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Revenue
₹418 Cr
verified against source
Revenue YoY
48.7%
reported change
EBITDA
₹48 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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. EBITDA margin improved to 11.5% driven by operating leverage, while India manufacturing posted a robust 16.7% EBITDA margin. The order book grew 26.5% YoY to ₹2,016 crore, supported by diversified wins across industrial, rail, aerospace, and clean energy. Management raised FY26 revenue growth guidance to ~40% from 28-30%, citing strong visibility and tariff relief (US tariffs reduced from 50% to 18%). New programs in semiconductor equipment and energy storage are ramping, with meaningful contributions expected from FY27. Key risk: US manufacturing losses persist at -₹7 crore this quarter, though improving; any reversal in tariff reductions could impact export competitiveness.
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Guidance to track
- Management revised FY26 revenue growth guidance upward to around 40% from the earlier 28-30%, citing improved business visibility and program ramp-ups.
- Management expects capex of around ₹50 crore annually for the next couple of years, maintaining a capex-light model with asset turns between 7-10x.
- US manufacturing PAT loss reduced to -₹7 crore this quarter from -₹9 crore; management expects further improvement as energy storage and new programs ramp.
- Management will provide FY27 guidance once the budgeting exercise is completed in the next quarter.
Risks flagged
- US manufacturing operations reported a PAT loss of ₹7 crore in Q3, though improving from ₹9 crore. Continued losses could weigh on consolidated margins.
- While tariffs have been reduced to 18%, further changes could impact export competitiveness. Management noted that past tariff volatility caused customer hesitation.
- Recent commodity price increases may not be fully passed through in the same quarter, potentially pressuring gross margins temporarily.
- Growth relies on timely ramp-up of new programs (semiconductor equipment, energy storage). Any delays could impact revenue trajectory.
Key quotes
- Q3 FI26 marks our sixth consecutive quarter of sustained growth. We delivered improved performance across key financial and operational metrics including revenue growth, profitability, orderbook growth, net working capital days, asset turns, cash flow from operations, net debt to equity and return on capital employed.
- With improved business visibility, a better macro environment and ongoing project rampups, we are revising our FI26 revenue growth guidance upward to around 40% from the earlier guidance of 28 to 30%.
- During this period of elevated tariffs, we were able to recover 99% of the applicable tariffs from our customers.
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