Aditya Vision (540205) Q2 26/27 earnings summary

Executive summary

• Record Q2 revenue rose 28.1% YoY to INR 586.23 crore and PAT grew 45.2% to INR 18.47 crore; H1 revenue increased 27.3% to INR 1,778.91 crore.

• H1 SSSG rebounded to 18% from 2% in H1 FY26, exceeding the long-term 20%-25% revenue-growth aspiration; the network reached 214 stores across six states.

Financial highlights

• Q2 gross profit rose 38.8% to INR 95.59 crore, with gross margin up 125 bps to 16.3%; EBITDA increased 31.6% to INR 45.65 crore and margin rose 21 bps to 7.8%.

• Q2 PBT was INR 22.26 crore, up 45.3%; PAT margin improved 37 bps to 3.2%.

• H1 gross profit rose 34.9% to INR 287.42 crore and EBITDA increased 36.8% to INR 170.13 crore; margins expanded 91 bps to 16.2% and 66 bps to 9.6%, respectively.

• H1 PBT was INR 127 crore, up 41.1%; net profit rose 41.0% to INR 95.69 crore and PAT margin improved 52 bps to 5.4%.

• H1 diluted EPS was ₹7.41, up 41.1% YoY.

Outlook and guidance

• Normal gross margin guidance remains 15%-15.5% at constant prices; ~50-80 bps of Q2 margin expansion came from price increases, with the balance from normal trading.

• Annual EBITDA margin guidance remains 8%-10%; price-hike benefits are expected to moderate, while mature-store gains broadly offset new-store dilution.

• Store targets are 230-235 by FY27-end and ~270 next year, including ~35 additions; new stores typically break even in 6-12 months, with profitability maturing over three years.

• October sales were slow but picking up; management expected demand to strengthen nearer Dhanteras and Diwali.