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<!--REG30PARAB V1.0 (01-06-2026)-->
<xbrli:xbrl xmlns:in-capmkt="http://www.sebi.gov.in/xbrl/2026-04-30/in-capmkt" xmlns:in-capmkt-ent="http://www.sebi.gov.in/xbrl/Regulation_30_Para_B_Of_Part_A_Of_Schedule_III/2026-04-30/in-capmkt/in-capmkt-ent" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" xmlns:in-capmkt-types="http://www.sebi.gov.in/xbrl/2026-04-30/in-capmkt-types" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:net="http://www.xbrl.org/2009/role/net" xmlns:num="http://www.xbrl.org/dtr/type/numeric" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:negated="http://www.xbrl.org/2009/role/negated" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xl="http://www.w3.org/1999/xlink"><link:schemaRef xlink:type="simple" xlink:href="in-capmkt-ent-2026-04-30.xsd"/><xbrli:context id="MainI"><xbrli:entity><xbrli:identifier scheme="http://www.sebi.gov.in/in-capmkt/ScripCode">543896</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2026-11-12</xbrli:instant></xbrli:period></xbrli:context><xbrli:unit id="INR"><xbrli:measure>iso4217:INR</xbrli:measure></xbrli:unit><in-capmkt:NSESymbol contextRef="MainI">AVALON</in-capmkt:NSESymbol><in-capmkt:NameOfTheCompany contextRef="MainI">Avalon Technologies Limited</in-capmkt:NameOfTheCompany><in-capmkt:ScripCode contextRef="MainI">543896</in-capmkt:ScripCode><in-capmkt:MSEISymbol contextRef="MainI">NOTLISTED</in-capmkt:MSEISymbol><in-capmkt:ISIN contextRef="MainI">INE0LCL01028</in-capmkt:ISIN><in-capmkt:TypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII contextRef="MainI">Giving of guarantees or indemnity (Sub-para 11-Para B)</in-capmkt:TypeOfEventAsPerRegulation30ParaBOfPartAOfScheduleIII><in-capmkt:TypeOfAnnouncementAsPerRegulation30ParaBOfPartAOfScheduleIII contextRef="MainI">New</in-capmkt:TypeOfAnnouncementAsPerRegulation30ParaBOfPartAOfScheduleIII><in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfTheBoardMeeting contextRef="MainI">true</in-capmkt:WhetherEventOrInformationDisclosedIsAnOutcomeOfTheBoardMeeting><in-capmkt:DateOfBoardMeeting contextRef="MainI">2026-11-12</in-capmkt:DateOfBoardMeeting><in-capmkt:StartTimeOfTheMeeting contextRef="MainI">18:00:00</in-capmkt:StartTimeOfTheMeeting><in-capmkt:EndTimeOfTheMeeting contextRef="MainI">20:45:00</in-capmkt:EndTimeOfTheMeeting><in-capmkt:DateOfReport contextRef="MainI">2026-11-12</in-capmkt:DateOfReport><in-capmkt:EventTypeOfGuaranteeOrIndemnityOrSurety contextRef="MainI">Giving guarantees</in-capmkt:EventTypeOfGuaranteeOrIndemnityOrSurety><in-capmkt:NameOfPartyForWhomGuaranteeOrIndemnityOrSuretyWasGiven contextRef="MainI">Avalon Technology and Services Private Limited</in-capmkt:NameOfPartyForWhomGuaranteeOrIndemnityOrSuretyWasGiven><in-capmkt:WhetherThePromoterOrPromoterGroupOrGroupCompaniesHaveAnyInterestInGuaranteeOrIndemnityOrSuretyTransaction contextRef="MainI">false</in-capmkt:WhetherThePromoterOrPromoterGroupOrGroupCompaniesHaveAnyInterestInGuaranteeOrIndemnityOrSuretyTransaction><in-capmkt:BriefDetailsOfGuaranteeOrIndemnityOrSurety contextRef="MainI">Corporate Guarantee for the credit facilities to be availed by Avalon Technology and Services Private Limited (wholly owned subsidiary) in favour of the Lending Banks, as required for an amount of upto Rs. 55,00,00,000/- (Indian Rupees Fifty-Five Crores only).</in-capmkt:BriefDetailsOfGuaranteeOrIndemnityOrSurety><in-capmkt:SignificantTermsAndConditionsOfGuaranteeOrIndemnityOrSurety contextRef="MainI">Corporate Guarantee for the credit facilities to be availed by Avalon Technology and Services Private Limited (wholly owned subsidiary) in favour of the Lending Banks, as required for an amount of upto Rs. 55,00,00,000/- (Indian Rupees Fifty-Five Crores only).</in-capmkt:SignificantTermsAndConditionsOfGuaranteeOrIndemnityOrSurety><in-capmkt:AmountOfGuaranteeOrIndemnityOrSurety contextRef="MainI" unitRef="INR" decimals="0">550000000</in-capmkt:AmountOfGuaranteeOrIndemnityOrSurety><in-capmkt:ImpactOfGuaranteeOrIndemnityOrSuretyOnListedEntity contextRef="MainI">The said Guarantee has been provided on behalf of the wholly owned subsidiary of the Company, whose accounts are consolidated with those of the Company.
At this point, apart from the above, there is no impact of this Guarantee on the Company.</in-capmkt:ImpactOfGuaranteeOrIndemnityOrSuretyOnListedEntity><in-capmkt:RemarksForWebsiteDisseminationForGivingOfGuaranteesOrIndemnityOrSuretyAsPerSubPara11OfParaB contextRef="MainI">Avalon Technology and Services Private Limited is a wholly owned subsidiary of the Company. &lt;br /&gt; 
 &lt;br /&gt; 
None of the promoters or members of the promoter group or other group companies have any interest in this transaction, except to the extent of directorship held in the wholly-owned subsidiary. &lt;br /&gt; 
 &lt;br /&gt; 
The Transaction has been carried out on an arm’s length basis. &lt;br /&gt; 
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