Strengths | Weaknesses & Risks |
Established Track Record and Customer Relationships: The company has over 15 years of experience in the power solution sector, establishing strong relationships with state-owned electricity distribution companies and private players. As of FY 2025, Avana catered to 367 customers, up from 275 in FY 2023. | Land Lease and Construction Deadlines: The land allotted by KIADB for the proposed new facility requires commercial production to commence by May 22, 2026, following a previous extension. Failure to meet this deadline or specific construction conditions could result in the lease cancellation and loss of the land. |
Robust Financial Performance and Margins: The company has demonstrated strong financial growth, with revenue increasing by 16.04% in FY 2025 and 86.53% in FY 2024. It maintains healthy margins, recording an EBITDA margin of 20.36% and a Profit After Tax (PAT) margin of 13.52% in FY 2025. | Supplier Concentration: The company is highly dependent on a limited number of raw material suppliers. In FY 2025, the top 5 suppliers accounted for 42.62% of total purchases, and the top 10 suppliers accounted for 58.83%. Loss of key suppliers could disrupt production schedules. |
High Capacity Utilisation: The existing manufacturing facilities are operating at optimum levels. As of March 31, 2025, the utilisation rate was 94.50% for the Relay unit (Unit I) and 87.16% for the Control and Relay Panels unit (Unit II). | Customer Concentration: A significant portion of revenue comes from a few clients. In FY25, the top 10 customers contributed 31.50% of the total revenue from operations. Adverse changes in relationships with these key customers could negatively impact cash flows. |
Specialised Product Portfolio: Avana offers a comprehensive range of customised products, including Control and Relay Panels (11kV to 220kV), Numerical Protection Relays, and Substation Automation Systems compatible with SCADA standards. | High Working Capital Requirements: The business is working capital intensive, with requirements increasing from ₹10.96 Cr. in FY23 to ₹18.50 Cr. in FY25. Inability to meet these requirements could impact operations. |
In-House R&D and Quality Control: The company possesses an in-house R&D facility with a team of engineers and software developers to drive innovation. It holds ISO 9001:2015 certification, and its products are tested at NABL-accredited laboratories to meet international standards (IEC). | History of Negative Cash Flows: The company reported negative cash flows from operating activities in FY 2023, amounting to ₹(0.31) Cr. Continued negative cash flows could adversely affect business prospects and financial condition. |
Experienced Management Team: The company is led by promoters with over two decades of experience in the electrical industry, providing technical expertise in protection relay development and panel manufacturing. | Regulatory and Compliance Delays: There have been instances of delays in the payment of statutory dues (Provident Fund and GST) and delays in filing corporate records/forms with the Registrar of Companies in the past. |
Strong Order Book: As of August 31, 2025, the company has a pending Order Book value of ₹45.05 Cr., providing revenue visibility. | Dependency on Power Sector: Demand for products is directly linked to the growth of the power generation, transmission, and distribution industry. Any slowdown or policy changes in this sector could adversely impact the company. |
Geographical Diversification: The customer base is diversified across India, catering to power utilities and industrial conglomerates, which helps mitigate region-specific risks. The company has also recently commenced exports to Kuwait. | Lack of Alternative: The company has not identified alternate sources of funding for the proposed capital expenditure (setting up the integrated manufacturing unit). Any shortfall in IPO proceeds could delay the project implementation. |
