Aditya Infotech Limited — Q4 FY26 earnings call

Call held 28 May 2026

Management summary

Aditya Infotech (CPPLUS) reported a stellar Q4 and FY26, exceeding expectations with robust revenue and profit growth, driven by market share gains and operational efficiencies. The company strengthened its market leadership, expanded manufacturing capabilities, and forged strategic alliances for AI-enabled surveillance. Despite global supply chain disruptions and rising costs, management provided an optimistic FY27 guidance, projecting significant revenue and margin expansion, while acknowledging the need for careful working capital management.

Highlights

  • Strong Q4 FY26 revenue growth of 45.5% YoY, driven by demand across all segments.

  • Significant EBITDA margin expansion in Q4 FY26 by 800 bps to 18%, attributed to favorable product mix, localization, and operational efficiencies.

  • Market leadership strengthened, with market share reaching 45.4% in India's organized surveillance industry by Q3 FY26.

  • Strategic partnerships with Qualcomm and L&T Semiconductor Technologies to integrate AI and indigenous vision systems, respectively.

  • Ambitious FY27 guidance with revenue projected to grow 50% to INR6,000-6,500 crores, and EBITDA margin of 14-15%.

Concerns

  • Ongoing global semiconductor and memory industry disruption, supply-demand imbalances, and geopolitical uncertainties leading to rising procurement challenges.

  • Industry trends indicate costs are likely to continue rising until 2027, necessitating phased price increases.

  • Cash conversion cycle has slightly increased due to advance payments for chip and memory procurement, impacting working capital.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹1,422 Cr
    YoY +45.5%
  • EBITDA
    ₹258.3 Cr
    YoY +162%
  • EBITDA Margin
    18%
  • Adjusted PAT
    ₹169.1 Cr
    YoY +207.7%

FY26

  • Revenue
    ₹4,220.8 Cr
    YoY +35.6%
  • EBITDA
    ₹579 Cr
    YoY +124.1%
  • EBITDA Margin
    13.7%
  • Adjusted PAT
    ₹368 Cr
    YoY +166.1%

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.

Order book

low confidence
The company does not report a traditional order book in INR crores, focusing instead on market share, manufacturing capacity, and sales growth targets for its products.

Source: Inferred

Capital allocation

high confidence
  • Capex ₹200 Cr Raised — upping guidance and new expansions · largely from internal accruals or some debt
    • Manufacturing facility in Rajasthan (1 lakh sq ft)
    • Housing plant development (Phase-1 & Phase-2)
    • Lens assembly line (initial 5 lakh lenses/month capacity)
    • Additional land parcel and shed (50,000 sq ft) at Kadapa
    • New facility in Noida (3 lakh sq ft)
    We had planned for INR200 crores odd plus minus few numbers, but I think as we are upping the guidance, we feel we might require a little more. Plans are being worked upon compared to the new expansions that we have planning, but I think it will fall in that range of INR 200 to 300 crores kind of thing and we will largely be funding it from internal accruals or some debt maybe say, for the plant and machinery.
  • Debt Debt disclosed
    • Repayment Debt repayment from IPO proceeds led to 27.8% reduction in finance cost.
    Adjusted PAT rose to INR368 crores, reflecting 166.1% year-on-year growth, aided by disciplined cost management and a 27.8% reduction in finance cost following debt repayment from IPO proceeds.
  • Dividend ₹1.6/share (interim)
    We have announced a dividend of INR1.6 per equity share on equity shares of face value of INR1 each.
  • M&A Orient Cables Joint venture · Signed

    Backward integration strategy for LAN and CCTV cable manufacturing.

    As part of our backward integration strategy, we entered into a joint venture agreement with Orient Cables for LAN and CCTV cable manufacturing.
  • Liquidity Liquidity disclosed Company follows a prudent and value-oriented capital allocation approach, deploying available funds through capex and selective inorganic growth opportunities.
    On the utilization of cash, the company continues to follow a prudent and value-oriented capital allocation approach.

Guidance & targets

Market Growth

  • CCTV Market Unit Growth Market Growth · upcoming year · High confidence 15-16%
    The CCTV market is expected to show robust growth in terms of units in the range of 15% to 16%.

    — Aditya Khemka

Company Growth

  • Company Unit Growth Company Growth · upcoming year · High confidence 25-30%
    We intend to surpass the industry growth rate and aim to grow in the range of 25% to 30% in the coming year.

    — Aditya Khemka

Pricing

  • Average Per Unit Camera Recovery Rise Pricing · upcoming year · High confidence 20-25%
    With the continued price rise in the market ASP and the shift in the product mix, the average per unit camera recovery is expected to rise by 20% to 25%.

    — Aditya Khemka

  • Price Hike Pricing · January 2026 · High confidence 6-8%
    We announced a price hike of 6% to 8% in January 2026, and further price rise is expected to keep continuing in this financial year.

    — Aditya Khemka

  • Price Hike Frequency Pricing · ongoing · High confidence monthly
    So, we're doing monthly price rise of few basis points every month. So, this is helping us & the market is not getting a sudden shock and each month in this quarter also and maybe in the coming quarter we will see a price rise happening.

    — Aditya Khemka

Revenue

  • Revenue Revenue · FY27 · High confidence INR6,000-6,500 crores
    we would like to set the tone for the upcoming financial year by upping our initial guidance for FY 2027, on the revenue side to INR6,000 crores to INR6,500 crores, which is almost 50% growth over the last year

    — Aditya Khemka

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 14-15%
    EBITDA margin to 14% to 15%

    — Aditya Khemka

  • PAT Margin Profitability · FY27 · High confidence 8.5-9.5%
    and PAT around 8.5% to 9.5%.

    — Aditya Khemka

Capacity

  • Production Capacity Expansion Capacity · FY28 · High confidence 2x existing capacity
    Looking ahead to FY28, our vision is to expand overall production capacity to 2x of the existing capacity

    — Aditya Khemka

Margins

  • EBITDA Margin New Normal Margins · FY27, FY28 · High confidence 14-15%
    But I think 14%-15% should be the new normal FY27, FY28 as we move forward.

    — Aditya Khemka

What to watch in Q1 FY27

Rajasthan Manufacturing Facility Commercial Operations

Q2-Q3 FY27
Current Under construction
Target Commercial operations commence

Why it matters

Indicates progress on capacity expansion and backward integration, crucial for long-term growth and efficiency.

We plan to set up a manufacturing facility in Rajasthan which will span approximately 1 lakh square feet, with commercial operations expected to commence between Quarter 2 and Quarter 3 FY 2027.

Risks & concerns

  • Global Semiconductor and Memory Industry Disruption

    high

    Ongoing supply-demand imbalances, geopolitical uncertainties, and manufacturing constraints impacting critical components like SoC, DDR, flash, and sensors.

    Management acknowledged

  • Rising Procurement Costs

    high

    US dollar remaining high, increasing landed cost of imported electronic components and raw materials; geopolitical tensions raising global insurance and freight costs.

    Management acknowledged

  • Time Lag in Price Transmission

    medium

    While costs are rising and prices are being increased, there is an inherent time lag in passing on these increased costs to customers, affecting profitability growth.

    Management acknowledged

  • Competition

    medium

    Company is cognizant of possible competition coming in, but believes its scale, supply chain, and R&D provide a strong position.

    Management acknowledged

Q&A highlights

7 direct
Gross Margin Sustainability and Drivers Direct
So, it's been a combination of stuff. Like you said, we took a price rise in Q4 and we had of course low-cost inventory that was lying with us. And like we had mentioned in our earlier calls also, the projects SKUs, got STQC certified in H2. So, the more high-end SKUs started coming in the Q3 and Q4. So, it's been a combination of all the factors that you said: low-cost inventory which was there with us, price rise in Q4, as well as the SKU mix that has happened.

Clarifies the multiple factors contributing to the significant Q4 gross margin expansion, including one-time benefits and structural shifts.

Asked by Ankur Sharma

Memory and SoC Supply Security Direct
But any situation where there is a demand-supply imbalance, I have seen and we are seeing in our industry even now that, the big get bigger and the smaller tail is the largely affected one. And that's what is happening here also. We are actually with the strong purchasing power that we have, the volume we have, and the relationships we have with all these guys, are securing our supplies much ahead of, as I said, competition.

Highlights the company's competitive advantage in securing critical components amidst global shortages due to its scale and relationships, potentially leading to market share gains.

Asked by Ankur Sharma

Market Share Targets and Competition Partial
And just to add, we are not targeting any specific market share, but like we called out, we plan to outgrow the industry growth rate. So of course, there will be a market share gains. But that will happen naturally and we are focused on more building our capacities and ensuring supply, but we are not targeting any specific numbers in terms of market share, but that will happen automatically.

Indicates a strategy of organic growth through capacity building and supply assurance, expecting market share gains as a natural outcome rather than a direct target.

Asked by Ankur Sharma

Benefits of Backward Integration Initiatives Direct
So, Dhruv, I think valid point. we are right now, investing heavily. So, in terms of housing enclosures right now is third-party supply chain. With our own plant coming in, of course there will be, some addition to the bottom line. I can't peg exact overall basis points, but I'm sure there will be enough contribution on the housing cost itself. So does the cable, because same we are right now sourcing third-party or importing. Once we make in-house, and the two things or rather three things we achieve, when we do this localization in-house: one is quality consistency, second is supply consistency, third is contribution to the EBITDA basis points.

Explains the multi-faceted benefits of backward integration (housing, cables, lenses) beyond just cost savings, including quality and supply consistency, which are critical in the current environment.

Asked by Dhruv Jain

Confidence in Market Demand Despite Inflation Direct
So again, very good question, Dhruv. So, I think, see we were expecting a high pent-up demand in this year post the transition last year because we believe last year the growth wasn't that great in terms of market. We as company grew our market share, but the overall market consumption was muted because of the transition which happened from the pre-STQC to the post-STQC era. This year we were expecting a much higher market growth, because of the shift of the last year's pent-up demand coming in this year.

Provides context for the company's growth expectations, citing pent-up demand from the previous year's STQC transition and a nuanced view on how ASP increases will affect different market segments.

Asked by Dhruv Jain

Working Capital Impact from Advance Payments Direct
Yes. So, Nikhil you're right. We have been razor-focused on our operational efficiencies and we have improved on our inventory levels and the debtors have also improved gradually. But yes, the cash conversion cycle has slightly increased and like you rightly pointed out, that has mainly got to do with us, having to procure the chips and memory, some of it, we are blocking and we are having to make some possibly advance payments.

Acknowledges the increase in cash conversion cycle due to strategic advance payments for critical components, highlighting a trade-off between supply security and working capital efficiency.

Asked by Nikhil Kale

AI-enabled Cameras and Service Component Direct
So Anuj, let me explain. See basically the industry started as just a viewing, then it went into recording, then it went into intelligence a little bit of video analytics, which is already part of our current systems that we offer. Moving forward, you know, more and more video analytics and AI will come in. And let's say, whether you are in a hospital or an educational institute or a building, now in that the guys need a report, what immediate triggers, action call to actions. And camera is the sensing device which can capture the metadata, the AI on the other device can trigger the process, the data, trigger an action. And similarly call to actions can happen or a report can be generated.

Outlines the company's vision for the evolution of surveillance from basic viewing to AI-powered intelligent ecosystems, including the potential for new service-based revenue streams like cloud backup and SaaS models.

Asked by Anuj Kashyap

New Brands (Nexivue and Eyra) Certification and Market Entry Direct
Nexivue is already certified for the first set of products and more are underway. We've already started shipping those products in the markets from last month, April. This is end of April we started shipping post certification and this month more products are getting produced and launched. And as we now progress month-on-month, more certifications will happen and more, you know, volume will keep growing. Eyra, due to the supply chain disruption, some reworking in the R&D had to happen. So hopefully, we'll get certified in another two months and next quarter that may go to market.

Provides an update on the progress and market entry of new brands, indicating diversification and future growth avenues, while also acknowledging delays for one brand due to supply chain issues.

Asked by Vedanta Bhadania

2 min read 6 chapters

Detailed narrative

Market Leadership and Localization Strategy

Aditya Infotech significantly strengthened its market leadership, expanding its market share to approximately 45.4% in India's organized surveillance industry by Q3 FY26, surpassing initial IPO projections. This was driven by a robust localization strategy and STQC implementation, enabling the company to exceed expectations amidst industry transformation. The CP PLUS brand contributed 86% of overall AIL revenue, with IP products making up 73% of its portfolio, indicating a sustained shift towards higher-value solutions.

Strategic Partnerships and R&D Expansion

The company forged strategic alliances, including a partnership with Qualcomm Technologies to develop AI-enabled video security solutions, and with L&T Semiconductor Technologies for the supply of 9 million next-generation CCTV IP cameras over three years. These collaborations aim to integrate advanced technologies and build India's indigenous semiconductor ecosystem. R&D capabilities are expanding with new centers in Bangalore and Taiwan, scaling teams with global talent to enhance innovation.

Manufacturing Capacity Expansion and Backward Integration

Aditya Infotech is aggressively expanding its manufacturing footprint, with current capacity reaching 2.5 million units. Plans include setting up a 1 lakh sq ft facility in Rajasthan, operational by Q2-Q3 FY27, and a 3 lakh sq ft facility in Noida by Q4 FY27. The housing plant development is on track for Phase-1 by Q2 FY27 and Phase-2 by Q4 FY27, targeting 30 million units annually. A new lens assembly line with 5 lakh lenses per month capacity is also being commissioned, and a joint venture with Orient Cables for LAN and CCTV cable manufacturing has been established as part of backward integration.

Strong Financial Performance in FY26

For Q4 FY26, revenue grew 45.5% YoY to INR1,422 crores, with EBITDA increasing 162% YoY to INR258.3 crores, and margins improving by 800 bps to 18%. Adjusted PAT rose 207.7% YoY to INR169.1 crores. For the full year FY26, revenue grew 35.6% YoY to INR4,220.8 crores, EBITDA increased 124.1% to INR579 crores (13.7% margin), and Adjusted PAT grew 166.1% to INR368 crores, aided by disciplined cost management and a 27.8% reduction in finance cost post-IPO.

FY27 Guidance and Market Outlook

The company has upped its FY27 guidance, projecting revenue of INR6,000-6,500 crores (approximately 50% growth over FY26), an EBITDA margin of 14-15%, and a PAT margin of 8.5-9.5%. The CCTV market is expected to grow 15-16% in units, with the company aiming for 25-30% unit growth. Average per-unit camera recovery is anticipated to rise by 20-25% due to ASP increases and product mix shifts. Management believes 14-15% EBITDA margin will be the new normal for FY27-FY28.

Managing Supply Chain and Cost Inflation

Aditya Infotech is navigating significant disruptions in the global semiconductor and memory industry, along with rising procurement and freight costs. To mitigate risks, the company adopted a multi-SoC product strategy and diversified procurement. Price increases of 6-8% were implemented in January 2026, with further gradual monthly price adjustments planned to avoid market shock. While this impacts working capital due to advance payments, the focus remains on supply continuity and long-term sustainability.

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