Aditya Vision Q2 PAT rises 45% as revenue reaches Rs 586 crore

Aditya Vision Limited posted its best-ever Q2 in FY 2027, as revenue rose 28.1% year-on-year to Rs 586.23 crore and profit after tax climbed 45.2% to Rs 18.47 crore, supported by 18% same-store sales growth and a 125-basis-point increase in gross margin to 16.3%.

How did Aditya Vision perform in Q2 FY 2027?

Aditya Vision reported Q2 FY 2027 revenue of Rs 586.23 crore, gross profit of Rs 95.59 crore and profit after tax of Rs 18.47 crore. Gross profit grew 38.8% year-on-year, ahead of revenue growth of 28.1%, while profit after tax grew 45.2%. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 31.6% to Rs 45.65 crore.

The first half delivered a similar sales trajectory but faster operating-profit growth. H1 FY 2027 revenue rose 27.3% year-on-year to Rs 1,778.91 crore, EBITDA rose 36.8% to Rs 170.13 crore and profit after tax increased 41% to Rs 95.69 crore. Management said H1 profit after tax had already exceeded 90% of the full-year amount reported in FY 2025.

The Q2 result was achieved despite management citing slower discretionary demand, flood and cyclone disruption in Bihar, and higher household costs. It also identified the West Asia crisis, energy-supply disruptions, higher crude prices, inflation concerns and rising prices of staples and cooking gas as factors affecting consumer sentiment during the quarter.

Why did Aditya Vision's margins increase?

Aditya Vision's Q2 gross margin rose 125 basis points, or bps, year-on-year to 16.3%, while its EBITDA margin increased 21 bps to 7.8%. Profit after tax margin improved 37 bps to 3.2%, reflecting the faster growth in gross profit and EBITDA than the 28.1% increase in revenue.

Management said product price increases contributed about 75 bps to 80 bps of the 125-bps gross-margin increase. It attributed the rest to normal trading, while noting that the share of sales in products with substantial price increases was not significant. Management does not treat price-led gains as a permanent part of its margin outlook.

For H1 FY 2027, gross margin increased 91 bps to 16.2%, EBITDA margin rose 66 bps to 9.6%, and profit after tax margin improved 52 bps to 5.4%. Management reiterated annual EBITDA-margin guidance of 8% to 10% and said its normal gross-margin expectation remains about 15% to 15.5% at constant prices.

Management said EBITDA margin would moderate to the extent of the additional gross margin received from price increases. The difference between the reported H1 gross margin of 16.2% and the stated 15% to 15.5% normal range therefore reflects management's view that price-related gains should not be assumed in a constant-price margin baseline.

How did Aditya Vision's stores and sales support growth?

Aditya Vision recorded same-store sales growth of 18% in Q2 FY 2027 and H1 FY 2027, compared with 2% in H1 FY 2026. Management said unseasonal rains had affected footfall and sales in the prior-year first half, whereas the current 18% result reflected traction in established markets and improving store productivity.

Bihar generated approximately 73% of Q2 revenue, followed by Uttar Pradesh at 15%, Jharkhand at 11% and Chhattisgarh at 1%. Management said the extended summer made air conditioners the largest category contributor to growth, followed by mobile phones and refrigerators, linking Q2 demand to product categories rather than only to new-store additions.

The store network reached 214 outlets as of September 30, 2026, up from 188 a year earlier, an increase of 13.8%. The network comprised 120 stores in Bihar, 56 in Uttar Pradesh, 33 in Jharkhand and five in Chhattisgarh. Retail area increased 18.3% year-on-year to about 9.51 lakh square feet.

Aditya Vision said its expansion model combines deeper presence in established markets with entry into new geographies. Management described the approach as cluster-based, using logistics infrastructure, vendor relationships and brand recall to support store ramp-up. The 214-store network covered all 38 districts of Bihar, 32 of Uttar Pradesh's 75 districts, 22 of Jharkhand's 24 districts and three of Chhattisgarh's 33 districts.

What are Aditya Vision's expansion and funding plans?

Aditya Vision held inventory of Rs 865 crore on September 30, 2026, compared with Rs 840 crore at March 31, 2026, while borrowings declined to Rs 293 crore from Rs 331 crore. Management said the inventory increase reflected festive-season stocking and competitive pricing ahead of anticipated consumer-durables price increases.

Although borrowings fell by Rs 38 crore from March 2026, management said they were higher year-on-year because of funding needed for inventory, store openings and overall business growth. It identified product availability, competitive pricing, store productivity, inventory discipline and cost control as immediate operational priorities during the festive period.

During calendar 2026, Aditya Vision entered Chhattisgarh, Madhya Pradesh and West Bengal. Management said it had opened five Chhattisgarh stores by September 30, while two West Bengal stores had opened by the October 30 earnings call and another two were in progress. It also said three Madhya Pradesh stores would open shortly.

Management expects to finish FY 2027 with about 230 to 235 stores, compared with 214 on September 30, and anticipates adding around 35 outlets in the following year to reach about 270. A typical new store requires capital expenditure of about Rs 90 lakh, according to management, which expects stores to break even in around one year but said it was too early to give specific guidance for Madhya Pradesh and West Bengal.

Conclusion

Aditya Vision's Q2 FY 2027 result combined 28.1% revenue growth, 45.2% growth in profit after tax, 18% same-store sales growth and a 125-bps increase in gross margin. The results indicate that established-store sales, extended-summer demand for air conditioners and price-related margin gains lifted earnings despite management's comments on weather disruption, inflation pressure and slower discretionary spending.

The next issue is whether festive demand improves after management described October sales as slow and said it expected demand to pick up nearer to Dhanteras and Diwali. Investors will also watch execution of the plan to reach 230 to 235 stores by the end of FY 2027, the stated 8% to 10% annual EBITDA-margin range, and the performance of new outlets in Chhattisgarh, Madhya Pradesh and West Bengal.