Synopsis:- Shares surged up to 15% after securing a ₹459 crore defence order for satellite communication equipment, to be executed over three years. Despite recent margin pressure, strong order inflow, strategic clientele, and niche capabilities in defence electronics signal improving growth visibility and long-term potential.
The shares of the defence products manufacturer gained up to 15 percent in today’s trading session after the company bagged a significant order from Zetwerk Manufacturing Businesses Limited worth Rs 459.90 crore.
With a market capitalisation of Rs 3,556.54 crore, the shares of Avantel Ltd were trading at Rs 133.85 per share, increasing around 11 percent as compared to the previous closing price of Rs 121.00 apiece.
Significant Order
The shares of Avantel Ltd have seen positive movement after receiving a significant order from M/s. Zetwerk Manufacturing Businesses Limited is worth Rs 459.90 crore for the supply of satellite communication equipment, along with One (1) Year Comprehensive Onsite Warranty and five (5) Years Comprehensive Annual Maintenance Contract (AMC) support. The order should execute within 3 years.
Financials
The company reported a weak Q3FY26 performance, with revenue declining 27% YoY to ₹51.72 crore. More concerning, net profit plunged 86% to just ₹2.74 crore, indicating significant margin pressure. This sharp earnings drop suggests rising costs or operational challenges, raising concerns about sustainability and near-term profitability recovery.
Over the past year, Avantel’s operating performance shows noticeable pressure. Operating profit declined from ₹32.05 crore in Dec 2024 to ₹12.54 crore in Dec 2025, reflecting weaker earnings momentum. Similarly, OPM dropped sharply from 45.35% to 24.25%, indicating margin compression, likely due to rising costs or softer execution, impacting overall profitability trends.
Avantel operates across niche, high-tech segments including aerospace and defence communications, marine connectivity, and healthcare solutions. The company focuses on secure, mission-critical communication systems for defence platforms like ships and aircraft. Additionally, its emphasis on R&D-driven innovation and customised solutions highlights strong capabilities in strategic electronics and emerging technology-driven applications, supporting long-term growth potential.
Avantel’s clientele reflects strong credibility, featuring global players like Boeing and key Indian defence institutions including DRDO, Indian Navy, and BEL. This diversified client base highlights its deep integration within critical defence and aerospace ecosystems. Moreover, consistent engagement with government and institutional clients strengthens revenue visibility and reinforces its positioning as a trusted strategic technology partner.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Defence Stock Jumps 15% After Receiving ₹460 Cr Order for Satellite Communication Equipment appeared first on Trade Brains.