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.

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.