Aditya Infotech's margin slips after four-quarter climb
Revenue nearly doubled YoY, but faster sequential cost growth cut operating margin by 3.54 percentage points in Q1FY27.
Filed 12 Aug 2026, 18:17 IST · after market close · Aditya Infotech Ltd (CPPLUS)
Key takeaways
- Revenue grew +89.51% YoY while expenses rose +76.51%, lifting operating margin by 6.29 percentage points.
- Sequential momentum weakened as revenue fell -1.38% and expenses rose +2.87%, cutting operating margin by 3.54 percentage points.
- Net profit rose +332.48% YoY with a broadly unchanged tax rate and other income contributing only 2.16% of pre-tax profit.
Price around the results
Scale improved, but quarterly momentum softened
Aditya Infotech reported consolidated revenue growth of +89.51% YoY, while operating profit rose +234.30% and net profit increased +332.48%. The comparison reflects a sharp expansion from Q1FY26, when revenue growth lagged the current quarter's scale. Sequentially, revenue fell -1.38% and net profit declined -15.92%, pointing to a softer quarter after Q4FY26.
Costs reversed the margin trend
Expenses grew +2.87% QoQ despite the revenue decline, so operating margin narrowed by 3.54 percentage points. Management said input-cost inflation continues and that the company is monitoring it while passing increases to the market through monthly price rises. The current 14.52% operating margin was 0.32 percentage points above the 14.2% median for 121 Industrials peers that had reported the same quarter.
Q1 interrupts four-quarter margin improvement
Operating margin had risen each quarter from 8.23% in Q1FY26 to 11.80% in Q2FY26, 12.28% in Q3FY26 and 18.06% in Q4FY26; Q1FY27 therefore breaks that upward sequence. Year on year, costs grew more slowly than revenue, producing a 6.29-percentage-point margin expansion. The tax rate was nearly unchanged YoY, up 0.03 percentage points, while other income was only 2.16% of pre-tax profit, so the profit increase was not materially dependent on either factor.
Management keeps FY27 growth targets in view
Management guided FY27 revenue to Rs 6,000-6,500 cr and EBITDA margin to 14-15%, while estimating revenue growth of 40-50% or higher and EBITDA growth of 45-65% or higher YoY. The company said it is targeting mid and large enterprises through direct lead generation and account management. Management also said explosion-proof locks, door bells and industrial AMR products are being developed for launch by Q4.
Results were filed after market close
The consolidated results were filed after market close, so there is no reported market reaction yet. In the previous four result reactions, the stock rose three times and fell once, with a median absolute move of 10.00%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,402 cr | ₹1,422 cr | -1.38% | +89.51% |
| Other income | ₹4 cr | ₹2 cr | +158.49% | +2.49% |
| Expenses | ₹1,199 cr | ₹1,165 cr | +2.87% | +76.51% |
| Operating profit | ₹204 cr | ₹257 cr | -20.67% | +234.30% |
| Operating margin (%) | 14.52% | 18.06% | — | — |
| Interest | ₹4 cr | ₹8 cr | -43.95% | -59.03% |
| Depreciation | ₹13 cr | ₹23 cr | -43.47% | +24.03% |
| Profit before tax | ₹191 cr | ₹228 cr | -16.36% | +332.66% |
| Tax | ₹48 cr | ₹59 cr | -17.62% | +333.18% |
| Net profit | ₹142 cr | ₹169 cr | -15.92% | +332.48% |
| EPS (₹) | ₹12.07 | ₹14.37 | -16.01% | +303.68% |
Operating margin of 14.52% compares with a Industrials sector median of 14.20% across 121 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 revenue is guided at Rs. 6,000–6,500 crore.
- FY27 EBITDA margin is guided at 14–15%.
- FY27 revenue growth is estimated at 40–50% or higher year on year.
- FY27 EBITDA growth is estimated at 45–65% or higher year on year.
- FY27 PAT growth is estimated at 50–65% or higher year on year.
Expansion
- The Kadapa plant housing and enclosure is on track to be operational from the end of Q3FY26.
New products
- Explosion-proof locks, door bells and industrial AMR products are being developed for launch by Q4.
New initiatives
- The company is targeting mid and large enterprises through direct lead generation and account management.
Problems & risks
- Input cost inflation continues, and the company is monitoring it and passing it to the market through monthly price increases.
What to watch
- Whether operating margin holds above 14.52% after the 3.54-percentage-point QoQ decline.
- Whether monthly price increases offset the input-cost inflation flagged by management, with expenses up 2.87% QoQ.
- Progress against management's FY27 revenue guidance of Rs 6,000-6,500 cr and EBITDA-margin guidance of 14-15%.