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Strengthening India’s Defense Capabilities with Indigenous Solutions

This is a 33 years old company engaged in producing wireless front-ends, satellite communication systems, Embedded systems, signal processing, network administration, and software creation. It primarily serves military facilities and allied agencies in both the public and private sectors.

Avantel Ltd

Current Market Price on the date of publishing this report-: 404 Rs


Incorporated in 1990 as Dialog Communications Pvt Ltd, it was rechristened as Avantel Communications Pvt Ltd in 93 and later converted into Public Ltd company. Company obtained ISO 9001 certification in 1997.

Avantel began by creating, developing, and making wireless industry components. Led by technocrat entrepreneurs, the company quickly expanded to produce not only components but also RF and Microwave sub-systems for Defense laboratories and major power utilities. In the mid-1990s, it moved into Multi Access Rural Radio (MARR) systems for DOT, building on an early start and a base of tested technology. With technology from the Space Applications Centre in Ahmedabad, it has created an Insat-based C band Mobile Satellite Services (MSS) reporting interface.

After developing key competencies in the communication area, the business ventured into and successfully created Network Management Software for HDSL equipment. It is currently creating embedded software for a range of real-time uses on a variety of platforms. It has also created and executed a complete MIS package to meet its internal requirements. The package’s success prompted the firm to sell it as an integrated ERP package to small and medium-sized businesses. Through the creation and execution of LAN/VAN and internet technologies, the software division is well positioned to provide enterprise-wide connectivity options.

This MSS terminal is a portable gadget that can transmit data from any distant place. It is the first of its kind in India. Its wireless section also actively manufactures wireless system components such as power amplifiers, fibre couplers, and cavity diplexers, as well as microwave and satellite communications subsystems. (SATCOM).

During the year 2000, the company effectively created and supplied some niche import substitute goods in the RF/Microwave sector, as well as exported them. The business was the only vendor to effectively implement DoT orders for HSDL Pair-Gain Systems, earning it a leadership place in the field. Avantel Softech Inc., a wholly owned subsidiary of the firm, has been established in Boston, Massachusetts, to concentrate on software development, especially in the fields of e-commerce and e-business.

The company has built a solid foundation and experience in wireless internet and multimdeia, making it a potential technology and solution development partner for worldwide corporate customers.

The company’s product portfolio includes wireless broadband access solutions, wireless point-to-point and point-to-multipoint microwave solutions, radio communication systems, and customized communication solutions. Avantel Ltd has a strong R&D team that focuses on developing cutting-edge technologies and innovative products to meet the evolving needs of its customers.

The company has established itself as a leading provider of wireless communication solutions in India and has a strong reputation for delivering high-quality products and services to its customers. The company’s diversified customer base and product portfolio provide it with a significant competitive advantage in the telecommunications industry. The company has a strong R&D team that focuses on developing cutting-edge technologies and innovative products to meet the evolving needs of its customers.

In 2022, the company created novel mobile satellite service product variants such as airborne versions and high power (5 KW) HF systems. Imeds has created Skin Staplers, Removers, and Oxygen Concentrators for the medicinal market. In addition, the business is creating Software Defined Radios in accordance with worldwide standards.

Manufacturing facilites

Avantel operates from two locations: a state-of-the-art facility and Gold rated Green building approved by IGBC, CII housing the production and R&D facilities at APIIC Industrial Park at Gambheeram Village, Anandapuram Mandal, spread across an area of roughly 55000 Sq Feet; and a state-of-the-art facility and Gold rated Green building accredited by IGBC, CII housing the production and R&D facilities. The corporate headquarters is in Hyderabad and is presently operating from leased space.

The R&D centre has been designated as a “Center of Excellence” by the DSIR, Government of India, for conducting research and development in current technologies such as RF design, embedded systems, signal processing, and software.

The company’s Visakhapatnam facility contains a variety of cutting-edge facilities, machinery, and tools needed for R&D and manufacturing operations.

New state of the art manufacturing facilities coming up in a 4 acre campus in E-City, Hyderabad. A new corporate office is also coming up in Vasavi GP Water Front, Wipro Circle, Financial District, Hyderabad.

Business Products

Company mainly deals in 3 business segments which are Technologies, Solutions and Infrastructure.


Software Defined Radios

Avantel has designed and created a completely indigenous high-frequency (HF) Software Defined Radio (SDR) with a frequency range of 1.5 to 30 MHz in accordance with Software Communication Architecture (SCA) 4.1.

At the top level, the HF SDR uses the defined transceiver API, and the hardware is controlled/accessed via the intervening SCA core framework. The ORB (Object Request Broker) layers operate on top of a real-time operating system that is POSIX compatible. (Petalinux).

Avantel can provide multi-frequency SDR systems for tactical and airborne uses based on client specifications.

Satellite Communications

Avantel is at the forefront of satellite telecommunication innovation. Avantel created customised solutions for GSAT-based Mobile Satellite Services for military and business sectors using sophisticated microwave, digital wireless communications, and signal processing products.

Company’s SATCOM Radios work in the ‘S’ and ‘UHF’ bands and provide Full-duplex Voice/Data Communications between Ships, Aircraft, Aircraft-Ship, Ship-Base, Base-Ship, and so on. We are currently working on options in X-Band and Ku-Band.

HF Communications

HF solutions are a real illustration of a “Make in India” project that meets the DAP 2020 “IDDM” category standards for indigenous content.

Currently, the company offers 1 KW and 5 KW systems for static and ship-borne applications. The HF Radio works in wideband (24 KHz) and is equipped with cutting-edge technology such as FPGA, DSP, Direct Digital frequency synthesis, Automatic link creation using 3G ALE (STANAG4538), 2G ALE (FED-STD 1045), frequency hopping, and customised waveform loading.

Radar Systems

Radar systems portfolio comprises of Radar subsystems viz. T/R modules, Exciter, DTCSG, MTCSG, Distribution unit etc in the frequency ranges of HF, UHF, L, S, C and X bands. We also offer complete Radar solutions as per customer specifications.

Network Management Systems & Application Software

Avantel offers a wide range of services in the area of application development. Avantel can identify the need, design and build the solutions from scratch to suit the specific requirement of the customer.

Embedded Systems & Digital Signal Processing

Avantel undertakes full stack solutions for design, development, verification, certification of complex and diverse embedded systems for Communications and Radar applications.


Mobile Satellite Services (MSS) Network

Avantel has established the MSS network for Indian Navy for providing reliable, secured, real-time, long range (1000 nautical miles from shore) voice and data communications among Ships, Submarines, Aircraft and Helios


The IN UHF network comprises of SATCOM plus LoS terminals for Ship borne applications and Satcom only Airborne terminals and is extensively used for Beyond Line of Sight (BLoS) operations in high Seas.

Wind Profiler Radars

Avantel developed Wind Profile Radars and deployed at SDLC-SHAR, ISRO (49 MHz) and NARL (30 MHz). These Wind Profiler Radars provides three dimensional, high resolution wind data from 450 meters to 21 KM altitudes and supports wind velocity of 1m/s to 30m/s.

Real-time Information System for Indian Railways

Avantel has developed a unique, real time and cost effective solution for position determination and location transmission of the rolling stock for Indian railways. The Real-time Train Information System (RTIS) helps the railway operator to run the rolling stock control applications automatically. The solution facilitates real time tracking using GPS + GIS + Zigbee + MSS + 4G technologies.


MSS solution has been deployed in the Sahayak project developed by NSTL & ADE for Indian Navy to facilitate the transmission of positional information through the satellite for quick recovery of Sahayak containers in high seas.


ERMSAT has been designed for specific needs of strategic customers for Environment Radiation Monitoring. The standalone solar powered Environmental Radiation Monitor can be installed at various remote locations and the radiation data is collected through sensors is transmitted to a centralized location through satellite communication

Ocean Gauges & Tide Gauge Applications

Avantel has developed and supplied MSS and UHF Transmitters to INCOIS and NIoT for integration with the Wave rider/ Drifting Buoys and Tide Gauge equipment.

Visual Databases for Aircraft Simulators

Company has extensive experience in building of visual databases for aircraft simulators. It built 12 (virtual) Indian airfields of interest to customers and each of the airfield has Out-of-The-Window (OTW), Electro Optical (EO), Infra-Red (IR) and RADAR databases for various mission modes.


  • RF Test Equipment
  • Testing & Assembly Facilities
  • Engineering facilities

Capex , Expansion

Avantel is in the process of establishing a new facility at Hyderabad with a built up area of around 70,000 Square feet in an area of 04 acres in E-City, Tukkuguda just few Kilometers away from Rajiv Gandhi International Airport. The plan is to create excellent facilities in terms of infrastructure and equipment to diversify into newer areas in Radar technologies, Small satellite manufacturing and medical devices. The facility is expected to be operationalised by end 2023. The corporate office will also be shifted to own premises spread across an area of 15000 square feet in one of the upcoming business park in Gachibowly financial district.

The company spent approximately ₹ 9 Cr on R&D in FY2022. They are working on the development of new systems for the Indian Air Force and Indian Navy.


Order Book

In July 2021 the Co received an order worth Rs 15 cr from Lockheed Martin Corporation for the supply of Satcom Equipment, Rs 8.8 Cr order from Bharat Electronics Limited for the supply of Satcom Equipment, Rs 7.8 Cr order from IHQ, MoD (Navy) for AMC of Satcom Systems.

In November 2021, the company got a Rs 9 Cr contract from Bharat Electronics Limited for the supply and installation of satellite communications equipment. L&T has also given the company another high-value deal worth Rs 125.68 crores for the provision of 6300 loco units for Real-Time Train Information Systems to Indian Railways.


For the 3rd Quarter Dec 2022

Consolidated sales were up 33% to Rs 38.71 crore.

Operating profit margin expanded by 180 bps to 28.9%.

Operating profit was higher by 42% to Rs 11.20 crore.

PBIDT was up 44% to Rs 11.49 crore.

PBT was up 28% to Rs 8.42 crore.

For the nine-month period ended Dec 22

  • Consolidated sales were up 75% to Rs 101.92 crore.
  • EBITDA stood at Rs 28.68 crore.
  • PAT was up 45% to Rs 17.21 crore.

For the year ended March 22

  • Net Sales stood at Rs 105 crore in March 2022 up 34% from Rs. 78 crore in March 2021.
  • Net Profit stood at Rs. 19 crore in March 2022 up 26% from Rs. 15 crore in March 2021.
  • EBITDA stood at Rs. 28 crore in March 2022 up 27% from Rs. 22 crore in March 2021.
  • Avantel EPS has decreased to Rs. 11.84 in March 2022 from Rs. 9.46 in March 2021.
  • Compounded Sales Growth over 3 and 5 years stood at 28% and 26% respectively.
  • Compounded Profit Growth over 3 and 5 years stood at 26% and 86% respectively.
  • Until last year company was completely debt free. As of March 22 company has taken some debt and it seems the same is being utilised for the new capex expansion of the company’s upcoming facility.

Sectorial Outlook

After excluding the component of Defence pensions, India’s Defence budget for FY 2022-23 is approximately Rs 4 lakh crores, and is mainly concentrated on the maintenance and upgrading of Armed Forces. The capital expenditure for Armed Forces upgrading has been raised by 12.82 percent, with an allotment of Rs.1.52 Lakh Crores.In recent years, the Defense budget has been attentive to the need to create a technological framework to accelerate the rise of a thriving domestic defence industrial infrastructure.For this self-reliance plan, 68% of capital procurement is suggested for domestic industry, up from 58% in 2021-22.A whopping 25% of the R&D funding has been set aside for business, start-ups, and academia in this country.

In a recent effort to accelerate the process of “Atmanirbharatha” in Defence, the MoD has named approximately 310 products for stepwise indigenization. Three lists have been released: the first list (101 products) dated 21st August 2020, the second list (108 items) dated 31st May, 2021, and the third list (101 items) dated 07th April 2022.The goal of this historic policy decision to indigenize different products is to establish an atmosphere in which the public, private, and foreign sectors can collaborate to help India become one of the top nations in military production. This strategy is likely to boost the potential of indigenous R&D (Research and Development) by attracting new investment in technology and industrial capacities.


Avantel is a well-established company with a history of over three decades in producing wireless front-ends, satellite communication systems, Embedded systems, signal processing, network administration, and software creation. The company’s diverse product offerings and focus on indigenous solutions have contributed to its strong order book and pipeline, making it a strong candidate for long-term investment. With the government’s emphasis on domestic procurement and indigenization, Avantel is well-positioned to capitalize on new technologies and markets, making it an attractive opportunity for investors seeking exposure to India’s strategic sector.

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