Aditya Infotech margin rebounds as Q2 revenue nearly doubles YoY
Revenue growth outpaced costs, but negative other income cut into pre-tax profit; management also raised FY27 revenue guidance to Rs 6,500–6,800 cr.
Filed 05 Nov 2026, 18:17 IST · after market close · Aditya Infotech Ltd (CPPLUS)
Key takeaways
- Consolidated revenue rose 89.86% YoY while expenses grew 77.89%, lifting operating margin by 5.56 percentage points to 17.36%.
- Net profit increased 165.13% YoY to Rs 185.51 cr despite negative other income equal to -12.09% of pre-tax profit.
- Management raised FY27 revenue guidance to Rs 6,500–6,800 cr while maintaining EBITDA margin guidance at 14–15%.
Price around the results
Revenue growth created operating leverage
Aditya Infotech reported consolidated revenue growth of 89.86% YoY and 24.50% QoQ in Q2FY27. Expenses grew more slowly, at 77.89% YoY and 20.37% QoQ, which drove operating profit growth of 179.28% YoY and 48.79% QoQ. Net profit rose 165.13% YoY to Rs 185.51 cr, even as depreciation increased 39.32% YoY and interest declined 13.87%.
Margin recovery came despite component inflation
Operating margin expanded by 5.56 percentage points YoY and 2.84 percentage points QoQ to 17.36%, as costs grew slower than revenue. Management said SoC, DDR and flash cost inflation is pressuring margins and that the company is absorbing part of it to gain market share. Negative other income of Rs 30.45 cr reduced pre-tax profit and represented -12.09% of it; the tax rate also increased by 1.17 percentage points YoY and 0.94 percentage points QoQ, so the profit growth was not aided by a lower tax rate.
Margin recovered from Q1 and stayed above the sector median
The margin trend has improved from 8.23% in Q1FY26 to 11.80%, 12.28%, 18.06%, 14.52% and 17.36% in the following quarters, making Q2 a recovery from Q1 rather than a continuation of the prior quarter's decline. Aditya Infotech's margin was 5.85 percentage points above the 11.51% median for the 164 Industrials peers that had reported the same quarter. Management said H1 growth benefited from a low base because STQC certification backlogs had restricted supply in H1FY26, and expects H2 growth to moderate.
Management raised growth guidance while absorbing costs
Management raised FY27 revenue guidance to Rs 6,500–6,800 cr, implying 54–61% growth, and said its India video-surveillance market-share guidance is 43–45% for FY27E. It maintained EBITDA margin guidance at 14–15% and raised PAT margin guidance to 9–10%, while saying it would moderate price increases and absorb part of the component-cost inflation. Management also outlined an automated lens line with capacity of 1 million units a month, scalable to 2 million, and said PTZ, thermal and 4K products for enterprise customers are planned for Q4 FY27.
No market reaction yet after the post-close filing
The consolidated results were filed after market close, so the stock has not yet recorded a response to this quarter's numbers. Across the five previous result reactions, the stock rose three times and fell twice, with a median absolute move of 5.00%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,746 cr | ₹1,402 cr | +24.50% | +89.86% |
| Other income | ₹-30 cr | ₹4 cr | — | — |
| Expenses | ₹1,443 cr | ₹1,199 cr | +20.37% | +77.89% |
| Operating profit | ₹303 cr | ₹204 cr | +48.79% | +179.28% |
| Operating margin (%) | 17.36% | 14.52% | — | — |
| Interest | ₹6 cr | ₹4 cr | +38.28% | -13.87% |
| Depreciation | ₹15 cr | ₹13 cr | +15.25% | +39.32% |
| Profit before tax | ₹252 cr | ₹191 cr | +32.12% | +169.28% |
| Tax | ₹66 cr | ₹48 cr | +37.02% | +181.78% |
| Net profit | ₹186 cr | ₹142 cr | +30.46% | +165.13% |
| EPS (₹) | ₹15.67 | ₹12.07 | +29.83% | +151.12% |
Operating margin of 17.36% compares with a Industrials sector median of 11.51% across 164 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- AIL expects its India video-surveillance market share to reach 43–45% in FY27E.
- FY27 revenue guidance was raised to ₹6,500–6,800 crore, implying 54–61% growth.
- FY27 EBITDA margin guidance is maintained at 14–15%, while PAT margin guidance is raised to 9–10%.
Expansion
- AIL plans an automated lens line with capacity of 1 million units per month, scalable to 2 million.
- The company plans to roll out PTZ, thermal and 4K products for the enterprise segment in Q4 FY27.
New products
- The premium portfolio includes PTZ, thermal and 4K products for enterprise customers.
New initiatives
- AIL is developing a cable manufacturing joint venture with Orient in Rajasthan.
Competition
- AIL reported a roughly 42% share of India’s video-surveillance market for the twelve months to September 2026.
- More than 100 CP PLUS models are STQC security-certified.
Problems & risks
- STQC certification backlogs restricted supply during H1 FY26.
- SoC, DDR and flash cost inflation is pressuring margins.
- Management expects H2 growth to moderate after the strong H1 growth.
What to watch
- Whether operating margin holds above 17.36% after the Q2 recovery.
- Whether revenue growth remains consistent with the company's Rs 6,500–6,800 cr FY27 guidance.
- Whether component-cost pressure keeps EBITDA margin within the guided 14–15% range.