Avalon Q1 FY27: Consolidated PAT surges 145% YoY to ₹34.9 Cr as US arm turns profitable
PAT +145.32% YoY · revenue +49.83% · margins expanding
₹484.41 Cr
+49.83% YoY
₹34.87 Cr
+145.32% YoY
7.16%
+2.8pp YoY
₹5.22
Avalon Technologies' consolidated (primary) Q1 FY27 revenue rose 49.8% YoY to ₹484.4 Cr, with PAT up 145.3% YoY to ₹34.9 Cr (basic EPS ₹5.22 vs ₹2.14) — a materially stronger print than the standalone (India-only) entity, whose revenue grew a more modest 26.5% YoY to ₹210.6 Cr and PAT 38.2% YoY to ₹20.2 Cr. The ~₹14.7 Cr gap between standalone and consolidated PAT is largely the US subsidiary ABV Electronics (D/B/A Sienna Corporation), which the auditor's review report discloses posted a standalone PAT of ₹6.40 Cr on total income of ₹239.2 Cr this quarter — meaning the US operation is already profit-making, ahead of management's own framing on the last call that US operations would "progress towards breakeven in late FY27." We found no pre-result consensus estimates for this quarter, so vs-street is not assessable.
Q1 FY-2027 vs prior quarters
Margins expanded on a YoY basis: gross margin came in at 34.7%, within management's guided 33-35% band for FY27 (versus 35.5% a year ago), and EBITDA/operating margin (OPM) expanded ~272 bps YoY to 11.96% from 9.24%, consistent with the operating-leverage story management laid out. Sequentially, however, net margin eased to 7.16% from 8.37% in Q4 FY26 — not a core deterioration, but a mechanical effect of other income falling to ₹2.82 Cr from ₹11.92 Cr in the prior quarter; OPM itself was flat-to-up QoQ (11.85% → 11.96%), and the effective tax rate (28.5% vs 26.9% in Q4) was a smaller drag.
The stock went into the print at ₹1,805.4, up 3.9% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
Management guides for 24-27% revenue growth in FY27, with an ambitious long-term goal to double revenue again to approximately INR 3,200 crores by FY29 from its FY26 base. Gross margins are expected to hold within the 33-35% range, with overall profitability set to improve through operating leverage as the U.S. operati
— This quarter: beat
Revenue growth of 49.8% YoY in Q1 alone runs well ahead of the 24-27% full-year FY27 growth management guided on the May 2026 call, though a single quarter's pace isn't a full-year read given seasonality is undisclosed for this EMS business. Management's own release framed the quarter simply as "Revenue Up 49.8% YoY to ₹484.4 Cr" with a neutral outlook comment, consistent with the confident, optimistic tone from the prior concall (bullish sentiment, very-optimistic long-term view) not being dialed back. No capex, order-book, or capacity disclosures accompanied this release beyond the standard EMS single-segment note.
W1
Whether 49.8% YoY revenue growth moderates toward the 24-27% FY27 full-year guided range in coming quarters
W2
US subsidiary (Sienna Corp) profitability — PAT-positive at ₹6.4 Cr this quarter versus management's 'breakeven by late FY27' framing; confirm this is sustained, not a one-off
W3
Gross margin holding within the guided 33-35% band (34.7% this quarter, down from 35.5% YoY)
Figures converted from ₹ Millions (÷10) to ₹ Crore; both statements clearly legible with unambiguous column headers. No exceptional/one-off items disclosed either period; no minority interest (wholly-owned subs). Consolidated PAT growth (+145.3% YoY) diverges sharply from standalone (+38.2% YoY) — gap driven by US subsidiary ABV Electronics/Sienna Corp, whose standalone PAT of ₹6.40 Cr is disclosed in the auditor's Other Matter note. QoQ NPM dip traced to lower other income (₹2.82 Cr vs ₹11.92 Cr in Q4), not core operations.