AVANTEL LTD. Q1 FY27 Results

Avantel opened FY27 with its highest-ever quarterly print: consolidated revenue of ₹70.42 Cr, up 35.7% YoY (from ₹51.91 Cr) and 10.3% QoQ, with consolidated PAT of ₹5.39 Cr, up 67.2% YoY (from ₹3.23 Cr) and 13.0% QoQ. Growth is clean — there are no exceptional or one-off items on either side of the comparison, so reported and adjusted YoY are the same. Standalone told a similar growth story (revenue +35.3%, PAT +64.7% YoY to ₹7.62 Cr); the gap between standalone and consolidated PAT is entirely the ₹2.22 Cr quarterly loss at wholly-owned Health Care subsidiary iMeds Global, which added only ₹0.30 Cr of revenue — worth watching but immaterial to group scale.

Margins expanded on operating leverage, not accounting. EBITDA-basis OPM rose to 24.75% from 20.14% a year ago, and net margin lifted to 7.66% from 6.22%. The swing sits mostly on the materials line: combined cost of materials plus inventory change fell to ~33% of revenue from ~40% a year ago, reflecting capacity that has been capitalised and is now producing. The offsetting pressure is below EBITDA — depreciation rose 61% YoY to ₹7.10 Cr and finance costs more than doubled to ₹1.76 Cr, both direct consequences of the capex cycle. This is the nuance behind the board's own 'OPM compressed by capex' framing: the operating margin actually expanded, but the capex is now flowing through depreciation and interest, capping the drop-through to net profit — most visibly at the consolidated level via the subsidiary drag.

The stock went into the print at ₹160.22, down 2.6% over the past month of trading.

For context: PAT has now risen for 4 consecutive quarters.

The quarter aligns with recent order momentum: Avantel disclosed a ₹20.81 Cr purchase order from L&T on Jul 18, feeding a single-segment defence/satellite communications book (₹70.24 Cr of the ₹70.54 Cr group revenue). Segment assets in Communications jumped to ₹471.6 Cr from ₹340.0 Cr a year ago, confirming the capex build. Concurrent board actions were governance-only — director re-appointments (Abburi Siddhartha Sagar, Vyasabhattu Ramchander), appointment of Peddi Bala Bhaskar Rao as Director (Operations), and committee reconstitution — with no bearing on the numbers. Avantel gives no formal guidance and, as a micro/small-cap, carries no published brokerage consensus for the quarter; commentary that exists (MarketsMojo, Business Standard) is post-result and notes the stock trades at a rich ~320x trailing earnings, so the print's quality matters more than its beat/miss status.