Avantel Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Negative
Executive Summary
Avantel Q3 FY2026: Revenue ₹51.72 Cr (vs ₹70.68 Cr YoY), PAT ₹2.74 Cr (vs ₹20.08 Cr YoY)
In Q3 FY2026 (quarter ended Dec 31, 2025) Avantel reported consolidated revenue of ₹51.72 Cr and consolidated PAT of ₹2.74 Cr, both declining sharply year‑on‑year. Profit before tax fell to ₹5.82 Cr while total expenses increased versus the year‑ago quarter, compressing margins. The Communications segment remained the core revenue driver at ₹51.66 Cr while the Health Care segment reported a loss of ₹1.91 Cr for the quarter. Management noted employee stock‑option costs recognised in the quarter and continued focus on its two‑segment strategy, with no material provision for receivable loss...Consolidated Revenue (Q3 FY2026)
₹51.72 Crvs ₹70.68 Cr in Q3 FY2025
Consolidated Net Profit / PAT (Q3 FY2026)
₹2.74 Crvs ₹20.08 Cr in Q3 FY2025
Profit Before Tax (Q3 FY2026)
₹5.82 Crvs ₹28.49 Cr in Q3 FY2025
Total Expenses (Q3 FY2026)
₹46.31 Crvs ₹42.71 Cr in Q3 FY2025
Finance Costs (Q3 FY2026)
₹1.77 Crvs ₹1.02 Cr in Q3 FY2025
Earnings per Share - Basic (Q3 FY2026)
₹0.10 per sharevs ₹0.87 per share in Q3 FY2025
Communications Segment Revenue (Q3 FY2026)
₹51.66 Crvs ₹70.93 Cr in Q3 FY2025
Health Care Segment Profit/(Loss) (Q3 FY2026)
-₹1.91 Crvs ₹
Key Highlights
9
Communications & signal processing remained the dominant revenue source at ₹51.66 Cr in Q3 FY2026, contributing nearly all consolidated sales of ₹51.72 Cr
Consolidated profit before tax fell to ₹5.82 Cr in Q3 FY2026 from ₹28.49 Cr in Q3 FY2025 due to higher total expenses and lower revenue, squeezing operating profitability
Total expenses rose to ₹46.31 Cr in Q3 FY2026 from ₹42.71 Cr in Q3 FY2025, increasing cost pressures despite lower revenues
Health Care segment reported a loss of ₹1.91 Cr in Q3 FY2026 (vs loss of ₹0.82 Cr in Q3 FY2025), indicating profitability challenges in the nascent segment
Finance costs increased to ₹1.77 Cr in Q3 FY2026 versus ₹1.02 Cr in Q3 FY2025, indicating higher interest burden quarter‑on‑quarter versus prior year
Employee benefits expense was ₹13.50 Cr in Q3 FY2026 (1,350.40 Lakhs) and includes ESOP charge of ₹1.77 Cr in the quarter, supporting remuneration and retention but raising operating costs
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Key Highlights
9
Communications & signal processing remained the dominant revenue source at ₹51.66 Cr in Q3 FY2026, contributing nearly all consolidated sales of ₹51.72 Cr
Consolidated profit before tax fell to ₹5.82 Cr in Q3 FY2026 from ₹28.49 Cr in Q3 FY2025 due to higher total expenses and lower revenue, squeezing operating profitability
Total expenses rose to ₹46.31 Cr in Q3 FY2026 from ₹42.71 Cr in Q3 FY2025, increasing cost pressures despite lower revenues
Health Care segment reported a loss of ₹1.91 Cr in Q3 FY2026 (vs loss of ₹0.82 Cr in Q3 FY2025), indicating profitability challenges in the nascent segment
Net profit decline to ₹2.74 Cr in Q3 FY2026 versus ₹20.08 Cr in Q3 FY2025 reflects both volume/revenue contraction and fixed cost absorption issues
Finance costs increased to ₹1.77 Cr in Q3 FY2026 versus ₹1.02 Cr in Q3 FY2025, indicating higher interest burden quarter‑on‑quarter versus prior year
Employee benefits expense was ₹13.50 Cr in Q3 FY2026 (1,350.40 Lakhs) and includes ESOP charge of ₹1.77 Cr in the quarter, supporting remuneration and retention but raising operating costs
No provision for loss allowance on receivables was recorded as management states principal customer is government‑controlled and receivables are considered secure as of Dec 31, 2025
The consolidated subsidiary Imeds Global contributed revenue of ₹47.07 Lakhs in Q3 FY2026 and reported a quarter loss included in consolidated results but described as not material to the Group
Guidance & Outlook
4
Company reiterates focus on its two‑segment strategy (Communications and Health Care) and in‑house R&D to drive product wins in coming quarters
Management will periodically reassess loss‑allowance model for receivables and currently expects no provision required as principal customer is government‑controlled
No explicit capex guidance disclosed in the filing for the next quarter; continued investment implied by in‑house R&D and segment development commentary
Employee stock option program activity (allotment of 4,97,410 equity shares during the quarter) suggests ongoing compensation actions that may marginally increase share count and near‑term cash outflow risks from exercises
Risks & Concerns
6
Sharp YoY revenue decline from ₹70.68 Cr in Q3 FY2025 to ₹51.72 Cr in Q3 FY2026 poses demand risk and margin compression if volume recovery is slow
Rising total expenses (₹46.31 Cr in Q3 FY2026) despite lower revenue increases operating leverage risk and could depress future profitability
Health Care segment loss widened to ₹1.91 Cr in Q3 FY2026 which may require additional funding or strategic review if losses persist
Increase in finance costs to ₹1.77 Cr in Q3 FY2026 raises interest‑rate sensitivity and refinancing risk for near‑term obligations
Consolidated quarterly EPS fell to ₹0.10 from ₹0.87 YoY which may pressure investor sentiment and valuation until earnings recover
Reliance on a government‑controlled principal customer (no impairment booked) concentrates counterparty risk if the relationship or payment assurance dynamics change
AI-generated analysis. May contain inaccuracies — verify against original sources.