Aditya Infotech Ltd
Aditya Infotech Ltd
IndustrialsKey Fundamentals
Technical Indicators
Key Insights
Strengths
4- Company has reduced debt.
- Company is expected to give good quarter
- Company has delivered good profit growth of 65.8% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 25.7%
Weaknesses
2- Stock is trading at 22.7 times its book value
- Working capital days have increased from 40.8 days to 73.9 days
Growth Rate
AI Analysis — Bull vs Bear
CP PLUS parent Aditya Infotech delivers exceptional profit growth of 66% CAGR over 5 years with consistent ROE of 25-28%, justifying a premium valuation. However, at a PE of 112.6x and PB of 22x, the stock prices in significant future growth, making entry timing critical. All 3 analysts rate it a Buy, reflecting confidence in the secular surveillance and security market tailwind.
- Compounded profit growth of 66% CAGR over 5 years demonstrates exceptional earnings scalability
- TTM sales growth of 36% indicates strong demand momentum and market share gains in the surveillance segment
- 3-year ROE of 26% and 5-year ROE of 28% reflect efficient capital allocation and high returns on invested capital
- TTM profit growth of 145% shows significant operating leverage kicking in at current scale
- 100% analyst consensus Buy rating (3 out of 3 analysts) signals unanimous institutional confidence
- Company has reduced debt, strengthening the balance sheet and lowering financial risk
- Compounded sales CAGR of 23% over 3 years and 30% over 5 years shows sustained top-line acceleration
- Market cap of Rs 42,396 Cr positions it as a credible mid-to-large cap with adequate liquidity for institutional participation
- PE ratio of 112.6x is extremely stretched, pricing in multiple years of flawless execution with zero margin of safety
- Price-to-book of 22.07x means investors pay Rs 22 for every Rs 1 of book value, leaving significant downside risk on any earnings miss
- Working capital days deteriorated sharply from 40.8 days to 73.9 days, an 81% increase that pressures free cash flow generation
- Dividend yield of just 0.05% offers virtually no income cushion or downside protection for investors
- Debt-to-equity ratio is unavailable, limiting visibility into the true leverage position despite claims of debt reduction
- 52-week high and low data unavailable (reported as 0), making it impossible to assess current price relative to trading range
- At 112.6x PE, even a one-quarter earnings miss could trigger a 20-30% de-rating given the premium multiple
- 10-year growth data is unavailable for key metrics, limiting the ability to assess true long-term compounding consistency
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q4 profit jumps 208%, margins expand May 29
Q4FY26 adjusted net profit surged 207.7% YoY to ₹169.1 crore with EBITDA margin expanding to 18.1% from 10.1%. Revenue rose 45.5% to ₹1,422 crore, and stock hit 10% upper circuit at ₹2,903.8.
- FY26 profit surges 166% Jun 3
FY26 net profit rose 166.1% to ₹368 crore on revenue of ₹4,221 crore (up 35.6%). EBITDA grew 124.1% to ₹579 crore with margins at 13.7%.
- FY27 guidance upgraded significantly May 29
Company raised FY27 revenue guidance to ₹6,000–6,500 crore with EBITDA margins of 14%–15% and PAT margins of 8.5%–9.5%, citing regulatory transformation and market consolidation.
- Corelink JV for cable manufacturing Jun 10
Incorporated Corelink Cable Technology JV with Orient Cables on 50:50 basis to manufacture electric cables, diversifying revenue streams.
- Dividend of ₹1.60 per share May 29
Board recommended dividend of ₹1.60 per equity share (160% on ₹1 face value), reflecting strong cash generation and shareholder return commitment.
- No promoter share encumbrance in FY26 Jun 20
Promoters confirmed zero equity shares encumbered directly or indirectly in FY26, filed with NSE and BSE under SEBI regulations.
- Non-Deal Roadshow in Hong Kong Jun 10
Company scheduled investor roadshow in Hong Kong on June 16, 2026, organized by ICICI Securities, signaling interest in attracting foreign institutional investors.
- Investor meets in Mumbai May 28
Aditya Infotech scheduled investor conferences in Mumbai on June 2 and June 9, 2026, relying on publicly available information.
- Director resignation and reappointment May 25
Atul B Lall resigned as Non-Executive Director on May 25 due to Dixon Technologies ceasing nomination rights, then was reappointed effective May 26 until the next AGM.
TL;DR: Aditya Infotech delivered a breakout FY26 with 166% profit growth and 18.1% Q4 EBITDA margins, driven by market consolidation in the Indian video surveillance industry. The upgraded FY27 guidance of ₹6,000–6,500 crore revenue and the Corelink cable JV signal confidence in sustained momentum. No material headwinds are visible currently, though execution on aggressive guidance and JV ramp-up remain key monitorables. The trend is clearly improving with strong earnings momentum and expanding margins.
Quarterly Results
| Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 636 | 669 | 830 | 977 | 740 | 920 | 1,139 | 1,422 |
| Expenses | 595 | 630 | 760 | 879 | 679 | 811 | 999 | 1,165 |
| Operating Profit | 41 | 39 | 69 | 98 | 61 | 109 | 140 | 257 |
| OPM % | 6% | 6% | 8% | 10% | 8% | 12% | 12% | 18% |
| Other Income | 3 | 252 | 4 | 0 | 4 | 3 | 5 | 2 |
| Interest | 9 | 10 | 11 | 12 | 11 | 7 | 5 | 8 |
| Depreciation | 4 | 6 | 9 | 12 | 10 | 11 | 12 | 23 |
| PBT | 30 | 277 | 53 | 74 | 44 | 94 | 127 | 228 |
| Tax % | 26% | 15% | 24% | 26% | 25% | 25% | 25% | 26% |
| Net Profit | 23 | 234 | 40 | 55 | 33 | 70 | 96 | 169 |
| EPS in Rs | 2.2 | 21.28 | 3.66 | 5.01 | 2.99 | 5.97 | 8.17 | 14.36 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 1,238 | 1,149 | 1,646 | 2,285 | 2,782 | 3,112 | 4,221 |
| Expenses | 1,181 | 1,093 | 1,513 | 2,124 | 2,559 | 2,864 | 3,655 |
| Operating Profit | 57 | 56 | 133 | 161 | 223 | 248 | 566 |
| OPM % | 5% | 5% | 8% | 7% | 8% | 8% | 13% |
| Other Income | 5 | 12 | 24 | 15 | -12 | 259 | 13 |
| Interest | 37 | 26 | 20 | 23 | 31 | 42 | 30 |
| Depreciation | 5 | 6 | 8 | 9 | 16 | 31 | 56 |
| PBT | 21 | 35 | 129 | 143 | 165 | 434 | 493 |
| Tax % | 15% | 28% | 25% | 24% | 30% | 19% | 25% |
| Net Profit | 17 | 29 | 97 | 108 | 115 | 351 | 368 |
| EPS in Rs | 69.72 | 117 | 388 | 528 | 562 | 32 | 31.24 |
| Div. Payout % | 0% | 3% | 1% | 0% | 0% | 0% | 5% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 2 | 2 | 2 | 2 | 2 | 11 | 12 |
| Reserves | 162 | 189 | 284 | 310 | 422 | 1,007 | 1,865 |
| Borrowings | 269 | 147 | 190 | 427 | 436 | 457 | 180 |
| Other Liabilities | 342 | 364 | 738 | 970 | 784 | 1,700 | 1,934 |
| Total Liabilities | 775 | 703 | 1,214 | 1,709 | 1,644 | 3,175 | 3,991 |
| Fixed Assets | 66 | 56 | 55 | 65 | 70 | 740 | 826 |
| CWIP | 0 | 0 | 4 | 7 | 16 | 30 | 71 |
| Investments | 0 | 17 | 30 | 30 | 1 | 1 | 1 |
| Other Assets | 708 | 630 | 1,126 | 1,607 | 1,558 | 2,404 | 3,093 |
| Total Assets | 775 | 703 | 1,214 | 1,709 | 1,644 | 3,175 | 3,991 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | 80 | 262 | 44 | 56 | -180 | 27 | 13 |
| Investing | -24 | 3 | -89 | -122 | 116 | 88 | -141 |
| Financing | -100 | -144 | 20 | 109 | -44 | -19 | 156 |
| Net Cash Flow | -44 | 122 | -25 | 43 | -108 | 96 | 29 |
| Free Cash Flow | 78 | 259 | 37 | 49 | -187 | 1 | -120 |
| CFO/OP | 184 | 451 | 49 | 61 | -58 | 32 | 22 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 98 | 120 | 116 | 98 | 96 | 122 | 121 |
| Inventory Days | 99 | 27 | 82 | 98 | 82 | 118 | 134 |
| Days Payable | 119 | 120 | 179 | 175 | 96 | 189 | 194 |
| Cash Conversion Cycle | 78 | 27 | 19 | 22 | 82 | 51 | 61 |
| Working Capital Days | 24 | -8 | 7 | -21 | 39 | 9 | 74 |
| ROCE % | — | 16% | 35% | 28% | 28% | 19% | 30% |
Documents
Frequently Asked Questions about Aditya Infotech Ltd
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Company Information
Aditya Infotech Limited (AIL) manufactures and provides video security and surveillance products, solutions, and services under the brand name 'CP Plus'.[1]