Ladies and gentlemen, good day and welcome to Aditya Vision Limited Q2 and FY 2026 earning call hosted by IIFL Capital Services Limited. As a reminder, all participant lines will be 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 an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Siddhesh Deshmukh from IIFL. Thank you, and over to you, sir.
Hi, everyone. Good evening. We are pleased to host the management of Aditya Vision Limited for their Q2 FY 2026 earnings call. I have with me on the line Mr. Yashovardhan Sinha, Chairman and Managing Director, and Mrs. 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. Over to you, sir.
Thank you, Siddhesh. Good evening, everyone. We are delighted to welcome you to Aditya Vision Q2 and H1 FY 2026 earning conference call, where we will review the company's financial and operational performance along with key strategic development during the period. Our earnings presentation and financial results have been uploaded to the stock exchanges, and we hope you have had chance to review them. Trailing muted Q1, July-September quarter presented its own set of external challenges, marked by extended and above-normal monsoon across our key markets. Rainfall during the period remained significantly above the long-term average, with Uttar Pradesh receiving around 870mm, Bihar about 990mm, and Jharkhand roughly 785mm. Temperatures were also significantly below seasonal norms, which resulted in softer demand for cooling products. More details are on the investor presentation.
In addition, the quarter was influenced by subdued demand during the Shraadh period, coupled with delayed implementation of the revised GST slabs, which kept customers withholding their purchases throughout most of August and September. With the onset of festive season colliding with the implementation of revised slabs of GST from September 22, 2025, the last nine days of quarter saw a very strong rebound, with demand rising exponentially in big-sized television and AC category along with all other categories as well, which gave us respectable growth in sales. Despite these temporary headwinds, Aditya Vision delivered a robust performance in Q2, with revenue growing by 22% year-on-year to INR 458 crores. Our gross and net margins largely remained stable, supported by an optimized product mix, tight cost control, and continued efficiency in operating expenses.
As a result, profit after tax for Q2 increased by 4.2% year-on-year to INR 13 crores. Category-wise, large screen televisions, mobiles, and washing machine performed well, supported by pent-up demand and improved affordability following the massive GST cuts. We continue to expand our retail footprint with the same cluster discipline that has been central to our model, adding nine new stores during the quarter and taking our total to 188 as of September 30, 2025. We remain on track to cross the 200-store milestone within this financial year, reinforcing our presence across Bihar, Jharkhand and Uttar Pradesh, and expanding deeper into U.P. markets. With our entry into bigger cities and towns in U.P., we have seen elevated CapEx due to bigger store sizes, which will continue as our major expenses now focus on large showrooms.
Our cluster-based approach ensured optimized logistics, superior service delivery, and a stronger regional brand recall, helping us sustain our leadership in Hindi heartland. As of September 30, 2025, our inventory stood at INR 676 crores. The higher inventory position reflects deliberate stocked-up position for the ongoing festive period, with major events such as Dussehra started from September 22, Navratri, and Dhanteras and Diwali coming in very early this time in mid-October. This strategic build-up ensured adequate product availability across key categories and timely readiness for peak consumer demand during festive season. Encouragingly, early trends of festive season indicate strong momentum, particularly in premium appliances supported by post-GST price rationalization and improved consumer sentiments. Aditya Vision has entered Q3 in a strong footing, supported by healthy demand trends and strategic inventory positioning. The broader environment is turning increasingly supportive, with several policy initiatives driving rural and semi-urban consumption.
The INR 10,000 direct transfer under the Mukhyamantri Mahila Rojgar Yojana in Bihar to about 130 crore women, amounting to INR 13,000 crores, is already boosting household liquidity and discretionary spending. The free electricity scheme for up to 125 units per household amounting to approximately INR 900 per month is lowering monthly outflows, freeing up income for essential and aspirational purchases. Salary revisions linked to the 8th Pay Commission, with hikes of 30%-35% for government employees and pensioners, will further enhance purchasing power. At the national level, present personal tax relief announced in the Union Budget 2025 are expected to release over INR 1 lakh crore into consumers' hands, creating a multiplier effect for retail demand. Our fundamentals remain strong and future-ready, built on 26 years of consistent execution, regional dominance and an unwavering focus on delivering value for our customers, partners and stakeholders.
With that, I'll now hand over the floor to Mrs. Yosham Vardhan to share the financial highlights for the quarter and half year ended. Over to you, Yosham.
Thank you, sir. Good evening, everyone. We are delighted to showcase the financial performance of Q2 FY 2026 and H1 FY 2026. Here's a snapshot of our financial outcomes. During H1 FY 2026, our revenue increased 10.5% year-over-year, driven by continued expansion and steady demand recovery across key product categories. Gross margin stood at around 15.2%. EBITDA stood at approximately INR 124 crore, translating to an EBITDA margin of around 8.9%, reflecting disciplined expense management and operational efficiency. PAT grew by over 4% year-over-year in H1 FY 2024. SSSG for Q2 FY 2026 bounced back to double digits, 12%, while for H1 FY 2026 came to 2%, reflecting a softer first half impacted by extended monsoons and temporary GST-related adjustments. Demand witnessed a strong rebound towards the end of the quarter, supported by improved festive traction and recovery in consumer sentiment.
In H1 FY 2026, Bihar contributed the majority of revenues, touching 77%, followed by Jharkhand 11%, and Uttar Pradesh 12%, reaffirming the strength of our cluster-based approach and strong regional presence. In Q2 FY 2026, our revenue recorded a year-on-year increase of 22%, supported by a strong rebound in the closing weeks of the quarter. Gross margin remains steady at around 15.1%. EBITDA for the quarter stood at approximately INR 35 crore with margins of 7.6%. Profit before tax stood at approximately INR 17 crore, and profit after tax for the quarter stood at INR 13 crore, up by 4.2% from INR 12 crore in Q2 FY 2025. We can now open the floor for questions.
Thank you, ma'am. Thank you very much. Ladies and gentlemen, we'll now begin with the question and answer session. Anyone who wishes to ask a question may press star one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use headset while asking a question. Our first question comes from the line of Aniruddha Joshi from ICICI Securities. Please go ahead.
Thanks for the opportunity and congrats for very healthy revenue growth in a tough quarter. Sir, the margin is slightly on the lower side on a year-on-year basis. Any color if you want to share on that. That is question number one. Question number two, in AC and fans, the entire industry will shift to new BEE norms from January itself, just less than two months. What is the strategy on inventory buildup in these two categories before the change happens in terms of pricing also and new products also? Third and important question. With the Bihar elections underway, we hear about a lot of schemes like INR 10,000 given to more than 1.25 crore women. Logically, that can lead to some growth in kitchen appliances or other appliances also.
What is the outlook, and how do you see any potential on that front? That's it from my side.
Hi, Aniruddha. As far as gross margin is concerned, actually sale of air conditioner and cooling products, as you know, has been muted entire half year. This is bound to because we were having much better margins in cooling products normally in Q1 also. Entire H1 has suffered. In fact, what I told in the earning call also, that even Q2 was also very soft in temperature-wise or rainfall. There was a lot of rainfall. Gross margin was under pressure definitely because of major categories of cooling products were flat. Secondly, you have asked for new launches of ACs. Yes, new launch of ACs are in the pipeline with all manufacturers. We think that going forward, we'll be having new products altogether because as I have told earlier also, we are comfortable on our inventory side.
Lastly, what you asked about the scheme, 10,000 Mukhyamantri schemes has come. It has in fact been inducted around about INR 13,000 crore in the hands of women. We are expecting a very good rebound in ASPs also because of this extra liquidity among them. We are very bullish on commercial refrigerators or commercial deep freezers and all that, because these categories will do very well for those who want to build some new businesses.
Okay. Sure, sir. Very helpful. Just one last question. What will be the inventory of cooling products? That is essentially air conditioner and refrigerator. Any excess inventory, only these two products.
No, I just told you that there's nothing. We are very comfortable on as far as cooling product inventory. The cooling product inventory, actually refrigerator, there is no problem at all. The reason being that we are always very short of it because it is sold across the entire year. ACs are, of course, these are the products which are sold mostly during summer period. We are comfortable in that.
Okay. Sure, sir. Very helpful and many thanks.
Thank you.
Thank you, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the question to two questions per participant. Should you have a follow-up question, please rejoin the queue. Our next question comes from the line of Yash Sonthaliya from Edelweiss. Please go ahead.
Hi. Thank you, team, for taking my question and congratulations for good set of numbers. My first question is on the pricing part, which you have mentioned in your PPT, seven, 8% decrease in prices. Is this replacement to the EMI discount which came after GST in all your stores or is it over and above those discounts which are going on?
No, my answer to it is a very simple way, Yash. 7%- 8% prices have come down just because of GST cut. It is nothing to do about with our discounting on anything.
If I am understanding it correctly, now in the stores the prices will be 7%- 8% down and there will be also one EMI or something which is already going on. Am I correct in that?
Yeah. These are ongoing schemes which is given by the manufacturers in collaboration with financiers. These things are totally different thing which is brought by the manufacturers.
Got it. Sir, specifically like you already mentioned in the earlier question, but specifically Q2 to Q2 comparison, are AC and cooling product sales were on the YoY basis lower level for the quarter or at least have grown?
No, it has not dipped. It has just remained flat.
Sir, I wanted to understand if the sales of cooling product has been flat on YoY basis, then why are margins for Q2 is lower by 30 basis points than compared to Q2 of last year?
This is the reason because we were selling ACs a lot. The percentage of sale of AC was nearly 48% last year. In H1 2023, entire H2 it was 38%, which has come down to 34%. When sale of cooling products come down, margins are affected.
Got it. Sir, last bookkeeping question. What was the SSSG particularly for Q2?
SSSG for Q2 was 12%.
12. Thank you, sir. Best of luck for upcoming quarter.
Thank you, Yash.
Thank you, sir. Our next question come from the line of Manoj Gori from Equirus Capital. Please go ahead, sir.
Yeah, thank you for the opportunity, sir. Hello? Am I audible?
Yes, please go ahead.
Yeah. Thanks for the opportunity and glad to see the assuring performance during Q2 despite the uncertainties. My question is if we look at this year, as you highlighted in the opening remarks, like at the end of the quarter, probably during the last week, we saw a huge turnout of consumers with the festive season onset and GST rates getting implemented. There has been some spill from Q3 to Q2. Just some near-term questions. Q3 and Q4 when we are looking at 20%-25% growth but with festive seasons slightly moving into Q2, how do we see at the quarter or probably for the second half? That's my first question.
That's your first question. Hello?
Yes, sir.
Can you ask all your questions?
My second question is, given that this year we have seen a very muted performance on the cooling product categories, including air coolers, refrigerators, or ACs, how do we see the upcoming season? Obviously the base will be favorable. Do you see pent-up demand coming in the volumes that we would have lost, plus, do we see organic growth also kicking in? Accordingly, your Q1 of FY 2027 should be extremely strong. Accordingly, your FY 2027 growth might look far higher than what we normally aspire for of 20%-25%. That's my second and last question.
Okay. My reply to your first question is that yes, of course, for nine days it was kicked in, that huge sale had kicked in, our festive season overlapped Q2. As you know, in Bihar, Jharkhand and Eastern UP, our festive season is prolonged. It goes beyond Diwali, up to Chhath, which is almost we have got another month's time. Entire October we have got as a festive season. This was the reason also for keeping our inventory level high, because we were aware that we'll be selling throughout October. As I have told you, that it has started very well also. Again, we are still seeing very good pent-up demand. Still we are seeing, and what I said that from macro level, so much of money is coming. This money, definitely we believe that it is going to come into our system.
Second question was about? That we'll be doing better. Yes.
Better than 2020 [inaudible]
Yes, definitely. This is what we foresee. We can understand that even though we'll be entering into Q3 and Q4, we expect very good figures in Q3 and Q4 both as well. What you said that if things are normal, then Q1 FY 2027 should be definitely a very great one.
Right. One small question just as a follow-up. If we look at all the government initiatives or the liquidity infusion that has been happening, are we trying to be conservative or probably we are still keeping a watch how this translates into demand, as you highlighted in your opening remarks as well, that all this INR 10,000 and everything will be flowing into the purchases. Can this be additional catalyst for demand in the coming times?
Definitely. Manoj, this is a problem with children that whatever money is coming in the hands of these people, it is bound to be invested somewhere. Just think of it that it will pass over to women. Mostly, if they start up a business, they are going to get another around full INR 2 lakh per person if they start a business. For starting a business, the primary thing either it will be a dairy. In dairy, they need a refrigerator, they have to come to us. For establishing a business, they have to have a mobile or a laptop. The money is going to bound to flow into our system, and we'll be a key beneficiary for all these benefits.
Got it, sir. Very clear. Wish you and entire team all the best for future quarters and years.
Thank you so much.
Thank you, sir. Our next question come from the line of Vidhi Shah from CRK. Please go ahead.
Vidhi Shah .
Hello, sir. My question is, how many stores are you planning to add in FY 2026?
Excuse me, Vidhi. Can you speak louder, please?
Hello, am I audible now?
Yeah, you are audible. Just slightly louder.
Yes, sir. My question is, can you give a guidance on the number of stores that you're planning to add in FY 2026 second half as well as FY 2027? Can you tell me how will it be funded?
It will be funded from our own sources, and we are planning to add 30-35 overall stores in FY 2026.
Okay. 30-35 in H2 2026 itself?
No, I said overall. Whatever we have opened, overall it will be 30-35 stores in entire year.
Okay, understood, sir. Your guidance on EBITDA margin and SSSG.
One more thing. We have already opened 13 stores, our strategy is to open most of the stores in H2. This strategy remains with us. Most of the stores will be opened in H2.
Okay, understood, sir. Any guidance on the EBITDA margins and the SSSG?
We hope to maintain our EBITDA margin. I can give you a range from 8% to 10%.
Okay. That's it from my end. Thank you and all the best, sir.
Thank you.
Thank you, ma'am. Ladies and gentlemen, anyone who wishes to ask a question may press star 1 on their touch-tone telephone. Our next question come from the line of [Chetan] from Systematix Group. Please go ahead.
Yeah, hi. Thank you for the opportunity, congratulations on strong top-line performance. Sir, two questions. First, can you give some qualitative sense on how is the revenue per square feet in U.P. compared to Bihar? Second, if we see the store break-even period is currently, say, around seven to nine months. Do the newer stores in U.P. show similar trajectories, or is the gestation lengthening with the deeper market entry currently?
In our opinion, we do not divulge these figures where we are doing what sort of a sale, because that's not good for the competition purposes. However, I think break-even will remain the same, what we have projected, and what we see that U.P. is performing very well. As I told you in last conference call also, that U.P. has been performing exceedingly well, more so in the larger cities, because of which we are shifting to larger cities as well. I think going forward, we'll be maintaining it.
Okay, sir. Got it. Thank you, all the best.
Thank you, sir. Our next question come from the line of Alia sgar Shakir from Motilal Oswal Mutual Fund. Please go ahead, sir.
Yeah, thanks for the opportunity. Sir, first question is on the outlook. If you can just share how is, so far the festive season gone, Given that this year, festive season has shifted. If you could like to, give us an indication of how you would have seen the festive season performance.
Festive season was very robust. We have already been saying. In fact, there was a huge tailwind supporting it. Our festive season was very robust.
Got it. Just quick follow-up there is that have you seen any impact in business post festive season or the traction is continuing to be strong?
No. Post festive season, of course, sales are generally normalizing, we are seeing good uptake.
Understood. Sir, second question is on the inventory. Overall inventory is more or less similar to where it was in March, somewhere about INR 275 crores and over. If you can just share your thoughts. I understand that March typically is your peak inventory because of the beginning of the summer season. I know even now you would have seen some build-up, but I thought that one would have expected this to come down more significantly, probably because of the build-up of AC inventory would have come down. You mentioned that you are at comfortable level in the AC inventory. Just your thoughts on that.
Yes. It was very normal for us. As I told you that this September quarter, in fact, it was amidst festive season. In fact, I'll say it was a very peak period for the festive season, we could not have afforded to have anything not build at that time, when entire month of festive season where huge sales are expected was in front of us. I don't think it's all strategic build-up, it had to be done to enhance, as you said, to increase the sale as well as profits.
Okay, how should this trend in December, I mean, given that once the festive season is behind us?
In December end, definitely it will come down because there won't be any such triggers at that time. Again, nobody can say for sure that we will not be having that good level of inventory. The reason being that we are foreseeing 6% - 8% increase in air conditioner prices from going forward from 1st of January. Maybe if we get good deals with companies for the older models, it will be very much cheaper than the new series. It all depends, Ali, because you have to be a businessman for this purpose. The whole thing becomes that we are reporting end quarter results. Maybe it will be very low even up to 25th of, let us say, December, but it can go up by 31st if we get very good deals from manufacturer or anyone. This is all I'll say.
The reason is very practical and business-oriented.
Got it. Sir, on a per store basis, typically, what is your stable inventory that you keep and during the peak season, this quarter, I think, is gone somewhere close to about INR 3.6 crores.
Otherwise, our per store, our ballpark figure is around INR 2.75 crore-INR 3 crore.
Got it. It's close to about INR 50 lakh-INR 75 lakh more than your normal inventory level during festive period.
Around INR 60 lakh.
Right. Just last question, sir, if I can ask is on In this quarter, interest cost has gone up, whereas your borrowings have not increased. Can you just explain why this interest cost has gone up?
It has gone up because of application of interest also.
Okay. I was just doing the simple math that your SSSGs are very strong.
Actually, you are seeing whatever inventories are on our books on 30th September, it is to be paid after 30th September. Interest cost is not very high. Main interest has gone up on amortization financing.
Okay. Maybe I'll take this offline. Got it. Thank you so much.
Yeah. You can.
Thank you, sir. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Our next question comes from the line of Anshuman Srivastava from Srivastava Holdings. Please go ahead.
Hello, sir.
Hello. Hi.
Hello. Yes, sir, our working capital data has consistently increased from FY 2020 to currently FY 2026. Can you please work on improving this?
It all depends. Actually, you are looking at last day's inventory. That I've been telling so many times.
No, not the inventory. I'm talking about inventory days.
Also-
Working capital days. This is on page number 25 of presentation.
This is only because our inventory has increased on 30th September.
No, I mean it has consistent working capital days and inventory days have increased.
You have to understand that in last financial year, in H1 FY 2025, festive season was not in September. It did not start in September. We would like.
Sir, I'm not comparing with the last year. I am comparing the trend over the past five years.
Right.
When you compare inventory days to payable days, payable days has remained somewhat low, but inventory days has consistently increased over the last five years. I'm not comparing with the last financial year. I'm comparing the trend over last five years.
You have to understand that we have understood your question. You have to analyze our expansion also. Most of our inventory, these are sent to the new store. We have to buy it in advance to send to the new store. We have been opening even 45 stores in a single year. We have to manage the inventory in such a way that it is going up only because we are expanding. Supposing we stop expanding, inventory days will come down.
You're saying that once the expansion rate slows down, then.
That rate is also going down.
Supposing a new store.
A new store has opened, so inventory will be the same. You have to keep the inventory at the same level, but sales will not be that much. This is the reason, and when you are opening in a big way, so you are scaling up your business, then it is bound to go up till such time where we are, let us say, we moderate or our percentage of increase in store count will come down.
Okay, understood.
Okay. Thank you.
Thank you.
Thank you, sir.
Thank you.
Ladies and gentlemen, in the interest of the time, that was the last question for today. On behalf of Motilal Oswal.
Hello? Should I conclude?
Yes, sir. You can go ahead with your closing remarks if you wish.
Hello?
Hello.
Meeting is over?
Yes, sir. I'm concluding this call.
Okay. Thank you so much. I thank every participant for being present during this earning call. Thank you so much.
Thank you, sir. On behalf of IIFL Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your line.