Avalon Technologies is a fully integrated Electronics Manufacturing Services company building complex box-build solutions for industrial, mobility, clean energy and semiconductor equipment end-markets, and it enters this quarter on the back of eight consecutive quarters of sequential revenue improvement. The print will speak to whether the raised FY27 revenue growth guidance of 26-30% holds, and how the newly signed Zollner Elektronik AG JV and the new Chennai plant ramp shape the growth path.
| Results date | November 12, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 484 Cr |
| Previous quarter PAT | Rs. 35 Cr |
| Previous quarter EBITDA margin | 12.0% |
| Market cap | Rs. 12,667.89 Cr |
| CMP | Rs. 1,893.6 |
The board will meet on November 12, 2026 to approve the Unaudited Standalone & Consolidated results for Q2/H1 FY27.
The earnings call for Q2/H1 FY27 is scheduled for Friday, November 13, 2026 at 15:30 IST.
The quarter is a test of whether Avalon's raised FY27 revenue growth guidance of 26-30% survives contact with a second straight print, after Q1 FY27 revenue of Rs. 484 Cr grew 49.8% YoY. The demand stack entering the quarter was favourable on every leg: the US ISM Manufacturing PMI held in the mid-50s through July-September (55.6, 54.6, 54.5) with the Backlog of Orders index up 4.6 points to 56.4 in September, and India's electronics IIP print ran at +19.3% YoY in July 2026.
Avalon enters with an order book of Rs. 2,208 Cr as of June 30, 2026 (+23.4% YoY, executable over roughly 14 months), and the rupee's slide to 95.95 by September 28 adds a translation tailwind to a mix where 59% of Q1 FY27 revenue came from US-market customers.
On margins, component-cost inflation ran hot through the quarter — memory prices up 40-105% and PCB raw materials like low-bromine epoxy resin up roughly 70% over eight-nine months — but Avalon's model recovers commodity increases from customers within the same quarter, so the watch-point is gross margin holding inside the guided 33-35% band (34.7% in Q1 FY27) rather than expanding.
The company-flagged risk remains program timing, with the CMD noting large program starts 'may happen in February of next year or customer may delay to April', which is why guidance is framed conservatively. The call should also cover the US manufacturing loss trajectory from about Rs. 4 Cr in Q1 FY27 against the guided EBITDA breakeven by the latter part of FY27.
FY27 revenue guidance and doubling targets: Whether management holds, raises or trims the raised band after a Q1 that grew well above it.
US manufacturing breakeven path: The US operations remain loss-making, with breakeven guided but not yet delivered.
Chennai new plant and capex cadence: Confirmation of the Q2 FY27 production start and spending against the annual guide.
Zollner JV and warrant issue: The quarter's defining corporate event moves to its shareholder-vote stage.
Order book, margins and promoter reclassification: The structural questions analysts have pressed on for three quarters.
Management's explanation is that long-term and rolling-PO orders are counted only at current rolling amounts, so a direct comparison with revenue growth is misleading. New programs may also show only prototype orders until volume purchase orders land.
Management has guided for US manufacturing EBITDA breakeven by the latter part of FY27 / end of the fiscal year, followed by PAT breakeven. The US loss narrowed to about Rs. 4 Cr in Q1 FY27 from roughly Rs. 9 Cr PAT losses in Q1/Q2 FY26.
The CMD has said 'we are conservative' because large program start dates are controlled by customers and can slip — for example from February of next year to April. FY26 showed the pattern in reverse: guidance was raised twice (23-25% initially, then 28-30%, then ~40%) and actual growth came in at 46%.
Net working capital stood at 117 days at June 2026, within the guided 120-130 day range, with inventory days falling to 94 from 104. Management attributes this to continuous efforts across inventory, receivables and payables, while cautioning that new programs may raise working capital initially.
Avalon executed a joint venture agreement with Zollner Elektronik AG on September 3, 2026, forming Zollner Avalon Private Limited with Zollner at 51% and Avalon at 49%, with Avalon holding a call option to go to 51% majority. Zollner will subscribe up to 19,37,808 warrants at Rs. 2,193.20 each, aggregating about Rs. 425 Cr, with the EGM scheduled for November 21, 2026.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.