Avalon Q2 FY27 revenue rose 37.4% as EBITDA margin hit 12.6%

Avalon Technologies Limited reported revenue from operations of Rs 525.4 crore for Q2 FY27 ended September 30, 2026, up 37.4% year on year, while EBITDA margin rose to 12.6% from 10.1%; profit after tax increased 59.5% to Rs 39.8 crore.

How did Avalon perform in Q2 FY27?

Avalon increased revenue from operations to Rs 525.4 crore in Q2 FY27 from Rs 382.5 crore in Q2 FY26, a year-on-year increase of 37.4%. Revenue was also 8.5% higher than Rs 484.4 crore in Q1 FY27, according to the November 12, 2026 results release for the quarter ended September 30, 2026.

Total income rose 35.3% year on year to Rs 528.2 crore from Rs 390.4 crore, and was 8.4% above Rs 487.2 crore in Q1 FY27. The difference between revenue from operations and total income was Rs 2.8 crore in Q2 FY27, compared with Rs 7.9 crore a year earlier and Rs 2.8 crore in the preceding quarter.

Avalon said Q2 FY27 was its ninth consecutive quarter of sequential improvement in performance. The release gives quarter-on-quarter growth for revenue, total income, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT), with EBITDA increasing 13.9% from Rs 58.0 crore in Q1 FY27 and PAT increasing 14.2% from Rs 34.9 crore.

How did Avalon’s Q2 profitability change?

Avalon’s EBITDA rose 71.0% year on year to Rs 66.0 crore in Q2 FY27, and its EBITDA margin increased to 12.6% from 10.1% in Q2 FY26. Avalon reported the year-on-year margin increase as 247 basis points, while the margin was also 60 basis points above 12.0% in Q1 FY27.

Gross margin was 34.1% in Q2 FY27, as reported by Avalon. The release does not provide a comparable gross-margin figure for Q2 FY26 or Q1 FY27, so the disclosed comparison is limited to EBITDA margin, which rose from 10.1% a year earlier and from 12.0% in the immediately preceding quarter.

PAT reached Rs 39.8 crore, compared with Rs 25.0 crore in Q2 FY26 and Rs 34.9 crore in Q1 FY27. PAT margin was 7.5%, up 114 basis points from 6.4% a year earlier and 39 basis points from 7.2% in Q1 FY27; the 59.5% growth in PAT exceeded the 37.4% increase in revenue.

What do Avalon’s first-half FY27 results show?

Avalon reported Rs 1,009.8 crore of revenue from operations for H1 FY27, up 43.1% from Rs 705.8 crore in H1 FY26. Total income rose 41.9% to Rs 1,015.4 crore from Rs 715.3 crore over the same six-month comparison.

EBITDA for H1 FY27 was Rs 124.0 crore, an 81.0% increase from Rs 68.5 crore in H1 FY26. EBITDA margin expanded 257 basis points to 12.3% from 9.7%, meaning the first-half margin increase was slightly larger than the 247-basis-point year-on-year expansion reported in Q2 alone.

PAT for the first half rose 90.6% to Rs 74.7 crore from Rs 39.2 crore. PAT margin reached 7.4%, compared with 5.5% in H1 FY26, an increase of 188 basis points; the first-half margin was 10 basis points below the 7.5% reported in Q2 FY27.

Q2 FY27 revenue of Rs 525.4 crore accounted for just over half of the Rs 1,009.8 crore reported for H1 FY27, based on Avalon’s quarterly and half-year figures. Avalon also reported that its India manufacturing business delivered 17.1% EBITDA and 11.4% PAT in Q2 FY27.

What expansion and capital plans did Avalon disclose?

Avalon signed a memorandum of understanding with the Government of Tamil Nadu for 25 acres of land, which it said is intended to support the next decade of growth in advanced electronics manufacturing. The release does not disclose the investment amount, construction timetable, production capacity or revenue contribution associated with the proposed land allocation.

Avalon also announced a strategic joint venture with Zollner Elektronik AG for advanced electronics manufacturing in India. Separately, its board approved a preferential issue of warrants worth Rs 425 crore to Zollner Elektronik AG, subject to shareholder approval at an extraordinary general meeting; the release does not state the meeting date or warrant terms.

Net working-capital days improved to 120 days in September 2026 from 131 days in September 2025, a reduction of 11 days. This movement was reported alongside Q2 FY27 revenue of Rs 525.4 crore, although the release does not break down the change among inventory, receivables or payables.

Conclusion

Avalon’s Q2 FY27 release shows revenue growth of 37.4% alongside faster growth in EBITDA and PAT of 71.0% and 59.5%, respectively. EBITDA margin rose to 12.6% and PAT margin to 7.5%, while H1 FY27 revenue reached Rs 1,009.8 crore and first-half PAT rose 90.6% to Rs 74.7 crore.

The next disclosed items to watch are shareholder approval for the Rs 425 crore preferential warrant issue to Zollner Elektronik AG and Avalon’s implementation of its 25-acre Tamil Nadu land memorandum. Avalon has identified the land as part of an advanced-electronics-manufacturing growth plan, but it has not disclosed a project schedule, capacity target or capital-spending figure.