Aditya Infotech IPO

Aditya Infotech Limited (AIL), operating under the brand name ‘CP Plus’, is a leading Indian provider of video security and surveillance products, solutions, and services. Its product portfolio spans smart home IoT cameras, HD analog systems, advanced network cameras, body-worn and thermal cameras, long-range IR cameras, and AI-powered technologies such as automatic number plate recognition, people counting, and heat mapping. The company also offers a range of consumer-focused products like smart Wi-Fi and 4G-enabled cameras, as well as dash cams. In Fiscal 2024, AIL had a significant presence across India, selling products in over 500 cities and towns.

AIL supports its nationwide operations through 40 branch offices and RMA centers, 10 strategically located warehouses, and a robust distribution network of over 800 distributors and 2,200 system integrators across tier I, II, and III cities. Its warehouse infrastructure spans key locations in North, West, East, and South India, ensuring efficient logistics and supply chain management. AIL’s manufacturing activities are centralized at its facility in Kadapa, Andhra Pradesh. As of March 31, 2024, the company employed 970 people.

Aditya Infotech IPO Strengths

• Aditya Infotech reported consistent revenue expansion, reaching approximately 3,122.93 crore in FY25 and showing a clear upward trend over the past three years, reflecting robust business momentum and successful market scaling.
• Aditya Infotech operates the renowned ‘CP Plus’ brand, one of India’s most recognized and trusted names in video security and surveillance, providing significant competitive advantages and strong customer recall.
• The company offers a comprehensive range of advanced video security products and solutions, including CCTV, smart IoT cameras, HD analog and network cameras, and integrated security systems for both enterprise and consumer segments.
• Aditya Infotech caters to multiple sectors such as banking, insurance, healthcare, defence, education, retail, industrial, and law enforcement, reducing dependency on any single segment and supporting revenue stability.
• A wide distribution ecosystem enables extensive reach across India and efficient product delivery, supported by both direct and third-party channels.

Aditya Infotech IPO Risks

• A significant share of revenue relies on a few segments and major suppliers, especially products from Dahua (accounting for over 28% of sales in FY24). Disruptions or changes in supplier relationships, pricing, or product availability can materially affect revenue and margins.
• The video surveillance industry is highly competitive, with large international brands such as Hikvision and aggressive pricing by global and Indian players. Sustaining market share will require ongoing investments in R&D, marketing, and potentially margin sacrifices.
• The rapid pace of technological evolution in security and surveillance could render existing products outdated. Failure to quickly adapt, innovate, or respond to new customer demands may erode Aditya Infotech’s competitive advantage.
• The company imports a substantial share of components and materials. Restrictions on imports, volatile global commodity prices, or adverse currency movements could raise costs, disrupt supply chains, and reduce profitability.
• Large institutional and enterprise deals contribute a notable share of revenue. Loss of key clients, periodic contract renegotiations, or order delays due to budget cycles could introduce business volatility.