India keeps putting up cameras. Streets, malls, factories, housing societies, everywhere you look there’s one watching, and now the rules around what goes inside those cameras have changed too. That’s shaken up the whole industry, with smaller players struggling and bigger ones picking up the slack. For anyone tracking listed stocks in this space, the June quarter numbers and the latest earnings call gave a lot to chew on, honestly.
Aditya Infotech Ltd. locked its 5% upper circuit of ₹3,826.20, up ₹182.20 from the previous close of ₹3,644, with the price band data showing it couldn’t trade any higher for the session. Market cap stands at ₹45,264 crore, with the consolidated price-to-earnings ratio at around 94 times.
Market Share Has Doubled
Going by a Frost & Sullivan report the company points to, Aditya Infotech held 43.3% of India’s video surveillance market in FY26, and the company says that share has roughly doubled over the period covered. Sales for the June quarter came in at ₹1,402 crore, up 89.5% from last year. The CP PLUS brand alone brought in about 87% of it, so the own brand is doing most of the work now.
New Rules Help The Bigger Names
A government norm from April 2025 bars CCTV makers from using Chinese chips and memory, and the products have to pass cyber security testing by the government, called STQC certification.
Old stock could be sold only till March 2026, and that stock has now run out. Around 40 brands are certified, but the company feels large players who can buy chips at scale cope better while smaller ones struggle with costs. It also doesn’t see any change in government policy on CCTV right now.
AI Cameras And New Product Bets
IP cameras, the internet-connected type that can run smart AI features, now make up nearly 79% of the CP PLUS range, which means buyers are moving to costlier, smarter products. A high-end CP PLUS Pro series built by the Taiwan R&D team should go live around the end of Q3 or early Q4 of FY27, and a home range with video door phones, door locks and smart doorbells is on a similar timeline. Machine vision cameras, drone cameras and industrial robots are only at study stage, so nothing to count on yet. Exports may start to matter in 18 to 24 months.
Profit And Balance Sheet Look Healthy
Gross margin was 30.8%, up 810 basis points from last year (100 basis points make 1%), and EBITDA margin, which is operating profit before interest, tax and depreciation as a share of sales, rose 604 basis points to 14.8%. Adjusted profit after tax was ₹142.2 crore, up 332.5%, with finance costs down 59%.
Debt to equity has dropped to 0.07, and the cash conversion cycle, the days taken to turn money spent into cash back, is 64 days. One catch is that gross margin slipped from Q4 as cheaper old chip stock ran out, and prices are going up slowly, 10% to 20% so far and around 25% guided for the full year. Full-year EBITDA guidance is 14% to 15%, so Q1’s 14.8% leaves little room above.
Factories Are Getting Bigger
Current capacity is about 2.5 million units a month, and it’s running at 85% to 90% utilisation, so it’s pretty full. The company plans to nearly double capacity in three years, starting at Kadapa, with a second cluster planned in Greater Noida.
Housing and enclosure making should start by Q3, and a cable joint venture with Orient Cables aims to begin production in Rajasthan by the end of FY27. Revenue guidance for FY27 is around ₹6,000 crore to ₹6,500 crore, and localisation could lift locally made parts to about 40%.
Bottom Line
Sales are flying, profit is up big and debt is barely there, so the numbers are hard to argue with. What matters next is whether margins hold as chip costs keep climbing and price hikes get passed on slowly. The new products, factory plans and AI push all sound good, though most of it is still to show up on the ground. Worth watching what the company says after the half-year results.
About the Company
Aditya Infotech is a Noida-based company that makes and sells video surveillance products under the CP PLUS brand, along with a second brand called Nexivue. It listed on the stock exchanges on August 5, 2025. The company runs R&D centres in Noida, Ahmedabad and Taiwan, with a new one coming in Bengaluru, and its manufacturing base is at Kadapa.