Avantel Ltd: ₹249 Cr Sales, 37% ROCE – The Defence Midcap That Thinks in Satellites, Not Selfies

1. At a Glance

Avantel Ltd doesn’t make toothpaste, shoes, or chips — it makes the stuff that keeps the Indian Navy talking underwater, the Air Force chattering in the skies, and ground control tracking satellites like it’s playing live chess with the cosmos. FY25 revenue: ₹249 Cr, OPM: 37%, ROCE: 37%, ROE: 28%. At ₹125/share and a P/E north of 63, it’s priced like a luxury watch in a defence canteen. The latest quarter’s profit cratered by 56%, proving that even defence electronics can have peacetime slumps.

2. Introduction

Think of Avantel as the defence sector’s geeky overachiever — no flashy jets or tanks, just the quiet tech that makes those expensive toys talk to each other. Over the past 3 years, it’s compounded profits at 46%, and sales at 33%, turning itself from a microcap curiosity into a ₹3,300 crore market cap midcap star.

But the party hit a speed bump — Q1 FY26 net profit collapsed to ₹3.23 Cr from ₹7.38 Cr a year ago. The stock’s down ~35% from its peak of ₹191, and the promoter stake has slipped from 40.1% to 37.15% in the past year. Still, Avantel’s long-term order book and niche positioning in Satcom, radars, and SDRs give it a moat bigger than its Hyderabad HQ.

3. Business Model (WTF Do They Even Do?)

Avantel’s core business: designing, developing, and maintaining wireless and satellite communication systems for aerospace and defence. Product suite includes:

• Satcom Systems: Voice/data terminals for ships, subs, aircraft,