Avantel Ltd Shares Decline More Than 13% After Q2FY26 Results; Profit Dives Drastically YoY

Hyderabad, October 20, 2025 – Avantel Ltd shares price (NSE: AVANTEL) declined more than 13% in Monday’s trading, following the company’s report of a sharp year-over-year decline in profit in the September quarter of FY26. This decline was due to subdued revenue growth and higher operating expenses, which affected margins heavily. The stock opened soft and fluctuated between an intraday high of ₹179.77 and a low of ₹160.50, before closing at ₹164.80 against the last close of ₹190.60.

Q2FY26 Financial Performance

Avantel Ltd’s consolidated revenue from operations for Q2FY26 stood at ₹5,541.83 lakh, down 28.4% from ₹7,742.03 lakh in the same quarter last year. However, sequentially, revenue improved by 6.8% from ₹5,191.28 lakh reported in Q1FY26. Total income for the quarter was ₹5,632.79 lakh, registering a 27.7% year-on-year decline.

Total costs increased to ₹5,011.27 lakh from ₹4,641.07 lakh in Q2FY25, a rise of 8% primarily because of increased material and staff expenses. Profit before tax fell drastically to ₹621.52 lakh from ₹3,150.24 lakh during the previous year, depicting a decline of 80.3%. Net profit was at ₹426.63 lakh, down 81.4% from ₹2,289.90 lakh during the same period last year, but up 32.2% quarter-on-quarter from ₹322.71 lakh in Q1FY26. Earnings per share (EPS) fell to ₹0.15 from ₹0.99 in Q2FY25, representing a 84.8% year-on-year decline.

Half-Yearly Performance (H1FY26 compared to H1FY25)

For the first six months of FY26, Avantel recorded operating revenue of ₹10,733.10 lakh, which was lower by 16.9% from ₹12,918.42 lakh in H1FY25. Net profit for the period ended lower at ₹750.11 lakh, as against ₹3,027.98 lakh in the previous corresponding period — a drop of more than 75%. Total consolidated income of the company during H1FY26 stood at ₹10,828.57 lakh, as against ₹12,997.60 lakh in the previous year, indicating weaker execution of projects and higher input costs.

Market Response

Investors negatively responded to the subdued quarter performance, and this resulted in the heavy sale of the stock. Avantel’s shares fell as much as 13.54% on the day, lagging the general market. The counter witnessed increased trading volumes as investors took profits following the recent rally in the stock.

Management Perspective

As of 2:44 PM IST on October 20, the stock is trading at ₹174.70, down ₹15.90 or 8.34% for the day. It opened at ₹179.34 and hit a high of ₹179.77 and a low of ₹160.50. The company’s market capitalization stands at ₹4,630 crore, with a P/E ratio of 86.64 and a dividend yield of 0.11%. The stock’s 52-week range is between ₹95.12 and ₹215.00.

About Avantel Ltd

Based in Hyderabad, Avantel Ltd specializes in designing and producing sophisticated communication systems for mainly defense and aerospace customers. Its product lines include satellite communication gear, tactical data systems, and integrated defense communications networks. Traded on both NSE and BSE, Avantel has established itself strongly in India’s defense technology space and continues to emphasize growing its secure communication system capabilities.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/e162b62a-625c-4419-863d-6eabfba53bb8.pdf

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