Aditya Vision (540205) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue increased 6% year-over-year to INR 940 crore despite the coldest summer in over 60 years, impacting demand for cooling products in Bihar, Jharkhand, and UP, with industry-wide declines of 15%-30%.

• PAT grew 4% year-over-year to INR 55 crore, reflecting disciplined cost control and resilience amid muted seasonal demand.

• EBITDA margin was maintained at 9.5%, and gross margin improved to 15.3%.

• Retail footprint expanded to 179 stores, with four new stores in Q1 and three more in July, aiming to surpass 200 stores in FY26.

• Inventory was proactively managed, reducing by INR 150 crore, and short-term borrowings declined sharply.

Financial highlights

• Q1 FY26 revenue: INR 940.2 crore, up 5.8% year-over-year from INR 889 crore.

• Gross profit: INR 144.2 crore, up 6.6% year-over-year; gross margin at 15.3%.

• EBITDA: INR 89.7 crore, margin stable at 9.5%.

• PAT: INR 55.2 crore, up 3.9% year-over-year; PAT margin at 5.9%.

• Diluted EPS: INR 4.27, up 4.1% year-over-year.

• Same-store sales growth was -4% for Q1 FY26.

• Sequential revenue growth of 93.2% from Q4 FY24; net profit up 245.2% sequentially.

Outlook and guidance

• Optimism for upcoming quarters driven by expected economic growth, rural income rise, public CapEx, and consumer confidence.

• Anticipates strong festive season demand due to government schemes and tax relief.

• Confident of positive same-store sales growth for the full year and maintaining 20%-25% sales growth guidance, barring unforeseen events.

• Focused on cluster-based expansion in the Hindi heartland, aiming to cross 200 stores in FY26.

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