Aditya Infotech H1 PAT before fire loss rose 252% year on year

Aditya Infotech Limited reported H1 FY27 revenue of Rs 3,148.4 crore, up 89.7% year on year, and profit after tax (PAT) before a Rs 34.4 crore fire loss of Rs 362.1 crore, up 252.0%. Gross, operating and profit margins expanded, while a Rs 1,500 crore qualified institutions placement (QIP) lifted net cash to Rs 1,071 crore at 30 September 2026.

How did Aditya Infotech perform in H1 FY27?

Aditya Infotech grew H1 FY27 revenue by 89.7% to Rs 3,148.4 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) by 192.7% to Rs 515.2 crore. Revenue was Rs 1,659.7 crore in H1 FY26, while EBITDA was Rs 176.0 crore. Gross profit increased 116.4% to Rs 956.2 crore from Rs 442.0 crore, exceeding the rate of revenue growth.

The second quarter contributed Rs 1,746.0 crore of H1 FY27 revenue, compared with Rs 919.6 crore in Q2 FY26, an 89.9% increase. Q2 FY27 EBITDA was Rs 307.4 crore, up 176.7% from Rs 111.1 crore a year earlier. Q2 therefore accounted for more than half of H1 FY27 revenue and EBITDA.

Why did Aditya Infotech’s H1 margins increase?

Aditya Infotech’s H1 FY27 gross margin increased to 30.4% from 26.6% in H1 FY26, a rise of 374 basis points, with one basis point equal to one-hundredth of a percentage point. EBITDA margin rose to 16.3% from 10.6%, an increase of 576 basis points. The presentation calculates gross margin on revenue and other margins on total income.

Profit before tax before exceptional items rose 246.6% to Rs 476.9 crore, lifting its margin to 15.1% from 8.3%. PAT before exceptional items increased to Rs 362.1 crore from Rs 102.9 crore, and its margin rose to 11.5% from 6.2%. Finance costs declined 41.1% to Rs 10.3 crore from Rs 17.4 crore, while depreciation and amortisation increased to Rs 27.7 crore from Rs 21.0 crore.

Q2 FY27 margins were also above the prior-year quarter, although gross-margin expansion was narrower than in H1. Q2 gross margin was 30.0%, versus 29.8% in Q2 FY26, while EBITDA margin rose to 17.6% from 12.0%. Q2 PAT margin before exceptional items was 12.6%, compared with 7.6% a year earlier and above the H1 FY27 level of 11.5%.

How did the fire loss affect Aditya Infotech’s profit?

Aditya Infotech recorded a Rs 34.4 crore exceptional item for a fire loss at AIL, Dixon in H1 FY27, reducing reported PAT to Rs 327.7 crore from Rs 362.1 crore before exceptional items. H1 FY26 had no comparable exceptional item, so reported PAT and PAT before exceptional items were both Rs 102.9 crore in that period.

The exceptional item reduced reported PAT growth to 218.6% from the 252.0% growth recorded before exceptional items. Reported PAT margin reached 10.4%, up from 6.2% in H1 FY26, while PAT margin before exceptional items was 11.5%. On a pre-tax basis, profit before tax was Rs 442.5 crore after the fire loss, compared with Rs 476.9 crore before it.

The full Rs 34.4 crore exceptional item was recognised in Q2 FY27. Q2 reported PAT was Rs 185.5 crore, up 165.1% from Rs 70.0 crore in Q2 FY26, while PAT before exceptional items was Rs 219.9 crore, up 214.2%. The reported Q2 PAT margin was 10.6%, compared with a pre-exceptional margin of 12.6%.

What changed in Aditya Infotech’s balance sheet and returns?

Aditya Infotech’s annualised H1 FY27 return on capital employed (ROCE) was 34.3%, compared with 20.4% in H1 FY26 and 30.6% in FY26. Annualised return on equity (ROE) rose to 26.9% from 16.4% a year earlier and 25.4% in FY26. Aditya Infotech defines ROCE as earnings before interest and tax before exceptional items divided by average capital employed.

Net cash was Rs 1,071 crore at 30 September 2026, compared with Rs 52 crore at March 2026, after the Rs 1,500 crore QIP. Shareholders’ funds increased to Rs 3,668 crore from Rs 1,877 crore at March. Borrowings were Rs 363 crore at 30 September, and the presentation says they were repaid in October.

Working-capital measures were mixed in H1 FY27. Receivable days fell to 96 from 116 in H1 FY26, but inventory days increased to 111 from 104 and payable days declined to 135 from 157. The cash conversion cycle was 72 days, compared with 64 days in H1 FY26 and 78 days in FY26, while interest cover was 46.7 times against 8.5 times a year earlier.

What is Aditya Infotech’s FY27 outlook?

Aditya Infotech management raised FY27 revenue guidance to Rs 6,500 crore to Rs 6,800 crore, implying growth of 54% to 61%, from Rs 6,000 crore to Rs 6,500 crore previously. Management linked the increase to the strong H1 result, but said H2 growth would moderate. Management attributed H1’s 90% growth partly to a low H1 FY26 base, when STQC certification backlogs constrained supply.

Management retained EBITDA-margin guidance of 14% to 15%, below the 16.3% achieved in H1 FY27. Management said Aditya Infotech would moderate price increases and absorb part of system-on-chip, double-data-rate memory and flash cost inflation to gain market share. This was the mechanism management identified for the maintained margin range.

Management raised PAT-margin guidance to 9% to 10% from 8.5% to 9.5%, citing the use of QIP proceeds to repay debt and lower finance costs. H1 FY27 reported PAT margin was 10.4%, while PAT margin before the Rs 34.4 crore exceptional item was 11.5%. The stated FY27 range is below both H1 measures.

Conclusion

Aditya Infotech combined 89.7% H1 FY27 revenue growth with faster growth in gross profit, EBITDA and PAT before exceptional items. The resulting margin expansion lifted annualised ROCE to 34.3% and ROE to 26.9%, while the Rs 34.4 crore fire loss reduced, but did not eliminate, reported PAT growth of 218.6%.

The next disclosed milestones are H2 FY27 growth moderation, delivery against revenue guidance of Rs 6,500 crore to Rs 6,800 crore and the 14% to 15% EBITDA-margin target. Management’s planned absorption of some component-cost inflation and the finance-cost effect following repayment of Rs 363 crore of borrowings in October are also matters to watch.