Aditya Infotech Shines Bright in Q2 FY26, Eyes Strategic Growth

Aditya Infotech Limited, a prominent player in India's video surveillance market under its CP PLUS brand, has reported a robust financial performance for the second quarter and first half of the fiscal year 2026, ending September 30, 2025. The company's results underscore its ability to execute growth priorities, capture market share, and adapt to evolving industry dynamics. This quarter's performance reflects strong demand for its IP cameras and an expanding portfolio of STQC-certified products, reinforcing its leadership in the Indian security landscape.

For Q2 FY26, Aditya Infotech's revenue from operations surged by 37.5% year-on-year to INR 919.6 crore. This impressive top-line growth was complemented by a significant expansion in profitability, with EBITDA skyrocketing by 157.6% to INR 111.1 crore. The EBITDA margin improved substantially by 560 basis points year-on-year, reaching 12.0%, driven by a favorable product mix, increased localization efforts, and operational leverage. Adjusted Profit After Tax (PAT) witnessed an extraordinary increase of 239.1% year-on-year, reaching INR 70.0 crore.

The first half of FY26 also demonstrated strong momentum, with revenue growing 27.2% year-on-year to INR 1,659.7 crore. EBITDA for H1 FY26 rose by 102.0% to INR 176.0 crore, with margins expanding by 390 basis points to 10.6%. Adjusted PAT for the half-year stood at INR 102.8 crore, marking a 138.4% increase year-on-year. These figures highlight the company's strong operational performance and effective cost management.

Financial Highlights: Q2 & H1 FY26

Strategic Initiatives Driving Growth

Aditya Infotech's strong performance is underpinned by several strategic initiatives. The company is significantly expanding its manufacturing capacity at the Kadapa facility, aiming to reach 2 million units per month by December 2025. This expansion, funded through internal accruals, is crucial for meeting the growing demand and enhancing operational efficiency. Furthermore, a new housing and molding plant was recently initiated and is expected to be operational by mid-next year, supporting further backward integration and localization efforts.

A landmark partnership with L&T Semiconductor Technologies (LTSCT) is set to bolster India's semiconductor ecosystem. Under this agreement, CP PLUS will manufacture nine million IP cameras over the next three years, powered by LTSCT's indigenously designed Vision AI SoC technology. This collaboration is a significant step towards self-reliance in semiconductor innovation, enhancing energy efficiency, data security, and AI-driven surveillance capabilities.

To maximize market penetration and cater to diverse customer segments, Aditya Infotech is launching a multi-brand strategy. Two new brands, EYRA and NEXIVUE, will be unveiled at IFSEC 2025. EYRA is designed to offer an alternative to partners previously serving Chinese brands, while NEXIVUE will target the Indian interiors market and the unorganized segment. The impact of these new brand launches is expected to be visible in the last quarter of the current financial year.

The company is also strengthening its R&D capabilities with a new center operational in Ahmedabad and a Taiwan facility under setup. These initiatives aim to boost its global innovation footprint and deliver cyber-secured CCTV products, aligning with critical component and semiconductor companies.

Market Leadership and Future Outlook

Aditya Infotech continues to reinforce its leadership in the Indian video surveillance market, with CP PLUS commanding a 31.4% market share in Q1 FY26, which further consolidated in Q2 FY26. The company's IP products now constitute approximately 65% of the CP PLUS portfolio, highlighting a shift towards higher-value growth opportunities.

Management remains confident in achieving its FY26 guidance, projecting 25-30% year-on-year revenue growth and 10-11% EBITDA margins. This optimism is fueled by strong industry tailwinds, disciplined execution, and strategic initiatives. The overall security industry is expected to grow at 16-17%, with the IP segment expanding even faster at over 25%. Market consolidation, driven by STQC norms and supply chain dynamics, is expected to further benefit larger players like Aditya Infotech.

Moreover, the strategic utilization of IPO proceeds for debt repayment has significantly strengthened the company's balance sheet, reducing its debt position from approximately INR 466 crore in June 2025 to INR 68 crore by September 2025. This disciplined deleveraging has resulted in substantial interest cost savings, enhancing overall profitability and providing financial flexibility for future growth initiatives.

Aditya Infotech's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. With robust financial growth, expanding market share, and forward-looking initiatives in manufacturing, R&D, and brand strategy, the company is well-positioned to capitalize on the growing opportunities in the Indian and global security markets, creating long-term value for all stakeholders.