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.

Aditya Infotech shareholders approved a final dividend of ₹1.64 per equity share and adopted the audited financial statements for FY25 at its 31st Annual General Meeting (AGM) held on August 4, 2026. While the resolutions for dividends and financial adoption passed with near-unanimous support, the appointment of Mr. Atul B. Lall as a Non-Executive and Non-Independent Director faced significant opposition from public institutional investors, who voted against the resolution at a rate of 27.24%. The meeting also saw the reappointment of Mr. Ananmay Khemka, who retires by rotation, with 97.86% overall support.

The AGM was conducted via video conferencing in compliance with the Companies Act, 2013, and SEBI regulations. A quorum of 74 members was present, comprising 11 promoters and 63 public shareholders. The total number of shareholders on the cut-off date of July 28, 2026, stood at 62,847. Voting was conducted through remote e-voting via National Securities Depository Limited (NSDL), with results scrutinized by Anuj Gupta & Associates.

Voting Results by Resolution

The Board placed four ordinary resolutions before the members. The voting patterns reveal distinct differences in shareholder sentiment regarding governance changes versus financial approvals.

Governance and Shareholder Sentiment

Promoter and Promoter Group shareholders, holding 88,044,563 shares, voted unanimously in favor of all four resolutions. However, Public Institutional shareholders, holding 22,803,226 shares, displayed selective dissent. While they supported the financial statements and dividend declaration with 100% approval, they voted against the reappointment of Ananmay Khemka (13.84% against) and strongly opposed the appointment of Atul B. Lall (27.24% against).

Public Non-Institutional shareholders largely aligned with the promoters, supporting all resolutions with over 99% approval rates across the board. The dissent from institutional investors highlights specific concerns regarding board composition changes, despite broad agreement on the company’s financial performance and dividend policy.

Audit and Compliance

Walker Chandiok & Co LLP served as the Statutory Auditors for FY25. The Company Secretary, Ms. Roshni Tandon, confirmed that there were no qualifications or adverse remarks in the Statutory Auditor’s Report or the Secretarial Audit Report conducted by Anuj Gupta & Associates. The Scrutinizer’s Report, dated August 5, 2026, verified the integrity of the e-voting process, noting that votes were unblocked in the presence of independent witnesses on August 4, 2026.

Management Address

Mr. Hari Shanker Khemka, Chairman and Whole-time Director, chaired the proceedings. Mr. Aditya Khemka, Managing Director, addressed shareholders on the company’s growth strategy and operational excellence following its successful IPO. He emphasized sustainable value creation amidst evolving market dynamics. Queries were addressed by management, including Mr. Anup Nair, Director - Strategy & Operations.