Aditya Vision (540205) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 faced unprecedented weather challenges, including record rainfall and the coldest summer in over 60 years, leading to a sharp decline in demand for seasonal cooling products and industry-wide inventory buildup.

• Despite adverse conditions, revenue grew 6% year-over-year to INR 940 crore, demonstrating adaptability and operational resilience.

• EBITDA margin was maintained at 9.5%, and PAT increased by 4% to INR 55 crore, supported by disciplined cost control and proactive inventory management.

• Store expansion continued, with four new stores in Q1 and three more in July, bringing the total to 182 stores, with a target to surpass 200 stores by year-end.

Financial highlights

• Revenue for Q1 FY26 was INR 940.2 crore, up 5.8% year-over-year from INR 889 crore.

• Gross margin improved to 15.3% from 15.2% year-over-year.

• EBITDA stood at INR 89.7 crore, with a stable EBITDA margin of 9.5%.

• PAT reached INR 55.2 crore, a 3.9% increase over Q1 FY25.

• Diluted EPS was ₹4.27, up 4.1% year-over-year.

Outlook and guidance

• Optimism for upcoming quarters driven by expected economic growth, increased rural incomes, and government initiatives such as personal tax relief and free electricity in Bihar.

• Management expects positive same-store sales growth for the full year and remains confident in achieving 20%-25% annual sales growth, barring unforeseen events.

• Focus remains on expanding presence in Uttar Pradesh and potentially entering Chhattisgarh by Q4 FY26.

• Scaling premium and sunrise categories to enhance per-store economics.