Chennai-based electronics manufacturing services company Avalon Technologies has set an ambitious target to double its revenue within the next three years, fueled by robust domestic and export demand, expansion into new markets, and growth in product segments.
Strong Financial Performance in FY26
The company reported a revenue of Rs 1,603 crore for the financial year 2025-26 (FY26), marking a 46% increase from Rs 1,098 crore in the previous fiscal. Profit after tax surged 78% year-on-year to Rs 113 crore, while profit margins improved by 123 basis points to 6.9%. Gross margin rose 40% to Rs 550 crore.
Early Achievement of Previous Target
Speaking during the earnings call, Kunhamed Bicha, chairman and managing director of Avalon Technologies, stated that the earlier goal of doubling revenue to Rs 17,725 crore by FY27 was achieved a year ahead of schedule. He expressed confidence in replicating this feat over the next three years, citing a strong order book, new product introductions, and an expanding customer base as key drivers.
Favorable External Environment
The company believes the external environment is supportive, with tariff reductions boosting interest, alongside growing demand and supply chain diversification trends. Avalon Technologies focuses on aerospace, railways, industrials, and clean tech sectors.
Order Book and Manufacturing Operations
As of FY26-end, the company's order book stood at Rs 2,196 crore, up 24.7% from Rs 1,761 crore a year earlier. Indian manufacturing operations contributed 70% of total revenue, while losses from US operations narrowed. The company plans to break even in US manufacturing during the latter part of FY27.
“Presence in India and the US gives our customers choices to start in one location and shift,” Bicha noted, highlighting the strategic advantage of dual-country operations.
Fourth Quarter Performance
For the fourth quarter of FY26, revenue increased 40% to Rs 480 crore, while profit after tax jumped 70% to Rs 41 crore, underscoring the company's growth momentum.
