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Aditya Infotech Rockets Ahead with Record Q3 FY26 Performance
Aditya Infotech, the company behind the popular CP PLUS security and surveillance brand, has reported a phenomenal third quarter for FY26, showcasing robust growth across key financial metrics. The results indicate strong market traction and effective strategic execution, painting a positive picture for the company's near-term future.
Financial Highlights: A Quarter of Explosive Growth
For the quarter ending December 31, 2025, Aditya Infotech's consolidated revenue surged by an impressive 37.3% year-on-year to reach INR 1,139.1 Crores. This strong top-line growth translated into significant profitability gains. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) more than doubled, soaring by 98.7% to INR 144.6 Crores. Crucially, the EBITDA margin expanded by 391 basis points to a healthy 12.6%, demonstrating improved operational efficiency and pricing power.
Adjusted Profit After Tax (PAT) also saw a dramatic increase of 138.8% year-on-year, reaching INR 96 Crores. This figure accounts for a one-time provisioning of INR 7.7 Crores related to new labor codes, meaning the underlying profit growth was even stronger. The nine-month cumulative performance further underscores this trend, with revenue growing 31.1% and EBITDA more than doubling to INR 320.6 Crores, with margins expanding by 395 basis points.
Strategic Pillars Driving Success
The company's success is built on several strategic pillars. Management pointed to favorable industry tailwinds, including the ongoing urbanization, increased emphasis on safety, and smart city initiatives, all of which are driving long-term growth in the CCTV market. The ongoing shift towards network IP-based solutions and AI-enabled surveillance is also a key driver, with IP products now constituting 75% of the CP PLUS portfolio.
The CP PLUS brand continues to strengthen its market position, with market share rising to nearly 39% in Q2 FY26, a trend expected to continue. To support this growth, Aditya Infotech is aggressively expanding its manufacturing capabilities. Installed capacity increased by 20% to 1.9 million units per month in Q3 FY26, with targets set for 2.1 million by Q4 FY26 and 2.4-2.5 million by FY27. Furthermore, a new plant for enclosures and housing in Kadapa, Andhra Pradesh, is under construction for mid-2026 operation, and a CCTV camera lens assembly line was commissioned, set to begin production in Q1 FY27.
In parallel, the company is investing heavily in research and development. It has incorporated Aditya Infotech Taiwan Company Limited for global R&D in security and surveillance. Strategic partnerships with tech giants like Qualcomm Technologies are aimed at building advanced AI-enabled video security solutions. Backward integration is also being enhanced through a Memorandum of Understanding (MoU) with Orient Cables for manufacturing coaxial and network cables for captive consumption.
To tap into new market segments, Aditya Infotech has launched two new brands: EYRA and NEXIVUE, targeting the mass market and unorganized sectors, with NEXIVUE set to launch in Q4 FY26 and EYRA in Q1 FY27.
Outlook and Guidance: Bullish Projections
Management's outlook remains highly optimistic. They anticipate passing on input cost rises through planned price hikes of 6%-8% in January 2026, with further increases expected. They view supply shortages as an opportunity and are proactively managing global supply chain challenges for critical components.
For the full year FY26, the company projects revenue between INR 3,900 - 4,100 Crores, with margins expected to be between 11%-12% for EBITDA and 7%-7.5% for PAT. Looking ahead to FY27, Aditya Infotech forecasts revenue to grow by 30%-35% to INR 5,350 - 5,550 Crores, with improved EBITDA margins of 12%-13% and PAT margins of 7.5%-8.5%.
Peer Comparison
The Indian security and surveillance market is competitive, with major players like Hikvision India and Dahua India also vying for market share. While specific Q3 FY26 numbers for these competitors are not immediately available, Aditya Infotech's aggressive capacity expansion, R&D focus, and brand diversification (including new launches like EYRA and NEXIVUE) signal a strategic intent to outpace rivals. The shift towards IP and AI solutions is a sector-wide trend, but Aditya Infotech's proactive investments suggest it is well-positioned to capitalize on this evolution. Companies like Sparsh CCTV are also present in the Indian market, focusing on localization and catering to specific segments.
Risks and Future Watchpoints
While the current performance and outlook are strong, investors will watch for the successful execution of manufacturing expansions, particularly the Kadapa plant and the lens assembly line. Managing global supply chain volatility for semiconductors and other components remains a critical operational challenge. The ability to consistently pass on price increases without impacting demand or margins will also be key. The successful integration and market reception of the new EYRA and NEXIVUE brands will be important indicators of diversification success.
Aditya Infotech's journey reflects a company leveraging industry tailwinds with strategic investments in capacity, technology, and market reach, positioning itself for sustained growth in the dynamic security and surveillance sector.