Avalon Technologies revenue rises 37%, profit jumps 59%

Avalon Technologies Limited reported consolidated revenue from operations of Rs 525.434 crore for the quarter ended September 30, 2026, up 37% year on year, while profit for the period rose 59% to Rs 39.836 crore. The September-quarter results also showed a sequential increase from Rs 484.414 crore of revenue and Rs 34.869 crore of profit in the June 2026 quarter.

What did Avalon Technologies report for the September quarter?

Avalon Technologies reported total income of Rs 528.169 crore in the quarter ended September 30, 2026, compared with Rs 390.375 crore a year earlier and Rs 487.231 crore in the June 2026 quarter. Revenue from operations accounted for Rs 525.434 crore of the latest total, while other income was Rs 2.735 crore, down from Rs 7.911 crore in the September 2025 quarter.

Profit before tax increased to Rs 54.644 crore from Rs 33.584 crore in the year-earlier quarter and Rs 48.739 crore in the preceding quarter. After tax expense of Rs 14.808 crore, profit for the period reached Rs 39.836 crore, against Rs 24.979 crore in September 2025. Basic earnings per share, not annualised, rose to Rs 5.96 from Rs 3.75.

How did Avalon Technologies' costs change with revenue growth?

Avalon Technologies' total expenses rose to Rs 473.525 crore in the September 2026 quarter from Rs 356.791 crore in September 2025, an increase of Rs 116.734 crore against a Rs 142.970 crore increase in revenue from operations. Raw-material consumption rose to Rs 362.412 crore from Rs 283.199 crore, while employee benefit expense increased to Rs 84.693 crore from Rs 69.891 crore.

Other expenses increased to Rs 28.585 crore from Rs 22.764 crore, and depreciation and amortisation rose to Rs 9.969 crore from Rs 8.870 crore. Finance costs were Rs 4.151 crore, compared with Rs 4.072 crore a year earlier. Changes in inventories of finished goods, work in progress and stock in trade were negative Rs 16.285 crore, compared with negative Rs 32.005 crore in the prior-year quarter.

For the half year ended September 30, 2026, revenue from operations was Rs 1,009.848 crore, compared with Rs 705.772 crore in the corresponding 2025 half year. Half-year profit before tax rose to Rs 103.383 crore from Rs 52.891 crore, while profit for the period increased to Rs 74.705 crore from Rs 39.193 crore. Avalon Technologies reports one business segment, electronics manufacturing services, including printed circuit board assembly, custom cable and wire harnesses.

What changed on Avalon Technologies' balance sheet?

Avalon Technologies' total assets increased to Rs 1,560.663 crore at September 30, 2026 from Rs 1,264.394 crore at March 31, 2026. Current assets rose to Rs 1,247.716 crore from Rs 1,017.427 crore, led by inventories of Rs 596.325 crore compared with Rs 463.289 crore at the March year-end.

Trade receivables increased to Rs 422.119 crore from Rs 381.273 crore, while cash and cash equivalents rose to Rs 134.797 crore from Rs 71.222 crore. Property, plant and equipment increased to Rs 178.858 crore from Rs 162.171 crore, and right-of-use assets rose to Rs 78.342 crore from Rs 23.846 crore.

Current borrowings increased to Rs 303.385 crore at September 30 from Rs 172.262 crore at March 31, while total current liabilities rose to Rs 715.650 crore from Rs 495.916 crore. Trade payables to parties other than micro and small enterprises increased to Rs 328.976 crore from Rs 248.431 crore. These movements accompanied the increases in inventory and receivables during the six-month period.

Did Avalon Technologies convert first-half profit into operating cash?

Avalon Technologies generated net cash from operating activities of Rs 9.511 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 10.174 crore in the corresponding 2025 half year. The latest operating cash figure followed profit before tax of Rs 103.383 crore and operating profit before working-capital changes of Rs 129.560 crore.

Working-capital movements included Rs 131.190 crore of cash absorbed by inventories and Rs 35.635 crore absorbed by trade and other receivables. These were partly offset by a Rs 78.158 crore increase in trade payables. Income-tax payments were Rs 19.679 crore, compared with Rs 12.095 crore in the first half of 2025.

Investing activities used Rs 59.375 crore in the first half, against an inflow of Rs 25.402 crore a year earlier. The latest period included Rs 24.277 crore spent on property, plant and equipment and intangible assets, and Rs 55.480 crore spent on right-of-use assets. Financing activities generated Rs 113.135 crore, primarily including net proceeds of Rs 129.522 crore from current borrowings, compared with a financing outflow of Rs 28.300 crore in the prior-year half.

What expansion and funding plans has Avalon Technologies disclosed?

Avalon Technologies said Zollner Avalon Private Limited was incorporated on October 19, 2026, after the September quarter ended. The board had approved a joint-venture agreement with Zollner Elektronik AG on September 3, 2026. Zollner Elektronik AG will hold 51% and Avalon Technologies will hold 49% of the venture, which is intended to provide electronics manufacturing services including printed circuit board assembly, box-build and system integration.

On October 27, 2026, the board approved a proposed preferential issue of up to 19,37,808 warrants to Zollner Elektronik AG at Rs 2,193.20 each. The proposed issue aggregates to about Rs 425 crore, with each warrant convertible into one fully paid-up equity share under the stated terms. Avalon Technologies said the issue remains subject to shareholder approval and applicable regulatory or statutory approvals.

The consolidated results include Avalon Technology and Services Private Limited, Sienna Ecad Technologies Private Limited and ABV Electronics, Inc., doing business as Sienna Corporation in the United States. The auditor stated that the US subsidiary recorded total income of Rs 234.390 crore and profit after tax of Rs 9.218 crore in the September 2026 quarter, with its US accounting-standard financial information restated to comply with Indian Accounting Standards.

Conclusion

Avalon Technologies delivered higher consolidated revenue and profit in the September 2026 quarter, with revenue rising 37% year on year to Rs 525.434 crore and profit for the period increasing 59% to Rs 39.836 crore. The first-half balance sheet and cash flow statement show that the expansion in sales coincided with higher inventory, receivables, current borrowings and financing inflows.

The next disclosed matters to watch are shareholder and regulatory decisions on the proposed Rs 425 crore warrant issue, and the development of Zollner Avalon Private Limited following its October 19, 2026 incorporation. Avalon Technologies also reported Rs 9.511 crore of first-half operating cash generation, while inventories stood at Rs 596.325 crore and current borrowings at Rs 303.385 crore at September 30, 2026.