In conversation with Aditya Khemka, Managing Director, Aditya Infotech Ltd

What factors led to the company’s impressive Q1FY26 performance, with revenue and net profit growing 16 and 46 per cent, respectively? What guidance would you like to share for FY26?

In Q1FY26, we achieved this growth rate despite the fact that STQC came into play on April 9, 2025. Though we had the largest range of STQC-certified SKUs, we started getting supplies of STQC SKUs only at the fag end of M3 of Q1. But we still managed to grow year on year by focusing on other categories like HD, recorders, and whatever STQC stock we could get.

This can be attributed to the strong brand presence, distribution reach, and the confidence in the brand that we have the largest STQC-compliant product range. Moving forward, we will have the best range of STQC-complied products. We saw good traction across all segments, namely channel, projects, large enterprise, and consumer as well.

The brand’s unmatched scale and reach across India provided the second pillar of strength. With more than 1,000 distributors, 2,100 system integrators, and a presence in over 550 cities, CP PLUS has built a distribution architecture that not only drives demand but also maintains healthy inventory turns. The expanding network of Galaxy and World Centres has amplified brand pull, creating touchpoints of trust and accessibility that competitors find hard to replicate.

Looking ahead into FY26, the company is guiding for beating the industry growth rate of 16-18 per cent by a good margin, supported by multiple engines. The STQC-compliant portfolio is expected to scale further across government and corporate orders, while consumer adoption of smart home ecosystem, network cameras, and dashcam range continues to deepen. On the enterprise front, advanced analytics are poised to drive larger solution-led deals, cementing CP PLUS as not just a product brand but also a technology solutions partner.

Can you please elaborate on the company’s product portfolio? How does the company benefit from its first-mover advantage, and what entry barriers exist for potential new players?

CP PLUS has a product range covering the consumer connect home, professional solutions addressing the SMB, mid-market, and also a specialised portfolio for high enterprise and government. The portfolio spans HD-analogue and IP cameras, DVRs, NVRs, edge-AI devices, thermal solutions, mobile and body-worn cameras, and a full ecosystem of cables, SMPS, and accessories.

Complementing this core is a robust access and attendance range, including biometric terminals, intercoms, and cloud-driven services like HMS and AMS. On the consumer front, Wi-Fi-based ezyKam+ devices, IlluMax night-surveillance solutions, smart locks, video door phones, and CarKam dashcams have brought professional-grade security to everyday households.

All of this is underpinned by India-based design and manufacturing at the Kadapa facility and through collaborations with L&T Semiconductor Technologies and others, ensuring innovation, compliance, and localisation at scale.

Its distribution and after-sales infrastructure, the largest in India, is a formidable moat, reinforced by dedicated service centres, RMAs, and a strong field force. Brand equity further enhances this advantage, cultivated through years of localised marketing and customer engagement.

While we cannot comment on competition or new players, regulatory compliance is not just expensive but intricate, requiring mastery over secure supply chains, chipset whitelists, and firmware protocols.

Building a distribution and service footprint of similar scale is a multi-year exercise. Replicating manufacturing and localisation expertise demands both capacity and cadence. Offering a portfolio as diverse as CP PLUS’s, from consumer Wi-Fi devices to enterprise-grade analytics platforms, requires years of investment in IP and customer trust.

In addition, the strong brand recall with the brand CP PLUS is almost synonymous with the category. CP PLUS has not just built leadership but is at the forefront of India’s surveillance industry for years to come.

Given that a significant share of parts and materials is imported from China, are there any operational concerns, and how is the company addressing them?

We are fully aligned with the 'Make in India' and 'Atmanirbhar Bharat' vision. Today, a significant majority of our products, from entry-level cameras to advanced AI-integrated systems, are designed, engineered, and manufactured at our Kadapa facility. This plant has a current production capacity of more than 1.5 million units per month, with the infrastructure in place to expand to 2.5 million units.

Our end-to-end local manufacturing model gives us unmatched agility, reliability, and control over quality while reducing our exposure to global supply chain disruptions.

As per the new STQC norms, critical components cannot be from any land border-sharing countries, and our supply chains are fully compliant on that note. We are also constantly working on increasing our local content via backward integration.

The non-critical passive components may continue from China, and this is based purely on commercial considerations of price and availability.

Are there any capex plans in the near future?

Yes, there is capacity expansion planned and also backward integration. These will play out in the next couple of years and will be funded from internal accruals.

Finally, how do you view the outlook for this segment? What future opportunities do you see, and how is the company positioning itself to capitalise on them?

With our market leadership and widely recognised brand CP PLUS and an extensive reach as well as product range, we are currently focused on consolidating and growing our India market share. The government regulation-driven tailwinds in the form of the STQC certifications present an inflection point for Indian brands, and currently, we are fully focusing on leveraging the same.

Our goal is to establish a direct and significant presence in every corner of India, making world-class surveillance technology easily accessible to all, be it in metropolitan areas, tier-2 cities, or rural markets. We are driving initiatives to deepen our penetration of the Indian market, and to reach all the tier 2, 3, and 4 cities across the country, going deeper into the real Bharat. This includes enhancing after-sales support, ensuring product availability, and educating customers about the benefits of advanced security solutions. We are also investing in the expansion of the franchisee-owned exclusive brand store concept of our CP PLUS Galaxy Store network and strengthening our partnerships with distributors, system integrators, and retailers nationwide.