Aditya Infotech has moved to raise capital by approving a fund raise of up to ₹1,500 crore through the issuance of equity shares. The board of directors authorized the move during a meeting held on August 19, 2026, opting for flexibility in execution by allowing the funds to be raised via a qualified institutional placement (QIP), a public issue, or a combination of both methods permitted under applicable laws.

The decision signals a strategic push to bolster its balance sheet, with the specific mode of issuance to be determined based on market conditions and regulatory approvals. The company noted that the issuance may occur in one or more tranches, providing management with the discretion to time the market entry effectively. This corporate action is subject to shareholder approval and other necessary regulatory clearances.

Board actions and governance

In addition to approving the fundraising mechanism, the board took several ancillary steps to facilitate the process:

• Constituted a committee of directors to manage all matters related to the proposed fund raise in its absolute discretion.
• Approved seeking shareholder consent through a postal ballot, with the notice to be submitted to stock exchanges in due course.
• Authorized necessary actions to comply with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The board meeting commenced at 3:00 am and concluded at 3:12 pm. Roshni Tandon, Company Secretary and Compliance Officer, signed the disclosure filed with the National Stock Exchange of India Limited and BSE Limited.

What the numbers show

The proposed aggregate amount of ₹1,500 crore represents a significant capital injection for the firm. By structuring the raise as equity rather than debt, Aditya Infotech aims to strengthen its financial position without increasing leverage obligations. The inclusion of a premium in the valuation, if fixed, suggests an expectation of value creation for existing shareholders, though dilution risks remain contingent on the final issue price and number of shares issued.

The company disclosed that the details are provided pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No preferential allotment, bonus issue, or depository receipt issuance was indicated in this filing.

Aditya Infotech reported a robust start to FY27, with revenue rising 89.5% year-on-year to ₹1,402 crore in the quarter ended June 30, 2026. The growth was primarily driven by the CP PLUS brand, which accounted for approximately 87% of the company’s total revenue. Adjusted profit after tax (PAT) increased sharply by 332.5% to ₹142.2 crore, reflecting improved cost efficiencies and a significant reduction in finance costs.

Financial Performance Highlights

The company demonstrated strong operating leverage during the period. While revenue grew nearly 90%, EBITDA expanded by 20% to ₹208 crore, resulting in an EBITDA margin expansion of 604 basis points to 14.8%. This improvement was attributed to a favorable product and brand mix, alongside better operational efficiencies. Gross margins also widened by 810 basis points year-on-year to 30.8%, although management noted a slight moderation from the previous quarter due to the exhaustion of lower-cost inventory.

Brand and Product Mix

The CP PLUS brand continues to be the primary growth engine, contributing 87% of overall revenue. Within this portfolio, IP products accounted for nearly 79%, signaling increasing adoption of higher-value, intelligent AI surveillance solutions. The company maintains a market share of 43.3% in the Indian video surveillance industry for FY26, according to a Frost & Sullivan report.

Strategic Initiatives and Expansion

Management highlighted several strategic developments aimed at sustaining long-term growth. The company inaugurated a new corporate office and R&D center in August 2026, adding to its existing facilities in Noida, Ahmedabad, and Taiwan. A fourth R&D center is planned for Bengaluru.

Manufacturing capacity remains a key focus. The current facility supports approximately 2.5 million units per month, with utilization rates between 85% and 90%. To meet future demand, Aditya Infotech is advancing its Kadapa greenfield expansion, expected to become operational in Q3FY27, and has identified land for a second manufacturing cluster in Greater Noida. Additionally, the company incorporated Corelink Cable Technology Private Limited, a joint venture with Orient Cables, to manufacture network LAN and CCTV coaxial cables in Rajasthan. Commercial production at this facility is targeted for the end of FY27.

What the Numbers Show

The divergence between revenue growth (89.5%) and EBITDA growth (20%) indicates that while top-line momentum is strong, cost pressures—particularly in semiconductor components—are impacting operating profits. However, the expansion in EBITDA margin from 11.05% in Q1FY26 to 14.8% in Q1FY27 demonstrates that the company is successfully passing on some cost increases through price hikes, which management stated ranged between 10% and 20% across product categories. The sharp rise in PAT (332.5%) relative to EBITDA growth was largely driven by a 59% reduction in finance costs, highlighting improved capital efficiency rather than just operational scaling.

Outlook and Guidance

Management reaffirmed its full-year guidance of 14% to 15% EBITDA margin for FY27. The company is exploring new product categories, including machine vision cameras, drone camera modules, and home IoT products like video door phones. These initiatives are part of a broader strategy to expand into enterprise and government segments through its upcoming CP PLUS Pro series. Supply chain resilience remains a priority, with the company hedging 85% to 90% of its forex exposure weekly to mitigate currency volatility.