Defence stock jumps 3% after receiving ₹11 Cr order from NewSpace India

Synopsis:- Shares gained over 3% after securing a ₹11.19 crore defence order for Xponder systems, boosting medium-term visibility till July 2026. An earlier ₹1.76 crore order, strong defence and space clientele, and long-term government engagements continue to support order inflows despite recent operating challenges.

The shares of the defence products manufacturer gained up to 3.2 percent in today’s trading session after the company bagged a significant order from NewSpace India Limited worth Rs 11.19 crore.

With a market capitalisation of Rs 4,435.95 crore, the shares of Avantel Ltd were trading at Rs 166.85 per share, increasing around 2 percent as compared to the previous closing price of Rs 163.75 apiece.

Significant Order

The shares of Avantel Ltd have seen bullish movement after receiving a domestic purchase order worth Rs 11.19 crore (excluding taxes) from NewSpace India Limited. The order involves the supply, installation and commissioning of Xponder devices and is classified under manufacturing. It is scheduled for execution by July 2026, strengthening the company’s order book and revenue visibility over the medium term.

Financial & other Highlights

The company reported a sharp decline in Q2FY26 performance, with revenue falling 28% year-on-year to  Rs 55.42 crore. Profitability was hit harder, as net profit plunged 81% to  Rs 4.27 crore. The steep drop suggests significant margin pressure and weaker operating conditions compared to the previous year.

On a year-on-year basis, operating performance weakened noticeably. Operating profit declined sharply from  Rs 34.7 crore in Q2FY25 to  Rs 11.3 crore in Q2FY26, reflecting slower execution. Operating margin also compressed significantly, falling from a strong 44.8% to 20.4%, indicating pressure on profitability and lower operating leverage compared to last year.

Earlier, the company received a domestic purchase order worth  Rs 1.76 crore (excluding taxes) from Bharat Electronics Limited. The manufacturing order involves the supply of Satcom products and is scheduled for execution by July 2026. The contract includes a 5% performance bank guarantee and adds steady defence-sector revenue visibility.

The company works with a strong mix of global and domestic clients, including Boeing, Lockheed Martin, ISRO, DRDO, Indian Navy, Indian Army and Indian Air Force. It also serves organisations like BARC, L&T and NIOT, highlighting deep credibility in defence, aerospace, space and strategic electronics with long-term engagement visibility.

Avantel Ltd is an Indian technology company specialising in defence, aerospace and satellite communication systems. It designs, develops and manufactures advanced electronic solutions used in mission-critical applications. With strong in-house R&D and manufacturing capabilities, the company plays a key role in India’s strategic and space ecosystems.

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