Avantel Q2 FY27: consolidated PAT +60% YoY to ₹6.8cr as margins expand; revenue trails our preview

Avantel's consolidated revenue rose 34.3% YoY to ₹74.42 Cr (₹55.42 Cr in Q2 FY26) and PAT climbed 59.6% YoY to ₹6.81 Cr (₹4.27 Cr), with profit growing faster than revenue on genuine margin expansion — NPM widened to 9.15% from 7.70% YoY, and PBT margin to 12.94% from 11.21%. Sequentially, revenue was up 5.7% QoQ and PAT up 26.2% QoQ versus Q1 FY27's ₹70.42 Cr/₹5.39 Cr. The margin gain came mainly from operating leverage on employee costs (16.6% of revenue vs 22.6% a year ago), partly offset by rising finance costs (3.7% vs 2.3% of revenue) and depreciation (11.8% vs 8.6%) as the company's capex and borrowings have scaled — standalone gross block rose to ₹207 Cr from ₹162 Cr at FY26-end, funded partly by higher short-term borrowings (₹74.7 Cr vs ₹22.1 Cr at FY26-end). Against our own pre-result preview (no formal sell-side consensus exists for this stock — confirmed via search), revenue of ₹74.42 Cr missed the ₹85–95 Cr range we had flagged, while PAT of ₹6.81 Cr landed near the top of the ₹6–7 Cr range. Management has no formal guidance on record (none in our data, none found via web search), so the result can only be graded against YoY trend and the preview bar, not a stated outlook. The quarter's order activity — the ₹177.35 Cr Zetwerk PO (Sep 23) and L&T maintenance orders worth ₹12.04 Cr (Oct 10) and ₹6.02 Cr (Oct 1) flagged pre-result — adds to the order book but had limited time to show up in September-quarter revenue; execution pace on these, plus the previously-flagged ₹117.88 Cr DRDO order, is what will determine whether H2 FY27 revenue catches up to the preview range. Standalone PAT of ₹8.35 Cr (+35.3% YoY) grew slower than the consolidated number because the Health Care segment's loss narrowed from ₹1.90 Cr to ₹1.54 Cr YoY at the group level — that subsidiary (Imeds Global) is now being merged into the parent, per the same board meeting, which will fold its losses directly onto standalone books going forward. No separate management press release accompanied this filing beyond the board-outcome letter.