Avalon Technologies (AVALON IN) – Q4FY26 Result Update – Strong Order Pipeline Supports Long-Term Visibility – Downgrade to ‘HOLD’
Published on 08 May 2026
Avalon Technologies (AVALON IN) has reported robust revenue growth of 40.0% YoY mainly driven from Mobility/Industrial segments (grew by ~35.2%/59.5% YoY). EBITDA margin remained flat at 11.8%, (Mobility/industrials contributes 30%/32% to the revenue). AVALON has guided revenue growth of 24–27% with gross margins expected to remain in the range of 33–35% for FY27. US manufacturing losses narrowed to ~Rs50mn in Q4FY26, with breakeven expected in FY27. AVALON achieved its earlier target of doubling revenues from FY24 to FY27 nearly one year ahead of schedule and has set a target to further double revenues between FY26 and FY29. We have revised our FY27/FY28 EPS estimates upward by 1.9%/4.8%. We estimate Revenue/EBITDA/PAT CAGR of 30.5%/33.4%/34.3% over FY26-28E, with EBITDA margin expansion of ~50bps. We downgrade our rating to ‘HOLD’ from ‘BUY’ due to recent run up in stock price with revised TP of INR 1,233 (earlier INR 1,175), valuing at 40x FY28 earnings.
