Avalon Technologies Q3 FY26: Revenue rises 49% YoY

Avalon Technologies has released the audio recording of its Q3 FY26 earnings call on its website, following the announcement of its unaudited financial results for the quarter ended December 31, 2025. The Chennai-based electronics manufacturing services (EMS) company said the results were approved by its board on February 4, 2026. The earnings call was held on February 5, 2026, and the audio is available online as part of its investor communications. The disclosure was also communicated to BSE and NSE under SEBI listing regulations.

The update comes alongside a quarter where Avalon reported sharp year-on-year growth in both revenue and profit, even as operating margin softened on a consolidated basis. Separately, the company also reported a credit rating outlook upgrade from India Ratings and Research (Ind-Ra) in late January 2026, adding another disclosure event for investors tracking balance sheet risk and funding access.

Earnings call recording: what Avalon disclosed

Avalon said it has made the audio recording of the earnings call available to stakeholders through its website link: avalontec.com/investor/earnings-call-audio. The company indicated this was done in line with SEBI Regulation 30(6) read with Para A of Part A of Schedule III of the SEBI (LODR) Regulations, 2015.

The company noted the call date as February 5, 2026, and the regulatory communication around the call recording was signed by Ajay Shukla, Company Secretary and Compliance Officer. For listed companies, such disclosures have become a standard part of post-results transparency, especially where presentations, transcripts, or recordings are expected by institutional investors.

Q3 FY26 consolidated performance: strong growth, softer margin

Avalon’s consolidated numbers showed a large step-up in scale during Q3 FY26 compared with Q3 FY25. Revenue from operations rose to ₹417.54 crore from ₹280.85 crore, while net profit increased to ₹32.60 crore from ₹23.99 crore. EBITDA rose in absolute terms, but the EBITDA margin declined.

A key detail in the quarterly print was the margin movement: EBITDA margin fell to 11.52% in Q3 FY26 from 12.33% in Q3 FY25, a compression of 81 bps. Even with the margin pressure, EBITDA rose to ₹48.10 crore from ₹34.60 crore, showing higher operating profit in rupee terms.

Standalone business: profits grew faster than revenue

Avalon’s standalone performance also expanded sharply in Q3 FY26. Standalone revenue from operations rose to ₹214.52 crore (₹214.52 crore in the quarterly table; ₹214.52 crore aligns with ₹2,145.17 million reported elsewhere) from ₹151.40 crore in the year-ago quarter as per the quarterly series shared.

Standalone net profit for Q3 FY26 was reported at ₹23.83 crore, up from ₹16.48 crore in Q3 FY25. Profit before tax increased to ₹31.88 crore from ₹22.06 crore. Basic EPS for the standalone entity was ₹3.57 versus ₹2.49.

The quarterly cost structure also shows expenditure rising with scale. Total expenditure increased from ₹139.63 crore in Dec 2024 to ₹191.25 crore in Dec 2025 in the quarterly table, while operating profit moved from ₹11.77 crore to ₹23.26 crore over the same period. Other income was material in multiple quarters, including ₹11.55 crore in Dec 2025.

Nine-month FY26 numbers: scale-up continues

For the nine months ended December 31, 2025, Avalon reported consolidated revenue of ₹1,123.31 crore and standalone revenue of ₹587.30 crore. Net profit for the same nine-month period was ₹71.80 crore on a consolidated basis and ₹64.15 crore on a standalone basis.

The company also reported growth rates for this period: consolidated revenue growth of 48.73% and standalone revenue growth of 36.68%. Profit growth was sharper, with consolidated profit growth of 83.33% and standalone profit growth of 99.83%, as stated in the shared figures.

Longer financial context from annual P&L

In the annual Profit and Loss series provided (all figures in crore), net sales rose to ₹631.78 crore in Mar 2025 from ₹441.68 crore in Mar 2024. Operating profit for Mar 2025 was ₹49.40 crore, higher than ₹31.81 crore in Mar 2024.

Other income in this series increased to ₹26.97 crore in Mar 2025 from ₹19.24 crore in Mar 2024. Interest expense in the same annual series was ₹2.80 crore in Mar 2025 versus ₹2.59 crore in Mar 2024, with earlier years showing higher interest costs.

ESOP allotment and equity base updates

Avalon reported that during Q3 FY26 it allotted 45,034 equity shares upon the exercise of employee stock options. As of December 31, 2025, 4,17,055 options remained outstanding.

The company said its paid-up equity share capital stood at ₹13.35 crore (₹133.52 million) with a nominal value of ₹2 per share. Such disclosures are typically tracked by investors for dilution, employee incentives, and changes in the equity base over time.

Credit rating outlook upgrade by India Ratings

In another disclosure, Avalon said India Ratings and Research upgraded the outlook on its bank facilities to Positive from Stable while affirming the ratings. The action related to ₹141.50 crore (INR 1,415 million) of bank loan facilities, rated IND A-/Positive/IND A1.

Avalon disclosed that the rating event occurred on January 29, 2026 at 9:05 p.m. (IST) and that the company informed stock exchanges on January 30, 2026 under SEBI Regulation 30.

Stock performance snapshot shared with the update

The figures provided alongside the disclosures included historical returns for Avalon Technologies: 1-day -2.06%, 5-days +10.58%, 1-month +22.18%, 6-months -0.41%, 1-year +31.05%, and 5-years +187.84%. A separate snippet also listed the stock price as ₹1,169.70 as on 5 May 2026.

These return numbers provide short- and long-horizon context, but they do not explain day-to-day moves around results announcements, which depend on expectations, order commentary, and margin outlook.

Market impact: what investors typically track in these disclosures

Two themes stand out from the disclosed numbers. First, Avalon’s revenue growth in Q3 FY26 was high on both consolidated and standalone bases, indicating continued scaling in its EMS operations. Second, the consolidated margin decline, despite higher EBITDA in rupee terms, signals that operating leverage may be facing cost or mix pressure at the group level.

The credit outlook upgrade matters for capital access because it may influence borrowing terms for working capital and growth funding, particularly for manufacturing businesses that can have lumpy cash conversion cycles. Separately, ESOP allotments and outstanding options provide a quantified view of potential equity dilution, even if the absolute number of shares allotted in the quarter was limited.

Analysis: why the Q3 FY26 update matters

Publishing the earnings call audio strengthens the information set available to public-market investors, especially when the quarter includes large year-on-year changes in revenue and profit. With consolidated revenue from operations at ₹417.54 crore and standalone revenue at ₹214.52 crore for Q3 FY26, investors often look for management commentary on customer demand, capacity utilisation, and the drivers behind margin movement.

At the same time, the combination of strong profit growth and a lower EBITDA margin keeps attention on execution. The numbers show that Avalon expanded EBITDA and net profit meaningfully, but the margin compression suggests the next set of updates will be closely read for clarity on cost trends and sustainability of profitability at higher scale.

Conclusion

Avalon Technologies’ Q3 FY26 disclosures combine operational performance with formal market communication: sharply higher consolidated revenue and profit, a published earnings call recording, and a credit rating outlook upgrade on ₹141.50 crore of bank facilities. The next investor focus points are likely to be subsequent quarterly filings and any further company presentations or exchange disclosures scheduled under SEBI requirements.