Company Disclosure Overview

Avalon Technologies Limited (BSE: 543896, NSE: AVALON) reported exceptional financial performance for FY 2025-26 with significant growth across all key metrics. The company achieved consolidated revenue of ₹1,603.2 Cr, representing 46% YoY growth, while net profit surged 78% to ₹113 Cr. EBITDA grew 51% to ₹173 Cr with margins expanding to 10.8%. The strong performance was driven by strategic progress in box-build revenue, which reached 54% of total revenue, and geographic diversification with US contributing 62% and India 38%.

Financial Performance Highlights

Revenue & Profitability:

  • Consolidated revenue: ₹16,032.05 million (46% growth from ₹10,981.28 million in FY25)
  • PAT: ₹1,129.46 million (78% growth from ₹634.39 million in FY25)
  • Basic EPS: ₹16.95 (vs ₹9.62 in FY25)
  • EBITDA margin: 10.8% (improved from previous year)
  • ROCE: 20.6% (improved from 15.7% in FY25)

Balance Sheet Strength:

  • Net working capital days: 112 days (improved from 124 days)
  • Net debt: ₹40 Cr
  • Operating cash flow: ₹57 Cr (more than double FY25's ₹25 Cr)
  • Current ratio: 2.05, Debt-equity: 0.30
  • Total borrowings: ₹1,834.27 million with current borrowings of ₹1,722.62 million

Operational & Business Highlights

Order Book & Visibility:

  • Strong order book of ₹2,196 Cr with 14-month execution visibility
  • Long-term contracts worth ₹1,245 Cr
  • Three large US-based customers added during FY26
  • Successfully passed on 99% of tariff impacts to customers

Geographic & Segment Performance:

  • Industrial segment: 65% growth
  • Mobility segment: 50% growth
  • Clean Energy: 45% growth
  • Communications: 58% growth
  • Expansion into Southeast Asia and early presence in Europe

Corporate Governance & AGM Details

The company announced its 27th Annual General Meeting scheduled for September 28, 2026, through video conferencing with e-voting available from September 24-27, 2026. Key agenda items include:

Director Appointments:

  • Reappointment of Mr. Kunhamed Bicha as Chairman & Managing Director for 5 years from July 12, 2027
  • Reappointment of Mr. Venkataramani Anantharamakrishnan as Independent Director for second term
  • Reappointment of Mr. Byas Unnikrishnan Nambisan as Independent Director for second term
  • Appointment of Mr. CG Balaji as Independent Director for 5 years

Remuneration Structure:

For Mr. Kunhamed Bicha as Chairman & MD:

  • Annual Fixed Remuneration: ₹2.74 Cr for FY 2026-27
  • Performance Incentive: Up to ₹1.5 Cr for FY 2026-27

Subsidiary Operations & Investments

Subsidiary Portfolio:

  • Avalon Technology and Services Private Limited (Wholly-owned)
  • Sienna ECAD Technologies Private Limited (99.9972% owned)
  • ABV Electronics Inc. (DBA Sienna Corporation) (100% owned)

Strategic Investments:

  • Investment in Zepco Private Limited (₹70.00 million in CCPS) for electric vehicle propulsion systems
  • Investment in Sastikumar Farms & Foods Pvt Ltd for captive power generation
  • Total loans to subsidiaries: ₹1,000.00 million outstanding
  • Corporate guarantees: ₹2,170.23 million outstanding

Audit & Compliance Matters

Auditors Varma & Varma identified two key audit matters but issued unmodified opinions on both standalone and consolidated financial statements:

Key Audit Matters:

1. Revenue recognition involving identification of contracts with customers and performance obligations

2. Impairment assessment of investments in subsidiaries requiring significant management estimates

Regulatory Compliance:

  • Compliant with all environmental regulations including Water Act, Air Act, and Environment Protection Act
  • No material litigation impacts reported
  • Credit rating upgraded from A-/Stable to A-/Positive outlook

ESOP Scheme & Share Capital

AVALON ESOP - 2022 Scheme:

  • Total options granted: 17,79,750 options across Series A-E
  • Options outstanding: 3,89,926 options as of March 31, 2026
  • ESOP expense recognized: ₹12.57 million for holding company, ₹12.35 million for subsidiary employees

Share Capital Structure:

  • Paid-up Share Capital: ₹13.35 Cr consisting of 6,67,66,163 equity shares of ₹2 each
  • No dividend recommended for FY 2025-26

Subsequent Events & Outlook

No significant subsequent events reported between March 31, 2026 and the date of auditor's report (May 6, 2026). The company maintains strong execution visibility with its robust order book and continues to focus on strategic expansion while maintaining operational efficiency and financial discipline.