Avalon Tech Q4: Consolidated Revenue Up 46% and PAT Up 78%

Synopsis:- India’s standalone revenue rose 30 percent year-on-year while the US subsidiary, Sienna Corporation, drove virtually all incremental growth, raising questions about domestic order execution even as the consolidated picture remains impressive.

Shares of a Chennai-based electronics manufacturing services company came into focus after its Board of Directors approved audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 6, 2026. The consolidated numbers were the strongest in the company’s listed history, but a closer reading of the filing reveals a bifurcated business where the growth engine has shifted decisively to the United States.

With a market capitalisation of Rs. 8,302.37 crore, the shares of Avalon Technologies were last trading at Rs. 1,242.2 per share, up 7.94 per cent from its previous close of Rs.1,150.8. It is trading at a P/E of 68.03, with a ROCE of 12.8 per cent and ROE of 10.4 per cent.

On a consolidated basis, Q4 FY26 revenue from operations rose 40 per cent year-on-year to Rs. 479.89 crore from Rs. 342.79 crore, with profit before tax climbing 72.7 per cent to Rs. 56.26 crore. Net profit grew 69.5 per cent to Rs. 41.15 crore. For the full year FY26, consolidated revenue grew 46 per cent to Rs. 1,603.21 crore and net profit expanded 78 per cent to Rs. 112.95 crore from Rs. 63.44 crore in FY25.

On the standalone front, the picture was materially weaker. Standalone FY26 revenue from operations rose 30 per cent to Rs. 821.02 crore from Rs. 631.78 crore, even though standalone PAT grew to Rs. 89.37 crore from Rs. 50.57 crore, supported by a Rs. 26.97 crore increase in other income, including subsidiary dividends and investment gains.

The disconnect between standalone and consolidated numbers points to where Avalon’s growth is actually coming from. The US subsidiary, ABV Electronics Inc. (doing business as Sienna Corporation), contributed Rs. 758.31 crore in revenue for the year ended March 2026, per the auditor’s other matters disclosure, accounting for the bulk of the Rs. 971 crore gap between consolidated and standalone revenue. Sienna’s scale now dwarfs the India business on a revenue basis, which is a structural shift investors should price in: the consolidated story is an American EMS story wearing an Indian-listed stock’s jersey.

The consolidated balance sheet shows working capital stress that is growing faster than revenue. Inventories increased to Rs. 463.29 crore from Rs. 337.90 crore, and trade receivables rose from Rs. 316.01 crore to Rs. 381.27 crore. Current borrowings climbed to Rs. 172.26 crore from Rs. 123.32 crore, partly funding the Rs. 126.46 crore inventory build. Operating cash generation, however, showed meaningful improvement.

Consolidated OCF improved to Rs. 57.19 crore from Rs. 25.06 crore in FY25, and the standalone OCF recovered sharply to Rs. 67.23 crore from Rs. 4.29 crore the year prior, largely due to improved collections. Capex remained elevated at Rs. 53.64 crore on the consolidated basis, directed toward the company’s expanding facility footprint.

Avalon Technologies, incorporated in 1999, provides fully integrated electronics manufacturing services, including printed circuit board assembly, cable and wire harness manufacturing, and box-build solutions to global OEMs across the US, Europe, and Asia. The group consists of the Indian holding company, two Indian subsidiaries, and Sienna Corporation in the United States. 

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