam Capital
Management directly stated no major supply chain disruptions and no margin pressure.
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Question
any potential supply chain disruptions with respect to uh components. I mean order books are strong and you know we're seeing healthy growth coming into the quarters but any sort of supply chain disruption which we're seeing
Sam (management)
right now I mean there are a few things here and there but nothing that's uh uh adversely affecting us... we don't see any you know any effect.
Partial answer
High priority
Details on incremental growth drivers across sectors.
Asked by Tan Sha, Dam Capital
Provided growth rates by vertical but no product details or potential size.
no product specificsonly gave vertical growth rates
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Question
in all the incremental growth drivers which we spoke about across uh you know sectors could we possibly you know speak a little more about them in detail as to what are we trying to do out there?
T (management)
industrial is a 34% of our business it's grew at 65 and it will continue high growth rate uh mobility is at you know 28% of our sales it's growing at 45 you know clean energy is at 20% growing at 45 again
Answered
High priority
US manufacturing as percentage of sales and margin outlook.
Asked by Tan Sha, Dam Capital
Management gave a clear range for US share and referenced historical data.
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Question
what do we expect it as a percentage of sales going forward should it be at around this 20 22% or should it logically inch up a little higher with the US execution happening with our customer out there and if so then uh the control on uh you know margins out there and how do we expect to break even and how soon would that be
T and Suresh (management)
We anticipate this uh you know 80 20 78 22 you know that kind of range... in FA 26 79% of our business is from India manufacturing and 21% is from US manufacturing.
Partial answer
High priority
Breakdown of revenue growth: new vs vintage customers.
Asked by Adira Singh, Amicus Capital Partners
Gave a rough 2/3-1/3 split but not a precise breakdown of the 500 cr.
vague rationo precise numbers
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Question
how much of this additional revenue or growth is coming from new customers programs essentially programs customers that you would have onboarded one and a half to two years back and how much would it how much of the growth would be from vintage program and customers.
T and Suresh (management)
So it's very broad-based... 2/3 one/3 is what you probably need to look at... out of 570 will be existing and then 30 will approximately okay
Answered
Medium priority
Plans to enter components manufacturing like PCB.
Asked by Adira Singh, Amicus Capital Partners
Clearly stated no plans to enter components manufacturing; staying focused on box build.
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Question
a number of your peers are getting into you know components manufacturing like ECB manufacturing and have gotten uh ECMS scheme for that. Uh do you have any plans to get into components manufacturing?
T (management)
So we are very focused on what we do. So we are a box build high-end box complicated technology oriented box. We will look look for further business in that segment instead of trying to do a green field.
Answered
Medium priority
Quarterly revenue cadence and seasonality across verticals.
Asked by Santos Sad Adri, Aendis Spark
Management directly stated no significant seasonality and consistent quarter-to-quarter growth.
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Question
how should we think about the dynamics quarterly dynamics uh and also if you could uh give some color on the uh cadence for other divisions as well uh that would be helpful.
T (management)
So for us uh that doesn't play out as much. Okay. So we tried to level load a production across uh you know customers tend to do that... So it's not it's not seasonal for us as far as we know.
Partial answer
High priority
Incremental capex and timing for doubling revenue.
Asked by Santos Sad Adri, Aendis Spark
Gave a capex range of 50-60 cr but no specific timeline or breakdown.
no precise capex plandeferred to historical range
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Question
how should we think about the incremental capex and also about the timing of capex uh you know in capacity expansion.
T and Suresh (management)
we'll continue the same momentum... from a capex perspective as far as we know we'll continue our aspiration is to keep the ROC higher than 20 and keep the set terms between 8 and 10 times... 50 to 60 crores maybe a little bit over over the next next year
Answered
Medium priority
Future mix of box build vs traditional PCB assembly.
Asked by Mayul Pandani, 40 cents
Provided historical and current box build percentage, showing clear trajectory.
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Question
how much of a future outbook work uh can we expect from the box build and system integration opportunities versus the traditional PCB assembly.
T (management)
around 3 years back we are on 44% uh of box still and uh our aspiration is to grow that number and today last quarter we are at 56 56%.
Evasive
Medium priority
Margin difference between box build and traditional.
Asked by Mayul Pandani, 40 cents
Acknowledged higher margin but refused to give any number or range.
refused to quantifydepends on many factors
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Question
what kind of margin difference uh is the how much high margin can we command for box compared to the traditional?
T (management)
Usually it's higher because it's vertically integrated. So I don't want to get into how much okay because uh uh that depends on industry that depends on vertical that depends on commodity.
Partial answer
High priority
Margin aspiration and levers to improve beyond 11%.
Asked by Mayul Pandani, 40 cents
Gave India margin but no overall aspiration; cited US breakeven as lever without quantification.
no specific targetdeferred to US breakeven
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Question
what is our margin aspiration? Uh currently our margin stand at 11%. Uh so do we have any operational levers to improve our margin uh beyond 11%.
T (management)
80% of a business which is uh India manufacturing is at 16 16.7 and Pat is at 12.2%... with US break even and with um uh with the leverage playing out there after break even we see uh some room to improve.
Answered
High priority
Conservatism in FY27 guidance and India growth slowdown.
Asked by Samit SA, McQuary
Confirmed conservatism and corrected the India growth figure to 33%.
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Question
should we assume a certain degree of conservatism guidance for the guidance that you've given for fiscal 27? ... in terms of your make in India for India that revenue growth slowed to about 13% year-over-year is that basically um because of a high base
T and Suresh (management)
we are generally conservative in nature... in terms of the percentages that you mentioned summit uh if you look at FI26 then the India manufacturing business grew by approximately 33%.
Partial answer
Medium priority
Goal for positive free cash flow (FCF) going forward.
Asked by Samit SA, McQuary
Did not directly commit to positive FCF; highlighted ROC and OCF improvement instead.
no explicit FCF targetfocused on ROC and OCF
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Question
real inflection that I saw in uh your free your final generative free cash flow right which I define as cash flow from operations minus capex. uh is that something of a goal that you want to continue to uh you know stay in the positive territory with that metric?
T and Suresh (management)
we always want to maintain the ROC there's a number we strive for... FI25 operation cash flows was 25 crores and now we are at 57 crores.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| India manufacturing grew 33% in FY26 | 33% | 40% | Understated vs filing |
| India manufacturing EBITDA margin 16.5% in Q4 | 16.5% | 11.8% | Overstated vs filing |
| Overall EBITDA margin 11.8% in Q4 | 11.8% | 11.8% | Matches filing |
| India manufacturing PAT margin 12.2% | 12.2% | 41% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.