Aditya Infotech (CPPLUS) Q1 25/26 earnings summary

Executive summary

• Achieved a milestone year with a successful IPO and listing on NSE and BSE in August 2025, raising INR 1,300 crore, and disclosed unaudited Q1 FY26 results post-listing.

• Transitioned from distribution to a leading consumer brand and manufacturer in security and surveillance, holding 20.8% market share in FY25 and remaining the largest provider of video security products in India.

• Strategic focus on R&D, backward integration, and expansion of manufacturing capacity, including new R&D centers in Ahmedabad and Taiwan.

• Acquired full ownership of AIL Dixon Technologies, consolidating manufacturing operations and recognizing an exceptional gain on fair valuation.

• The main business remains manufacturing/assembly and trading of security and surveillance equipment, with no other reportable segments.

Financial highlights

• Q1 FY26 consolidated revenue from operations grew 16.4% YoY to INR 740 crore (Rs. 7,400.37 million), with EBITDA up 47.5% YoY to INR 64.9 crore and PAT up 46.1% YoY to INR 32.9 crore.

• Gross profit margin improved to 22.7% from 16.9% YoY, and EBITDA margin rose to 8.7% from 6.9% YoY.

• EPS for Q1 FY26 was 2.99, up from 2.20 in Q1 FY25.

• Gross debt reduced by 89% to INR 48 crore post-IPO, enhancing profitability and financial flexibility.

• Final dividend of Rs. 1.64 per share for FY25 (total outgo Rs. 180 million) approved post quarter-end.

Outlook and guidance

• FY26 revenue expected in the range of INR 3,900–4,100 crore, targeting over 25% annual growth, outpacing industry CAGR of 16.5%.

• EBITDA margin guidance at 10–11%, PAT margin at 6–7%, with EBITDA growth of 50%+ and PAT growth of 75%+ YoY.

• CapEx of INR 200 crore planned over next two years for capacity expansion and backward integration.

• Targeting 20–25% CAGR over the next 3–5 years, with capacity expansion to support 60% revenue growth.

• Management remains confident in completing ongoing construction and development activities on leased land, with necessary regulatory extensions expected.