Aditya Infotech: Securing Growth with AI and Localization in Q3 FY26

Aditya Infotech Limited, a leading player in India's intelligent security systems market, has reported a robust performance for the third quarter of fiscal year 2026 (Q3 FY26). The company demonstrated significant growth across key financial metrics, driven by strong demand for its CP PLUS-branded products, strategic market expansion, and proactive operational initiatives. This quarter's results underscore the company's ability to capitalize on favorable industry tailwinds and its commitment to technological advancement and localization.

For Q3 FY26, Aditya Infotech's revenue from operations surged by 37.3% year-on-year, reaching INR 1,139.1 crore. This impressive top-line growth was accompanied by an even stronger expansion in profitability. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a remarkable 98.7% year-on-year increase, climbing to INR 144.6 crore. This led to a substantial improvement in EBITDA margins, which expanded by 391 basis points to 12.7%. The Adjusted Profit After Tax (PAT) also saw a significant jump of 138.8% year-on-year, settling at INR 96 crore, even after accounting for a one-time provisioning of INR 7.7 crore related to new labor codes. The company's strong performance for the nine-month period (9M FY26) mirrored this trend, with revenue growing 31.1% to INR 2,798.8 crore and Adjusted PAT rising 138.6% to INR 198.9 crore.

Strategic Initiatives and Market Leadership

The company's growth is underpinned by several strategic initiatives aimed at strengthening its market leadership and enhancing its product portfolio. Aditya Infotech continues to dominate India's video surveillance market, with its market share reaching approximately 38.9% in Q2 FY26, a significant gain of about 7.5% quarter-on-quarter. The CP PLUS brand contributed 87% to the company's overall revenue in Q3 FY26, with IP cameras accounting for nearly 75% of the total product portfolio, highlighting the shift towards high-value IT solutions.

A key highlight of the quarter was the announcement of a strategic collaboration with Qualcomm Technologies. This partnership aims to develop AI-enabled, insight-driven video security solutions for industrial, enterprise, and public safety applications in India. This move is expected to drive a pivotal shift from hardware-led surveillance to AI analytics-driven solutions, enhancing both revenue mix and margins. The commercial availability of these solutions is anticipated in the first half of the coming year.

Expanding Manufacturing and Backward Integration

Aditya Infotech is aggressively expanding its manufacturing capabilities and deepening backward integration. The company's installed capacity for Q3 FY26 stood at 1.9 million units per month, a 20% increase from its previous peak. Plans are in place to scale this to 2.1 million units per month by Q4 FY26 and further to 2.4 million units monthly by H1 2026. The company also commenced construction of its housing and enclosure plant in Kadapa, Andhra Pradesh, which is expected to be operational by mid-2026. This project, fully funded through internal accruals, will improve cost competitiveness and supply chain resilience.

Furthermore, the CCTV camera lens assembly line has been successfully commissioned, with commercial production slated to begin from Q1 FY27. This line will initially produce 3 lakh lenses per month, with plans to scale up to 10 lakh lenses per month by the end of Q4 FY27. These initiatives are crucial for meeting future volume demands and reducing reliance on imports.

New Brands and Market Penetration

To further penetrate the market and cater to diverse customer segments, Aditya Infotech launched two new brands, NEXIVUE and EYRA, at IFSEC in December 2025. NEXIVUE, designed for rural and mass-market segments, will hit the market by the end of February 2026 (Q4 FY26). EYRA is planned for launch in Q1 FY27, targeting price-sensitive segments to compete with other private Indian brands. This multi-brand strategy is expected to maximize market share, especially in the vacuum created by the exit of non-STQC brands.

Outlook and Future Growth

The company has revised its FY26 outlook upwards, now expecting revenue growth at the upper end of the INR 3,900-4,100 crore range, with EBITDA margins of 11-12% and PAT guidance of 7-7.5%. For FY27, the initial guidance is even more ambitious, projecting revenue between INR 5,350-5,550 crore, representing 30-35% growth, with EBITDA margins of 12-13% and PAT between 7.5-8.5%. Management also indicated further double-digit price hikes in FY26-27 to offset rising component costs, particularly for memory and DDR.

Aditya Infotech's Q3 FY26 performance reflects a company that is not only growing rapidly but also strategically investing in its future. With a focus on AI-enabled solutions, robust manufacturing expansion, and a diversified brand portfolio, the company is well-positioned to capitalize on India's burgeoning demand for intelligent security systems and consolidate its leadership in the market.