Aditya Vision Limited

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.

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 items^📎. The 9M SSSG was 5%, impacted by a challenging Q1.

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.

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.

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.

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.