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    Aditya Infotech Limited

    CPPLUS
    Capital Goods·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

    5

    • 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

    3

    • 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

    Metrics

    8

    Periods

    2

    Q4 FY26

    4
    • Revenue
      ₹1,422 Cr
      YoY+45.5%
    • EBITDA
      ₹258.3 Cr
      YoY+1.6%
    • EBITDA Margin
      18%
    • Adjusted PAT
      ₹169.1 Cr
      YoY+2.1%

    FY26

    4
    • Revenue
      ₹4,220.8 Cr
      YoY+35.6%
    • EBITDA
      ₹579 Cr
      YoY+124.1%
    • EBITDA Margin
      13.7%
    • Adjusted PAT
      ₹368 Cr
      YoY+1.7%

    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

    5
    high confidence
    CategoryHeadline
    Capex

    ₹200 crores

    raised — upping guidance and new expansions · largely from internal accruals or some debt

    Debt

    Debt disclosed

    Dividend

    ₹1.6/share (interim)

    M&A

    Orient Cables

    joint venture · signed

    Liquidity

    Liquidity disclosed

    Company follows a prudent and value-oriented capital allocation approach, deploying available funds through capex and selective inorganic growth opportunities.

    Guidance & targets

    10
    CategoryTargetPriority
    Market Growth
    CCTV Market Unit Growth
    15-16%
    		High
    Company Growth
    Company Unit Growth
    25-30%
    		High
    Pricing
    Average Per Unit Camera Recovery Rise
    20-25%
    		High
    Pricing
    Price Hike
    6-8%
    		High
    Pricing
    Price Hike Frequency
    monthly
    		High
    Revenue
    Revenue
    INR6,000-6,500 crores
    		High
    Profitability
    EBITDA Margin
    14-15%
    		High
    Profitability
    PAT Margin
    8.5-9.5%
    		High
    Capacity
    Production Capacity Expansion
    2x existing capacity
    		High
    Margins
    EBITDA Margin New Normal
    14-15%
    		High

    What to watch in Q1 FY27

    5

    Rajasthan Manufacturing Facility Commercial Operations

    Q2-Q3 FY27
    CurrentUnder construction
    TargetCommercial 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

    4
    RiskSeverity

    Global Semiconductor and Memory Industry Disruption

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

    high

    Rising Procurement Costs

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

    high

    Time Lag in Price Transmission

    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

    medium

    Competition

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

    medium

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    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.