Avro India Reports Mixed Q2 Results with 15.7% Profit Decline

Avro India Limited , a key player in the Indian manufacturing sector, has released its unaudited financial results for the second quarter ended September 30, 2025, revealing a mixed performance with notable changes in profitability and operational metrics.

Key Financial Highlights

Revenue Growth: The company reported revenue from operations of Rs. 2,100.38 crore for Q2 FY2026, showing a 16.4% increase from Rs. 1,804.89 crore in the same quarter last year.
Profit Decline: Despite revenue growth, the standalone profit for Q2 FY2026 stood at Rs. 122.08 crore, marking a 15.7% decrease from Rs. 148.92 crore in Q2 FY2025.
Other Income: Other income saw a significant rise to Rs. 184.55 crore in Q2 FY2026, up from Rs. 87.70 crore in the corresponding quarter of the previous year.

Operational Performance

The company's operational expenses saw increases across various categories:

Expense Category	Q2 FY2026 (Rs. crore)	Q2 FY2025 (Rs. crore)
Cost of materials consumed	1,329.52	1,100.19
Employee benefits expense	157.73	80.62
Other expenses	492.16	397.69

Half-Yearly Performance

For the half-year ended September 30, 2025:

Total income reached Rs. 4,610.28 crore, up from Rs. 3,622.00 crore in the previous year.
Profit before tax increased to Rs. 289.62 crore from Rs. 192.54 crore.

Corporate Developments

Avro India Limited has expanded its corporate structure by incorporating a wholly-owned subsidiary, Avro Recycling Limited, in May 2025. This marks the company's first consolidated financial results under IndAS requirements, potentially signaling a strategic move towards diversification or vertical integration.

Market Position and Outlook

While the company has shown robust revenue growth, the decline in quarterly profit suggests challenges in maintaining profit margins amidst rising operational costs. The significant increase in other income has helped offset some of the pressure on the bottom line.

The incorporation of Avro Recycling Limited may indicate the company's focus on sustainability and circular economy principles, which could be a positive long-term strategy in the evolving manufacturing landscape.

Investors and market analysts will likely be watching closely to see how Avro India manages its cost structures and leverages its new subsidiary to drive future growth and profitability.

Note: All figures are in Indian Rupees (INR) and are based on the unaudited financial results provided by the company.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.38%	+0.69%	-9.59%	-31.25%	-18.29%	+734.43%

Avro , a player in the plastic recycling industry, has announced significant expansions and technological advancements in its operations. The company has successfully installed and tested one of India's largest washing lines for plastic scrap recycling, while its wholly owned subsidiary, Avro Recycling Limited, has implemented a breakthrough technology for recycling rigid plastic.

Key Highlights of the New Facility

Aspect	Details
Technology	Advanced plastic scrap recycling
Scale	One of India's largest washing lines
Status	Successfully commissioned
Trial Runs	Completed
Commercial Production	Expected to begin first week of November
Anticipated Impact	Increase in production quantity and quality
Expected Outcome	Boost in revenue and profitability

Operational Timeline and Expectations

Avro has completed the trial runs for the new washing line, demonstrating its readiness for full-scale operations. The company anticipates that commercial production will commence in the first week of November, aligning with their strategic growth plans.

Technology Breakthrough in Rigid Plastic Recycling

Avro Recycling Limited, a wholly owned subsidiary of Avro, has successfully implemented technology to recycle rigid plastic by separating multiple blended polymers in quality and color. This technological advancement is expected to enhance revenue and profitability while strengthening the company's recycling division.

Potential Impact on Business Performance

The installation of advanced recycling technology and the new breakthrough in rigid plastic recycling are expected to have a positive impact on Avro's business metrics. The company foresees that these developments will not only increase the quantity of plastic scrap that can be processed but also enhance the quality of the recycled output. This improvement in capacity, quality, and technological capabilities is anticipated to drive growth in both revenue and profitability for the company.

Regulatory Compliance

In line with regulatory requirements, Avro has duly informed the National Stock Exchange of India Ltd and BSE Limited about these significant developments. The announcements were made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the plastic recycling industry continues to grow in importance due to increasing environmental concerns and sustainability initiatives, Avro's investments in advanced recycling technology position the company to potentially capture a larger market share and contribute to the circular economy efforts in India.

Investors and industry observers will likely be watching closely to see how these new developments impact Avro's financial performance in the coming quarters, as the company moves forward with its expanded production capabilities and technological advancements.