Skip to content

    CPPLUS

    CPPLUSStrong
    Capital Goods·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

    8

    • 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

    1

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

    What Changed3

    vs Q4 FY26

    Guidance items10 → 6 (-4)Risks discussed4 → 3 (-1)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    4
    • 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

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

    Segment breakdown

    CP PLUS Brand
    87% Revenue Contribution75% IP Product Mix
    Dahua Vertical
    ₹10 Cr Monthly Revenue₹150 Cr FY27 Revenue Target
    List

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Annual Revenue
    ₹3,900 - ₹4,100 crores
    		High
    Revenue
    Annual Revenue
    ₹5,350 - ₹5,550 crores
    		Medium
    Margin
    EBITDA Margin
    11% - 12%
    		High
    Margin
    EBITDA Margin
    12% - 13%
    		Medium
    Capacity
    Manufacturing Capacity
    2.1 million units per month
    		High
    Capex
    Annual Capex
    ₹100-150 crores
    		High

    Risks & concerns

    4
    RiskSeverity

    Global Supply Chain Challenges (SoC, Memory, Sensors)

    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

    high

    Inflationary Input Cost Pressure

    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

    medium

    New Certification Norms (ER and STQC)

    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

    low

    Areas of Evasion(1)

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

    Q&A highlights

    3

    “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

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.