Avalon Technologies (AVALON) Q4 24/25 earnings summary

Executive summary

• Achieved strong revenue growth in FY25, with consolidated revenue at ₹10,981.28 million (up from ₹8,671.68 million in FY24) and Q4 FY25 revenue up 58.1% year-over-year; full-year revenue grew 26.6% year-over-year, exceeding guidance.

• EBITDA for FY25 was ₹1,150 million (up 83.7% YoY), with Q4 EBITDA up 139.6% YoY; PAT for FY25 was ₹634.39 million (up 126.7% YoY), and Q4 PAT rose 244% YoY.

• Order book as of March 31, 2025, stood at INR 1,761 crore, up 29% YoY, with long-term contracts up 18.3% YoY.

• India contributed 47% of Q4 revenue and 87% of FY25 revenue, with higher profitability (14.8% EBITDA margin in Q4, 14.2% in FY25); U.S. contributed 53% of Q4 revenue.

• Strategic focus on scaling capacity, deepening customer engagement, and expanding infrastructure, including new and expanded facilities in Chennai and a partnership with Zepco Technologies.

Financial highlights

• FY25 consolidated revenue: ₹10,981.28 million (up from ₹8,671.68 million); Q4 FY25 revenue: INR 343 crore (58.1% YoY growth).

• FY25 EBITDA: INR 115 crore (up 83.7% YoY, 10.5% margin); Q4 FY25 EBITDA: INR 41 crore (12.1% margin, up 410 bps YoY).

• FY25 PAT: INR 63 crore (up 126.7% YoY); Q4 FY25 PAT: INR 24 crore (up 244% YoY, 7% margin).

• Gross margin for FY25: 35.8%; Q4 FY25: 35.1%.

• Net working capital days improved to 124 (from 161 YoY); asset turn for FY25: 7.5x.

Outlook and guidance

• FY26 revenue growth guidance set at 18%-20%, with expectations of stronger H2 as new projects ramp up.

• Gross margin guidance maintained at 33%-35%; no specific EBITDA guidance, but margins expected to remain stable.

• Strategic focus on high-growth sectors such as clean energy, mobility, and industrials, with expansion in India and US markets.

• Management remains cautiously optimistic due to macroeconomic and policy uncertainties, especially in the U.S.