Avalon Technologies eyes doubling revenue to Rs 3,200cr

Chennai: Avalon Technologies plans to double its revenue in three years on the back of strong domestic and export demand and growth in new markets and product segments, according to a senior executive of the company. The electronics manufacturing services company has posted a revenue of Rs 1,603 crore in the 2025-26 financial year (FY26), up 46% compared to Rs 1,098 crore in the previous year. Speaking at the earnings call, Kunhamed Bicha, chairman and managing director of the company, said, "The initial target of doubling revenue to Rs 17,725 crore by FY27 has been achieved a year ahead, and they are confident of further doubling in the next three years." He said a strong order book, new products and an expanding customer base would contribute to this. The company believes the external environment is favourable, with a reduction in tariffs increasing interest, along with growing demand and supply chain diversification. The Chennai-based company, focusing on aerospace, railways, industrials and clean tech businesses, reported a 40% increase in gross margin to Rs 550 crore. Profit after tax increased 78% on a yearly basis to Rs 113 crore, while profit margins increased 123 basis points to 6.9%. Its order book stood at Rs 2,196 crore, up 24.7% from Rs 1,761 crore. Its Indian manufacturing operations contributed to 70% of its revenue, while narrowing losses from the US and plans to break even in US manufacturing in the latter part of FY27. "Presence in India and the US gives our customers choices to start in one location and shift," Bicha said. For the fourth quarter of FY26, its revenue increased 40% to Rs 480 crore, and PAT jumped 70% to Rs 41 crore.