Aditya Infotech Shares Jump 4% on Equity Fundraise for Expansion
By Business Desk
Aditya Infotech shares surged 4% following a ₹1,500 crore equity fundraising plan for capacity expansion, aiming to boost manufacturing and capitalize on new regulations.
Aditya Infotech shares rebounded by 4% over the past two trading sessions, driven by fresh equity fundraising plans aimed at capacity expansion. This recovery follows an 11% share price decline since August 12.
Key Market Metrics
- Shares rebounded 4% after an 11% decline since August 12.
- Qualified Institutional Placement (QIP) raised ₹1,500 crore.
- Analysts forecast 10-20% upside from Friday’s closing price of ₹3,476.3.
- FY27 Ebitda margin guidance maintained at 14-15%.
The planned ₹1,500 crore qualified institutional placement is considered timely, addressing the current 85-90% capacity utilization. This strategic fundraise aims to expand manufacturing capabilities, ensuring revenue visibility amidst sustained demand.
Regulatory Tailwinds
Standardisation Testing and Quality Certification (STQC) norms, implemented in April 2025, have significantly expanded the addressable market for Indian manufacturers. These regulations restricted sales of internet protocol (IP) driven surveillance systems from Chinese companies.
- Chinese firm market share dropped from 27% in FY25 to over 16% in FY26.
Aditya Infotech reported substantial financial growth in FY26, largely benefiting from these regulatory changes. The company’s stock performance reflected this, gaining 128% in 2026.
Robust FY26 Performance
- Revenue surged 35.6% to ₹4,220.8 crore.
- Ebitda grew 124% to ₹579 crore.
- Net profit increased 165.7% to ₹492.7 crore.
- Market capitalization rose to ₹41,124 crore from ₹7,900 crore at its IPO last July.
- Price-earnings multiple expanded to 86 from 68.
Despite the strong annual performance, the June quarter saw a 16% drop in net profit and a 330 basis point contraction in Ebitda margin sequentially. This impact stemmed from elevated electronic component prices.
Cost Management & Outlook
In response to rising input costs, the company increased product prices by 15-20%, a move less than the indicative 25% raise for FY27. Efforts to source components locally are anticipated to impact financials meaningfully within two to three quarters.
Analysts have issued a ‘buy’ call on Aditya Infotech, forecasting a 10-20% upside, as the company maintains its FY27 Ebitda margin guidance of 14-15%.