Avantel wins ₹6.02 crore Naval HQ order for Satcom maintenance
- Avantel secured a ₹6.02 crore order from Directorate of Electrical Engineering, Naval Head Quarters, for Satcom equipment maintenance.
- The contract duration extends to September 2029 and is classified as Significant.
- Total disclosed order book rises to ₹593.29 crore across 15 orders in the last three fiscal quarters.
- Order book coverage stands at 9.73 quarters of average quarterly revenue (2.43 years).
- Q2FY27 order inflow totals ₹339.55 crore across 5 distinct orders.
*this image is generated using AI for illustrative purposes only.
Avantel has secured a ₹6.02 crore order from the Directorate of Electrical Engineering, Naval Head Quarters, Ministry of Defence. The contract is for the Comprehensive Annual Maintenance of Satcom Equipment, with a time period extending to September 2029.
The order was classified as Significant and disclosed to exchanges on October 1, 2026. The value is inclusive of taxes as per the filing. This marks another significant win for the company from a domestic defence establishment.
Order in Financial Context
The ₹6.02 crore order represents approximately 10% of the company's average quarterly revenue of ₹60.95 crore. The total disclosed order book now stands at ₹593.29 crore across 15 orders disclosed over the last 3 fiscal quarters. This provides coverage of 9.73 quarters of average quarterly revenue, equivalent to 2.43 years of annual revenue at the current run-rate. Avantel has received orders from multiple entity types, including domestic defence establishments, public sector undertakings, and private sector manufacturers.
Order Details
| Order Date | Awarding Entity | Order Value (₹ Cr) | Classification | Key Terms |
|---|---|---|---|---|
| Oct 01, 2026 | Directorate of electrical engineering, naval head quarters, ministry of defence | 6.02 | Significant | Comprehensive annual maintenance of satcom equipment |
| Sep 23, 2026 | M/s. Zetwerk manufacturing businesses limited | 177.35 | Large | Supply of satellite communication equipments, along with one (1) year comprehensive onsite warranty |
| Aug 29, 2026 | Drdo, Ministry of defence, Government of India | 117.88 | Large | Development, installation and commissioning of Ground Segment Hub for voice and data communication; Warranty: 36 months |
| Aug 04, 2026 | Integrated test range (ITR) Chandipur | 2.70 | Significant | Performance Bank Guarantee: 5% |
| Jul 18, 2026 | M/s. Larsen & toubro limited | 20.81 | Significant | Service of Satcom products |
| Jun 30, 2026 | M/s. Zetwerk manufacturing businesses limited | 83.80 | Significant | Supply of satellite communication equipments, along with one (1) year comprehensive onsite warranty |
| Jun 08, 2026 | Drdo, Ministry of defence, Government of India | 9.94 | Significant | Warranty period: 24 months |
| May 25, 2026 | Coast guard headquarters, New Delhi | 28.20 | Significant | Performance Bank Guarantee: 5% |
| May 22, 2026 | M/s. Bharat electronics limited | 1.92 | Significant | Performance Bank Guarantee: 5% |
| May 05, 2026 | M/s. Bharat electronics limited | 3.01 | Significant | Performance Bank Guarantee: 5% |
Company Order Track Record
Q2FY27 order inflow stands at ₹339.55 crore across 5 orders as per the pre-computed quarterly summary. Q1FY27 recorded ₹253.74 crore in order inflows driven by large defence and manufacturing contracts.
| Quarter | Total Order Inflow (₹ Cr) | Order Count | Key Awarding Entities |
|---|---|---|---|
| Q2FY27 (Jul-Sep 2026) | 339.55 | 5 | Drdo, Ministry of defence, Government of India; Integrated test range (ITR) Chandipur; M/s. Larsen & toubro limited; M/s. Zetwerk manufacturing businesses limited |
| Q1FY27 (Apr-Jun 2026) | 253.74 | 10 | Coast guard headquarters, New Delhi; Drdo, Ministry of defence, Government of India; M/s. Bharat electronics limited; M/s. Zetwerk manufacturing businesses limited |
Execution and Revenue Quality
Revenue execution has remained on an upward trajectory in recent quarters. Q1FY27 consolidated revenue reached ₹70.50 crore, up from ₹64.90 crore in Q4FY26. The Operating Profit Margin (OPM) improved to 24.75% in Q1FY27 from 21.29% in Q4FY26. Net profit rose to ₹5.40 crore in Q1FY27 from ₹4.80 crore in Q4FY26.
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) |
|---|---|---|---|
| Q1FY27 | 70.50 | 5.40 | 24.75% |
| Q4FY26 | 64.90 | 4.80 | 21.29% |
| Q3FY26 | 52.10 | 2.70 | 24.25% |
Revenue Growth: Order Wins Translating to Revenue
Avantel's annual revenue declined from ₹250.90 crore in FY25 to ₹225.30 crore in FY26, representing a YoY change of -10.2% based on the latest annual data. This divergence from the strong order inflow trend highlights that revenue recognition lags due to the long execution cycles typical in defence and aerospace projects.
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 225.30 | 250.90 | 225.80 |
| Net Profit (₹ Cr) | 15.00 | 56.40 | 52.60 |
| OPM (%) | 21.48% | 37.13% | 36.46% |
| Revenue YoY (%) | -10.2% | +11.1% | +45.8% |
| Net Profit YoY (%) | -73.4% | +7.2% | +96.3% |
Working Capital and Execution Capacity
The balance sheet demonstrates strong liquidity to fund ongoing execution. The current ratio stands at 3.72x, well above the 1.2x threshold, indicating ample short-term assets to cover liabilities. Total liabilities/equity is 0.21x, reflecting minimal leverage. However, operating cashflow in FY26 was ₹10.10 crore, significantly lower than the ₹49.90 crore generated in FY25, suggesting that working capital cycles may be stretching as the company scales up project execution.
What to Watch
- Execution rate: Monitor whether the ₹593.29 crore backlog converts into revenue at an accelerating pace in upcoming quarters, given the lag between order booking and revenue recognition.
- OPM trajectory: Track if the 24.75% OPM achieved in Q1FY27 is sustainable as new contracts move into execution phase.
- Cash conversion: With operating cashflow dropping to ₹10.10 crore in FY26, watch for improvements in receivables collection and working capital management.
- Client concentration: M/s. Zetwerk manufacturing businesses limited is a repeat awarding entity in recent order history, alongside Drdo, Ministry of defence, Government of India and other defence establishments.
Key Observations
- Valuation check (as of Oct 01, 2026): P/E of 237.0x against ROCE of 8.62%. Valuation is pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
- Backlog signal: The disclosed order book of ₹593.29 crore covers 9.73 quarters of average quarterly revenue, equivalent to 2.43 years at the current run-rate. Execution capacity remains the binding constraint.
- Cash conversion: Operating cashflow of ₹10.10 crore in FY26; backlog is not converting to cash efficiently compared to FY25 levels, and receivables or working capital cycle may be stretched.
- Defence concentration: Orders from Drdo, Ministry of defence, Government of India, Directorate of electrical engineering, naval head quarters, ministry of defence and Coast guard headquarters, New Delhi together represent a significant share of the recent disclosed order book, reflecting the company's defence-sector orientation.
Historical Stock Returns for Avantel
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.45% | +2.81% | -4.15% | +18.74% | -13.81% | -22.62% |
How will the significant drop in FY26 operating cashflow impact Avantel's ability to fund working capital requirements for the expanding ₹415.94 crore order book?
Can Avantel sustain its improved 24.75% OPM from Q1FY27 as it executes large-scale private sector contracts like the Zetwerk order, which may have different margin structures than government defence projects?
What is the expected timeline for revenue recognition of the ₹177.35 crore Zetwerk order, and how might this affect quarterly earnings visibility given the March 2027 delivery deadline?
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