Avantel Ltd, a small-cap aerospace and defence company, has captured the market’s attention after securing a significant order from Bharat Electronics Ltd (BEL). The Rs 8.03 crore contract, announced on November 22, 2025, is for the supply of power amplifiers and must be completed by March 2026. This order not only bolsters Avantel’s revenue pipeline but also underscores its growing reputation as a reliable partner in India’s strategic electronics supply chain.
Avantel, known for its expertise in designing, developing, and maintaining wireless and satellite communication products, defence electronics, and radar systems, has seen its shares trading around Rs 149, with a market capitalisation of Rs 4,011 crore. Despite trading at a 30% discount from its 52-week high of Rs 215, the company’s shares are currently priced at a premium, with a PE ratio of 118 compared to the industry average of 65.8.
The Rs 8.03 crore order from BEL is a testament to the trust in Avantel’s engineering capabilities and reliable delivery record. “This order fits squarely within Avantel’s core strengths, being fully domestic and manufacturing-driven,” said Leon Mendonca, highlighting the strategic importance of the contract. The order is backed by a 5% performance bank guarantee, further emphasizing the significance of this collaboration.
Despite a challenging financial quarter, with a 28% year-on-year decline in revenue from operations—dropping from Rs 77.42 crore in Q2 FY25 to Rs 55.42 crore in Q2 FY26—and an 81% fall in net profit, Avantel remains optimistic about its future prospects. The company’s management is confident about securing at least Rs 200 crore in fresh orders during FY26, with a strong demand across key product lines, including RTAs, SDRs, and ground stations.
Avantel’s order book stands at a healthy Rs 210 crore, providing good near-term visibility. The company is also expanding its product portfolio to include antenna and connector manufacturing, further strengthening its role in the defence and aerospace sectors. Looking ahead, Avantel expects its Innovation for Defence Excellence (iDEX) projects to commence commercialisation from FY27, opening up an additional stream of strategic orders.
As a key player in India’s indigenous defence technology ecosystem, Avantel is well-positioned for steady and sustainable growth. The company’s solutions support communication for ships, submarines, aircraft, and helicopters, making it an indispensable partner for India’s armed forces. With a robust order pipeline and a promising outlook, Avantel is poised to continue its trajectory as a vital contributor to India’s defence capabilities.
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