Is Aditya Infotech IPO Good or Bad – Detailed Review

Aditya Infotech Limited’s IPO is kicking off its initial public offering, which will be open from July 29, 2025, to July 31, 2025. While considering applying for this IPO, certain questions may arise in your mind, including whether the Aditya Infotech IPO is good or bad, whether it is worth investing in this IPO, and so on.

 This article offers a comprehensive Aditya Infotech IPO review, covering its business operations and fundamental analysis to help you make an informed investment choice.

Aditya Infotech IPO Review

Aditya Infotech Limited's IPO, open from July 29 to July 31, 2025, offers investors a chance to invest in a major player in India's video security and surveillance market. Operating under the 'CP PLUS' brand, the company holds a 20.8% market share as of FY25. Backed by a strong pan-India network and a manufacturing facility in Kadapa, Aditya Infotech has shown consistent revenue growth, from Rs 2,284.55 crore in FY23 to Rs 3,111.87 crore in FY25.

The IPO, priced at Rs 640 to Rs 675 per share, aims to raise Rs 1,300 crore. Strengths include a strong brand presence and comprehensive product portfolio, while risks include a high reliance on specific products and suppliers, particularly from China. The company's future strategies include expanding its product portfolio and retail presence, and leveraging government initiatives like 'Make in India.' The funds from the fresh issue will be used for debt repayment and general corporate purposes.

Company Overview of Aditya Infotech Limited

Aditya Infotech Limited started in 1995, under the name 'Perfect Lucky Goldstar International Limited,' and later changed the company's name to "Aditya Infotech Limited." They offer a wide range of video security and surveillance products, technologies, and solutions for commercial and consumer markets under their 'CP PLUS' brand. 

As of March 31, 2025, the company has access to 550 cities and towns in India, backed by 41 branch offices and 13 return merchandise authorisations (RMA) across India. Currently, they have 10 warehouses spread across India, located in Delhi, Gurugram, Noida, Bhiwandi, Ahmedabad, Indore, Kolkata, Guwahati, Chennai, and Bengaluru.

It also acts as an exclusive distributor for products from Dahua Technology in India. The company's manufacturing facility, with an installed capacity of 17.20 million, is operated by its material subsidiary, AIL Dixon Technologies Private Limited, located in Kadapa, Andhra Pradesh. Earlier, AIL Dixon was a joint venture between Dixon Technologies (India) Limited and Aditya Infotech. On September 18, 2024, Aditya Infotech acquired Dixon Tech’s 50% stake and became Aditya Infotech’s subsidiary. The company earns 78.95% from the sale of CCTV cameras, NVR (Network Video Recorder), DVR (Digital Video Recorder), and PTZ (Pan Tilt Zoom) cameras, and the remaining 21.05% from the sale of other products (cable, hard disks, and video door phones) and services for FY25. The company is directed by its promoter and managing director, Aditya Khemka, and Hari Shanker Khemka, chairman and whole-time director.

Industry Overview of Aditya Infotech Limited

The global video surveillance and security market is expanding due to the adoption of advanced technologies like AI and integration with other security systems. The global market was valued at USD 35.9 billion in fiscal 2025 and is projected to grow at a CAGR of 10.36% until fiscal 2030.

In India, the market is also experiencing a significant surge. It was valued at Rs 10,620 crore in fiscal 2025 and is expected to reach Rs 22,740 crore by fiscal 2030, with a projected CAGR of 16.46%. This growth is driven by increasing security concerns, government initiatives like the Smart City Mission, and advancements in technology. Aditya Infotech has a market share of 20.8% in the Indian video surveillance market in terms of revenue as of fiscal year 2025.

Financial Overview of Aditya Infotech Limited

The financial performance of Aditya Infotech Limited over the three fiscal years ending March 31, 2023, 2024, and 2025 reflects a trend of steady growth in its top-line revenue, alongside fluctuating profitability metrics. 

Revenue from operations increased steadily from Rs 2,284.55 crore in fiscal 2023 to Rs 2,782.43 crore in fiscal 2024 and further to Rs 3,111.87 crore in fiscal 2025. EBITDA also showed consistent growth, rising from Rs 181.05 crore in Fiscal 2023 to Rs 236.48 crore in Fiscal 2024, and reaching Rs 258.39 crore in Fiscal 2025. EBITDA margins remained relatively stable, at 7.89% in Fiscal 2023, 8.46% in Fiscal 2024, and 8.27% in Fiscal 2025.

Profit after tax (PAT) saw a substantial increase from Rs 108.31 crore in fiscal 2023 to Rs 115.17 crore in fiscal 2024 and then experienced a significant jump to Rs 351.37 crore in fiscal 2025. The PAT margin reflects this trend, rising from 4.72% in fiscal 2023 to 4.12% in fiscal 2024 and then surging to 11.25% in fiscal 2025. The significant increase in PAT margin in Fiscal 2025 was primarily due to a gain on the fair valuation of an equity interest in an AIL Dixon joint venture, amounting to Rs 248.63 crore, which was recorded as an exceptional item. The PAT margins before exceptional items for fiscal 2025 stood at 3.29%.

In terms of return metrics, Return on Equity (RoE) stood at 34.76% in Fiscal 2023, declined to 27.15% in Fiscal 2024, and rebounded to 34.53% in Fiscal 2025. Similarly, Return on Capital Employed (RoCE) was 23.07% in Fiscal 2023, increased slightly to 23.57% in Fiscal 2024, and then rose to 33.27% in Fiscal 2025. The company's debt-to-equity ratio showed a notable improvement, decreasing from 1.31 in fiscal 2023 to 0.96 in fiscal 2024 and further to 0.41 in fiscal 2025.

Overall, Aditya Infotech has demonstrated strong growth in revenue and profitability, with its return ratios reflecting an efficient use of capital. The substantial increase in profit in fiscal 2025 was heavily influenced by a specific exceptional gain. The company has also successfully reduced its leverage over the last three years.

Strengths of Aditya Infotech Limited

• Strong Market Share and Brand Presence: The company is one of the largest players in the Indian security and video surveillance market and holds a 20.8% market share for Fiscal 2025. It has a strong brand recall for its 'CP PLUS' brand as well. Aditya Infotech has 69 dedicated CP PLUS Galaxy stores operated across the country.

• Pan-India Network: It has an extensive sales, distribution, and service network across India, covering over 550 cities and towns with 41 branch offices and 13 RMA centers as of March 31, 2025. As of March 31, 2025, they have 3,232 customers, and 79.58% of revenue comes from distributors, 16.17% from system-integrated operations, 1.78% from retail, and 2.47% from online and e-commerce.

• Comprehensive Product Portfolio: The company offers a wide range of electronic security and surveillance products, solutions, and services, including AI-based analytics and cloud services. With arrangements with Dahua’s products and services for accessing video management software and security cameras, it contributed 24.65% of its operational revenue for FY25.

• Advanced Manufacturing: The company has advanced manufacturing and research and development capabilities. Its manufacturing facility is India's largest CCTV manufacturing facility and the third-largest globally, with a capacity of 17.20 million units per annum as of FY25.

• Government Focus: The company is well-positioned to benefit from government initiatives and regulations, such as the 'Make in India' campaign and mandatory STQC (Standardisation Testing and Quality Certification) for CCTV cameras, which favour domestic manufacturers.

Risks of Aditya Infotech Limited

• Reliance on a Limited Number of Products: A significant portion of the company's revenue comes from the sale of CCTV cameras, NVRs, DVRs, and PTZ cameras, which collectively contributed 78.95% of its revenue from operations in Fiscal 2025, making it vulnerable to changes in demand for these specific products.

• Dependence on a Few Suppliers and Foreign Imports: The company depends on a limited number of suppliers for parts and materials, particularly from China. Any supply chain disruption or import restrictions could adversely affect its operations and profitability. As of March 31, 2025, 91.89% of the company’s cost of material consumed is supplied by the top 5 suppliers.

• Customer Concentration: The company faces a risk of customer concentration, with a significant portion of its revenue derived from a few key customers. The top 10 customers accounted for 18.80% of revenue from operations in Fiscal 2025.

• Competition: The company operates in a highly competitive industry with both global and domestic players, which could lead to pricing pressure and a reduction in market share.

• Distributor Risk: The company has not entered into long-term agreements with its distributors, and 79.45% of the company’s revenue is from them. Any increase in competition or discounts can impact sales and margins, and they might lose distributors if mutual agreements fail.

Strategies of Aditya Infotech Limited IPO

• Leverage India's Regulatory Framework for Cybersecurity: The company aims to strengthen its market leadership by leveraging the government's mandatory STQC certification for CCTV cameras, which favours domestic manufacturers.

• Innovate and Expand Product Portfolio: The company plans to continue investing in research and development to introduce new products and next-generation versions of its existing products, including interactive whiteboards and dashboard cameras, to expand its product portfolio and develop a comprehensive ecosystem for commercial and consumer use.

• Expand Retail Presence: The company intends to grow its retail customer base and online sales by opening additional 'CP PLUS World' experience centers and 'CP PLUS Galaxy' stores, particularly in Tier II and Tier III cities.

• Focus on Service-Led Model and Enterprise Customers: Aditya Infotech plans to increase its participation in large-scale projects and expand its enterprise team to offer customised, one-stop solutions to large corporate and business groups.

• Increase Production at Kadapa Facility: The company intends to scale up its manufacturing operations at its Kadapa facility to meet growing demand and may focus on producing plastic and metal housings to improve product durability and resistance.

Aditya Infotech Limited IPO Peer Comparison

Currently, there are no listed Indian companies available for direct peer comparison on the stock exchanges. However, the company operates in a competitive landscape alongside players such as Honeywell Security, Bosch Security Systems, Axis Communications, Samriddhi Automations Private Limited, Uniview Technologies, and Prama Hikvision India Private Limited. These firms offer similar surveillance technology solutions and cater to overlapping market segments.

Objectives of Aditya Infotech IPO 

The total issue size stands at Rs 1,300 crore, out of which Rs 800 crore is an offer for sale and the remaining Rs 500 crore is a fresh issue. The selling shareholders in the offer for sale include Aditya Khemka, Ananmay Khemka, Rishi Khemka, Hari Shankar Khemka (HUF), Shradha Khemka, and Aditya Khemka (HUF).

The funds raised through the fresh issue are being utilised for,

• Prepayment and/or repayment of certain outstanding borrowings availed by the company worth Rs 375 crore.

• General Corporate Purposes.

Aditya Infotech IPO Details

IPO Dates

Aditya Infotech IPO will be open for subscription from July 29, 2025, to July 31, 2025. The allotment of shares to investors will take place on August 1, 2025, and the company is expected to be listed on the NSE and BSE on August 5, 2025.

IPO Issue Price

Aditya Infotech is offering its shares in the price band of Rs 640 to Rs 675 per share. This means you would require an investment of Rs. 14,850 per lot (22 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Aditya Infotech is issuing an offer for sale of 1,92,59,258 shares, which are worth Rs 1,300 crores. Out of which Rs 800 crore are issued through Offer for sale, and the remaining Rs 500 crore are fresh issues.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on August 5, 2025, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Aditya Infotech will be listed on the NSE and BSE on August 5, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Aditya Infotech IPO