Shares of Avantel Ltd fell 4.5% to Rs 140.70 apiece in Wednesday’s trade following the company’s weak Q1 FY26 earnings. The stock opened lower and remained under pressure, leading to a market capitalization erosion of nearly Rs 174 crore, bringing the company’s market value to around Rs 3,726 crore.
Avantel reported a 56% year-on-year decline in net profit, posting Rs 3.23 crore for the quarter ended June 30, 2025, compared to Rs 7.39 crore in Q1 FY25.
Revenue from operations was largely flat at Rs 51.91 crore versus Rs 51.76 crore a year ago. Including other income, total income came in at Rs 51.96 crore for the quarter, compared to Rs 52.06 crore in Q1 FY25.
Total expenses increased to Rs 46.66 crore from Rs 41.10 crore YoY. The rise was mainly driven by a spike in changes in inventories (Rs 12.38 crore vs Rs 1.66 crore) and higher depreciation and amortization costs (Rs 4.40 crore vs Rs 2.86 crore). Cost of materials consumed dropped to Rs 8.28 crore from Rs 17.17 crore.
Profit before tax dropped sharply to Rs 5.30 crore from Rs 10.96 crore YoY. Tax expenses also fell to Rs 2.08 crore from Rs 3.58 crore.
As of 10:23 AM, Avantel shares were trading at Rs 140.70, down 4.50% from the previous close of Rs 147.33.
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