Avantel shares slump 8% as Q2 profit plunges 81% YoY; details here

Shares of Avantel Ltd tumbled 8.40 per cent on Monday to close at Rs 174.50 after the aerospace and defence company reported a sharp decline in its quarterly earnings.

For the July–September quarter (Q2 FY26), Avantel's consolidated net profit dropped 81.39 per cent year-on-year (YoY) to Rs 4.26 crore, compared with Rs 22.89 crore in the same period last year. The company's revenue from operations also fell 28.42 per cent YoY to Rs 55.41 crore.

Profit before tax (PBT) came in at Rs 6.21 crore, marking an 80.28 per cent YoY decline from Rs 31.50 crore in Q2 FY25. Meanwhile, total expenses rose 7.97 per cent YoY to Rs 50.11 crore during the quarter.

Among key cost components, cost of materials consumed was Rs 20.56 crore, down 20.21 per cent YoY, while employee benefit expenses stood at Rs 12.53 crore, down 22.07 per cent YoY.

On a segmental basis, revenue from communications and signal processing products, which form the bulk of the company's business, stood at Rs 56.03 crore, reflecting a 27.92 per cent decline YoY. However, revenue from the healthcare segment grew 81.24 per cent YoY to Rs 0.29 crore in Q2 FY26.

The steep fall in profit and revenue weighed on investor sentiment, leading to a sharp correction in Avantel's stock.

At the current level, Avantel's market capitalisation (m-cap) stands at Rs 4,623.72 crore on BSE.