Avantel Limited, a leading provider of communications and signal processing products, has announced its financial results for the first quarter, revealing a mixed performance with flat revenue growth and a substantial decline in profitability.

Revenue Performance

For the quarter, AVANTEL reported a marginal increase in revenue, reaching ₹519.00 crore compared to ₹518.00 crore in the same period last year. This represents a minimal year-over-year growth of approximately 0.19%.

Profitability Metrics

Despite the stable revenue, the company experienced a significant downturn in its profitability metrics:

• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell to ₹104.00 crore from ₹142.00 crore in the previous year, marking a substantial decline of about 26.76%.
• EBITDA Margin: The EBITDA margin compressed to 20.04% from 27.41% year-over-year, indicating increased pressure on operational efficiency.
• Net Profit: Consolidated net profit saw a sharp decrease, dropping to ₹32.00 crore from ₹74.00 crore in the same quarter last year, representing a significant decline of approximately 56.76%.

Segment Performance

AVANTEL operates in two primary segments:

1. Communications and Signal Processing Products: This segment, which includes manufacturing of wireless front-end, satellite communication, embedded systems, and related services, remains the company's core business.
2. Healthcare Services: A relatively new venture for the company.

The communications and signal processing products segment generated revenue of ₹518.82 crore for the quarter, while the healthcare segment contributed ₹0.76 crore.

Financial Position

As of the end of the quarter, AVANTEL reported:

Rights Issue

During the quarter, on May 29, AVANTEL completed a rights issue, allotting 2,02,26,100 equity shares of ₹2 each at an issue price of ₹40 per share (including a premium of ₹38 per share).

Investors and analysts will likely be watching closely to see how AVANTEL addresses the profitability challenges in the coming quarters, particularly given the company's strong position in the communications and signal processing sector. The management's strategies to improve operational efficiency and leverage the recent capital raise will be key factors to monitor in the near term.

Avantel Limited (BSE: 532406, NSE: AVANTEL), a prominent player in the Indian technology sector, has announced the passing of one of its promoters, Mr. Abburi Venkateswara Rao. The company disclosed this information in a regulatory filing to the stock exchanges on July 21, 2025.

Key Details

• Demise: Mr. Abburi Venkateswara Rao, aged 87, passed away on July 21, 2025.
• Shareholding: At the time of his demise, Mr. Rao held 23,78,786 equity shares, representing 0.90% of the company's total equity.
• Promoter Status: Following his passing, Mr. Rao will cease to be part of the Promoter/Promoter Group of Avantel Limited.

Impact on Shareholding

The company has informed that the transmission of Mr. Rao's shareholding to the nominee is currently in process. Until this transmission is completed, the shares will continue to be reflected under his name in the company's records.

Company's Response

In its official statement, Avantel Limited expressed deep sorrow over the loss:

"The sudden and untimely passing of Mr. Abburi Venkateswara Rao is a great loss, and all the Directors and employees of the Company express their heartfelt condolences and deepest sympathies to his family."

Regulatory Compliance

The company made this announcement in compliance with Regulations 30 and 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As per Regulation 31A(6)(c), Mr. Rao will no longer be considered part of the Promoter/Promoter Group of Avantel Limited.

Avantel Limited, with its corporate office in Hyderabad and production units in Visakhapatnam and Hyderabad, continues to operate in the technology sector. The company, known for its adherence to quality standards such as AS 9100D and ISO 9001:2015, is expected to proceed with its business operations while managing this transition in its promoter group.

Investors and stakeholders are advised to take note of this development, which may have implications for the company's ownership structure going forward.