Defence electronics firm Avantel has secured a ₹8.82 crore purchase order from Bharat Electronics Ltd (BEL) to supply power amplifiers, with delivery committed by March 2026. The order is domestic, manufacturing in nature, and carries a 3% performance bank guarantee (PBG).
Why this matters
- Marquee client: BEL is a top defence PSU. Fresh orders from BEL are a quality and compliance signal for smaller vendors.
- Execution visibility: The Mar ’26 deadline gives investors a clear near-term execution runway.
- Repeat business: Avantel has disclosed recent BEL and Indian Navy orders, pointing to vendor stickiness and a growing book.
Deal details (at a glance)
- Customer: Bharat Electronics Ltd (BEL)
- Product: Power amplifiers (defence electronics)
- Order value: ₹8.82 crore (ex-tax)
- Delivery timeline: By March 2026
- Guarantee: 3% PBG
- Nature: Domestic manufacturing order
The bigger picture
India’s defence electronics supply chain is seeing steady order flow for RF front-end and satcom hardware. For a small-cap like Avantel, BEL repeat orders and Navy wins help smoothen quarterly revenues, support capacity utilisation, and potentially improve cash flow if milestone payments land on time.
What we know
- Scope is power amplifiers; order is manufacturing and domestic.
- Firm delivery by Mar ’26 and 3% PBG imply standard PSU terms.
- Avantel has multiple FY26-linked orders, increasing visibility.
What we don’t know (yet)
- Unit counts/specs for the amplifiers.
- Milestone schedule (advances vs. on-delivery splits).
- Any options/add-ons tied to this programme.
What to watch next
- Execution cadence: Lot-wise manufacturing, factory acceptance tests (FAT), and QC/dispatch milestones through FY26.
- Working capital: PBG outgo vs. collection timing; any advances disclosed in follow-ups.
- Follow-on potential: Whether on-time delivery opens add-on orders in the same RF/power-amp or satcom lines.
Risks
- Component lead times: RF parts and power devices can face supply bottlenecks.
- Inspection/acceptance risk: Delays at QC/FAT can bunch revenue recognition late in the cycle.
Outlook
This BEL order strengthens Avantel’s FY26 order book and signals recurring trust from a marquee defence PSU. If execution stays on schedule and collections track milestones, the mix of power-amp and satcom deliveries can underpin steady revenues into March 2026.
