Aditya Infotech Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Aditya Infotech (CP PLUS) delivered a stellar Q2 FY26 performance, characterized by massive margin expansion and strong top-line growth driven by regulatory tailwinds (STQC norms). The company is successfully transitioning from analog to high-margin IP cameras, which now dominate their product mix. With debt reduction from IPO proceeds and aggressive capacity expansion, management is positioned to consolidate its market leadership against retreating Chinese competitors.

Highlights

  • Revenue for Q2 FY26 stood at ₹919.6 crores, representing a robust 37.5% YoY growth.

  • EBITDA surged by 157% YoY to ₹111.1 crores, with margins expanding significantly to 12%.

  • PAT rose by 239% YoY to approximately ₹70 crores for the quarter.

  • Market share in the Indian video surveillance market reached 31.4% in Q1 FY26, with further consolidation in Q2.

  • Manufacturing capacity increased to 1.8 million units per month, with a target of 2 million by Q4 FY26.

  • The CP PLUS brand now contributes 86% of total revenue, with IP products making up nearly 70% of the portfolio.

  • Management reiterated FY26 guidance: 25-30% revenue growth and 10-11% EBITDA margins.

  • Marketing and sales promotion spend for the quarter was reported at ₹29 crores.

Key financials

2 periods

Headline

  • Revenue
    ₹919.6 Cr
    YoY +37.5%
  • EBITDA
    ₹111.1 Cr
    YoY +157%
  • EBITDA Margin
    12%
  • PAT
    ₹70 Cr
    YoY +239%

H1

  • Revenue
    ₹1,660 Cr
    YoY +27%
  • EBITDA Margin
    10.6%

What they filed

Q1 FY27: revenue up 89.5%, net profit up 330.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue669 830 977 740 920 +38%1,139 +37%1,422 +46%1,402 +89%
EBITDA39 69 98 61 109 +179%140 +103%257 +162%204 +234%
Net profit234 40 55 33 70 −70%96 +140%169 +207%142 +330%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • CP PLUS Brand
    86% Revenue Share70% IP Product Mix

Guidance & targets

Revenue

  • Annual Revenue Growth Revenue · FY26 · High confidence 25-30%
    Looking ahead, we remain confident of meeting our FY26 guidance of 25% to 30% revenue growth.

    — Aditya Khemka, Managing Director

Margin

  • EBITDA Margin Margin · FY26 · High confidence 10-11%
    EBITDA at 10% to 11% and PAT margins of 6% to 7%.

    — Aditya Khemka, Managing Director

Capacity

  • Manufacturing Capacity Capacity · Q4 FY26 · High confidence 2 million units per month

    From 1.8 million today

    increased capacity to 1.8 million units per month in this quarter and growing further to 2 million units in the coming Q4 2026.

    — Aditya Khemka, Managing Director

Market Share

  • CP PLUS Brand Revenue Share Market Share · H2 FY26 · Medium confidence 90%

    From 86% today

    CP PLUS revenue in the quarter has risen to almost 86%... we see that possibly in H2 this can even rise further to possibly 90 percentage levels.

    — Anup Nair, President Strategy

Other

  • L&T Chip Procurement Other · next 3 years · High confidence 9 million chips
    we also announced a definitive agreement with L&T Semiconductor Technologies to manufacture 9 million IP cameras over the next three years as soon as the chip gets ready.

    — Aditya Khemka, Managing Director

Risks & concerns

  • Global Component Shortages

    medium

    Shortages in chipsets, sensors, and storage (DDR/Flash) are driving up input costs.

    Management acknowledged

  • Certification Catch-up by Competitors

    medium

    Analysts questioned if competitors like Prama or global brands will soon get STQC certifications, potentially eroding the current market share gains.

    Analyst downplayed

  • Government Project Gestation

    low

    Government business (15% of revenue) has long and unpredictable gestation periods.

    Management acknowledged

Areas of evasion (1)

  • Specific margin impact of Lens and PTZ module manufacturing was deferred to future quarters for better visibility.

Q&A highlights

3 direct
Clarification on Price Hikes vs. Product Changes Direct
So price rise, we are planning from next quarter... the cost of making mangoes was INR200-INR300 or so, which was passed on to the market. No price was raised.

Management clarified that recent market price increases were due to a shift to more expensive STQC-compliant SoCs (apples to mangoes analogy), not a margin-expanding price hike, which is actually slated for January.

Asked by Saumil Mehta

Nature of L&T Partnership Direct
First of all, there is no JV with L&T, it's a MOU with L&T. It's a definitive agreement. So, there is no joint venture.

Corrects a potential misconception about the corporate structure of the partnership; it is a co-development and supply agreement rather than a capital-intensive joint venture.

Asked by Mulesh

Competitive Landscape and STQC Readiness Direct
Even the biggest of the player has only like one indoor and one outdoor unit has come. So for another three months, there is no major player.

Highlights the massive first-mover advantage CP PLUS has due to regulatory compliance, as competitors are struggling with certification backlogs.

Asked by Mitul Shah

2 min read 5 chapters

Detailed narrative

Regulatory Shift Drives Market Consolidation

The implementation of STQC norms in April 2025 has fundamentally reset the Indian surveillance market. CP PLUS has emerged as the primary beneficiary, offering the most extensive certified portfolio while competitors face certification backlogs. This regulatory moat helped the company achieve a 31.4% market share in Q1 FY26, which management believes consolidated further in Q2 as Chinese brands were effectively 'elbowed out' of critical sectors.

Aggressive Backward Integration and Capacity Expansion

The company is rapidly localizing its supply chain to improve margins and ensure security. Manufacturing capacity reached 1.8 million units per month this quarter, with plans to hit 2 million by Q4 FY26. A new housing and moulding plant was kicked off this week, expected to be operational by mid-2026, while Lens and PTZ module manufacturing will begin in Q4 FY26. Management expects to localize over 50% of the Bill of Materials (BOM) value within 12-24 months.

Strategic Pivot to IP and High-Margin Products

Revenue growth is being driven by a structural shift from analog to IP cameras. IP products now account for nearly 70% of the CP PLUS portfolio, up from 65% in the previous quarter. This shift, combined with the CP PLUS brand's increasing share of total revenue (86% in Q2, targeting 90% in H2), is the primary driver behind the EBITDA margin expansion from mid-single digits to 12%.

Multi-Brand Strategy to Target 'Bharat'

To maximize market share, the company is launching two new brands: Eyra and Nexiview. Eyra is positioned as an alternative for partners currently using Chinese brands, while Nexiview targets the unorganized rural and interior markets. These brands are expected to begin impacting financials in the final quarter of FY26, allowing the core CP PLUS brand to focus on the premium and enterprise segments.

Semiconductor Collaboration with L&T

A significant long-term catalyst is the MOU with L&T Semiconductor Technologies to co-develop India's first IPC SoC (System on Chip) with Vision AI. The agreement involves the procurement of 9 million chips over three years. While the development cycle is roughly two years, management expects to roll out the first products by the end of the coming year, reducing reliance on global semiconductor giants from Taiwan and the US.

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