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Aditya Infotech Limited

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Aditya Infotech Ltd Q1 & FY2027-26 Earnings Call Highlights

Financials

Business Background

Aditya Infotech Ltd is a leading Indian technology company and the market leader in the electronic video surveillance and security systems sector, best known for its flagship brand CP PLUS. The company designs, manufactures, and distributes a comprehensive range of advanced surveillance equipment, including CCTV cameras, digital video recorders (DVRs), network video recorders (NVRs), enterprise storage, and visual AI solutions. Operating across diverse customer segments from residential and small businesses (SMBs) to large enterprises and government infrastructure projects the company has established an extensive nationwide sales and distribution network. With state-of-the-art manufacturing hubs, such as its Kadapa and Greater Noida facilities, Aditya Infotech acts as a pioneer in localized hardware production and AI-integrated security technologies.

Q&A

Q: What was the revenue growth performance for the first quarter?

A: Revenue reached ₹1,421 crs, representing a robust 89.5% year-on-year increase, primarily driven by strong traction in the CP PLUS brand.


Q: What are the company's margin expectations for the full financial year?

A: Management is sticking to its annual guidance of 14% to 15% EBITDA margins, having achieved 14.8% in the first quarter.


Q: How is the company managing the rising costs of semiconductors and components?

A: The company is implementing gradual price hikes of 10% to 20% (targeting 25% for the year) to pass through inflationary costs without causing a consumption shock.


Q: What is the company’s current standing in the Indian surveillance market?

A: Aditya Infotech holds a dominant 43.3% market share in the Indian video surveillance industry as of FY26, effectively doubling its position over recent periods.


Q: What is the roadmap for manufacturing capacity expansion?

A: Currently producing 2.5 million units per month, the company aims to double its capacity over the next three years through new clusters in Kadapa and Greater Noida.


Q: What progress is being made on backward integration?

A: The company is localizing production for housings, cables, and lenses, including a new joint venture, Corlink, to manufacture network and CCTV coaxial cables.


Q: Which new product categories are being targeted for growth?

A: AIL is expanding into AI-powered "Pro Series" solutions, smart home IoT (locks/doorbells), industrial robotics, and drone camera gimbals.


Q: How has the company adapted to the government ban on Chinese components?

A: The supply chain has transitioned to Taiwan-based semiconductors (35% of the bill of materials), ensuring compliance with mandatory government cyber-security norms.


Q: What is the outlook for the company's export business?

A: Significant export contributions are expected within the next 18 to 24 months as the company field-tests its high-end portfolios in the domestic market first.


Q: What is the current status of the company’s R&D infrastructure?

A: The company operates three R&D centers in Noida, Ahmedabad, and Taiwan, with a fourth facility opening shortly in Bengaluru to drive continued innovation

Strategic Outlook

  1. Operationalize enclosure production facilities and scale the Kadapa plant's capacity beyond its initial 2.5 million units per month benchmark.
  2. Leverage the newly inaugurated corporate office and R&D center to accelerate product testing, innovation, and custom enterprise technology.
  3. Maintain strong gross margins through dynamic monthly pricing adjustments to pass on input cost inflation.
  4. Capitalize on top-line momentum to double market share across core security and smart surveillance segments.
  5. Target robust full-year revenue of ₹6,000–₹6,500 Crs with EBITDA margins between 14–15% and Adjusted PAT margins between 8.5–9.5%.


Business Strategy

  1. Scale production across greenfield clusters (Kadapa and Greater Noida) and deepen component localization through strategic joint ventures like Core link Cable Technology.
  2. Drive direct account management and brand empanelment at the design stage for mid-to-large enterprises, using channel partners for fulfillment and service delivery.
  3. Expand beyond traditional security cameras into Home IoT (video door phones, smart locks), industrial AMRs, drones, machine vision, and explosion-proof cameras.
  4. Commercialize tailored Visual AI solutions and advanced analytics across enterprise, SMB, and strategic government projects.
  5. Strengthen senior management across credit, legal, HR, and M&A functions to support rapid operational expansion and market leadership continuity.


Key Highlights

  1. Revenue from operations surged by 89.51% YoY to ₹14,024.19 million in Q1 FY27, up from ₹7,400.37 million in Q1 FY26.
  2. EBIDTA jumped by 234.32% YoY to ₹2,036.88 million, compared to ₹609.26 million in the corresponding quarter of the previous year.
  3. EBIDTA margin expanded by 629 basis points YoY, moving up from 8.23% to 14.52%.
  4. Profit After Tax (PAT) grew by 330.29% YoY to ₹1,404.72 million from ₹326.46 million in Q1 FY26, with PAT margin widening by 561 bps to 10.02%.
  5. Diluted Earnings Per Share (EPS) accelerated by 303.68% YoY to ₹12.07 in Q1 FY27 from ₹2.99 in Q1 FY26.
  6. For the full year FY26, the company posted a solid performance with total revenue of ₹42,208.12 million, EBIDTA of ₹2,661.33 million (6.31% margin), PAT of ₹3,695.09 million (8.75% margin), and an EPS of ₹32.05.


Performance

Q1FY27:


  1. Total Income: ₹ 14024.19 million (89.51%YoY)
  2. EBITDA: ₹ 2036.88 million | EBITDA Margin: 14.52% (629)
  3. PAT: ₹ 1404.72 million| PAT Margin: 10.02% (561)

FY26:

  1. Total Income: ₹ 42208.12 million
  2. EBITDA: ₹ 2661.33 million | EBITDA Margin: 6.31%
  3. PAT: ₹ 3695.09 million| PAT Margin: 8.75%


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