Ladies and gentlemen, good day and welcome to Aditya Vision Limited's Q3 and nine months ended December 31st, 2025 earnings conference call hosted by Investec Capital Services India Pvt Ltd . As a reminder, all participant clients will be in 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 an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. And now on the conference floor to Mr. Aditya Bhartia from Investec Capital Services India Pvt Ltd . Thank you and over to you, sir.
Good evening, everyone. A warm welcome on behalf of Investec India to Q3 FY 2026 earnings call of Aditya Vision. We have with us the senior management team of Aditya Vision represented by Mr. Yashovardhan Sinha, Chairman and Managing Director, Yosham Vardhan, Whole Time Director. I will hand over the call to the management for their opening remarks. Post which we can open the floor for Q&A session. Please go on.
Thank you, Aditya from Aditya Vision. Good evening, ladies and gentlemen, and welcome to Aditya Vision Limited's earnings conference call for the third quarter and nine months ended December 31st, 2025. Our investor presentation has been uploaded on the stock exchanges and we trust it has been reviewed by you by now. Before discussing Q3, it is important to briefly place the quarter in the context of the year so far. The first quarter of FY 2026 wasn't out clear, impacted by unusually adverse weather conditions, including an extended monsoon and one of the weakest summers in several decades. This weighed on cooling-led demand across our core markets. Despite these headwinds, we delivered positive EBITDA and PAT growth in Q1 FY 2026. From Q2 onwards, momentum began to normalize, aided by GST rebates and festive period falling in last 10 days of Q2. Revenues recovered strongly.
The extended monsoon resulted in a temporary shift in product mix with relatively lower contribution from high-margin cooling categories. As a result, while EBITDA and PAT continued to grow year-on-year, EBITDA margins moderated by approximately 42 basis points and PAT margins softened by around 47 basis points. Q3 FY 2026 marked a clear step up in its performance despite the quarter being challenging overall. We performed very well with revenues growing by about 28% year-over-year, aided by strong festive demand with the festive period from day one of Durga Puja to the last day of Chhath Puja registering 37% growth out of which first 10 days fell in Q2. EBITDA recorded 14% year-on-year growth in absolute terms, with EBITDA margins remaining broadly stable on a sequential basis. Profit before tax, before exceptional items grew by 21% year-on-year.
However, PBT margins moderated by approximately 33 basis points, primarily due to higher operating expenses. That too primarily because of marketing and promotional activities taken carried out in UP in stores like in bigger cities like Lucknow and other big cities. This led to higher operating expenses related to store yet to mature. PAT grew by 18% year-on-year, excluding an exceptional expense of INR 1.5 crore on account of additional provisioning pursuant to implementation of new Labour Codes, with PAT margins moderating by around 38 basis points compared to last year. Demand trends during the quarter were mixed. October witnessed a strong festive-led demand translating into healthy footfalls. November and December saw some moderation once the festive season got over, but this was meaningfully offset by a strong recovery in late December, supported by improved customer sentiment.
From a balance sheet perspective, inventory levels remains moderately higher, primarily because OEMs offered attractive discounts on room air conditioners following changes in BEE energy efficiency norms and we opportunistically built some inventory to position us well ahead of the upcoming summer season. Overall, inventory levels remain well controlled and broadly stable. Store expansion continued in a disciplined cluster-led manner. During the quarter, we added four new stores, taking total store additions in nine months FY 2026 to 17 stores and keeping us on track to cross the milestone of 200 operational stores by FY 2026 on and more. At the core of Aditya Vision is 26 years of consistent execution, geographical dominance and a long-term approach to value creation. While the year began with challenges, the improving trajectory from Q2 through Q3 enforces our confidence in the resilience of our business model and long growth runway ahead.
With that, I will now hand over the floor to Mrs. Yosham Vardhan to take you through the financial highlights for the quarter. Over to you, Yosham.
Thank you, sir. Good evening, ladies and gentlemen. We are pleased to present a robust financial performance for Q3 FY 2026 and the nine-month FY 2026. Here is a summary of our financial achievements. For the nine months ended FY 2026, revenue surged by 15% from INR 1,773 crore in nine months FY 2025 to INR 2,047 crore in nine months FY 2026. Gross margins were maintained at 15%, with EBITDA reaching INR 177 crore, registering a 10% year-on-year growth and EBITDA margin at 8.7% during the nine-month period. Profit before tax, before exceptional items, grew 7.3% to INR 128 crore in nine months FY 2026, with PBT margin at 6.2%, moderating marginally by 47 basis points due to cost related to store additions. PAT grew by 8%, excluding exceptional expenses, rising from INR 90 crore in nine months FY 2025 to INR 96 crore in nine months FY 2026.
Same-store sales growth for nine months FY 2026 stood at 5%, while that for the third quarter stood at an impressive 17% compared to 12% in the previous year. In Q3 FY 2026, the revenue saw a year-on-year increase of 28%, reaching INR 649 crore, compared to INR 508 crore in Q3 FY 2025, driven by strong festive demand and expansion. Gross margin increased to 15.8% compared to 15.6% in the previous year. EBITDA for the quarter was INR 53 crore with an EBITDA margin of 8.2%. Profit before tax, before exceptional items, increased by 21% year-on-year and stood at INR 38 crore versus INR 31 crore in Q3 FY 2025. PAT grew by 13% year-on-year to INR 27 crore after accounting for an exceptional expense of INR 1.5 crore on account of additional provisioning under the new Labour Codes. In Q3 FY 2026, Bihar contributed 75% of revenues, followed by UP at 13% and Jharkhand at 13%.
In nine months FY 2026, Bihar remained dominant with 76% revenue contribution, while Uttar Pradesh and Jharkhand contributed 12% respectively. Our store count stood at 192 as on 31st December 2025. We can now open the floor for questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aniruddha Joshi from ICICI Securities. Please go ahead.
Thanks for the opportunity and congrats for strong revenue growth. Just getting more color on revenue growth. Which products would have done well? I guess washing machine has done very well for us, but how is the growth in mobiles and laptops, considering the semiconductor issues, especially memory chips? We are hearing that there might be weakness in the market, or there is already some weakness in the market. How was it in this quarter, and what is the outlook for these two products over the next two, three quarters? That is question number one. Question number two, in terms of the summer products, what is the current inventory? I guess some of the brands have given higher discounts to clear the inventory from their books, and Aditya Vision would have also uploaded the inventory a bit more.
One, what is the current inventory, if you can point out? Secondly, what was the additional discount that we were able to get? Yeah, thanks.
Thank you, Aniruddha. Category wide growth, as you said that the washing machine category did very well. It is more than 30%, growing by more than 30%, very closely followed by panel televisions also by 30%. As you know, AC grew by, in this quarter, it grew by 22%. However, for nine months, it grew by only 2%. As far as mobile is concerned, it grew by 20%. This is how the categories move. Coming to your second question, AC, of course, we did in fact stock down a lot of ACs, whatever we could get, because it was beneficial for the company. The exact amount will not be proper for me to tell you. Yes, we have got a sizable number of ACs sold.
Okay, sure, sir. Outlook for mobile and laptop, considering the memory chip issue across the globe.
I will say that it won't come down. It won't be significant. Of course, prices will be going up by around, we expect that it will go up by 4%-6% from January onwards. Despite that, demand is very robust, and I do not think that it is going to come down.
Availability from the brands is not an issue?
Absolutely not an issue as of now.
Sure, sir. That's very helpful. Lastly, the store count, do you see we reaching to 200 or we should be crossing 200 by end of this year?
We'll be definitely crossing 200 stores by end of this financial year, but if not more, I'll say. As you know, we always remain conservative in our guidance. 200 is definitely on, but we hope that we will be bettering on it.
Sure, sir. Last question from my side, there is a higher other expenditure as percent of net sales in this quarter. Is it related to more store openings or any one-offs there or any other item, if you can highlight?
Some are of one time also. As you know that this quarter, we are mostly opening in Lucknow, I mean, in Uttar Pradesh, bigger stores. Our OpEx was higher. Of course, we were entering into new areas, our marketing and promotional costs were much higher. These are one-time expenses, but it gives us a lot of depth in market for other places where we are deciding to go.
Okay, sure, sir. This is very helpful, many thanks.
Thank you, Aniruddha.
Thank you. The next question is on the line of Yash Sonthalia from Edelweiss Public Alternatives. Please go ahead.
Hello.
Yes, Yash, please go on.
Hi, team. Thank you for taking my question. First, following up on the previous participant question. On the other expense part, for last two years, our other expenses as a percentage of revenue has increased. Should we see this quarter margins or other expenses as a percentage of revenue structural, or what should be the consistent number excluding one-off for the quarter?
Actually, this quarter, we also book bonuses for the employees. This quarter will definitely remain inflated, I don't think that it will be similar in quarters to come.
No, I'm talking Y-o-Y, like last year, Q3 FY 2025, we saw 55% growth, and this year also 60% growth.
Right. Operating costs, which is bound to go up with the additions of stores. We have opened more than 30 stores during this period. This is the reason OpEx goes up. Salary expenses will also go up. Similarly, our incentives when we drive sales, actually, we were not having a good Q1, so we concentrated on driving sales. For that, we needed a lot of incentives to pay and promotional activities were taken, which is giving us a very good result as far as top line is concerned.
Got it. It is nothing to worry about our longer term fiscal year margins. It should really-
No, I think going forward, if market is now behaving very well, and I think that it will more than offset whatever operating costs will come because of huge increase in top line.
Got it. My second question is on, we announced our ambition to expand in MP, Chhattisgarh. What led us to prepone our plan to expand in these cities? Is it something strategically we are getting something or it was always planned for this year?
It was always planned. I've been giving this guidance since last, I think, many quarters, that we'll be entering Chhattisgarh and later MP. In this calendar year, we are sure to enter to both the states. If not before, maybe in Chhattisgarh, we may enter in this financial year. Broadly speaking, the entire current year, calendar year, we'll be definitely present in Chhattisgarh and MP.
Got it. Sir, last question on the similar lines, like entering this new state, does it change our long-term or our store expansion guidance, or are we reducing some expansion in UP and those stores will be open in these states?
No, simultaneously we'll be doing. There won't be any slowdown on expansion of stores. In coming period, you will see much accelerated store expansion and aggressive.
Which means ideally we are upgrading our store expansion guidance somewhere or the other.
We won't give this as a guidance, we'll definitely say that we will not be slowing down in UP. UP is giving a good market and UP is some different market and MP and Chhattisgarh, I mean, Chhattisgarh, MP is different market. It will all go together simultaneously.
Got it. Thanks a lot, sir. Best of luck for this.
Thank you, Yash.
Thank you. Before we take the next question, a reminder to all. If you wish to ask a question, please press star and one. The next question is from the line of Onkar Ghugardare from Shree Investment. Please go ahead.
Good set of numbers. Congratulations on that front. How many stores out of 192 stores are in the first year of their operation?
It's around 30 stores.
Only 30 stores?
Yes, 30 stores there are, but maybe they are even 15 days old also, which we have opened in March. I'm sorry, in December.
Okay. How is the volume growth in the older stores as compared to the newer stores? Can you give some light on that?
We have already guided that SSG has been around 17%.
For the quarter, right?
For the quarter, yes.
Okay. For the nine months it was?
5%.
Okay. Just wanted to know, the margins have come down. What would be the sustainable level of margins? You are doing good on the revenue front, but that is not translating into the profitability.
I don't think that it is going to come down from this level in this quarter. However, even for nine months, it will take for nine months, then we are at a comfortable 8.7% EBITDA margin.
For the full year, it would be 8.7%, you're talking?
I think if not better, it will be similar to this.
Why I'm asking this question, because you are giving revenue growth of good numbers. I'm asking because when will you get operating leverage on that front then?
Actually, it is a continuous process. If I can tell you, Onkar, that when we are opening branches, you are expanding also. Let the base become larger, like a pyramid, let the base become larger, then these are going to contribute more to your revenue as well as the EBITDA front. In time to come, when most of our stores mature, start maturing, because if you see our history though, you will find that last three years, we have opened 96 stores, which is almost half of the stores what we are having right now. Typically these stores, they mature by three years. Most of the stores are still in nascent stage. This is the year. 50% we have opened which are not mature, but next year that number is going to go up.
It will act as a pyramid, more towards the bottom and less EBITDA margin will be smaller in number and better profit-giving stores will be higher in number.
You mean in upcoming one, two years, there will be more contribution from the matured stores, right? It can contribute to the higher.
Yes. This is what investors will look after, that in coming year, more and more stores will get matured, and this will give us a lot of leverage for opening new stores. Do not forget that this year, Q1 was a total washout. Comparing that, the biggest quarter of the company's history was a total washout. This year it has been very strange. Given the Q3 numbers, we are very confident that despite that, we'll be achieving good set of numbers at the financial year end.
As far as Chhattisgarh and MP is concerned, what is your long-term plan? Where do you want to take it to, like, to the level of Bihar or like UP or when can we see that?
No, these are the states where the largest cities population is also concentrated towards larger cities. 8 to 10 cities we'll take in Chhattisgarh. Similarly, in MP, we'll be there in another 15 cities, and with more and more stores because there are larger cities will require number of stores in a single city.
Okay, these states are similar to what Bihar and UP are like, I mean, behavioral-wise, how the pattern is of spending?
This is the whole idea of Aditya Vision with this geographical advantage. We are working on it. We are continuing in our Hindi heartland, where it is much better to, in fact, open your new stores and aligning your employees to the policies of the company. Yes, we are very comfortable moving in this geography.
Maybe in next two, three years, you can see more and more stores coming from MP and Chhattisgarh, or that is too early to say?
I will say that all three states are going to grow in number of stores.
All three states, you mean the existing states or the new two ones?
I'll say that Bihar will not have that number. Similarly, Jharkhand will also have very limited, insignificant number of stores, whatever it is right now. UP gives you a tremendous potential and opportunity to expand because we are just now touching, knocking at the western UP, which is a hugely populated and wealthier segment of society is there.
Most of the growth will be coming from UP and the two new states which you will be entering.
I beg your pardon?
I'm asking, most of the new growth, which will be coming from Uttar Pradesh and the two new states you will be entering, right? In the upcoming years.
Yes. Because you will find that we are only present in 24 districts of UP compared to 75 districts which is present in UP. Lot of scope is there.
Okay. You did a fundraise last time. Just wanted to know you're comfortable with that, or you would be raising some funds or that is not required currently?
No, with our internal accruals and small bank, I think bank lending is sufficient for us to cater. Let us say in near future, there won't be any requirement of funds.
Even if you have to build up the inventory level, you don't require that kind of money.
It's not very important it's not that way, because we build inventories at such time when it is very easily liquidated. Before we have to pay to the company, it is almost liquidation is done. That doesn't give us any unnecessary leverage.
Okay. Thank you very much, sir. Thanks.
Thank you, Onkar.
Thank you. The next question is from the line of Pradyumna Choudhary from JM Financial Group Investments. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity. My first question is to understand the market in Chhattisgarh and MP. Previously, you've spoken that UP, in terms of number of stores, could be twice as big as Bihar. Similarly, could you give some idea regarding how big a market Chhattisgarh and MP can be for us in terms of number of stores?
I already just told that we'll be operating in very limited number of cities because mostly affluent people, they are limited to these bigger cities in Chhattisgarh also and in MP also. Things are getting better day by day because of huge dent in Naxalism. That is going to give us a tremendous boost in trying to come in whatever our honorable Home Minister said that by March it will be over. We are concentrating on that also, that after that, there will be huge potential to expand freely.
Will these markets be maybe closer to Jharkhand kind of markets rather than a Bihar kind of a market?
Yeah. Mostly like Jharkhand because again, Chhattisgarh is a neighboring state of Jharkhand, and MP also.
All right. My second question is regarding our stores in UP. Could you give some commentary on how these are doing? Because, of course, in UP, several of those cities would already have some of our competitors operating. It's not like a new space that we would have entered in these cities. Are we seeing similar unit economics? Are we seeing similar time to maturity for these stores? How are we really competing with existing players there? Because some of the benefits that we were able to offer in smaller towns would not be possible in cities where the competition is already present, right? Could you comment on this?
We always have been giving this guidance that it's not that competition was not present wherever we are present. Competition has always been there, and it is for us to beat them, and we have been beating them regularly. Even when you are entering to new areas where competition is there, it doesn't matter because we have got different policies, different schemes and so many other things for the benefit of the customer. These things require little promotional expenses, marketing expenses, but then it is very easy for us to overcome it. Again, by figure also, you can understand that we have been gaining lots of ground in new areas. Like now this time, it is around 26% of volume has come from these two states in Q3. This itself presents a good picture of how we are dealing with our competitor.
Unit economics remains similar in these UP towns?
It is a common thing that if you go to Lucknow or these are very big cities, of course, rent will be higher. It is offset by the basket of branches you add. Overall increase is limited.
I understand. My last question, sir. If you look at our mature stores, which are stores which are at least three years old. Over there, what sort of a growth are we seeing in terms of same-store growth for those mature stores?
In fact, we take all these stores. We do not classify it like matured and non-matured because maybe we give a guidance that in three years they are going to mature. There are so many branches which gets profitable from the very first quarter of opening. It is all about averaging it out and that we have grown by 17% SSG in Q3, but it was only 5% for the entire nine months because of our bad Q1.
The idea behind asking this particular question is so that we are able to make out, on a more steady basis, what sort of a growth does a store have once the initial maturity is completed. That's why I was asking.
Overall growth, I told you that because of Q1 being a total washout quarter for us, the biggest quarter. This year you are saying this is strained, but considering that next year everything will be normal, so we are going to accelerate to very high levels of growth.
All right, thank you.
Thank you.
Thank you. The next question is from the line of Aliasgar Shakir from Motilal Oswal Mutual Fund. Please go ahead.
Yeah, thanks for the opportunity. This is Ali from Motilal.
Yes, Ali. How are you?
I'm fine, sir. Thank you so much.
Okay. Please go on.
Sir, just first, if you can share what was the SSG we achieved this quarter?
17% SSG.
Okay. With such a strong SSG, I understand you mentioned that your margin is impacted because of the new store that you have opened, I think in new geographies. Despite that, if you have such a strong SSG of 17%, shouldn't that would have driven operating leverage and therefore, be able to maintain your margin? I'm just trying to understand the margin which is contracted, what has led to this significant-
You have to understand one thing, Ali, that we recently, in last six months only, or eight months only, we have started opening stores in Lucknow and all that. Q1 was total washout. Second, Q2 was also not very good because Q1 spilled into Q2 also. However, after the GST cut, things became much better. These things are now stabilizing, I'll say, but in a gradual way. Market has been quite good, as I have already said, market has been quite good from December onwards. Still in January also, sales are very robust. I think it is going to do much better. Whatever we have seen, that is things of past.
Got it. I think what you're saying is that the stores which are newer regions are taking slightly longer to, I think, stabilize or achieve breakeven or maybe, reach your stable state.
Yes, because of Q1. I've been telling you because Q1 was a very bad Q1. Of course, even the new stores, they could not do that big business which normally all branches do.
I know it's all about Q3, not Q1. Q2 also they have not achieved.
In Q3 they are achieving. Only we have reached to 27%.
The margin is lower, which implies that the new store maybe would be pulling down the margin.
Now that the entire year, Q1 was not good, what should we do as management? We have to drive sales and try to achieve. We are trying very hard to achieve 20%, at least 20% growth, if possible, in this financial year. We have been spending a bit more in this exceptional financial year.
Sir, what is the average time that new stores are taking for breakeven versus your historical average in the existing regions? How different is the new regions breakeven?
We have been guiding, actually, all the stores, they at least become profitable between 6 months to 18 months.
The new regions are taking slightly longer, right?
It's not that. I told you that because of bad Q1, lots of branches faced adverse situation. This year. Now it is things of past. This is what I'm trying to tell you, that yes, we had a bad quarter. In decades, we had one of the worst quarters because of a certain season. We expect that things will be just normal. We don't want any odd summer or anything. Even things are normal, then it's quite good for us. It will be good for us.
Got it. The new regions where you're opening stores, that should not incrementally pull down your margin, right? If you can just share what is the margin that we are guiding, EBITDA margin year on. Should it come down to the base that we have seen in Q3 or we should be able to maintain the margin support of 9%?
We in fact see nine months of the EBITDA, it is 8.7%. It is very marginally lower than last year. Now in Q4 also, what I said, that let's see, January had been very good for us, and we are expecting similar numbers for coming months also in the current quarter. I think whatever will be, it will be within our guidance which we gave for EBITDA.
Got it. Just last question is on the number of store additions. You mentioned incrementally your new stores will be in UP, MP and Chhattisgarh, right?
Yes.
What is the annual store guidance? Between these three, should one assume 10 stores each in each region, or it will be UP and MP heavy more?
We have been looking into Chhattisgarh and MP. We told you that we'll be definitely, if not in this financial year, with this calendar year will be definitely present in a lot of cities in Chhattisgarh and few cities of Madhya Pradesh. Overall, we always give a guidance of 30 stores being opened in a year, and till now we have bettered every year. Let's see how it goes, but we give a guidance of 30 stores only.
Got it. All right, sir. Thanks a lot. Very insightful. Wish you all the best.
Thank you, Ali.
Thank you. The next question is on the line of Manoj Gori from Equirus Capital. Please go ahead.
Yeah, thanks for the opportunity. Sir, I have just one question. The initial remarks you did highlight that there was new attractive schemes for-
Manoj, can you speak louder, please?
Is it better now?
Hello.
Is it better now?
Yes. It is good.
Sir, in the initial remarks, you highlighted that you got some better schemes for room air conditioners. Accordingly, you planned for hiring methods and you stocked up this material. Just want to understand that Q1 obviously is a very favorable base. Based on your planning and probably whatever your analysis would be from the past and for the future, what kind of growth should we expect in FY 2027 and more specifically for Q1 of FY 2027 that would help relatively better from a modeling point of view?
Very difficult for us to say, except that we definitely give a guidance of 20%-25%. We have been bettering this guidance always. We expect that with pent-up demand for last year, Q1. The Q1 of next financial year should be absolutely very good. This is what we are aiming at. Accordingly, we are accumulating our inventories also. Right now we are sitting on inventories of pre- BEE. Later on in this quarter we will be accumulating inventories of post-BEE products also. Which will be around 5%-7% costlier.
Correct. Sir, I will be repeating one more question. Probably you answer it in a more qualitative manner. If I look at the markets today, let's say Bihar, which is our core market. Based on your current store count, you would have definitely identified areas in the market and probably you would be aware, like what could be our long-term store count in Bihar market itself. Similarly for UP also, you would have done some analysis and probably from a region to region, you would be definitely looking at from an opportunity point of view in the market.
Actually, Manoj, you can always understand that we are already having 117 stores in Bihar.
Correct.
Addition of new stores in Bihar will be very strategic. Strategic in the sense that only at such places where we need to fortify our place, there only we have to go there in Bihar. Similarly in Jharkhand, we have already almost covered in Jharkhand all districts except for one or two. We are looking to open those districts also, which we have so far not present in Jharkhand. In UP, you should understand that out of 75 districts, we are just present in 24 districts. We have covered one third of UP. Many stores definitely in time to come, more and more stores are going to come up in UP. Again, strategically, now that we have covered almost central UP, we are moving towards western UP. Things will be definitely different again.
They're a very good market we are getting, and we expect to enhance our store count in UP. Similarly, in Chhattisgarh and Madhya Pradesh also, we expect very good business because of, again, a lot of disposable income is there, but our competitors there, nobody is promoting their brand in such a way which is like Aditya Vision. We expect that Aditya Vision is going to have edge.
Sure, sir. Thank you, sir, and wish you all the best for future quarter.
Thank you so much. Thank you so much, Manoj.
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Thank you, and over to the management.
Thank you very much for sparing your valuable time, everybody. Thank you so very much. See you in the next quarter.
Thank you very much. On behalf of Investec Capital Services India Pvt Ltd , that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.
Thank you. Bye.