Shares of Avantel moved higher today as investors responded positively to improving order visibility, expanding manufacturing capacity and strong long-term prospects in defence electronics. The stock saw renewed buying interest amid expectations of a meaningful pickup in execution over the coming quarters.

The company has recently secured multiple orders aggregating over Rs. 14 crore, including contracts for railway communication systems, in addition to earlier wins of Rs. 17.55 crore and Rs. 8 crore from defence PSUs. With these inflows, the current executable order book stands at around Rs. 200 crore, while management expects fresh orders of a similar magnitude over the next 12 months, driven by rising defence and strategic electronics spending.

Operationally, Avantel has significantly strengthened its manufacturing and design capabilities. The company commissioned a new state-of-the-art facility in October 2025 for the development and production of Software Defined Radios, radar systems and satellite communication equipment. It is also setting up another greenfield unit in Andhra Pradesh, focused on antennas and defence-grade connectors, which is expected to enhance scale and support long-term growth. These facilities position the company well to benefit from indigenisation initiatives and rising defence procurement.

Commenting on the developments, our Editor, Mr. SP Tulsian noted that while recent quarterly numbers were muted, the underlying business momentum remains strong. He highlighted that Avantel’s order book visibility, expanding manufacturing footprint and increasing role in strategic defence programmes provide a solid earnings runway. According to him, the company is well placed to emerge as one of the key players in defence communication systems, with meaningful growth likely from FY26 onwards as execution accelerates.

With improving capacity utilisation, a healthy pipeline of defence orders and growing relevance in high-technology segments, Avantel appears positioned for a sustained upcycle. Analysts expect earnings traction to pick up over the coming quarters, supported by operating leverage and a steady flow of defence contracts, making the stock one to watch in the broader defence manufacturing space.