Avalon Tech Q1 FY27 Results (NSE: AVALON)
Signal: Margin expansion
The read
Revenue surged 49.8% YoY to ₹484.4 Cr, with EBITDA margin expanding 274bps to 12.5% as operating leverage kicked in (employee costs up only 31.6%). PAT jumped 145.4% YoY to ₹34.9 Cr, tracking revenue growth. QoQ revenue was flat (+0.9%) but profit dipped 15.3% due to seasonal high base. The standalone entity showed higher other income share (24.6% of PBT), but consolidated quality is clean. Fifth consecutive quarter of YoY profit growth and margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹484.41 Cr | 49.8% | 0.9% |
| EBIT | ₹52.2 Cr | 126.2% | |
| Net profit | ₹34.87 Cr | 145.4% | |
| EPS | ₹5.22 | 143.9% | |
| EBIT margin | 10.8% |
P&L walk
Operating leverage drove margin expansion: revenue grew 49.8% while employee costs rose only 31.6% and other expenses 23.2%; EBITDA margin expanded 274bps YoY.
Key positives
- Revenue growth of 49.8% YoY, accelerating from prior year's 38.9% (Q2FY26) pace.
- EBITDA margin expanded 274bps YoY to 12.5%, driven by operating leverage (employee costs +31.6% vs revenue +49.8%).
- PAT more than doubled (+145.4% YoY), EPS up 143.9% YoY, reflecting strong operational performance.
Key concerns
- QoQ net profit declined 15.3% from Q4FY26's ₹41.15 Cr, partly seasonal.
- Standalone other income formed 24.6% of PBT, though consolidated earnings quality remains clean.
- Gross margin contracted 85bps YoY, indicating slight input cost pressure or mix shift.
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