Avalon Technologies Limited , a leading player in the Electronics Manufacturing Services (EMS) industry, has reported robust financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company has also announced significant expansion plans, including entry into the semiconductor equipment manufacturing space.

Strong Financial Performance

Avalon Technologies witnessed substantial year-over-year growth in Q1 FY26:

• Revenue from operations surged by 62.1% to ₹323.30 crore, compared to ₹199.50 crore in Q1 FY25.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a remarkable increase of 583.4% to ₹29.90 crore, up from ₹4.40 crore in the same quarter last year.
• EBITDA margin improved significantly to 9.2%, a 705 basis points increase from 2.2% in Q1 FY25.
• The company turned profitable with a net profit after tax (PAT) of ₹14.20 crore, compared to a loss of ₹2.30 crore in the corresponding quarter of the previous year.

Expansion into Semiconductor Equipment Manufacturing

In a strategic move, Avalon Technologies has entered the semiconductor equipment manufacturing space. The company has partnered with a global major to produce industry 4.0 compliant complex box-builds. This expansion aligns with the growing demand in the semiconductor industry and positions Avalon to capitalize on new opportunities in this high-tech sector.

Order Book Growth and Manufacturing Focus

The company reported a significant increase in its order book, which grew by 22.5% year-over-year to ₹1,790.00 crore. This robust order book provides visibility for future revenue growth and underscores the strong demand for Avalon's services.

Notably, Avalon's manufacturing operations in India now represent 80% of the company's revenue. This India-centric manufacturing approach delivered impressive results, with a 13.2% EBITDA margin and an 8.8% PAT margin in Q1 FY26.

Operational Improvements

Avalon Technologies has made strides in improving its operational efficiency:

• Net working capital days improved from 163 days in June 2024 to 142 days in June 2025, indicating better cash flow management.
• The company secured important quality certifications during Q1, including IPC A-610 J, A-600 K & WHMA-A-620 E for assembly and wiring harness quality.

Global Presence and Future Outlook

Avalon continues to maintain a strong presence in both Indian and US markets, with revenues from both geographies growing by 62% year-over-year. The company's unique position as an Indian EMS player with manufacturing facilities in the US allows it to leverage a global delivery model and cater to diverse customer needs.

Kunhamed Bicha, Chairman & Managing Director of Avalon Technologies, commented on the results, stating, "Our strong performance in Q1 FY26 reflects the success of our strategic initiatives and the growing demand for our services. The entry into semiconductor equipment manufacturing opens up new avenues for growth, and we are well-positioned to capitalize on the opportunities in this dynamic sector."

As Avalon Technologies continues to expand its capabilities and market presence, the company remains focused on delivering high-quality electronic manufacturing services and solutions to its global customer base.

About Avalon Technologies

Avalon Technologies Limited is one of India's leading fully integrated Electronic Manufacturing Services (EMS) companies, specializing in high-value precision engineered products. The company offers end-to-end solutions, from printed circuit board design and assembly to complete box build of electronic systems, serving various industries including clean energy, mobility, industrials, and medical devices.

Avalon Technologies Limited , a leading player in the Electronics Manufacturing Services (EMS) industry, has reported robust financial results for the first quarter, demonstrating significant growth and improved profitability.

Key Financial Highlights

• Revenue from operations surged by 62.1% year-over-year to ₹3,233.08 crore, compared to ₹1,994.72 crore in the same quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a remarkable increase of 583.4% to ₹299.00 crore, up from ₹44.00 crore in the same period last year.
• EBITDA margin expanded significantly to 9.24% from 2.19%.
• The company reported a net profit of ₹142.14 crore, compared to a loss of ₹23.07 crore in the corresponding quarter of the previous year.
• Net profit margin improved to 4.4%.

Operational Performance

Avalon Tech's strong performance was driven by growth in both its Indian and US operations. The company's manufacturing facilities in India, which now represent 80% of revenue, delivered an impressive 13.2% EBITDA and 8.8% PAT.

Order Book and Market Presence

The company's order book increased by 22.5% year-over-year, reaching ₹1,790.00 crore. Avalon Tech maintains a balanced revenue mix, with 60% of its revenue coming from the US market and 40% from the Indian market.

Strategic Developments

During the quarter, Avalon Tech entered the semiconductor equipment manufacturing space, partnering with a global major to produce industry 4.0 compliant complex Box-Builds. This move is expected to strengthen the company's position in high-value, precision-engineered products.

Operational Efficiency

The company has shown improvements in operational efficiency, with net working capital days reducing from 163 days to 142 days. This improvement in working capital management is likely to contribute to better cash flow and financial stability.

Product Mix and Capabilities

Avalon Tech continues to focus on high-mix, flexible volume products across multiple industries. The company's box-build solutions contributed 56% to the total revenue, highlighting its strength in providing end-to-end manufacturing services.

Certifications and Quality Standards

During the quarter, Avalon Tech secured important certifications, including IPC A-610 J, A-600 K & WHMA-A-620 E for assembly and wiring harness quality. These certifications underscore the company's commitment to maintaining high-quality standards in its manufacturing processes.

Management Commentary

Kunhamed Bicha, Chairman and Managing Director of Avalon Technologies Limited, stated, "We are pleased with our strong start, with significant growth in revenue and profitability. Our strategic focus on high-value, precision-engineered products and our entry into the semiconductor equipment manufacturing space are paying off. The improved operational efficiency and robust order book position us well for sustained growth in the coming quarters."

Outlook

With a strong order book, improved profitability, and strategic expansion into new areas like semiconductor equipment manufacturing, Avalon Technologies appears well-positioned for continued growth in the EMS industry. The company's focus on operational efficiency and high-value products is expected to drive further improvements in financial performance.

Investors and analysts will be watching closely to see if Avalon Tech can maintain this growth trajectory and capitalize on the expanding opportunities in the global EMS market.