Aditya Vision Limited sees 40-50 West Bengal stores

Aditya Vision Limited said 40-50 stores in West Bengal are possible over the next four years, after opening two outlets and starting in districts bordering Bihar. Management also said store capital expenditure in new markets could be 10%-15% above normal levels because of freight and vendor-related costs outside its established geography.

How many West Bengal stores is Aditya Vision planning?

Aditya Vision said 40-50 West Bengal stores are possible over four years, rather than the three-year timeline raised by an analyst. Management said it would target areas close to Kolkata and the metro over that period, while its initial rollout is focused on districts bordering Bihar. The company had opened two West Bengal stores, with another two work in progress, when management spoke on the Q2 FY 2027 earnings call.

The nearer-term West Bengal plan is to add at least 15 stores, according to management. This points to a phased rollout rather than an immediate move to a 40-50-store network: two stores were operational, two were under development, and the larger footprint remained a four-year possibility rather than formal numerical guidance.

West Bengal and Madhya Pradesh are at an earlier stage than Aditya Vision's established markets. As of September 30, 2026, its 214-store network included 120 stores across all 38 districts of Bihar, 56 across 32 of Uttar Pradesh's 75 districts, 33 across 22 of Jharkhand's 24 districts, and five across three of Chhattisgarh's 33 districts.

Why is Aditya Vision starting in Bihar-border districts?

Aditya Vision is starting in West Bengal districts bordering Bihar because management said the company is already well known there. Management said it expects to establish the business in those areas before competition extends further into them, then move towards areas near Kolkata and the metro.

Management named Reliance, Croma and a local chain as competitors in West Bengal. It said those competitors are much stronger in metropolitan areas than in peripheral districts, making the initial border-district strategy distinct from a direct first move into Kolkata.

The planned geography differs from Aditya Vision's present revenue base. Bihar supplied about 73% of Q2 FY 2027 revenue, compared with 15% from Uttar Pradesh, 11% from Jharkhand and 1% from Chhattisgarh. The West Bengal rollout therefore begins while the business remains substantially dependent on Bihar.

Aditya Vision reported Q2 FY 2027 revenue of Rs 586.23 crore, up 28.1% year on year, while same-store sales growth was 18%. For H1 FY 2027, revenue was Rs 1,778.91 crore, up 27.3%, and same-store sales growth was 18%, compared with 2% in H1 FY 2026. The comparison shows that management is pursuing new states alongside faster growth at existing stores.

What could new-state expansion mean for capex and margins?

Aditya Vision said capital expenditure per store in new markets can be 10%-15% higher than its normal level, at most. Management attributed the difference to freight and vendor-related costs as it moves beyond the geography where its internal vendors have historically supported store openings, while noting that actual capex also depends on a store's size.

Management did not provide a rupee capex budget or a store-level profitability target for West Bengal, Chhattisgarh or Madhya Pradesh. It said new operations were performing in line with its expectations and that it was hopeful they would break even soon, but said the timing was difficult to answer. Store maturation and break-even timing therefore remain unresolved.

Management said margin dilution from new stores is generally offset by older stores maturing, leaving the overall effect broadly balanced. Q2 FY 2027 earnings before interest, tax, depreciation and amortisation margin was 7.8%, up 21 basis points year on year, while H1 FY 2027 margin was 9.6%, up 66 basis points. A basis point is one-hundredth of a percentage point.

Q2 FY 2027 gross margin was 16.3%, up 125 basis points, while management said around 75-80 basis points of the increase came from price rises and the remainder from normal trading. Management's normal gross-margin guidance remained 15%-15.5% because it does not treat price hikes as permanent margin gains.

How does the expansion fit Aditya Vision's wider store plan?

Aditya Vision expects to end FY 2027 with about 230-235 stores, compared with 214 stores on September 30, 2026. Management then anticipates adding around another 35 stores in the following year, taking the network to about 270 stores.

The company said this wider pipeline includes strengthening western Uttar Pradesh and certain pockets of Bihar, alongside the additions planned in Chhattisgarh, Madhya Pradesh and West Bengal. Its store base had increased 13.8% to 214 as of September 30, 2026, from 188 a year earlier, so management has not specified how every future opening will be divided among its core and new markets.

Conclusion

Aditya Vision's stated West Bengal opportunity combines a phased approach with a longer-term 40-50-store possibility. The company is beginning with Bihar-border districts where management sees existing familiarity, while its Q2 FY 2027 revenue mix shows Bihar still accounted for 73% of sales and Chhattisgarh contributed 1%.

The next disclosed milestones are two West Bengal stores under development, at least 15 planned West Bengal additions, and around three Madhya Pradesh openings shortly. Management's path toward 230-235 stores by the end of FY 2027, potential 10%-15% higher new-market capex, and the as-yet-undisclosed break-even timing for new locations are the main developments to watch.