Aditya Infotech lifts operating margin 5.78 points in Q4
Revenue growth outpaced expenses, while net profit rose 76.21% QoQ; the stock's 10.00% reaction was unusually large for its recent results history.
Filed 27 May 2026, 19:40 IST · after market close · Aditya Infotech Ltd (CPPLUS)
Key takeaways
- Consolidated operating margin rose 5.78 percentage points QoQ to 18.06% as revenue growth of 24.84% outpaced expense growth of 16.62%.
- Consolidated net profit increased 76.21% QoQ to Rs 169.13 cr, despite interest rising 51.38% and depreciation rising 84.80%.
- CPPLUS shares rose 10.00% after the results, far above the 1.75% median absolute move across its last three result reactions.
Price around the results
Q4 revenue growth converted into operating leverage
Aditya Infotech's consolidated revenue grew 24.84% QoQ, while expenses rose 16.62%, lifting operating margin by 5.78 percentage points to 18.06%. Operating profit consequently increased 83.47% to Rs 256.75 cr, ahead of revenue growth. Net profit rose 76.21% to Rs 169.13 cr.
Higher interest and depreciation did not offset the margin gain
Interest expense increased 51.38% QoQ and depreciation rose 84.80%, but the operating profit expansion drove profit before tax up 79.13%. The tax rate increased by 1.23 percentage points to 25.80%, so the net profit increase was not flattered by a lower tax rate. Other income contributed only 0.70% of pre-tax profit, indicating limited reliance on non-operating income.
Margin reached a fourth straight quarterly high
Operating margin expanded from 8.23% in Q1FY26 to 11.80% in Q2FY26, 12.28% in Q3FY26 and 18.06% in Q4FY26. The Q4 margin was 2.40 percentage points above the 15.66% median for 71 Industrials peers that had reported the quarter.
Management links the next phase to capacity and localisation
Management said the Kadapa plant now has capacity of 2.5 million units per month and that it targets doubling this capacity by FY28. The company told investors it plans complete backward integration across components and is expanding its R&D, manufacturing and localisation teams. Management projected FY27 revenue of Rs 6,000-6,500 cr, with revenue growth of 40%-50% or more and EBITDA growth of 45%-65% or more.
The market reaction was well outside its recent range
The stock rose 10.00% on the results reaction, with volume at 2.99 times the reference level and a 11.50% relative gain at the initial reaction point. This was much larger than the 1.75% median absolute move after the company's last three results, during which two reactions were positive and one was negative.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,422 cr | ₹1,139 cr | +24.84% |
| Other income | ₹2 cr | ₹5 cr | -66.10% |
| Expenses | ₹1,165 cr | ₹999 cr | +16.62% |
| Operating profit | ₹257 cr | ₹140 cr | +83.47% |
| Operating margin (%) | 18.06% | 12.28% | — |
| Interest | ₹8 cr | ₹5 cr | +51.38% |
| Depreciation | ₹23 cr | ₹12 cr | +84.80% |
| Profit before tax | ₹228 cr | ₹127 cr | +79.13% |
| Tax | ₹59 cr | ₹31 cr | +88.07% |
| Net profit | ₹169 cr | ₹96 cr | +76.21% |
| EPS (₹) | ₹14.37 | ₹8.18 | +75.67% |
Operating margin of 18.06% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.00% | +11.50% |
| Next session | +18.43% | — |
| 5 sessions | +32.67% | +34.93% |
| 15 sessions | +37.82% | — |
| 30 sessions | +37.88% | — |
Volume on the results session was 2.99× its 20-day average.
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 projected at INR 6,000-6,500 crore.
- FY27 PAT margin is projected at 8.5%-9.5%.
- FY27 revenue growth is estimated at 40%-50% or more year on year.
- FY27 EBITDA growth is estimated at 45%-65% or more year on year.
Expansion
- The Kadapa plant now has capacity of 2.5 million units per month.
- Kadapa capacity is targeted to double by FY28.
- The company plans complete backward integration across all components.
New initiatives
- The company is expanding R&D, manufacturing and localisation teams to strengthen supply-chain resilience and operational efficiency.
What to watch
- Whether consolidated operating margin holds above 18.06% after the 5.78-percentage-point QoQ expansion.
- Whether revenue growth remains ahead of expense growth after the Q4 gap of 24.84% versus 16.62%.
- Updates on the reported Kadapa capacity of 2.5 million units per month and the company's stated FY28 doubling target.