Aditya Infotech Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Aditya Infotech (CP PLUS) delivered a stellar Q3 FY26, characterized by massive margin expansion and robust revenue growth. The company is successfully transitioning from a hardware-led model to AI-analytics driven solutions through a strategic partnership with Qualcomm. Management's confidence is reflected in a significant upward revision of FY26 guidance and an aggressive initial outlook for FY27, underpinned by market share gains and backward integration.

Highlights

  • Revenue grew 37.3% YoY to ₹1,139.1 crores, driven by strong demand for CP PLUS technology products.

  • EBITDA surged 98.7% YoY to ₹144.6 crores, with margins expanding 391 bps to 12.6%.

  • Adjusted PAT stood at ₹96 crores, up 138.8% YoY after accounting for a ₹7.7 crore one-time labor code provision.

  • CP PLUS brand market share rose to nearly 40% in Q2 FY26, with continued gains expected in Q3.

  • Management raised FY26 revenue guidance to ₹3,900-4,100 crores and EBITDA margin to 11-12%.

  • Initial FY27 guidance projects revenue of ₹5,350-5,550 crores (30-35% growth) and EBITDA margins of 12-13%.

  • Manufacturing capacity reached 1.9 million units/month in Q3, targeting 2.1 million by Q4 FY26.

  • IP products now constitute 75% of the CP PLUS portfolio, reflecting a shift toward high-value IT solutions.

Concerns

  • Global Supply Chain Challenges (SoC, Memory, Sensors)

Key financials

2 periods

Headline

  • Revenue
    ₹1,139.1 Cr
    YoY +37.3%
  • EBITDA
    ₹144.6 Cr
    YoY +98.7%
  • EBITDA Margin
    12.6%
  • Adjusted PAT
    ₹96 Cr
    YoY +138.8%

9M

  • Revenue
    ₹2,798.8 Cr
    YoY +31.1%
  • EBITDA Margin
    11.4%

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
    87% Revenue Contribution75% IP Product Mix
  • Dahua Vertical
    ₹10 Cr Monthly Revenue₹150 Cr FY27 Revenue Target

Guidance & targets

Revenue

  • Annual Revenue Revenue · FY26 · High confidence ₹3,900 - ₹4,100 crores
    On the revenue growth side, year-on-year the range will be INR3,900 crores to INR4,100 crores with the expectation closer to the higher slab.

    — Aditya Khemka, Managing Director

  • Annual Revenue Revenue · FY27 · Medium confidence ₹5,350 - ₹5,550 crores
    Consequently, our initial guidance for FY 2027 would be revenue between INR5,350 crores to INR5,550 crores, which is almost 30% to 35% growth over this coming year.

    — Aditya Khemka, Managing Director

Margin

  • EBITDA Margin Margin · FY26 · High confidence 11% - 12%
    The EBITDA margins we increase to 11% to 12% and PAT from 6% to 7% now to 7% to 7.5% in this year.

    — Aditya Khemka, Managing Director

  • EBITDA Margin Margin · FY27 · Medium confidence 12% - 13%
    The EBITDA margins a further raise to 12% to 13% and the PAT from 7.5% to 8.5%.

    — Aditya Khemka, Managing Director

Capacity

  • Manufacturing Capacity Capacity · Q4 FY26 · High confidence 2.1 million units per month

    From 1.9 million today

    We are on track to achieve a capacity of 2.1 million units by Q4 of FY26.

    — Aditya Khemka, Managing Director

Capex

  • Annual Capex Capex · FY26 · High confidence ₹100-150 crores
    So broadly on an annualized basis, we should be within the INR100-150 crores of guided capex range?

    — Anup Nair, President

Risks & concerns

  • Global Supply Chain Challenges (SoC, Memory, Sensors)

    high

    Shortages in DDR3/DDR4 and Flash memory are causing significant cost increases; management is mitigating this via multi-SoC sourcing and forward orders.

    Both acknowledged

  • Inflationary Input Cost Pressure

    medium

    Memory costs are 'going over the roof', necessitating double-digit price hikes which could potentially impact demand, though management believes the market will absorb them.

    Analyst acknowledged

  • New Certification Norms (ER and STQC)

    low

    While a barrier for smaller/Chinese players, it requires constant R&D and compliance effort from CP PLUS to maintain its 90%+ portfolio qualification.

    Management acknowledged

Areas of evasion (1)

  • Specific revenue targets for new brands EYRA and NEXIVUE were deemed 'too early' to comment on.

Q&A highlights

3 direct
Supply Chain Shortages and Pricing Strategy Direct
Whatever the input cost rise due to this, we are passing on without affecting our margin... it’ll be double-digit [price hike] because at the moment, the next 6-8 months rather, the memory and DDR are going over the roof.

Confirms management's ability to maintain margins despite severe inflationary pressure in the semiconductor/memory market.

Asked by Renu Baid, IIFL Capital

Market Share Gain Potential vs Peers Direct
We believe we are right now the only player who has the solid readiness with respect to all facets of business... we feel that in the next 6 to 12 months, our market share will continue to rise. Now to what percentage is early to say, but we are trying to hit the halfway mark.

Management is aggressively targeting a 50% market share, leveraging their superior preparation compared to smaller peers struggling with new certification norms.

Asked by Aniruddha Joshi, ICICI Securities

Dahua Revenue Contribution and Strategy Direct
Dahua Next year would be not even INR100 - 150 crores of our revenue. So, it’ll be just like a feeder thing, so it’s negligible. It doesn’t cross our mind also in our planning.

Clarifies that the company has successfully de-risked from Dahua, with the legacy business now representing a negligible portion of total revenue.

Asked by Dhruv Jain, Ambit Capital

2 min read 5 chapters

Detailed narrative

Guidance Upgrade and FY27 Outlook

Management significantly raised its FY26 guidance, now expecting revenue between ₹3,900-4,100 crores (up from previous estimates) and EBITDA margins of 11-12%. More impressively, they provided an initial FY27 revenue target of ₹5,350-5,550 crores, representing 30-35% YoY growth. This bullishness is supported by a 391 bps YoY expansion in Q3 EBITDA margins to 12.6%, driven by a favorable product mix and higher localization.

Strategic Pivot to AI and Software

A key theme of the call was the transition from a hardware-centric company to an AI-analytics driven solutions provider. The partnership with Qualcomm is central to this, aiming to bring edge-AI hardware to the mass market by H1 of the coming year. IP products already constitute 75% of the CP PLUS portfolio, and management expects this shift to higher-value solutions to continue driving margin expansion.

Supply Chain Resilience and Pricing Power

Despite 'crazy times' in the semiconductor market, CP PLUS has secured its supply chain by diversifying across multiple SoC manufacturers (Realtek, Novatek, Qualcomm, etc.) and placing orders three quarters in advance. Management demonstrated strong pricing power, passing on a 6-8% hike in January and planning further double-digit hikes to offset skyrocketing memory and DDR costs without impacting their own margins.

Manufacturing and Backward Integration

The company is aggressively expanding its domestic footprint, with capacity reaching 1.9 million units per month in Q3 and a target of 2.1 million by Q4 FY26. New initiatives include an enclosures plant in Kadapa (operational mid-2026) and a CCTV camera lens assembly line (production starting Q1 FY27). These moves are designed to deepen backward integration, improve cost competitiveness, and enhance supply-chain resilience.

Market Share Dominance and New Brands

CP PLUS has reached a market share of nearly 40% and is aiming for 50% in the next 6-12 months. To capture the unorganized and mass-market segments, the company is launching two new brands: NEXIVUE (Q4 FY26) and EYRA (Q1 FY27). Management believes their readiness for new government certification norms (ER/STQC) gives them a significant multi-quarter headway over competitors.

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