Aditya Vision

Aditya Vision concluded FY26 with robust performance, reporting an 18% year-over-year revenue growth to INR 2,672 crores and an 11% PAT growth to INR 117 crores. The fourth quarter was particularly strong, with revenue increasing by 28% to INR 625 crores and PAT surging by 36% to INR 22 crores. This resilience was notable given that the first half of FY26 experienced the weakest summer since the company's inception, impacting sales of high-margin seasonal products.

The company's store count reached 207 as of March 31, 2026, having added 102 stores in the last three years, nearly matching the total stores built in the preceding 23-24 years. Aditya Vision successfully entered Chhattisgarh with 3 stores, marking its fourth targeted state. The company plans to add approximately 25 stores annually, focusing on scaling presence in Uttar Pradesh and Chhattisgarh, while deepening leadership in Bihar and Jharkhand. Entry into Madhya Pradesh is also on track for the current financial year.

FY26 saw gross margins at 15.6% and EBITDA margins at 8.5%. However, gross margins experienced a 100 basis points negative year-over-year change, primarily due to the weak summer in H1 FY26 which affected sales of high-margin seasonal products like air conditioners and refrigerators. In Q4 FY26, gross margin was 16%, but it was impacted by a 20% increase in the average selling price (ASP) of mobiles and an 8-10% increase for laptops, which are lower-margin products and collectively constituted over 25% of sales.

Management addressed concerns regarding increased other expenses, attributing them to strategic investments such as onboarding a brand ambassador and promotional activities for new market entries, particularly in Uttar Pradesh. They anticipate better control over operating expenses in the near term as the store network matures, stating that 'going forward^⏳, our opex will not increase, it will be consummerate with our overall expenses.' This suggests an expectation of improved operating leverage as new stores scale up.

Aditya Vision maintained higher inventory levels of approximately INR 840 crores at the end of Q4 FY26, a conscious strategic decision. This was done in anticipation of supply-side uncertainties (e.g., gas shortages due to Gulf war) and to leverage price changes from BEE norms revisions, which led to an 8-10% increase in product prices. This strategy aims to secure inventory at better costs and maintain competitive pricing, ensuring full stock to meet demand without disruption.

Bihar remained the largest revenue contributor, accounting for 74% in Q4 FY26 and 75% in FY26. Uttar Pradesh contributed 14% in Q4 and 13% in FY26, while Jharkhand contributed 12% in both periods. Management noted that many new stores in UP opened late in FY26 (February/March) and have not yet fully contributed to annual sales, indicating significant growth potential as these stores mature. The company's focus remains on replicating its successful model across new geographies.

The company reported healthy cash flows and stated that internal accruals, combined with short-term working capital borrowings, are sufficient to fund ongoing investments in new stores and inventory. Management explicitly stated, 'we do not foresee raising any capital in this financial year, definitely not in near term,' indicating confidence in their self-funding capabilities for planned expansion and operations.