Domestic defence communication systems contract.

Avantel Receives ₹28.20 Crore Satcom Products Contract from Coast Guard Headquarters

NSE

AVANTEL

BSE

532406

Avantel Limited has secured a ₹28.20 crore contract from Coast Guard Headquarters, New Delhi, for the supply, installation, commissioning, and annual comprehensive maintenance of Satcom products. The contract is scheduled for execution by August 2027 and strengthens the company’s defence communications business pipeline.

PRICE-SENSITIVE TRIGGER

Event: Avantel received a defence contract from Coast Guard Headquarters.

Type: Domestic defence communication systems contract.

Impact: Positive

Immediate Effect: The order enhances Avantel’s defence order book visibility, strengthens its positioning in satellite communication solutions, and supports long-term revenue execution through manufacturing and maintenance services.

Key Metrics:

Contract value:
- ₹28.20 crore (inclusive of taxes)
Client:
- Coast Guard Headquarters, New Delhi
Nature of contract:
- Manufacturing & Service
Execution timeline:
- By August 2027
Performance Bank Guarantee:
- 5%
Revenue impact:
- Expected phased execution over contract duration
Segment relevance:
- Defence communications
- Satellite communication (Satcom) products

Highlight:

Total Contract Size :₹28.20 crore inclusive of taxes

What Happened ?

Avantel Limited informed exchanges that it has received a contract dated May 25, 2026, from Coast Guard Headquarters, New Delhi. The scope of the contract includes supply, installation, commissioning, and annual comprehensive maintenance of Satcom products.

The company stated that the total contract value stands at ₹28.20 crore inclusive of applicable taxes. The order falls under the domestic category and is classified as a manufacturing and service contract.

Execution of the contract is scheduled to be completed by August 2027.

Key Details

Defence Satcom Contract Execution:

Avantel secured a defence communication contract from Coast Guard Headquarters, New Delhi.
The contract covers:
- Supply of Satcom products
- Installation services
- Commissioning support
- Annual comprehensive maintenance
Total order value is ₹28.20 crore inclusive of taxes.
The contract has been classified as a domestic order.
Nature of engagement includes both manufacturing and service components.
Performance Bank Guarantee requirement stands at 5%.
Execution timeline extends up to August 2027.
The company confirmed that the transaction does not fall under related party transactions.
No promoter or promoter group interest exists in the awarding entity.

Note:

The order strengthens Avantel’s participation in India’s defence communications ecosystem and supports recurring service-linked revenue opportunities through maintenance obligations.

Risk Analysis

Summary:

While the contract strengthens Avantel’s defence order pipeline, execution timelines, government procurement dependencies, and operational delivery risks remain key monitoring factors.

Key Risks:

Defence project execution may face procedural or deployment-related delays.
Revenue recognition could be phased across the execution cycle until August 2027.
Working capital requirements may increase during manufacturing and deployment stages.
Dependence on government defence procurement cycles may affect future order inflows.
Maintenance obligations may increase long-term service delivery commitments.

Worst Case Scenario:

Execution delays, deployment bottlenecks, or changes in defence procurement schedules could defer revenue realization and impact operational cash flow timing.

Risk Level: Medium

Company Commentary

Avantel confirmed receipt of the contract from Coast Guard Headquarters, New Delhi.
The company stated that the contract includes supply, installation, commissioning, and annual comprehensive maintenance of Satcom products.
Management classified the order as a domestic manufacturing and service contract.
The company confirmed that the transaction is not a related party transaction.
Avantel stated that no promoter or promoter group entities have any interest in the awarding authority.

Official Exchange Filing: Avantel Ltd