Aditya Infotech Q2 FY27 results: net profit up 165.1% to ₹185.51 crore, revenue up 89.9%

How did Aditya Infotech perform in Q2 FY27?

Aditya Infotech reported consolidated Q2 FY27 revenue of ₹1,746 crore, up 89.9% from ₹919.64 crore in Q2 FY26 and 24.5% from ₹1,402 crore in Q1 FY27. Total income was ₹1,749.91 crore, against ₹922.2 crore a year earlier. On the standalone basis, revenue was ₹1,741.39 crore and profit after tax was ₹206.49 crore.

EBITDA was ₹303.08 crore, up 179.3% from ₹108.52 crore in Q2 FY26 and 48.8% from ₹203.69 crore in Q1 FY27. EBITDA margin increased from 11.8% to 17.4% year on year and from 14.5% in the previous quarter. Profit before tax was ₹251.86 crore, while net profit was ₹185.51 crore, up 165.1% from ₹69.97 crore and 30.5% from ₹142.20 crore.

Basic EPS was ₹15.67, compared with ₹6.24 in Q2 FY26 and ₹12.07 in Q1 FY27. Reported profit included an exceptional charge of ₹34.37 crore. The company’s earnings release separately reported PAT before the exceptional item of ₹219.9 crore, while the standalone result was profit after tax of ₹206.49 crore.

What changed in Aditya Infotech's costs and profit?

Total expenses were ₹1,464 crore in Q2 FY27, up 76.6% from ₹828.66 crore in Q2 FY26. Cost of materials was the largest cost line at ₹1,148 crore, up ₹670.04 crore or 140.3% year on year, while employee cost rose ₹41.92 crore to ₹124.86 crore. Depreciation increased ₹4.18 crore to ₹14.81 crore, and other expenses rose ₹13.87 crore to ₹96.40 crore.

Finance costs declined by ₹0.96 crore, or 13.9%, to ₹5.96 crore from ₹6.92 crore in Q2 FY26. Other income increased by ₹1.36 crore to ₹3.92 crore. The company attributed the improvement in its reported result to lower finance costs and better cost efficiencies, while the earnings release also cited favourable product and brand mix and improved operational efficiency.

Tax expense increased by ₹42.81 crore, or 181.8%, to ₹66.36 crore from ₹23.55 crore. The quarter also carried a ₹34.37 crore exceptional charge, which reduced reported profit; the earnings release identified a fire loss at AIL Dixon as the first-half exceptional item. Against Q1 FY27, other expenses fell ₹20.96 crore to ₹96.40 crore, while employee cost rose ₹14 crore and finance costs rose ₹1.65 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 89.7% to ₹3,148.41 crore from ₹1,659.67 crore in H1 FY26. Total income increased 89.4% to ₹3,156.44 crore, profit before tax rose 221.6% to ₹442.5 crore, and profit after tax rose 218.6% to ₹327.71 crore from ₹102.85 crore. Basic EPS increased to ₹27.75 from ₹9.17.

The reported H1 result included the ₹34.37 crore exceptional charge. Management’s investor presentation reported PAT before the exceptional item of ₹362.1 crore, up 252.0% year on year, while reported H1 PAT was ₹327.7 crore. The company attributed the pre-exceptional profit increase to lower finance costs and better cost efficiencies.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹6,724.48 crore, compared with ₹3,990.99 crore on 31 March 2026. Total equity rose to ₹3,668.1 crore from ₹1,876.86 crore, while cash increased to ₹1,433.88 crore from ₹165.27 crore. Borrowings were ₹362.74 crore, compared with ₹112.93 crore on the earlier balance-sheet date. Inventories rose to ₹1,908.03 crore from ₹1,103.73 crore, trade receivables to ₹1,659.46 crore from ₹1,404.36 crore, and trade payables to ₹2,328.76 crore from ₹1,601.01 crore.

H1 FY27 operating cash flow was an outflow of ₹66.68 crore, against an inflow of ₹48.72 crore in H1 FY26. Investing cash flow was an outflow of ₹344.67 crore, compared with ₹162.11 crore, while financing cash flow was an inflow of ₹1,679.96 crore against ₹73.78 crore. Capital expenditure rose to ₹113.24 crore from ₹62.09 crore. Management said all borrowings were repaid in October 2026.

How has Aditya Infotech done over the last 6 quarters?

Revenue rose from ₹740.04 crore in Q1 FY26 to ₹1,745.99 crore in Q2 FY27, though it dipped from ₹1,422.03 crore in Q4 FY26 to ₹1,402.42 crore in Q1 FY27 before reaching the latest quarter’s level. Profit after tax increased from ₹32.88 crore in Q1 FY26 to ₹185.51 crore in Q2 FY27, after peaking at ₹169.13 crore in Q4 FY26 and easing to ₹142.2 crore in Q1 FY27.

EBITDA margin bottomed at 8.2% in Q1 FY26 and reached 18.1% in Q4 FY26 before easing to 14.5% in Q1 FY27 and rising to 17.4% in Q2 FY27. Revenue and profit each rose year on year in each of the last two quarters. The presentation also showed net working capital at 72 days in H1 FY27, compared with 78 days in FY26, and receivable days at 96 days against 121 days.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with unmodified limited review reports from the statutory auditors. On 5 November 2026, the company also approved the acquisition of a 30% stake in KGraph AI Solutions Private Limited on a fully diluted basis for cash consideration of ₹45,38,85,993.60.

The company executed a Share Subscription and Share Purchase Agreement and a Shareholders’ Agreement for the KGraph AI Solutions investment. Completion remains subject to customary conditions, according to the investor presentation. The same-day filings also reported completion of a ₹1,500 Cr Qualified Institutions Placement involving 4.33 Mn shares at ₹3,467 per share; no dividend or appointment was disclosed in the supplied filings.

What did Aditya Infotech's management say?

Management raised FY27 revenue guidance to ₹6,500–6,800 Cr, representing growth of 54–61%, while maintaining EBITDA-margin guidance at 14–15% and raising PAT-margin guidance to 9–10%. It expects the company’s share of India’s video-surveillance market to reach 43–45% in FY27E. Management said H2 growth is expected to moderate because H1 FY27’s 89.7% growth came on a low base affected by STQC certification backlogs.

Management said Kadapa Phase III and Greater Noida are planned to increase manufacturing capacity to more than 2x current capacity, with current capacity at 2.5 Mn units per month and utilisation at approximately 80%. An automated lens line is planned at 1 Mn/month, scalable to 2 Mn/month. The company also expects to enter exports in about 18 months through ODM partnerships.

Management identified component-cost inflation in SoC, DDR and flash as a risk, with cost increases partly absorbed as price increases are moderated. It also reported inventory days of 111 in H1 FY27 against 95 in FY26, despite an improved cash conversion cycle, and noted that completion of the BLUE investment remains subject to customary conditions. The presentation stated that ₹650 Cr of QIP proceeds is earmarked for capacity expansion at AIL Dixon.

How did other Industrial Products companies do?

Among 44 Industrial Products companies compared for the quarter, the median revenue growth was 35.8%. Of the other companies, 40 grew revenue more slowly than Aditya Infotech and 4 grew faster than it. Aditya Infotech’s Q2 FY27 consolidated revenue growth was 89.9%.

Profit was higher for 28 of the 38 peers for which profit was compared. The supplied peer data covers revenue growth for 44 companies and profit performance for 38.