Aditya Infotech Ltd (CPPLUS) Q1 FY27 Earnings Call: Guides Rs. 6,000-6,500 Cr Revenue, Market Share Hits 43%

Aditya Infotech Ltd held its Q1 FY27 earnings call on August 12, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue surges 89.5% YoY; margins expand sharply

• Revenue Rs.1,402 Cr in Q1 FY 2026-2027, up 89.5% YoY; IP products represented 79% of the CP+ portfolio.
• EBITDA Rs.208 Cr, up 20% YoY; margin of 14.8% improved 604 bps YoY, within the FY 2026-2027 guidance range of 14-15%.
• Adjusted PAT Rs.142.2 Cr, up 332.5% YoY; finance cost declined 59% YoY to a debt-to-equity ratio of 0.07.
• Gross margin 30.8%, up 8 bps YoY; CP Plus brand contributed 87% of total revenue.
• Cash conversion cycle improved to 64 days; IPO listed Aug 5, 2025 at a significant premium, with market cap ~ Rs.45,000 Cr.
• Other expenses rose to Rs.1,170 Cr from Rs.950 Cr, attributed to seasonality (marketing at 30-32% of full-year run rate, IPL costs) and inflation — no material aberration per management.

43% market share; manufacturing footprint set to double

• Market share of 43.3% in the Indian video surveillance industry in FY 2026-2027, per a Frost & Sullivan report; management highlighted "43% market share in the CCTV category" as of Q1 FY 2026-2027.
• Current capacity 2.5 million units/month at 85-90% utilization as of early FY 2026-2027; Kadapa facility is the foundation, with a second cluster planned in Greater Noida.
• Capacity target of ~5 million units/month by approximately FY 2029-2030, nearly doubling over three years; adding 3 FA lines and 1 MI line in August 2026 (total 42 FA, 4 MI, 12 SMT lines by end of August 2026).
• New corporate office and R&D center inaugurated Aug 2, 2026; three operational R&D centers (Noida, Ahmedabad, Taiwan) with a Bengaluru center opening shortly.
• Joint venture Corelink Cable Technology set up with Orient Cables for LAN and CCTV coaxial cables; commercial production targeted by end of FY 2026-2027; cable business accounts for less than 5% of overall revenue.
• Export initiative remains a longer-term play — the enterprise CP Plus portfolio will first be field-tested in India before pivoting to exports, with significant export revenue expected only in the next 18-24 months.

Price hikes of 10-20% taken; backward integration to add basis points

• Price hikes of 10-20% implemented across product categories in Q1 FY 2026-2027; further gradual increases planned in Q3 and Q4 of FY 2026-2027 to avoid demand shock — no material consumption impact seen yet.
• Cumulative price increases of 15-20% expected by end of H1 FY 2026-2027, with full-year guidance of ~25% for FY 2026-2027, reviewed month-on-month.
• EBITDA guidance of 14-15% for FY 2026-2027 reiterated; Q1 FY 2026-2027 actual of 14.8% sits within the range; management stated it "internally aims to overachieve guidance."
• Backward integration (enclosures, cables, connectors, lenses, bare PCBs) expected to add a "couple of basis points" to margins; scaled in-house manufacturing kicking off in Q3-Q4 FY 2026-2027.
• Other levers for margin improvement cited: technology tie-ups, higher own-brand/IP camera revenue share, and price hikes; management deferred further comment until H1 FY 2026-2027 results.

Enterprise Pro series and home IoT to launch in H2; drone cameras in FY 2027-2028

• CP Plus Pro series (high-end enterprise/government, competing with global brands) and home IoT smart products (door phones, doorbells, door locks) to go live by end of Q3/beginning of Q4 FY 2026-2027.
• Industrial automation categories — machine vision cameras, drone gimbal cameras, and autonomous mobile robots (AMRs) — targeted for launch by Q4 FY 2026-2027; drone gimbal cameras specifically targeted for FY 2027-2028.
• R&D treated as strategic investment, not budgeted as a percentage of revenue; management considers it a moat and funds whatever is needed.
• Analyst-estimated TAM of Rs.5,000-10,000 Cr for new categories; management responded "I hope so" but called the areas "good adjacencies" and declined to quantify size for the current fiscal.
• AGVs, industrial/home robots, and drone cameras remain at exploratory stage; enterprise portfolio intended for export but will first be field-tested domestically.

55-60% import content; domestic sourcing target of ~40% by Q3 FY 2026-2027

• 35% of BOM is semiconductor components sourced from Taiwan (non-Chinese, compliant with Indian law); 15-20% is passive electronics from Taiwan and China; total import content ~ 55-60%.
• Domestic sourcing target of ~40% by Q3 FY 2026-2027, driven by lens, cable, and enclosure localization; a trial automatic line for lenses is being set up, with a fully automated plant under parallel evaluation.
• Chip localization dependent on India fab development; management confirmed it is working with Indian design firms on India-based chips.
• Currency hedging policy: 85-100% forex cover maintained historically; current cover at 90%+ levels, reviewed by the board and adjusted weekly, covering receivables and creditors.
• Supply chain strategy covers SoC and memory chip sourcing via rolling forecasts 3-4 quarters ahead; management stated it is "pretty comfortable" with its sourcing strategy despite persistent global supply-side constraints and price hikes.
• Total revenue guidance of Rs.60-65 billion (Rs.6,000-6,500 Cr) for FY 2026-2027; the JV cable business contributes less than 5% of overall revenue.

STQC norm reshapes market; management sees no policy reversal on Chinese firms

• Government's STQC norm (April 2025) banned Chinese semiconductors and memory in CCTV products; old inventory clearance was allowed until March 2026, after which sale of non-compliant inventory was prohibited — management noted "the market has transitioned over 1.5 years, with 40+ certified brands now selling compliant products."
• 40+ empanelled brands compete in the certified market; management remains comfortable with its 43% market share and execution plans, citing multiple moats (brand, distribution, manufacturing scale, R&D, management depth).
• CCTV designated a priority sector by the government; management stated it "sees no deviation from current policies that might allow Chinese firms back into the Indian market."
• No impact from the Middle East crisis on raw material procurement or supply chain; only minor forex impact, which is hedged.
• Supply-side price increases are passed through with a time delay; management reiterated its FY 2026-2027 margin guidance and confirmed it internally aims to overachieve.