Summary
Aditya Infotech Limited - Q3 FY26 Earnings Call Summary Friday, February 13, 2026 4:00 PM IST
Event Participants
Executives 3 Aditya Khemka (Managing Director), Anup Nair (President – Strategy & Business Development), Yogesh Sharma (Chief Financial Officer)
Analysts 5 Aniruddha Joshi (ICICI Securities), Anuj Kashyap (A3 Capital), Dhruv Jain (Ambit Capital), Nikhil Kandoi (Axis Capital), Renu Baid (IIFL Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,139.1 crores | +37.3% YoY; Driven by strong demand for CP PLUS CTC products across retail, projects, and government. |
| EBITDA | ₹144.6 crores | +98.7% YoY; Growth fueled by favorable product mix, higher localization, and operating leverage. |
| EBITDA Margin | 12.6% | +391 bps YoY; Expansion attributed to shifting brand mix and backward integration. |
| Adjusted PAT | ₹96.0 crores | +138.8% YoY; Adjusted for ₹7.7 crore one-time provision for new labor codes. |
| Installed Capacity | 1.9 million units/month | +20% from previous peak; Company on track to reach 2.1 million units by Q4 FY26. |
| CP PLUS Brand Contribution | 87% | Primary revenue driver; 75% of CP PLUS portfolio now consists of high-value IP products. |
| Market Share | 39% | Recorded in Q2 FY26; Management expects continued gains in Q3 due to shift toward domestic certified brands. |
Geographic & Segment Commentary
- IP-Based Solutions: Continued decisive shift from HD analog to network IP-based solutions, which now comprise 75% of the CP PLUS portfolio. IP cameras offer 3x the ASP of analog, driving significant premiumization despite flat growth in the analog segment.
- Government & Infrastructure: High-growth phase identified in Railways and NHAI (National Highway Authority); railway tenders alone represent a ₹2,000–₹3,000 crore opportunity over two years. Management noted orders are already being billed in Q4 FY26.
- Consumer/Retail: CP PLUS maintains 40% market share; new brands EYRA and NEXIVUE launched to target mass-market and unorganized segments. NEXIVUE follows a city-based exclusive distribution model to counter small local brands.
Company-Specific & Strategic Commentary
- Backward Integration: Commenced construction of an enclosures plant in Kadapa (operational mid-2026) and a CCTV lens assembly line (operational Q1 FY27) with capacity scaling to 10 lakh lenses/month by year-end.
- Qualcomm Strategic Partnership: Collaboration to develop AI-enabled video security solutions for industrial and public safety applications. This marks a shift from hardware-led sales to high-margin AI analytics and SaaS models.
- Global R&D Expansion: Incorporated a wholly-owned subsidiary in Taiwan to leverage the local semiconductor ecosystem for SoC architecture and edge computing innovation.
- Joint Venture with Orient Cables: Signed MoU for captive manufacturing of coaxial and network cables to ensure supply assurance and cost efficiency.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue | ₹3,900 - ₹4,100 crores | Management expects to hit the higher end of the range due to robust execution. |
| FY27 Revenue | ₹5,350 - ₹5,550 crores | Represents 30-35% YoY growth based on bullish sentiment and capacity expansion. |
| FY27 EBITDA Margin | 12% - 13% | Reflects gains from backward integration and shift toward AI/IP products. |
| FY27 PAT Margin | 7.5% - 8.5% | Anticipated improvement in bottom-line efficiency as scale increases. |
Risks & Constraints
| Risk | Context |
|---|---|
| Supply Chain Shortages | Global shortages in SoC, memory (DDR/Flash), and sensors persist. Management is mitigating this via multi-SoC designs and forward orders/pre-payments 3 quarters in advance. |
| Input Cost Inflation | Sharp rise in Flash and memory costs (some components up 3x). Company implemented a 6-8% price hike in Jan 2026 and expects further double-digit hikes to protect margins. |
| Regulatory Compliance | Transition to new STQC/ER certification norms has restricted Chinese competitors. Maintaining high-speed certification for new models is critical for dominance in government/enterprise sectors. |
Q&A Highlights
Supply Chain & Pricing
- Question: What is the extent of supply shortages and the quantum of planned price hikes? (Renu Baid)
- Answer: Shortages are an opportunity to gain share as smaller players cannot secure supplies. Management has locked SoC/Flash orders 3 quarters ahead. A double-digit price hike is planned for the coming quarters as Flash costs are “going over the roof” (Aditya Khemka).
New Brand Strategy
- Question: What is the rationale and revenue target for NEXIVUE and EYRA? (Aniruddha Joshi)
- Answer: NEXIVUE offers city-based exclusivity for long-term partners, while EYRA targets the unorganized mass market to counter small private brands. Combined, they may contribute 7-10% of revenue over time (Aditya Khemka).
Growth Drivers
- Question: Which sectors will drive growth over the next 2-3 years? (Dhruv Jain)
- Answer: Massive growth is coming from Railways (₹2k-3k Cr opportunity), NHAI toll-to-free flow transitions, and the AI-enabled enterprise sector. Government mandates for school surveillance are also a steady driver (Aditya Khemka, Anup Nair).
Product Mix Shift
- Question: How will premiumization impact growth next year? (Dhruv Jain)
- Answer: Analog HD is going flat, but IP cameras (3-3.5x ASP of analog) are growing rapidly. Total unit growth is targeted at 20%, with the remainder of revenue growth coming from the shift to IP and price hikes (Aditya Khemka).
Key Takeaway
Aditya Infotech delivered a robust Q3 FY26 with revenue growing 37.3% YoY to ₹1,139.1 crores and EBITDA margins expanding significantly to 12.6%. The company is successfully navigating global semiconductor and memory shortages by leveraging its scale to lock in supplies while passing on double-digit price hikes to the market. Strategically, the firm is evolving from a hardware distributor to a vertically integrated technology player, evidenced by its new Taiwan R&D center, the Qualcomm AI partnership, and upcoming lens and enclosure plants. With the CP PLUS brand commanding a 39% market share and Chinese competitors sidelined by “trusted source” regulations, management raised FY26 guidance and issued a bullish FY27 revenue target of up to ₹5,550 crores. The primary watch-point remains the volatility in memory prices and the speed of AI-service adoption among enterprise clients. Aditya Infotech is positioned to maintain its market leadership through continued backward integration and premiumization.
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