Aditya Vision

    AVL
    Consumer Services·27 Jan 2026
    Management Summary

    Aditya Vision delivered robust financial performance in Q3 FY26, with significant revenue and profit growth driven by strong festive demand and continued store expansion. Despite challenges in Q1 FY26 and higher operating expenses from new market entries, the company maintained healthy margins and is on track to cross 200 operational stores. Strategic inventory build-up for the summer season and planned expansion into new states like MP and Chhattisgarh underscore management's confidence in future growth.

    Highlights8
    • Q3 FY26 Revenue surged 28% YoY to ₹649 crores, driven by strong festive demand.
    • 9M FY26 Revenue grew 15% YoY to ₹2,047 crores.
    • Q3 FY26 EBITDA stood at ₹53 crores, with an EBITDA margin of 8.2%.
    • 9M FY26 EBITDA reached ₹177 crores, growing 10% YoY, with a margin of 8.7%.
    • Q3 FY26 PAT increased 13% YoY to ₹27 crores, after an exceptional expense of ₹1.5 crores.
    • 9M FY26 PAT grew 8% YoY to ₹96 crores (excluding exceptional items).
    • Same-store sales growth (SSSG) was an impressive 17% for Q3 FY26 and 5% for 9M FY26.
    • Store count reached 192 as of December 31, 2025, with 4 new stores added in Q3 and 17 in 9M.
    Concerns Noted1
    • Impact of adverse weather and extended monsoon in Q1 FY26
    What Changed2

    vs Q4 FY26

    Guidance items3 → 6 (+3)Risks discussed3 → 4 (+1)
    Numbers6

    Key Financials

    MetricValueYoY
    Revenue (Q3 FY26)₹649 Cr+28.0% YoY
    Revenue (9M FY26)₹2.0K Cr+15.0% YoY
    EBITDA (Q3 FY26)₹53 Cr
    EBITDA Margin (Q3 FY26)8.2%
    EBITDA (9M FY26)₹177 Cr+10.0% YoY
    EBITDA Margin (9M FY26)8.7%

    Segment Breakdown

    Bihar
    75% Revenue Contribution (Q3 FY26)76% Revenue Contribution (9M FY26)
    Uttar Pradesh
    13% Revenue Contribution (Q3 FY26)12% Revenue Contribution (9M FY26)
    Jharkhand
    13% Revenue Contribution (Q3 FY26)12% Revenue Contribution (9M FY26)
    Trend1

    Historical Trend

    Last 6Q
    MetricLatestTrend
    Store Count(stores)207
    Capital3

    Capital Allocation

    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Internal accruals and bank lending are considered sufficient for near-future needs, including inventory build-up.

    Promises6

    Guidance & Targets

    CategoryTargetPriority
    Store Expansion
    Total Operational Stores200+
    High
    Store Expansion
    Annual New Store Additions30
    Medium
    Profitability
    EBITDA Margin8.7%
    Medium
    Revenue
    Revenue Growth20-25%
    Medium
    New Market Entry
    Presence in Chhattisgarh and MPEntry
    High
    Product Pricing
    AC Prices Increase4-6%
    High
    Watchlist5

    Watch for Next Quarter

    #Metric
    01Total Operational Stores
    02EBITDA Margin Trajectory
    03Entry into Chhattisgarh and Madhya Pradesh
    04Impact of AC Price Increase on Demand
    05Maturity of New Stores
    Risks4

    Risks & Concerns

    SeverityRisk
    high

    Impact of adverse weather and extended monsoon in Q1 FY26

    Q1 FY26 was an 'outlier' with unusually adverse weather, extended monsoon, and weak summer, impacting cooling-led demand and product mix, leading to a 'total washout' for the biggest quarter.

    Management
    medium

    Higher operating expenses from new market entry

    Q3 FY26 saw higher operating expenses, primarily due to marketing and promotional activities in new, bigger stores in Uttar Pradesh (e.g., Lucknow), which are one-time in nature but impact current margins.

    Management
    low

    Exceptional expense due to new labor codes

    An exceptional expense of ₹1.5 crores was incurred in Q3 FY26 for additional provisioning pursuant to the implementation of new labor codes.

    Management
    low

    Moderately higher inventory levels

    Inventory levels are moderately higher due to opportunistic buying of room air conditioners at attractive discounts from OEMs following changes in BEE energy efficiency norms, positioning for the summer season.

    Management
    Q&A8

    Q&A Highlights

    Narrative3m

    Detailed Narrative

    6 chapters
    01

    Q3 FY26 Performance Overview

    Aditya Vision reported a strong Q3 FY26, with revenues growing 28% year-over-year to ₹649 crores. This growth was primarily fueled by robust festive demand, particularly during the Durga Puja to Chhath Puja period, which saw a 37% increase. EBITDA for the quarter stood at ₹53 crores, resulting in an EBITDA margin of 8.2%. Profit After Tax (PAT) increased by 13% year-over-year to ₹27 crores, despite an exceptional expense📎 of ₹1.5 crores related to new labor codes. Same-store sales growth (SSSG) was an impressive 17% for the quarter.

    02

    Nine-Month FY26 Performance and Margin Trends

    For the nine months ended December 31, 2025, Aditya Vision's revenue surged by 15% to ₹2,047 crores, up from ₹1,773 crores in the prior year. Gross margins were maintained at 15%, with EBITDA reaching ₹177 crores, reflecting a 10% year-on-year growth and an EBITDA margin of 8.7%. Profit Before Tax (PBT) grew 7.3% to ₹128 crores, with PBT margins moderating slightly by 47 basis points due to costs associated with store additions. PAT for the nine months increased by 8% to ₹96 crores, excluding exceptional item📎s. The 9M SSSG was 5%, impacted by a challenging Q1.

    03

    Store Expansion and Geographical Strategy

    The company continued its disciplined, cluster-led store expansion, adding 4 new stores in Q3 FY26 and a total of 17 stores in the nine-month period, bringing the total store count to 192 as of December 31, 2025. Management is confident of crossing 200 operational stores by the end of FY26. Bihar remains the dominant market, contributing 75% of Q3 revenues and 76% for 9M FY26, while Uttar Pradesh and Jharkhand each contributed 13% in Q3 and 12% in 9M. The company plans to enter Chhattisgarh and Madhya Pradesh within the current calendar year, focusing on larger cities with concentrated affluent populations.

    04

    Product Mix and Inventory Management

    Demand trends were mixed during Q3, with strong festive-led demand in October followed by moderation in November and December, offset by a recovery in late December. Category-wise, washing machines and panel televisions grew over 30%, while ACs grew 22% in Q3 (2% for 9M) and mobiles grew 20%. Inventory levels are moderately higher due to opportunistic procurement of room air conditioners at attractive discounts from OEMs, following changes in BEE energy efficiency norms. This strategic inventory build-up aims to position the company well for the upcoming summer season, despite an expected 4-6% price increase for ACs from January onwards.

    05

    Profitability and Operating Expenses

    EBITDA margins remained broadly stable sequentially, but PBT margins moderated by 33 basis points year-on-year in Q3. This was primarily attributed to higher operating expenses, particularly marketing and promotional activities in new, larger stores opened in Uttar Pradesh (e.g., Lucknow). These expenses are considered one-time📎 in nature, aimed at gaining market depth in new areas. The company also booked an exceptional expense📎 of ₹1.5 crores for additional provisioning under new labor codes, impacting PAT.

    06

    Future Outlook and Growth Drivers

    Management expressed confidence in the resilience of its business model and long-term growth trajectory, expecting to achieve a good set of numbers by the financial year-end despite earlier challenges in Q1. They anticipate continued strong revenue growth of 20-25% for FY27. The strategy involves simultaneous growth in existing and new states, with UP offering significant expansion potential (currently present in 24 out of 75 districts). The company believes its internal accruals and bank lending are sufficient to fund future expansion and inventory needs, without requiring additional funds in the near future.

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