01 — At a Glance
The Surveillance King Nobody Was Watching
- 52-Week High / Low₹1,759 / ₹1,015
- Q3 Revenue₹1,139 Cr
- Q3 PAT₹96 Cr
- Q3 EPS₹8.17
- Annualised EPS (Q3×4)₹32.68
- Book Value₹135
- Price to Book12.2x
- Debt / Equity0.08x
- Interest Coverage10.7x
- CP PLUS Market Share~39%
Auditor’s Opening Note: Aditya Infotech just delivered a 37% revenue surge in Q3 FY26 to ₹1,139 crore. EBITDA margin of 12.6% — up 391 basis points YoY. PAT nearly tripled at ₹96 crore. The stock, however, trades at a P/E of 76.2x. This is either a growth story that justifies the premium, or a classic case of momentum chasing. Let’s find out which.
02 — Introduction
They Make Cameras. You Know This. But They’re Building an Empire.
Let’s establish the scene. Aditya Infotech Limited (AIL) makes surveillance cameras. CCTV cameras, IP cameras, DVRs, NVRs, access controls, and a thousand SKUs of security gadgetry under the brand name CP PLUS. That’s their flagship. They also distribute Dahua products (a Chinese surveillance giant) and increasingly, they’re adding software layers, AI analytics, and data centre cooling fluids to the playbook.
For decades, this was a straightforward distribution + light manufacturing business. Buy from suppliers, slap a label, sell through distributors. Boring margins. Competitive pricing. The usual FMCG playbook. Except — AIL just blew past that model.
In Q3 FY26, they posted ₹1,139 crore in revenue and ₹96 crore in PAT. That’s a 37% revenue jump and a 139% PAT surge in a single quarter. They’re now building manufacturing capacity to 2.1 million units per month. They’ve signed partnerships with Qualcomm for AI-enabled security solutions. They’re launching two new brands to attack market segments. They’re manufacturing their own camera lenses, circuit board enclosures, and cables. And they just became a contract manufacturer for L&T Semiconductors to churn out nine million IP cameras in three years using India-designed chips.
The stock went public in August 2025 at ₹1,300 and is now trading at ₹1,644 — a 26% pop in six months. The market is betting something serious is happening here. Let’s examine whether that bet is sane.
Concall Signal (Feb 2026): Management explicitly states: “We are putting all our guns on fire” to “hit the halfway mark” — industry jargon for 50% market share. They’re not hiding the ambition. They’re broadcasting it.
03 — Business Model: What’s Actually Happening Here?
From Distributor to Vertically Integrated Manufacturing Powerhouse
AIL operates across three distinct tiers of the surveillance value chain. First: distribution and brand marketing — CP PLUS is the flagship, commanding roughly 39% of India’s video surveillance market. Second: manufacturing — they own a 17.2-million-unit annual capacity plant in Kadapa, Andhra Pradesh, making CCTV cameras, DVRs, and related products. Third: software and services — HMS (health management systems), AMS (attendance management), cloud platforms, and increasingly, AI-powered video analytics.
Revenue mix in Q3 FY26: CP PLUS drove 87% of company revenue (management targets 90%+). Dahua distribution contributed the balance. By channel, 79.5% comes from 1,012 distributors and 2,178 system integrators. Retail, online, and project-based sales account for the remaining 20.5%.
The transformation underway: AIL is no longer just a distributor riding on Dahua’s coat-tails. They acquired the remaining 50% stake in their manufacturing JV (AIL Dixon Technologies) in September 2024, granting Dixon Technologies a 6.65% stake in AIL in return. This was followed by capex announcements of ₹750 crore for greenfield capacity and ₹500 crore for expansion at Kadapa. They’re building an enclosures plant. A lens assembly facility. A cables operation with Orient Cables. All moving toward vertical integration, localization, and cost control.
Market Share~39%Q2 FY26 Run Rate
Installed Capacity1.9M units/moQ3 Peak Run
Target Capacity2.4-2.5M units/moBy FY27
Manufacturing Reality Check: India’s third-largest CCTV facility globally by installed capacity. But utilization at 77% as of FY25. That leeway is intentional — they’re positioning for a demand surge while protecting against supply chain shocks. The semiconductor shortage of recent years taught them a lesson: spare capacity is insurance, not waste.
💬 Is vertical integration the winning play in surveillance hardware, or just a capital-intensive distraction? Drop your view.
04 — Financials Overview
Q3 FY26: The Numbers That Made the Stock Pop
Result type: Quarterly Results | Q3 FY26 EPS: ₹8.17 | Annualised EPS (Q3×4): ₹32.68 | 9M FY26 Revenue: ₹2,799 Cr
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,139 | 830 | 920 | +37.3% | +23.8% |
| Operating Profit | 140 | 69 | 109 | +98.7% | +28.4% |
| EBITDA Margin % | 12.6% | 8.3% | 11.9% | +430 bps | +70 bps |
| PAT (Adjusted) | 96 | 40 | 70 | +138.8% | +37.1% |
| EPS (₹) | 8.17 | 3.66 | 5.97 | +123.2% | +36.9% |
Breakdown of the Thunder: Revenue grew 37.3% YoY driven by “strong demand” and favorable product mix — IP cameras now 75% of CP PLUS portfolio (vs. older analog). EBITDA margins expanded 430 basis points to 12.6% thanks to higher-priced IP sales, localization benefits, and operating leverage. PAT growth of 139% is partially aided by a one-time labor code provision of ₹7.7 crore in prior quarter, but the operating leverage is genuine. This is not accounting magic — it’s real volume and mix momentum.
05 — Valuation Discussion: Fair Value Range
Is a 76x P/E Justified, or Just Fresh IPO Exuberance?
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