Avalon Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • Signed MOU with Government of Tamil Nadu for 25 acres of land to drive next decade of growth in advanced electronics manufacturing
  • Formed strategic Joint Venture with Zollner Elektronik AG for advanced Electronics Manufacturing in India
  • India manufacturing delivered 17.1% EBITDA margin and 11.4% PAT margin in Q2 FY27
  • Ninth consecutive quarter of sequential improvement in performance achieved in Q2 FY27
  • Order book executable over an average period of 14 months with long-term contracts executable over 14 months to 3 years

Financial Highlights

Revenue: ₹525 crore (Q2 FY27)

EBITDA: ₹66 crore (Q2 FY27)

PAT: ₹40 crore (Q2 FY27)

EPS: Not Specified

Margins: Gross Margin 34.1%, EBITDA Margin 12.6%, PAT Margin 7.5% (Q2 FY27)

YoY/QoQ comparison: Revenue up 37.4% YoY and 8.5% QoQ; PAT up 59.5% YoY and 14.2% QoQ

Drivers of financial performance: Strong revenue growth, operational efficiencies

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

Domestic: 27% of Total

Export: 73% of Total (primarily US)

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Current Assets ₹1,248 crore, Current Liabilities ₹716 crore (H1 FY27)

Working Capital/Leverage Metrics: Net Working Capital days improved from 131 days in Sept'25 to 120 days in Sept'26

Financial Health Insights: Strong cash position with closing cash balance of ₹135 crore (H1 FY27)

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Net Cash from Operating Activities ₹10 crore (H1 FY27)

Net Debt Movement: Gross Debt ₹311 crore, Net Debt to EBITDA 0.2 (H1 FY27)

Investment Rationale: Focus on advanced electronics manufacturing capacity expansion

Strategic & R&D Initiatives

Investments in Innovation: Expansion into advanced electronics manufacturing through new land acquisition and JV partnership

Expected impact on growth: Positioning for next decade of growth in advanced electronics

Strategic Rationale: Catering to world's fastest growing EMS markets – India & US through hybrid manufacturing model

Industry Trends & Business Environment

Macro/Industry Trends: Growth in EMS markets in India and US

Impact on Company: Enabling expansion and market capture through strategic investments

Management Commentary & Growth Outlook

Strategic Outlook: Focus on profitable growth, catering to profitable segments like Aerospace, and complex mission-critical products

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

Company Overview

Avalon is one of India's leading fully integrated EMS companies with global delivery footprint, serving diversified industries including Railways, Aerospace, Automotive, Industrial, Clean Energy, and Medical sectors. The company offers end-to-end product offering with vertically integrated solutions across multiple manufacturing facilities.