Avalon H1 FY27 revenue rises 43% as EBITDA margin gains 257 bps

Avalon Technologies reported H1 FY27 revenue of Rs 1,010 crore, up 43.1% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased 257 basis points to 12.3%. EBITDA rose 81.0% to Rs 124 crore and profit after tax (PAT) rose 90.6% to Rs 75 crore, despite a 48-basis-point decline in gross margin.

How did Avalon perform in H1 FY27?

Avalon increased H1 FY27 revenue by Rs 304 crore, to Rs 1,010 crore from Rs 706 crore in H1 FY26. Gross margin increased by Rs 101 crore to Rs 347 crore from Rs 246 crore, but gross margin as a share of revenue declined to 34.4% from 34.9%, a fall of 48 basis points.

Avalon’s EBITDA increased by Rs 56 crore in H1 FY27, compared with the Rs 36 crore increase in PAT. EBITDA growth of 81.0% outpaced revenue growth of 43.1%, raising the EBITDA margin to 12.3% from 9.7%, while PAT margin rose to 7.4% from 5.5%.

What changed in Avalon’s H1 FY27 profitability?

Avalon reported lower gross margin percentage but higher EBITDA and PAT margins in H1 FY27. Gross-margin rupees rose 41.1% to Rs 347 crore, less than the 43.1% increase in revenue, resulting in the 48-basis-point movement in gross margin percentage to 34.4%.

The Q2 FY27 income statement provides the disclosed cost comparison underlying the half-year result. Cost of goods sold increased 37.8% to Rs 346 crore as Q2 revenue rose 37.4% to Rs 525 crore, while personnel cost increased 21.2% to Rs 85 crore and other operating expenses rose 25.6% to Rs 29 crore.

Avalon’s Q2 EBITDA increased 71.0% to Rs 66 crore from Rs 39 crore in Q2 FY26, lifting EBITDA margin by 247 basis points to 12.6%. Depreciation rose to Rs 10 crore from Rs 9 crore, finance cost remained Rs 4 crore, and profit before tax increased 62.7% to Rs 55 crore from Rs 34 crore.

Did Avalon sustain momentum in Q2 FY27?

Avalon sustained sequential revenue and profit growth in Q2 FY27. Revenue rose 8.5% from Rs 484 crore in Q1 FY27 to Rs 525 crore in Q2 FY27, while EBITDA increased 13.9% from Rs 58 crore to Rs 66 crore.

Avalon’s Q2 EBITDA margin increased to 12.6% from 12.0% in Q1 FY27, a 60-basis-point expansion. Gross margin percentage moved to 34.1% from 34.7%, a 54-basis-point decline, while PAT rose 14.2% to Rs 40 crore and PAT margin increased to 7.5% from 7.2%.

Against Q2 FY26, Avalon’s revenue increased 37.4% from Rs 382 crore, gross margin increased 36.6% from Rs 131 crore, and PAT rose 59.5% from Rs 25 crore. The Q2 PAT margin was 7.5%, compared with 6.4% a year earlier, an increase of 114 basis points.

What do Avalon’s orders and revenue mix show?

Avalon’s order book was Rs 2,367 crore on September 30, 2026, up 27.1% from Rs 1,863 crore on September 30, 2025. The presentation says the order book is executable over an average period of 14 months and identifies Rs 1,275 crore of long-term contracts executable over 14 months to three years.

Avalon’s H1 FY27 revenue mix increased its clean-energy contribution to 29% from 20% in FY26. Mobility and transportation represented 25% of H1 FY27 revenue against 28% in FY26, communication was 4% against 8%, and medical and others was 8% against 10%.

Industrials accounted for 34% of Avalon’s H1 FY27 revenue and remained at 34% in FY26, making it the largest reported revenue segment in both periods. Avalon also reported that Indian customers contributed 40% of revenue and export customers 60%, while 73% of manufacturing was located in India.

Avalon reported net working-capital days of 120 in September 2026, compared with 131 days in September 2025. The presentation calculates net working-capital days using revenue annualised from trailing three-month revenue, with adjustments for advances to vendors and advances from customers.

Conclusion

Avalon’s H1 FY27 result combined 43.1% revenue growth with faster increases in EBITDA and PAT. Although gross margin percentage declined 48 basis points to 34.4%, EBITDA margin rose 257 basis points to 12.3% and PAT margin increased 188 basis points to 7.4%, while Q2 added sequential growth in revenue, EBITDA and PAT.

The next disclosed matters to watch are execution of the Rs 2,367 crore order book and Avalon’s capacity and partnership plans. Avalon signed a memorandum of understanding with the Government of Tamil Nadu for 25 acres of land for advanced electronics manufacturing, while its board approved a Rs 425 crore preferential issue of warrants to Zollner Elektronik AG, subject to shareholder approval at an extraordinary general meeting.