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The contract involves manufacturing, warranty, and comprehensive operation and maintenance contract (COAMC) services. As per the agreement, Avantel will provide a three-year warranty followed by seven years of COAMC support.
The company is required to furnish a Performance Bank Guarantee of 5%, in line with the contract terms.
The order is scheduled to be executed by September 2027, and has been awarded by a domestic entity.
Avantel clarified that neither the promoter nor promoter group companies have any interest in the awarding entity, and the transaction does not fall under related party transactions.
Avantel is engaged in the business of designing, developing, and maintaining wireless and satellite communication products, defence electronics, radar systems, and the development of network management software applications for its customers, mainly from the aerospace and defence sectors.
The company's consolidated net profit tanked 86.4% YoY to Rs 2.74 crore in Q3 FY26, compared with Rs 20.08 crore in Q3 FY25. Revenue from operations declined 26.8% year-on-year to Rs 51.72 crore in Q3 FY26.
Shares of Avantel declined 4.61% to close at Rs 124.20 on 27 March 2026.
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