IT Stock Hits 5% Upper Circuit on Pushpak AI Growth Plans; Here are the Details

Synopsis: Avance Technologies shares hit a 5% upper circuit after signing a term sheet to acquire Pushpak AI, entering the projected $2.4 trillion AI market. The move strengthens its presence in computer vision, edge AI, and enterprise solutions.

The shares of this Indian IT company specialising in digital infrastructure and technology solutions, provide services such as cloud integration, data center management and many more, hit 5 percent upper circuit in today’s market after targeting AI Growth with the acquisition of Pushpak AI to compete in the AI Ecosystem expected to grow to USD 2.4 trillion by 2032.

With a market capitalisation of Rs. 396 cr, the shares of Avance Technologies Ltd are currently trading at Rs. 2 per share, locked at 5% upper circuit in today’s market session, up from its previous close of Rs. 1.91 per share. 

Strategic Expansion into Visual Intelligence and Edge AI

Avance Technologies Limited has signed a non-binding term sheet to acquire up to 100% equity stake in Pushpak AI, a Hyderabad-based Computer Vision and Edge AI platform. The proposed acquisition marks a strategic step for Avance as it strengthens its presence in the rapidly expanding global artificial intelligence (AI) ecosystem, which is projected to reach a market size of nearly USD 2.4 trillion by 2032.

Through this proposed transaction, Avance Technologies aims to enter the high-growth segment of computer vision and edge-based artificial intelligence areas, enabling real-time decision-making, operational efficiency, safety compliance, and automation across industries. It is witnessing strong adoption across manufacturing, infrastructure, smart cities, logistics, retail, and industrial automation. 

In India, AI adoption is expected to contribute close to USD 500 billion to GDP by 2035, with computer vision playing a central role in surveillance, productivity monitoring, intelligent transport systems, and industrial applications. The acquisition positions Avance to participate meaningfully in this expanding opportunity.

Full Strategic and Operational Control to Drive Long-Term Value

Upon completion, the acquisition would allow Avance Technologies to exercise full strategic and operational control over Pushpak AI. This would enable deeper integration of Pushpak AI’s intellectual property, platforms, and enterprise relationships into Avance’s broader technology portfolio. The company aims to leverage this integration to accelerate go-to-market execution, strengthen product offerings, and enhance long-term shareholder value.

About Pushpak AI

Pushpak AI has established a strong and diversified client base across automotive, infrastructure, manufacturing, logistics, smart cities, and financial services. Its solutions are already deployed by leading organisations such as Maruti Suzuki, TVS Motor Company, Hero, Larsen & Toubro, Adani Group, CMS Info Systems, IndiCold, Envoys, Everest Fleet, and Smart City Bhubaneswar.

In addition, the platform serves multiple institutions and enterprises, including GMDA, Spice Money, RapiPay, DigiNexus, Vardhman Group, Shanthi Feeds, OnlyGood, as well as government and defence-linked institutions such as the Military College of Electronics and Mechanical Engineering (MCEME). This wide adoption underscores Pushpak AI’s scalability and readiness for mission-critical deployments.

Avance Technologies Ltd specialises in IT product distribution, reselling software and hardware, and providing a wide range of digital services, including AI, blockchain, IoT, cloud solutions, digital marketing, SEO, social media, mobile apps, e-commerce, software testing, and marketing automation.

Sales of the company rose by 11% from Rs. 37.42 cr in Q1FY26 to Rs. 41.40 cr in Q2FY26. Operating profit fell to a loss of Rs. 1.73 cr from Rs. 0.67 cr. Net profit fell from Rs. 1.62 cr to a loss of Rs. 0.77 cr.

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