Communication equipment firm Avantel advanced 2.46% to ₹160.60 following the announcement of its latest contract win. The stock movement reflects positive investor sentiment toward the company's continued expansion in the defence sector. The latest DRDO contract represents a significant addition to Avantel's growing portfolio of defence communication projects.
Communication equipment firm Avantel has secured a ₹117.88 crore contract from the Defence Research and Development Organisation (DRDO) under the Ministry of Defence for developing, installing and commissioning a ground segment hub for voice and data communication. According to the company's filing on Saturday, August 29, the project involves the development of a ground segment hub and represents a domestic contract awarded by DRDO. Avantel is required to complete the work by February 2029, with the contract carrying a 36-month warranty period. The notification of this contract was disclosed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the agreement dated August 29, 2026.
The latest DRDO contract follows a significant order received by Avantel earlier this year from Zetwerk Manufacturing Businesses. As reported by the company, the company had received a ₹459.9 crore rate contract for the supply and maintenance of satellite communication equipment. The Zetwerk agreement includes both equipment supply and maintenance support, with the domestic contract scheduled for execution over three years.
The company demonstrated robust financial performance in Q1 FY27, with consolidated net profit surging 67.39% year-on-year to ₹5.39 crore compared with ₹3.22 crore in Q1 FY26. Revenue from operations showed strong growth of 35.65% year-on-year to ₹70.42 crore in Q1 FY27. Avantel operates in the business of designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems, and network management software applications for customers mainly from the aerospace and defence sectors.
With the order value inclusive of all applicable taxes, Avantel reinforces its position as a key contributor to India's defence sector. The awarded contract is strictly domestic, highlighting the Indian entity's reliance on indigenous advancements in technology and strategic communications. There is no involvement of any related party transactions, as the company clarified that there is no interest from the promoter, promoter group, or any group companies in the entity awarding the contract. This disclosure has been made available on Avantel Limited's official website, providing stakeholders and investors with assurance of transparency and adherence to regulatory standards.
