Aditya Infotech

What stood out

• Net revenue grew 89.9% year-on-year to INR 1,746.0 crore, while domestic market share expanded to ~42% from 30% at the time of IPO.
  Source

  Management opening remarks (Transcript p. 2) and Presentation (p. 4, 5)
• One-off exceptional loss of INR 34.4 crore reported due to a short-circuit fire incident at the Kadapa plant (AIL Dixon) in September 2026.
  Source

  Aditya Khemka: 'Reported PAT for quarter two was INR 185.5 crores after a one-time exceptional item of INR 34.4 crores from a fire incident that happened in our Kadapa plant' (Transcript p. 2)
• Raised INR 1,500 crore via QIP in September 2026 and turned net debt-free in October 2026 after fully repaying borrowings.
  Source

  Presentation (p. 7) and Aditya Khemka (Transcript p. 3)

Guidance

Revenue guidance was increased from INR 6,000-6,500 crore to INR 6,500-6,800 crore; PAT margin guidance raised from 8.5-9.5% to 9-10%; EBITDA margin guidance kept unchanged at 14-15%.

New businesses and products

Things to check

• Exceptional items of ₹-34.4 crore in 2026-09
• Revenue up over 60%: check for an acquisition or a weak year-ago quarter
• Operational disruption risk highlighted by a factory fire at Kadapa in September 2026, causing a pre-tax exceptional loss of INR 34.4 crore (pending insurance settlement).
  Source

  Transcript (p. 2) and Presentation (p. 4, 16)
• Inventory days rose from 95 days in FY26 to 111 days in H1 FY27 due to aggressive advance stocking of SOC and memory chips.
  Source

  Presentation (p. 17)

How the call went

The call provided high transparency into unit economics, input cost headwinds, and regulatory tailwinds, though management deferred volume vs pricing attribution and specific international market entry details.

Specific or vague

Management provided clear metrics regarding market share, product portfolio splits, capacity milestones, and use of QIP proceeds, but declined to dissect revenue growth between volume, premiumization, and pricing.

Candour

Management was candid about the significant second-half margin compression implied by their guidance (implied ~13% H2 EBITDA margin vs 17.6% in Q2) due to rising semiconductor input costs and deliberate pricing restraint.

The hard questions

Analysts probed into implied H2 margin drops, sustainability of growth post-base normalization, Chinese competitors seeking STQC approval, and working capital cycles.

What analysts pressed on

• Steep margin drop in H2 FY27 implied by maintaining 14-15% full-year EBITDA guidance against a 16.3% H1 delivery
• Competitive entry risk if Chinese competitors or other domestic brands secure STQC certification
• Operating cash flow generation and working capital absorption driven by inventory stocking
• Timing and margin accrual from backward integration and inorganic investments

Answers that sidestepped

• Refused to break down the 90% top-line growth into volume growth, memory-driven price hikes, and premiumization
• Did not provide specific capex expenditure spent to date on the upcoming housing and enclosure plant

Numbers against the story

Management emphasized margin prudence by keeping full-year EBITDA margin guidance unchanged at 14-15%, which implies H2 FY27 margins will decelerate sharply to ~13% compared to the exceptionally strong 17.6% achieved in Q2 FY27. This matches management's explicit narrative of absorbing SOC/flash cost inflation and refraining from aggressive price hikes to capture market share. Additionally, while management highlighted a normalized growth base ahead, the reported 89.9% sales surge in Q2 confirms significant tailwinds from STQC certification bottlenecks that impacted the prior-year comparator base.

Sources

• Concall transcript · filed 13-Nov-2026
• Investor presentation · filed Nov
• Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 14 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.