Avalon Technologies Ltd
NSE:AVALON
Avalon Technologies Ltd
Avalon Technologies Ltd. engages in the provision of electronics manufacturing services (EMS). The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2023-04-18. The firm provides a full stack product and solution suite, right from printed circuit board design and assembly to end-to-end box build of electronic systems, to certain global original equipment manufacturers (OEMs), including OEMs located in the United States, China, Netherlands and Japan. Its other capabilities include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics and injection molded plastics. Its capabilities include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics and end-to-end box build of electronic systems. The company is specialized in manufacturing and providing design support for critical integrated assemblies, sub-assemblies, components and enclosures for multiple industry verticals.
Avalon Technologies Ltd. engages in the provision of electronics manufacturing services (EMS). The company is headquartered in Chennai, Tamil Nadu. The company went IPO on 2023-04-18. The firm provides a full stack product and solution suite, right from printed circuit board design and assembly to end-to-end box build of electronic systems, to certain global original equipment manufacturers (OEMs), including OEMs located in the United States, China, Netherlands and Japan. Its other capabilities include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics and injection molded plastics. Its capabilities include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics and end-to-end box build of electronic systems. The company is specialized in manufacturing and providing design support for critical integrated assemblies, sub-assemblies, components and enclosures for multiple industry verticals.
Record Revenue & Profit: Avalon Technologies posted its highest-ever quarterly revenue and profit after tax in Q3 FY '26, marking six consecutive quarters of growth.
Guidance Raised: FY '26 revenue growth guidance was raised to around 40%, up from the earlier 28–30%, driven by improved business visibility and strong momentum.
Broad-Based Growth: Strong performance was reported across multiple verticals including industrial, rail, aerospace, and clean energy, with significant year-on-year increases.
Margin Strength: Gross margin remained at the upper end of guidance (34.2% for Q3), and EBITDA margin improved to 11.5% for the quarter.
Working Capital & Cash Flow: Net working capital days improved to 118 (from 150 YoY), and positive operating cash flow of INR 51 crores was generated in Q3.
Tariff Relief: U.S. tariffs on Indian imports were reduced from 50% to 18%, providing a tailwind for U.S. exports; Avalon successfully passed on 99% of tariff costs to customers.
CapEx-Light Model: Asset turns improved to 9.5x, and the company maintained a low net debt-to-equity ratio (0.04), supporting high return on capital employed (18.8%).
