Avalon Technologies (AVALON) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 marked the ninth consecutive quarter of sequential performance improvement; revenue rose 37.4% YoY and EBITDA increased 71.0%.

• Q2 FY27 gross margin was 34.1%, EBITDA margin 12.6% and ROCE 24.2%.

• Board actions included promoter-group reclassification, subsidiary guarantees, an investment in Revos Auto Tech and a Zollner joint venture and warrant issue.

Financial highlights

• Q2 consolidated revenue was ₹5,254.34 million, up 37.4% YoY; H1 revenue was ₹10,098.48 million, up 43.1%.

• Q2 EBITDA was INR 66 Cr, up 71.0% YoY; H1 EBITDA was INR 124 Cr, up 81.0%.

• Q2 consolidated net profit was ₹398.36 million, up from ₹249.79 million; H1 net profit was ₹747.05 million, up from ₹391.93 million.

• Q2 gross margin was 34.1%, down 20 bps YoY; H1 gross margin was 34.4%, down 48 bps. Q2 EBITDA margin was 12.6%, up 247 bps; H1 margin was 12.3%, up 257 bps.

• Q2 standalone revenue was ₹2,555.82 million and net profit ₹210.23 million, versus ₹2,062.88 million and ₹247.64 million, respectively, YoY.

Outlook and guidance

• Order book at Sept. 30, 2026 was INR 2,367 Cr, up 27.1% YoY, executable over an average of 14 months.

• Long-term contracts totaled INR 1,275 Cr, executable over 14 months to 3 years.

• Strategy prioritizes profitable growth, India and US EMS markets, clean-energy opportunities, complex aerospace products and larger box-build solutions.

• Revos investment aims to support growth in the EV ecosystem and potential business collaboration; it is not expected to adversely affect existing operations.