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Avantel Ltd

| Quarterly Financial Results Q3 FY 2025-26

BEARISH SENTIMENT

Report Source

⬤25th Jan 26

Summary : Avantel Limited reported significantly lower Q3 and 9M FY26 profits and revenues, with a key government customer and a subsidiary's unreviewed financials.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total Expenses Q3 FY26: 4392.31 Lakhs (vs 4162.29 Lakhs in Q3 FY25).
  2. Standalone Total Expenses 9M FY26: 13702.40 Lakhs (vs 12747.89 Lakhs in 9M FY25).
  3. Consolidated Total Expenses Q3 FY26: 4630.77 Lakhs (vs 4270.95 Lakhs in Q3 FY25).
  4. Consolidated Total Expenses 9M FY26: 14308.01 Lakhs (vs 13022.14 Lakhs in 9M FY25).
  5. Employee benefits expense includes ESOP costs of Rs. 177.19 Lakhs for Q3 FY26.
  6. No provision for loss allowance made on receivables.
  7. Receivables assured due to Government of India customer.
  8. Standalone Revenue from operations Q3 FY26: 5124.52 Lakhs (vs 7043.83 Lakhs in Q3 FY25).
  9. Standalone Total Revenue from operations 9M FY26: 15820.57 Lakhs (vs 19934.10 Lakhs in 9M FY25).
  10. Consolidated Revenue from operations Q3 FY26: 5171.58 Lakhs (vs 7068.08 Lakhs in Q3 FY25).
  11. Consolidated Total Revenue from operations 9M FY26: 15904.69 Lakhs (vs 19986.49 Lakhs in 9M FY25).
  12. Segment Revenue - Communications and signal processing products: 15957.36 Lakhs (9M FY26).
  13. Segment Revenue - Health Care: 84.13 Lakhs (9M FY26).
  14. Consolidated Total Assets as of Dec 31, 2025: 41,463.76 Lakhs.
  15. Consolidated Total Liabilities as of Dec 31, 2025: 8,410.70 Lakhs.
  16. Both standalone and consolidated unaudited financial results are presented.
  17. Separate limited review reports issued for standalone and consolidated results.

Corporate Overview

  1. Primarily India, with the Government of India as a principal customer.
  2. Significant dependency on a single principal customer controlled by the Government of India.
  3. Manufacturing of Wireless Front End, Satellite communication, Embedded Systems, Signal Processing, Network Management, Software development, and customer support services.
  4. In-house R&D Facility for communications and signal processing products.
  5. Manufacturing of Disposable Skin Staplers, Removers, and Oxygen Concentrators for health care services.
  6. Factual and formal reporting of financial results and auditor reviews.
  7. Principal customer is an organization controlled by the Government of India.
  8. Communications and signal processing products
  9. Health Care Services

Risk Factors

  1. High dependency on government customer.
  2. Need to reassess loss allowance model.
  3. Subsidiary results not auditor reviewed.
  4. Significant decline in profit before tax.

Key Drivers

  1. Allotted equity shares to employees.
  2. Focus on core competence growth.
  3. Government of India as key customer.
  4. In-house R&D facility.

Auditor’s Report

  1. Review conclusion: Nothing came to attention causing belief of material misstatement.
  2. No audit opinion expressed as it was a limited review.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Corporate strategy aims at creating multiple drivers of growth.
  2. Growth anchored on the company's core competence.
  3. Currently focused on two segments: Communications and Health Care.
Avantel Ltd (AVANTEL) Quarterly Report Analysis & Insights | Dhanarthi