Avantel's standalone profit jumps 65%, healthcare arm drags consolidated
Standalone net profit at ₹7.62 cr on 35% revenue growth. Consolidated net profit falls to ₹5.39 cr as healthcare subsidiary remains in loss. Board reappoints ED with pay hike.
— 4 earlier stories on Avantel Ltd. →What's new
- Standalone net profit up 65% to ₹7.62 cr on revenue of ₹70.12 cr (up 35%).
- Consolidated net profit drops to ₹5.39 cr due to healthcare subsidiary losses.
- Board re-appoints ED Abburi Siddhartha Sagar for 5 years, pay raised ₹7 lakh to ₹55 lakh.
Why this matters
The standalone performance is strong, boosted by recent order wins like the ₹84 cr Zetwerk contract. But the healthcare unit is still bleeding — for a stock at 307x P/E, any subsidiary drag poses a risk to the premium.
What we're watching
- Whether the healthcare unit turns profitable in FY27.
- Postal ballot outcome for director appointments.
- Future order flow to sustain the growth trajectory.
The full read
Avantel delivered a strong standalone quarter: revenue rose 35% to ₹70.12 cr and net profit surged 65% to ₹7.62 cr, building on recent order wins like the ₹84 cr Zetwerk deal. But the consolidated picture is mixed: the healthcare subsidiary dragged group net profit down to ₹5.39 cr, a persistent drag. The board also approved a modest ₹7 lakh pay hike for the executive director and reappointed him for five years, routine governance that doesn't change the strategic outlook. For a stock at 307x trailing earnings, the focus will shift from standalone numbers to whether the healthcare unit can be turned around. If it can't, the premium valuation may come under pressure.
Questions answered
- Why did consolidated net profit drop despite standalone growth?
- Consolidated net profit fell to ₹5.39 cr because the healthcare subsidiary incurred losses, offsetting the strong standalone performance.
- What drove standalone revenue and profit growth?
- Higher sales in the communications and signal processing segment lifted standalone revenue 35% to ₹70.12 cr, while net profit grew 65% to ₹7.62 cr, helped by cost management.
- What are the key board decisions beyond results?
- The board re-appointed Executive Director Abburi Siddhartha Sagar for five years from March 2027, with a ₹7 lakh annual pay increase to ₹55 lakh. Peddi Bala Bhaskar Rao was named Director (Operations), and Vyasabhattu Ramchander was re-appointed as independent director; both require shareholder approval.
- How do these results compare with the company's recent order wins?
- The 35% revenue growth aligns with the ₹84 cr Zetwerk order and ₹28 cr Coast Guard contract won earlier this year, suggesting execution is on track.
Avantel Ltd.
Latest quarter · Jun 2026
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Story so far
All notes on AVANTEL →- 11 Jul 2026 · 2:15 PM IST Avantel's standalone profit jumps 65%, healthcare arm drags consolidated
- today Avantel bags ₹21 cr SATCOM order from Larsen & Toubro
- 7d ago Avantel standalone profit jumps 65%, revenue up 35%
- 18d ago Avantel lands ₹84 cr satcom order from Zetwerk
- 54d ago Avantel lands ₹28 cr Coast Guard order, second government win this month