Aditya Vision Limited: Navigating Headwinds with Robust Growth and Strategic Expansion in Q2 & H1 FY26

Aditya Vision Limited, a leading consumer electronics retailer, demonstrated a resilient performance in the second quarter and first half of fiscal year 2026, successfully navigating a challenging external environment. Despite facing headwinds such as extended monsoons, a subdued Shradh period, and initial uncertainties surrounding GST slab revisions, the company reported robust revenue growth and maintained stable margins. This performance underscores Aditya Vision's strong regional dominance and strategic execution capabilities in the Hindi Heartland.

For Q2 FY26, Aditya Vision recorded a significant 22% year-on-year increase in revenue from operations, reaching INR 458 crores. The first half of FY26 also saw a healthy growth, with revenue climbing 10.5% year-on-year to INR 1,398 crores. Gross profit for Q2 stood at INR 69 crores, an 18.8% increase, translating to a gross margin of 15.1%. Similarly, H1 FY26 gross profit was INR 213 crores, with a margin of 15.2%. Profit After Tax (PAT) for Q2 grew 4.2% to INR 13 crores, and for H1 FY26, it reached INR 68 crores, up 4.0% year-on-year. The company's EBITDA for Q2 was INR 35 crores (7.6% margin) and INR 124 crores for H1 FY26 (8.9% margin).

Strategic Product Mix and Market Dynamics

The product mix for H1 FY26 showed Home & Entertainment Solutions contributing 61% of revenue (INR 852.78 crores), Digital Gadgets at 21% (INR 293.58 crores), and Other categories accounting for 18% (INR 251.64 crores). While sales of high-margin cooling products were muted due to the extended monsoon, impacting overall gross margins slightly, the company saw a strong rebound in demand for large screen televisions, mobiles, and washing machines towards the end of Q2, particularly after the implementation of revised GST slabs. This shift in demand dynamics, coupled with strategic inventory management, allowed the company to capitalize on the festive season.

Financial Summary (INR Crores)

Expanding Footprint and Leveraging Tailwinds

Aditya Vision continues its aggressive expansion strategy, adding 9 new stores in Q2 FY26 to reach a total of 188 stores by September 30, 2025. The company is well on track to surpass 200 stores in FY26, focusing on cluster expansion across the Hindi Heartland, including deeper penetration into Uttar Pradesh with larger format showrooms. This strategy ensures optimized logistics and superior service delivery, strengthening its regional brand recall. The company's operational performance is further highlighted by a 7-9 month average store-level break-even and a 3-year payback period, reflecting disciplined capital allocation.

The company is poised to benefit significantly from several government initiatives. The Mukhyamantri Mahila Rojgar Yojana in Bihar, providing ₹10,000 direct transfers to approximately 1.3 crore women, is expected to inject ₹13,000 crores of fresh consumption liquidity. Additionally, the free electricity scheme for up to 125 units per month will save ~₹900 monthly for ~1.8 crore households in Bihar, adding to disposable income. The anticipated 30-35% salary hike for central/state staff and pensioners under the 8th Pay Commission, along with personal tax relief from the Union Budget 2025, are expected to further boost purchasing power and discretionary spending.

Product Mix (H1 FY26)

Outlook and Strategic Clarity

Aditya Vision has entered Q3 FY26 on a strong footing, supported by healthy demand trends and strategic inventory positioning. The management is optimistic about the outlook for H2 FY26 and Q1 FY27, expecting robust growth, potentially exceeding 20-25%. They aim to maintain an EBITDA margin in the range of 8-10%. The company's focus on customer-centricity, strong supplier relationships, prudent capital allocation, and a people-centric culture continues to drive its sustainable growth. With a low debt balance sheet, cash-and-carry model, and efficient inventory management, Aditya Vision is well-positioned to capitalize on the rising prosperity and underpenetrated market of the Hindi Heartland, reinforcing its commitment to 'Sambandh Bharose ka' (relationship of trust).