Aditya Infotech delivered a strong Q2 FY27 performance, with revenue surging nearly 90% and operating earnings growing considerably faster. The CP PLUS parent also reported a larger share of India’s surveillance market and announced a strategic investment in video compression technology.

The company’s consolidated revenue from operations reached ₹1,746 crore, increasing 89.9% year on year from approximately ₹920 crore. Strong demand for CP PLUS surveillance products and changes in industry certification requirements supported the expansion.

The company estimated its domestic video surveillance market share at approximately 42% for the twelve months ending September. This compares with 30% at the time of its IPO, indicating a substantial improvement in its competitive position.

An important factor behind this expansion was the transition to stricter security certification requirements for surveillance cameras. Aditya Infotech benefited from its certified product portfolio, manufacturing capabilities and established distribution network.

CP PLUS contributed approximately 88% of consolidated revenue, compared with 86% in the corresponding quarter. The increasing contribution of its principal brand supported the company’s product mix and overall profitability.

Internet protocol surveillance products represented approximately 79% of the CP PLUS portfolio, compared with 71% a year earlier. This shift reflects the growing importance of network connected surveillance technology in the company’s business.

Consolidated EBITDA reached ₹307.4 crore, representing 176.7% year on year growth. EBITDA margin expanded to 17.6%, compared with approximately 12.1% in the corresponding quarter.

The improvement of approximately 552 basis points in EBITDA margin was supported by a more favourable product mix and operating efficiencies. Earnings growth significantly exceeded revenue growth, indicating stronger operating leverage during the quarter.

Profit after tax before exceptional items increased 214.2% year on year to ₹219.9 crore. This measure excludes a ₹34.4 crore exceptional loss associated with a fire incident at AIL Dixon.

After accounting for the exceptional item, reported consolidated profit after tax stood at approximately ₹185.5 crore. This distinction is important because adjusted and reported profitability present different pictures of the same quarterly performance.

Sequentially, consolidated revenue increased from approximately ₹1,402.4 crore in Q1 FY27 to ₹1,746 crore. Reported profit after tax also improved from ₹142.2 crore to ₹185.5 crore, demonstrating continued business momentum.

For the first half of FY27, revenue reached ₹3,148.4 crore, representing 89.7% year on year growth. EBITDA increased 192.7% to ₹515.2 crore, with an operating margin of 16.3%.

First half profit after tax before exceptional items reached ₹362.1 crore, increasing 252% year on year. Reported profit after tax stood at approximately ₹327.7 crore after the exceptional loss.

The company also strengthened its balance sheet through a qualified institutional placement of ₹1,500 crore. As of September, net cash stood at approximately ₹1,071 crore, and management reported that all borrowings were repaid in October.

Aditya Infotech plans to use part of the capital raised for manufacturing expansion, including the Kadapa Phase III project and a new facility in Greater Noida. The company expects these investments to more than double its existing production capacity.

Current manufacturing capacity stands at approximately 2.5 million units per month. The planned expansion is intended to support higher domestic demand, localisation and the company’s longer term growth ambitions.

Another significant development was the agreement to acquire a 30% stake in KGraph AI Solutions, associated with the BLUE video compression technology business. The proposed investment amounts to ₹45.4 crore.

BLUE’s technology aims to reduce video storage and bandwidth requirements by identifying and removing unnecessary visual information. The company has indicated potential reductions of up to 90% in certain applications, although actual performance will depend on deployment conditions.

The investment could help CP PLUS strengthen its software capabilities and develop additional services around surveillance hardware. However, commercial integration, technology performance and customer adoption will determine the eventual financial contribution.

Management also raised its FY27 revenue guidance to ₹6,500 crore to ₹6,800 crore, reflecting confidence following the strong first half. Its EBITDA margin guidance remained at 14% to 15%, while the profit margin outlook was increased to 9% to 10%.

Despite the positive performance, risks remain around electronic component costs, competitive pricing and the sustainability of elevated growth rates. The previous year’s certification transition also created a relatively favourable comparison base for the current results.

Aditya Infotech’s Q2 FY27 performance combines stronger market leadership, expanding profitability, a debt free balance sheet and investment in advanced surveillance technology. Future results will show whether manufacturing expansion and AI capabilities can support growth as the industry comparison base normalises.