Aditya Vision Ltd - Scaling beyond core markets | Q1FY27 Company Update

Aditya Vision Ltd reported a strong Q1FY27 performance, with revenue growth ahead of our estimates, led by robust AC sales, an 18% SSSG and continued market-share gains across its operating geographies. Profitability also improved meaningfully, supported by price hikes, a favourable product mix, operating leverage and disciplined cost control. The company continues to benefit from its strong regional brand, improving productivity across mature stores and a diversified product portfolio spanning cooling products, refrigerators, washing machines, televisions, mobiles and laptops. With plans to add over 30 stores during FY27, deepen its presence in existing markets and enter Madhya Pradesh and West Bengal, we believe Aditya Vision remains well positioned to sustain healthy growth over the medium term. We largely maintain our FY27E/ FY28E estimates and introduce FY29E at Rs 21.4. Rolling forward our valuation to Q1FY29E, we value the stock at 40x to arrive at a revised target price of Rs 720 (earlier TP Rs 640).

Aditya Vision Ltd. Stock Price Chart

Robust revenue growth:

Revenue grew by 27% YoY to Rs 11,930 mn, ahead of our estimates, driven by strong traction in air conditioners, healthy same-store sales growth of 18% and continued market-share gains across key geographies. ACs contributed ~42% of revenue and registered ~35% YoY growth, while refrigerators, washing machines and televisions also reported steady growth. Bihar remained the largest market, contributing ~72% of revenue, followed by Uttar Pradesh at ~16% and Jharkhand at ~11%. The company’s expanding store network, improving productivity of mature stores and increasing geographical diversification further supported the strong topline performance.

Healthy margin expansion:

Gross margin expanded by 75 bps YoY to 16.1%, supported by a favourable product mix and price hikes across key categories. Operating margin expanded by 89 bps YoY to 10.4% from 9.5% in Q1FY26, aided by operating leverage and disciplined cost control. Consequently, EBITDA grew by 38.7% YoY to Rs 1,245 mn, while PAT increased by 40% YoY to Rs 772 mn.

Outlook:

We believe the company is well positioned to deliver 20%+ revenue growth over the next two years, supported by robust same-store sales, sustained market-share gains, improving productivity across mature stores and continued expansion into new geographies. Its diversified product portfolio across cooling products, refrigerators, washing machines, televisions, mobiles and laptops should support more balanced growth and reduce dependence on any single category. The sharp reduction in inventory and working-capital borrowings also reflects disciplined inventory management, healthy cash generation and an improving balance-sheet profile. With plans to add over 30 stores in FY27E and enter Madhya Pradesh and West Bengal, we believe the company has a long growth runway and the stock can deliver consistent returns over the long term.

Valuation, view and Risk:

We largely maintain our earnings estimates and introduce FY29E forecasts. We expect the company to deliver a Revenue/EBITDA/PAT CAGR of 23%/27%/33%, respectively, over FY26–FY29E, supported by healthy same-store sales growth, improving store productivity and continued network expansion. While the company plans to enter new markets such as Madhya Pradesh and West Bengal, we adopt a relatively conservative stance and factor in the addition of around 30 stores, largely across existing regions. We also expect store additions to be back-ended towards H2FY27, which could result in higher initial operating costs and keep near-term margins in check. We roll forward our valuation to Q1FY29E and value the stock at 40x to arrive at a target price of Rs 720. Key risks include weaker-than-expected consumer demand, slower ramp-up of new stores, execution challenges in new geographies and higher competitive intensity.

Company website: https://adityavision.in/

*CMP is as per report published date

Click to download the full Aditya Vision Ltd. Q1FY27 Company Update

Analyst: 

• Rahul Dani - Research Analyst, Institutional Equities (NISM-201500034725)
• Vaidik Bafna - Research Associate, Institutional Equities (NISM-202100035711)

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FAQs on Aditya Vision Ltd. Q1FY27 Report

What is Indegene’s Q1FY27 revenue growth?

Indegene reported Q1FY27 revenue of ₹1,060 crore, representing 39.7% YoY growth in INR terms.

What is the target price for Indegene?

The institutional research report maintains a Buy rating with a target price of ₹680. This is an analyst estimate and is not a guarantee of future returns.

Why did Indegene’s EBITDA margin decline?

EBITDA margin was 16.4%, impacted by upfront costs related to large engagements, workforce transformation and investments in AI programs.

When could Indegene’s margins recover?

Management expects EBITDA margins to recover toward the historical 18–19% range, excluding other income, by H2FY27.

What are the key growth drivers for Indegene?

Key drivers include client diversification, large deal wins, GenAI and agentic AI adoption, Tectonic engagements, regulatory technology and healthcare commercial transformation.

What are the key risks for Indegene?

Important risks include increased global competition, slower deal wins, concentration or mining of major clients, delayed industry recovery and slower-than-expected AI adoption.

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