Aditya Infotech Limited (CPPLUS) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Aditya InfoTech Limited Q3-FI26 Earnings Conference Call, hosted by Access Capital. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touchstone telephone. Please note that this conference is being recorded. I will now have the content over to Mr. Nikhil Kandhoye from Access Capital for opening remarks. Thank you, and over to you, Nikhil.

Thanks, Raya. On behalf of Access Capital, we welcome you all to Q3F526 Earnings Conference Call of Aditya Infotech Limited. We have with us today, Senior Management Group presented by Mr. Aditya Simpa, Managing Director, Mr. Anup Nair, President, Strategy and Business Development, and Mr. Yogesh Sharma, PAFO. Now, I'll hand over the floor to Mr. Aditya Simpa for his initial comments, and then we'll open the floor for Q&A. Thank you, and over to you, sir.

Hi, thank you, Nikhil, and good afternoon, everyone. Thank you for joining us today. In the third quarter of 2026, Aditya InfoTech Ltd. continued its profitable growth, operational discipline, and robust execution. Favorable industry tailwinds, largest portfolio of CP Plus trusted core cyber-secured products, large-scale domestic manufacturing, Deep R&D skill sets, comprehensive distribution network, and sustained investments in technology and strategic partnerships help sustain our continued market share growth trajectory. Before I take you through the financials, let me briefly outline the broader industry environment in which we operate. The CCTV market demonstrates a robust long-term growth trajectory. Rapid urbanization with more emphasis on safety, improving spending power, and sustained government investments under smart and safe city initiatives are propelling strong and sustainable demand. Market projections suggest a consistent high double-digit growth over the medium to long term. We are also witnessing a decisive shift from HD analog products to network IP-based solutions. Along with AI-enabled surveillance systems, advanced video analytics, edge computing, and integrated command control platforms are becoming central to both government and private enterprise deployments, expanding the role of surveillance far beyond just security. From a policy standpoint, the Union Budget 2627 has significantly bolstered India's technology and manufacturing ecosystem. The launch of the India Semiconductor Mission 2.0 seeks to expedite domestic capabilities throughout the semiconductor value chain in the country. These advancements strengthen the technology foundation that supports advanced CCTV and connected systems. They also enhance India's competitiveness in high-growth sectors such as Artificial Intelligence, Internet of Things, data centers, and sensor-based technologies, which are increasingly integral to future video surveillance solutions. The market landscape has also undergone a significant transformation with notable shift towards cybersecurity-certified domestic Indian brands and some MNC global brands. CP Plus stands out as the single largest player in this evolving landscape with its constant effort in R&D manufacturing and localization. This shift has permeated all stages. of the value chain, encompassing distributors, system integrators, and even the end users, which includes mid-markets, small and medium enterprises, large corporations, and government sectors. This has accelerated market share gains for CP+, and our market share rose to almost more than 39% during the second quarter of FY26. The market share gain is expected to continue for Q3 as well. In Q3, the CPplus brand continued its strong growth, contributing 87% of our overall AIL company revenue. IP products made up to 75% of CPplus portfolio, underscoring the sustained shift towards high-value IP solutions. Let me walk you now through the financial results. On the quarterly performance, revenue grew 37.3% year-on-year to 1139.1 crores, driven by strong demand from our expanding portfolio of CP plus CDC technology products across all segments from retail to projects and government. EBITDA increased 98.7% year-on-year to 144.6 crores. With margin improving by 391 basis points to 12.6%, primarily due to favorable product and brand mix, higher localization, and strong operating leverage. Adjusted fat stood at 96 crores, up 138.8% year-on-year, after accounting for 7.7 crore of one-time provisioning related to the new labor codes. On our 9th, 9-month cumulative performance revenue grew 31.1% to 2798.8 crores, and EBITDA increased 100.5% year-on-year to 320.6 crores, with margin expanding by 395 basis points to 11.4%. Our adjusted PAD rose to 198.8 crores, reflecting 138.8% year-on-year growth over the 9-month period. On the manufacturing expansion, we are actively expanding our manufacturing infrastructure and capabilities. Our installed capacity for Q3 was 1.9 million units per month, which represents already a 20% increase from our previous peak. We are on track to achieve a capacity of 2.1 million units by quarter 4 of FY26. During the quarter, we also commenced construction of our enclosures and housing plant in Karappa, Andhra Pradesh, expected to be operational by mid-2026. This initiative will deepen backward integration, improve cost competitiveness, and enhance supply chain resilience. The project is fully funded through internal accruals. We have also successfully commissioned the CCTV camera lens assembly line. And commercial production will begin from quarter 1 of FY27. Once operational, this line will deliver a production capacity of up to 3 lakh lenses per month to be further scaled up to 10 lakh per month by the end of next year, enabling us to meet future volume demands more efficiently. I'll talk on the R&D and global technology expansion now. Our investments in R&D continue to grow. We are adding highly experienced engineers on a regular basis and strengthening collaborations with semiconductors and critical component manufacturers to deliver world-class advanced cyber-secured CCTV solutions to our customers. We have also incorporated Aditya InfoTech Taiwan Company Limited. A wholly-owned subsidiary dedicated to global R&D for security and surveillance technologies. Taiwan is a global hub for semiconductor manufacturing and hardware innovation, with world-class foundries, IC design houses, and a mature electronic supply chain. This enables us to access high-caliber engineering talent. For the following work much ahead of time, including SOC architecture, embedded systems and firmware, hardware software integration, AIoT, and edge computing. This aligns tightly with our long-term innovation and technology roadmap. This quarter, we announced two significant collaborations. We entered in a strategic partnership with Qualcomm Technologies. To build AI-enabled, insight-driven, video security solutions for industrial, enterprise, and public safety applications. These next-generation offerings, powered by Qualcomm's Edge AI hardware and CP Plus extensive market reach and product ecosystem, are expected to be commercially available in the Edge 1 of coming year. This marks a pivotal shift from hardware-led surveillance to AI analytics-driven solutions, enhancing both revenue mix and margins. The vision is that while we have successfully made cameras available to the look and corner of India, and there is something for all kinds of customers, Next for us is to make it more intelligent, to derive even business outcomes, and also to provide action-oriented security, to make AI as part of life for all our customers in the coming years. We have also advanced our backward integration agenda by signing an MOU with Orient Cables for the manufacturing of coaxial and network cables. Primarily for CP plus captive consumption. This collaboration will strengthen supply assurance, enhance cost efficiencies, and support for our long-term growth ambitions. This JV will also be making camera cables for complete backward integration and localization. A bit on the brand strategy and consumer engagement now. As part of our multi-brand strategy, we have launched two new brands, Aira and Nexiview, at IFSEC in December 2025. Primarily targeted at mass market and unorganized segments, Nexiview brand is set to hit the market in Q4, F526, and Aira brand is planned to launch in the first quarter of next financial year. Our consumer engagement also gained significant momentum with our new brand campaign featuring TN superstar Vijay Setupati, deepening our connect with the audiences in Tamil Nadu. We also enhanced visibility through our largest ever presence at IFSEC India Exhibition, title sponsorship of PAC-2026, a high-impact visibility across Indian cricket series, and outdoor campaign across major airports in India. We have also announced a price hike of 6% to 8% in the month of January 2026, which has already passed to the market, and a further price hike is expected in the coming quarters in FY26-27, in line with the input cost rise from the memory gaps which is emerging in the market. We'll talk a little bit on the supply chain visibility now. The global supply challenges persist across SOC, memory, including DDR and flash, and sensors. We have implemented several mitigation plans and are relatively better positioned and adequately covered for the next coming quarters. Our multi-SOC product development strategy involves product ranges across various SOC manufacturers, including RealTech, InnoFusion, Novatec, Umbrella, and Qualcomm, thereby diversifying our chipset sourcing base. For procurement, we are mapping the entire supply chain and directly engaging with all the chip manufacturers. And their authorized distributors and also intermediaries, so as to ensure we have maximum availability at all times for the chipsets, especially in these crazy times. We are placing forward orders up to even three quarters in advance, and in some cases even doing prepayments to lock the chipsets, thereby securing supplies and maintaining market share growth trajectory. Given strong execution, a favorable external environment, and a robust product and manufacturing and localization pipeline, we up our guidance for FY2026. On the revenue growth side, year-on-year, the range will be 3,900 to 4,100 with the expectation closer to the higher slab. The EBITDA margins, we increased to 11 to 12 percent. And Pat from 6 to 7 now to 7 to 7.5% in this year. To establish the tone for the upcoming financial year, we anticipate sustained robust growth and bullish sentiment. Consequently, our initial guidance for FY27 would be revenue between 5,350 to 5,550 crores, which is almost 30 to 35% growth over this coming year. The EBITDA margins are further raised to 12% to 13%, and the FAT from 7.5% to 8.5%. Thank you, everyone. We are now open to take questions from you.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Renu Bade from IIFL Capital. Please go ahead.

Yeah, hi. Good morning, team, and congratulations for the strong performance. So, first question, while you've elaborated quite a bit on the supply chain concerns and inflationary impact and size hikes, could you share a bit more detail in terms of to what extent you've seen the shortages impacting you? When you think, while you're placing forward orders, near-term execution may be slightly softer when we look at fourth quarter. And in terms of inflationary impact, what will be the exact cost increase that we've seen? And in addition to the 68% price hike for Jan, would it possibly be for you to quantify what is the quantum of price hike planned for fourth quarter and subsequently first quarter of 2017? That's the first question.

Okay. Thank you, Renu. So, Renu, you see, generally, what I have seen in the past couple of decades also in a situation like this, when there is a, you know, component shortage or something, it's actually for the big players an opportunity to scale bigger. The challenge comes to the long tail of the small players, which are, you know, unable to secure supplies because the supply is that much only. So what we have done is we have locking, first we have done multi-SOC supply chain. So all our products, we have an option A, B or C available. That something or the other will be available to, you know, for the same set of customers to be provided. Second, we have ensured enough supplies and lock-ins with all the chipset owners across the board. So all these four or five main chipset owners. And the flash guys that we keep securing. And the only major change which will be there is the flash, where the prices are beyond control. So that is the thing, but the supply we are ensuring. So our focus will be to provide the supply, even though the cost may be a little higher on the DDR and the flash side. But supply side, we are ensuring that we don't fall short and our production keeps scaling up and our market share keeps scaling up. So we are taking it as an opportunity to scale up further. Now, our guidance for next year and your second part of the question that how much impact will be there on the price, it will be a double digit. Now, what level of double digit hike further, we are quantifying and seeing. What we are trying to do is that it doesn't impact our margins. Thank you. We are the largest supplier, almost 40% of the market, and we are aiming to scale it up further in the coming future. And the other side of the supply, there is a shortage which is there for the balance, 60%. So, we don't see a challenge with respect to the revenue, you know, achieving as long as we are able to maintain supply. So, whatever is the input cost rise due to this, we are passing on without affecting our margins. And, uh... I think that's how it is. But it will be a double digit because at the moment, the next six to eight months, the memory and DDR is going over the roof. So it could be 10, 15, 20, 25. We are just quantifying what best we can do to balance out the supply. So it depends. Every month, two months, price may have to alter.

That is, that is. Secondly, in line with some of the strategic initiatives that we have planned along with Orient Cables as well as with Qualcomm, how do we see the CAPEX numbers for FY26 closure and for Pixel 27, along with the backward integration plan?

So I think this year, Capex, we have primarily funded from our own with respect to capacity expansion and a little bit was done on the corporate office, which we intend to finish in the Q1 of next year and move in there, which is the R&D center. We have a huge R&D center, labs and everything. And next year, I think the Orient Cable Capex will soon be out, but it's not much, we'll most likely be funding through internal crews.

It's a 50-50 JV, so both partners will be providing for the Capex, and it's not too significant of material. And for the Qualcomm part is more of a collaboration, so there's no investment, so they are using our market reach and knowledge of CCTV, and they are bringing in the cloud and IoT knowledge, so there is no capex in that, it's more of an cost and revenue share, so once the product is ready, there's a revenue share model, so there's no capex in the Qualcomm model.

Got it. So broadly, on an analysed basis, we should be within the 150 crores of guided-quipage range.

Absolutely. Yeah, the same that we guided for. It could be within that.

Unless there is an inorganic thing that we will see separately, but more or less for our current plans, there should be okay with it.

Got it. And lastly, in terms of slightly long-dated capacity expansion, where are we for fiscal 27 in capacity targets?

So we are going to raise it to 2.4 million, as we mentioned, Renu, so 2.4, 2.5 million with the current Kadappa plant, though that should suffice our FY27 or even a part of FY28 and 30 million enclosure and 30 million enclosure also, which will be the housing and enclosure plant and my million of lenses per month apart from the rest being imported, but So, post that, maybe in the next year, we'll explore a second manufacturing facility. We're working on that yet to decide at the moment.

Got it. Got it. Thanks and best wishes, team. Thank you. Thank you very much.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Aniruddha Joshi from ICSA Securities. Please go ahead.

Yeah, thanks for the opportunity and congrats to the entire team at Aditya InfoTech for posting such great set of numbers. Two questions from my side. In terms of Nexiview and Aira brands, if you can share more details, means now almost three odd months are over, so are they well distributed across the regions, and how do you see the distribution upside? Point one. Secondly, is there any revenue target for these brands? Let's say one year down the line or three year down the line, anything on that. That is question one. And then second question is in terms of CCTV camera issue. So at least whatever we have spoken with peers, we understand compared to Aditya, the preparation level at peers might be slightly lower. So, is there a potential to gain material market share as the issue progresses over next six months, and will it result in higher working capital also? Yeah, thanks.

Yeah. Thank you, Anurudh. I think I'll take the first question on the Aira and next review. See, the logic of launching these brands was because we wanted to evolve with a substantial market share as a company. CP Plus has already close to 40% and we believe we will strive to further scale this up. Now, there are, you know, we being the largest player in the market in trading and distribution across India, there are a set of customers who believe in a depth distribution model. So we launched the Nexiview brand to cater to those customers. Like a guy maybe in Surat will say, I want exclusivity in Surat. A guy in Ahmedabad will say, I mean, in Ahmedabad exclusive. So it's like a city-based exclusive kind of a model with the Nexiview brand. And this takes care of them. Had we not done that, these guys would probably give, given some. You know, they apply to small private Indian other brands, and these are long-term partners who have been working with us on one of our brands. So, next year you take care of that story. The product will go live, or if all goes well, end of this month or the first week of March. In terms of repeating the market, the products will start flowing in the market. We're just awaiting the final BIS. The SEUD is all done. So, any day it will come, and then we'll start shipping. The Aira brand will go to the next quarter, and that will be where we have an option of, you know, playing prize cards against the private Indian brands, the long tail of unorganized, you know, small things. So there, we are not playing very big, but more just keeping something under our belly. And between these two brands, we believe over the years, Seven, eight percent, ten percent of our revenue may come onto this, but we are yet to take the final call because the product is still yet to hit them, you know, the field. So I think another quarter down the line, we'll have a fair visibility of what revenues we will plan. We have some plan, but it's too early to make a solid comment out of that. The second question is with respect to the market share, then the readiness of the competitors, yes. We believe we are right now the only player who has the solid readiness with respect to all facets of business, be it the market reach coverage, be it brand power, be it distribution, be it the manufacturing, localization, certification, all those things. So, we are putting all our guns on fire, and we feel that in the next six to 12 months, our market share will continue to rise. Now, to what percentage is early to say, but... So, we are trying to hit the halfway mark. Let's see how it goes.

Sure, sir. And, Mr. Aski, the working capital, do you see any increase in working capital?

Not really. I think we should be in the similar lines in the coming year also. Because, you see, when there is a supply tightness also from across the board, The extensive use of working capital will not be probably required, so I think more broad basing and more faster turnarounds will be the situation, so we are improving on that side, so I don't think even if it's a high growth, some slip up here and there, but still the faster turnarounds will balance it out, and we should not have an excess requirement of working capital. We're not factoring in any one.

No, sure. So that's a very helpful last thing. As the inventory means as the supply chain situation remains tight, I guess the inventory in the trade may also reduce. And the demand for product may remain, but the trade inventory goes down. So it's a very ideal situation for price hikes. So you see a possibility of a very strong price hike at the earliest or it will be more of a staggered manner?

So, I think a double-digit hike is just across the line, I think, from the coming quarter, and let's see after that staggered way how we can do, because the impact is sizable with respect to the flash and all. And with such impact, you see the smaller players will never take a stance. So, they will play safe, there will be further gaps which we foresee. That's what we're anticipating.

Okay. Okay, sure. So, this is very helpful, and many congrats to the team.

Thanks. Thank you, thank you. Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. We take the next question from the line of Dhruv Jain from Ambit Capital. Please go ahead.

Thank you for the opportunity, sir. So, my first question is on market growth, right? So, you spoke about double-digit market growth in the coming year. So, if you could just speak about some of the sectors that, in your view, are doing well in terms of growth and incrementally over the next two or three years, what are the two or three sub-sectors you expect to drive this growth consistently at?

So, Dhruv, market, you know, India is actually still under penetrated with these technologies. The general, you know, consensus is 16-18% market growth should happen year-on-year. We feel last year was a little muted growth because of the transition to the new certification norms. And there is an expectation of a pent-up demand growth in this year. Lately, due to the supply chain challenges and the cost rise, we have... Internally mitigated that maybe the pent-up will not happen and it will just remain at the 15-20% slab, and that kind of growth will happen. Now, with respect to sectors, I mean, just coming two years, we see huge growth coming, when we talk about government, we see huge growth from railways, National Highway Authority, where they are removing all the toll仲, railway coaches. Railway itself will be at 2-3000 crore worth of supplies in the coming two years. And we are one of the most solid contenders on that front. And many other government sectors, you know, will be there. Private sector enterprise also is growing. Whenever there are new establishments, they are deploying as part of their establishment now. And so is in the small businesses and home. So, I can't define a specific sector barring, if you talk about a high-ticket four-digit revenue, where there's NHI and railway, which we can see, but across all manufacturing, manufacturing is scaling up like crazy in every sector. They all need surveillance also. So all these sectors are deploying technologies. And more interestingly, now there's a lot of talk on AI. And our partnership with Qualcomm is just after the right time. So we feel in the coming few years, this will become, we intend to make it mass for everyone to use, at least in the enterprise government, trickling down to the SME news sector.

Sure, sir. And for second question, link to the comment that you made, right, with respect to AI and generally the share of IT going up. So, you know, for the next year, you've, you know, guided for a very strong growth. So, if you could just talk about, you know, what kind of premiumization driven growth that we see in the next year. So, you know, one is price high, second is volume growth. But, you know, if you have to break down the growth guidance for the next year, that'll be very helpful.

So you see, if you look at the front-end camera devices, there are three categories we bucketize the product. One is analog HD, second is the IP camera, and third is the Wi-Fi 4G home cameras, where we call it the plug-and-play devices. Now, what is going to happen is, HD is going to go flat, HD will not grow, and HD ASPs are maybe 30% of an IP camera. Suppose you have four cameras, so only four cameras will be put, whether you put IP or analog or Wi-Fi, because that can be most likely covered or maybe five cameras, four or five. So the whole growth is going to be on the IP maximum and some growth in the Wi-Fi. IP is three points, almost three plus, three times or three and a half times cost of an analog camera. And that is because of the scalability, because of the flexibility, control of the product, because of AI usage in the future. So that is what is going to drive. So there is a, if you talk about per unit, ASD of all cameras put together, that will grow up because HD is not growing and IP is growing in terms of total units. And I think the price rise and the cost rise will also play an impact. We haven't, to be honest, factored too much on that in our guidance at the moment. We are still yet to do that because we haven't passed it on. So, we have some leeway there, although.

Fair enough, sir. And, sir, if we just spell out the contribution of Dahua revenue for the nine months in this quarter, and what is the kind of revenue you expect to, you know, generate from that vertical in FI27? Sir, it is.

So, I think the one, first I'll take the second part, next year would be not even 150 crores of our revenue. So, it'll be just like a feeder thing. So, it's negligible. It doesn't cross our mind also in our planning. And so, this year also, whatever inventories we had, we cleared out. Now, the revenue is about 10-15 crores a month kind of a thing. There's not much in this year also.

So, Dhruv, the CP revenue, as we have said, is almost at 87 percentage. So, We see this almost touching 90 steps going forward.

Okay. Okay. And thank you so much and all the best.

Thank you. Thank you.

We take the next question from the line of Naushas Chaudhary from Aditya Birla, Mutual Fund. Please go ahead.

Yeah. Thanks for the opportunity and congrats on very good set of numbers, sir. So, let's go. On the price hike, I just wanted to understand, because historically, this category would have been a largely deflectionary category, and this is the way the channel and users' mindset would have been. How do you think the price hike would be absorbed and should not impact anything on the demand side, at least for short term, because nobody in the channel would have experienced this kind of thing from this category?

Yeah, hi, Nushad. Thank you. So I think, Nushad, you're absolutely right. People are not used to these kind of things. But what is happening this time is it's across the board. It's not just security and surveillance today. You talk about the NVIDIA GPU, you talk about a secret hard disk, you talk about a basic laptop. I was told 45,000 laptops is now 65,000, 70,000 in the market already. So it's already 40, 50 percent, 30 percent. So what is happening is... The price hike in the very higher-end products will not be that much because those chips are not going too high. There it might be just a single digit. In the medium range, it will be probably an early double digit. But the low-end one, the entry-level one, is where the maximum impact is because the DDR3 is reduced completely. It's now going to DDR4. So, then that would... Most of the manufacturers have stopped making 8 and 16 GB. Their entry level has gone to 32 GB. So that entry level product, which, you know, the low-end, you know, developing countries were using is in the under challenge. And when you add a medium range SOC or DDR to make that product, the cost goes to a mid-level product. So that's where the impact is. We believe the channel is mentally ready, you know, the dealer distributors are mentally ready because for the last 2-3 months, they are seeing this in the market. And one of the products we trade is the microSD card with our Wi-Fi camera. The cost has gone up 3x already and it's whatever we are getting, people just buy. So it's not something which, you know, we are quite confident that that absorption will happen. And like I said, the pent-up demand we were expecting will happen this year. Whether it will happen or not is yet to be seen, but the normal growth of the market will happen in terms of 15-20%. We believe that should happen, may not have the pent-up demand, so that is the mitigation we have done. But more than that will be covered up by the revenue growth itself in terms of the price we are setting.

So, 15-20% volume growth should not be a challenge in balance you will cover from the price hike.

So that is, so you can say we will target more than 20% revenue core unit growth, and the balance from price range, and then this unit growth will largely happen on IP camera, not on the analog HD. So that will, the ASP is much higher. Right.

And second, on the growth universe, beyond FY28, if I understand it correctly, your core categories, would it have substantial market share by then? And for that, how should we, you know, look at Aditya InfoTech, you know, beyond FI28, between 28 to 30, 31, how the growth journey would be, what are the levers we have in place?

So, Noshad, that's a far-drawn question, but I can give you some sense of what we are thinking. So we are preparing ourselves to be a global company. We are, you know, preparing ourselves on all... You know, fronts. The Taiwan R&D setup, some more we are expanding, which will come in the future. Some inorganic plants are going on. You know, so we are looking at being one of the large players from India, moving into the world market and having bases in multiple countries, and probably expand some product categories without diluting the focus of... We have the highest market share, the single largest highest market share in India in this product category. So that's where we are working. And then the last point is to enter into the cloud and the cloud data center and the AI services. So these are the visions. So work is going on and all. How far we will be successful is early times, but that's the direction we are taking the company into.

Sure, sir. Thank you so much. All the way. Thank you. Thank you, Vishal.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. We take the next question from the line of Pratik Chaudhary from Samartya Capital. Please go ahead.

So, you see, look at the number of

players which are getting into this market. What would be the current number presently in terms of players having both ER and SQC? And also, I mean, we presume that there are many in the pipeline, you know. So, what is your current perspective on

this, and how do you see that shaping up industry dynamics over the next one, two years?

So, Pratik, before the ER, if you had studied the earlier presentations, the market was segmented almost one-third into Chinese, one-third into Indian brands, and balance one-third was unorganized and some, you know, global brands. So, right now, the ER certification, I don't know the exact number, but I think, you know, five, six Indian brands have gotten some models and about five, seven global brands have got. So, a dozen other brands have qualified. Now, I don't know how much portfolio is qualified for all. CP Plus, of course, is the largest one at the moment. And most of them, you know, most of them, apart from the Chinese who don't qualify any further, did not have proper manufacturing, localization, or any, you know, of the proper setup in India. There's just a few people doing here and there, one or two offices, that kind of thing. So they're all scaling up their infra step by step. Some are, some are not, some are living with that. Right now, the global brands doesn't cross our mind in terms of, because their pie is less than 10% of the overall market, which is another 5-6 brands who have qualified, and largely in the enterprise sector here and there, very selective in the government, and nowhere in the SMB and the home market, which is almost 60% of the Indian market. The other Indian players, most of them who have qualified barring one or two who were there in the retail distribution. The most of them were again in the enterprise and government. So enterprise government, yeah, some brands are qualified. Retail distribution, still there is not much competition. I don't see with this supply tightness of the Semicon and the memory that new entrench will come so fast. So any new entrant, maybe from another industry would want to try this, may have to take a year or two delay, because first they will be grappling with their own product supplies, because the shortage is not just in CCTV, it's all across all electronics. So let's say another electronics company has to come, they need to first focus on their home turf or whatever products they are doing. Pose that and work on getting this and in this, whether they will get the supply is another question at the moment in terms of the semicons. So, we feel we have a good year headway, at least, and the supply shortage will play to our favor even more before we see more competition. And those people will, of course, take a few years to even, you know, challenge because it's a lot of solution selling.

Right, and Chinese players are completely out, right? Not a single one of them would remain post-hypermite race.

As for the policy, the government has partly done a trusted supply chain clause and those kind of things, so they don't qualify into these.

And how many of our models, our camera models,

have already been ER or STQC certified?

So, we have a full set of products needed to cover most of the market, 90% plus, already qualified. We have been developing parallel, as I mentioned, multiple SOCs. Some of them are also qualified as a fallback option, and some more are in the process. So, we are fairly in a good position. Okay. Thank you, sir. I'll get back in with you. Thank you.

Thank you. We take the next question from the line of Anuj Kashyap from A3 Capital. Please go ahead.

Hi, I'm Rasmu. I'm Orriban.

Yes. Thank you, Anuj.

Sir, I want to know, do you have any data in terms of percentage penetration, like in Indian, if you compare the Indian population size vis-a-vis to China? What is the penetration right now of the products, of the camera products, as in from the frost report?

So, I think it's there in the frost report, and I think there must be a couple of other reports from counterpoint as well. We'll have somebody try and see if we can get out some of the data.

Okay, and for the one more, sir, like you have mentioned, you tie up with the Qualcomm. Like, at present, Aditya InfoTech is basically a hardware company, right? And now, if, like, if we, are we energy staging that we turn into a service company plus hardware plus software as a service company?

That's right. So, yeah, that's the direction, Anuj. So, even in the cameras we sell now, there is base level of analytics that are there. But what we are talking about is actually exploring the market and trying to take AI and analytics to the mass market with Qualcomm. And, yes, that will be part of our journey to start selling services and AI to each and every customer that we are selling the IP camera range to. So, that's part of our mandate for the long term.

And, sir, do you have any, like, in your mind, any revenue break-up, like, just for imagine, like, 90% is hardware and 10% is software? Do you have some such type of requirement?

So, it's too early. The Qualcomm relationship also is currently in the POC stage and we're looking at anchor customers. And the old AI market is also nascent. So, it's too early to put a percentage to that. We would have some internal benchmarks into what percentage of our revenue should be from services, but that's way too early at this point in time.

Thank you, sir. Best of luck for your future endeavors. Thank you.

We take the next question from the line of Ariruntha Joshi from ICC Securities. Please go ahead.

Yeah. Thanks for the follow-up question. Just one question. There have been a lot of news flows regarding railways. Even CBSE, ICSE schools also installing the cameras in the classroom. So any further update on that? And in which stage these initiatives from the government would be either planning stage or execution? And where does Adip InfoTech stand as of now on that? Yeah, thank you.

So, Anirudh, the railway orders have started flowing in. The orders are closed. The orders are already logged in the system. So, the materials are being procured. So, you should see some billing in this quarter and majority of the billing will flow into the H1 of next year. And we will have our share of the business. So, it's still ongoing. There are tenders happening left, right and center. And as the largest player, we would take our market share.

Yeah, thanks, thanks. And in terms of schools, etc., any update on that?

So, yeah, the government has mandated for the schools to update, but it's a slow process, I mean, it's not as if it's a definite mandate where everybody has to comply overnight. So, we are getting things there, but it's not something, it's not a large tender or a large state-driven thing. It's, you know, more school-wise, district-wise, and that falls into our mid-market strategy, and we are winning those cases. You know, we mentioned in our speech that, you know, we can see CPplus brand permeating all through the layers. So it's not just the market share that's happening at the distribution. This has actually now become the de facto brand even at the end consumption level, be it the retail customer, the mid-enterprise, or the large corporate or government. So that's the positive sign that we are seeing. And any new greenfield projects that are coming in, by default, it's on CPplus.

Okay, sure, sure. Very helpful. Many thanks.

Thank you, Anirudh. I think that's the last question we take.

Yes, sir. Ladies and gentlemen, with that, we conclude the question and answer session. I now have the conference over to the management for your closing comments.

Thank you guys for joining this call. You know, we'll host further calls as well, and we hope to stay on this growth trajectory and, you know, stay as per or even over-deliver on our guidance. Thank you, guys.

Thank you. On behalf of Access Capital, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.