Avalon Technologies Limited has completed the allotment of equity shares to employees under its Employee Stock Option Plan (ESOP), marking another milestone in the company's employee incentive program. The allotment was executed on December 24, 2025, following the exercise of stock options by eligible employees.

ESOP Allotment Details

The Nomination and Remuneration Committee approved the allotment of 24,946 equity shares through a circular resolution. The shares were allotted under the AVALON-Employee Stock Option Plan 2022 at a predetermined exercise price.

Impact on Share Capital

The ESOP exercise has resulted in an increase in the company's paid-up capital structure. The allotment has expanded both the total number of outstanding shares and the overall paid-up capital of the company.

Regulatory Compliance

The allotment was disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and The National Stock Exchange of India Limited about this corporate action. The disclosure ensures transparency and keeps stakeholders informed about changes in the company's share capital structure.

The ESOP allotment reflects the company's commitment to employee participation in its growth story through equity-based compensation. The exercise of these options by employees demonstrates confidence in the company's prospects and aligns employee interests with shareholder value creation.

Avalon Technologies Limited , a leading player in the Electronics Manufacturing Services (EMS) industry, has announced its financial results for the second quarter of fiscal year 2026, showcasing robust growth and improved profitability.

Key Financial Highlights

For the quarter ended September 30, 2025, Avalon Technologies reported the following results:

Half-Year Performance

For the first half of FY26, the company's performance was equally impressive:

Operational Highlights

• The company's order book increased by 25.4% year-on-year, indicating strong future growth potential.
• India manufacturing, representing 81% of revenue, delivered 14.1% EBITDA and 10.9% PAT margins in Q2 FY26.
• Revenues from both India and US businesses grew 31% and 44% YoY respectively in Q2 FY26.

Strategic Developments

Avalon Technologies has made significant strides in expanding its capabilities and market presence:

1. The company secured AS9100D aerospace quality certification for PCBA and chemical processing during Q2 FY26, enhancing its position in the aerospace sector.
2. Avalon won the supplier of the year award from a leading railway OEM for driving significant cost reduction initiatives.
3. The company is progressing steadily in the semiconductor equipment manufacturing space, partnering with a global major to deliver industry 4.0 compliant complex box-build systems.

Industry Outlook

Avalon Technologies operates in the Electronics Manufacturing Services (EMS) industry, which is poised for robust growth. The global ESDM (Electronic System Design and Manufacturing) market is expected to grow from approximately US$1,000 billion in 2024 to US$1,400 billion by 2030. India's ESDM market share is projected to increase from 4% in 2025 to 10% by 2030, presenting significant opportunities for companies like Avalon.

Management Commentary

Kunhamed Bicha, Chairman & Managing Director of Avalon Technologies, commented on the results, stating, "Our strong performance in Q2 and H1 FY26 reflects the successful execution of our growth strategy and the increasing demand for our services. We are particularly pleased with the growth in our order book and the improvements in our profitability metrics. The recent aerospace certification and industry recognition underscore our commitment to quality and customer satisfaction. We remain focused on leveraging our capabilities in high-mix, flexible volume products across multiple industries to drive sustainable growth."

Avalon Technologies continues to strengthen its position as a leading fully integrated EMS company, with a focus on high-value precision engineered products. The company's unique global delivery model, with manufacturing facilities in both India and the US, positions it well to capitalize on the growing demand for electronic manufacturing services in these key markets.

As Avalon Technologies progresses through FY26, it aims to further enhance its capabilities in emerging sectors such as clean energy, while maintaining its strong presence in established industries like aerospace, industrial, and medical devices.