Avantel Q1 FY27 Results (NSE: AVANTEL)
Signal: Margin pressure
The read
Revenue growth accelerated to 35.7% YoY, the highest in recent quarters, but EPS collapsed 37.5% due to equity dilution — the core defence electronics business is strong, but the healthcare subsidiary remains a persistent drag and the share count expansion is a material concern for per-share value.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹70.42 Cr | 35.66% | 10.33% |
| Net profit | ₹5.39 Cr | 67.14% | |
| EPS | ₹0.2 | ||
| EBIT margin | 12.35% |
P&L walk
Revenue grew 35.7% YoY to ₹70.42 Cr, driven by the communications segment; gross margin improved on lower input cost; EBITDA margin expanded 90bps QoQ to 12.35% as employee cost and other expenses moderated; depreciation jumped 61.4% YoY reflecting fresh capex; PAT grew 67.1% YoY to ₹5.39 Cr, tracking operating profit with no exceptional items.
Segments
The communications segment (revenue ₹70.24 Cr, +35.4% YoY) drives the entire group; the healthcare subsidiary iMeds Global reported a loss of ₹2.22 Cr (revenue ₹0.30 Cr), dragging consolidated PAT ₹2.22 Cr below standalone PAT.
Key positives
- Consolidated revenue ₹70.42 Cr, +35.7% YoY, accelerating from prior quarters.
- Gross margin improved ~200bps YoY to 66.7% on lower material cost.
- Communications segment assets grew 22.9% QoQ to ₹471.62 Cr, signalling capacity expansion.
Key concerns
- Consolidated EPS fell 37.5% YoY to ₹0.20 despite PAT growth of 67.1% — significant equity dilution.
- Healthcare subsidiary iMeds Global continues to lose money (₹2.22 Cr loss on ₹0.30 Cr revenue), dragging group profitability.
- Depreciation surged 61.4% YoY, compressing EBITDA margin by 170bps.
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