Growth is becoming a habit. Aditya Vision Ltd. (BSE Code: 540205 | NSE Code: AVL | Market Cap: ~₹8,000 Cr.) delivered another strong quarter, backed by healthy demand, efficient working capital management and a scalable expansion strategy. Key takeaways from the earnings call are as follows: Operating Leverage Drives Superior Earnings Growth
Q1FY27 Revenue grew 27% YoY to ₹1,193 crore, supported by resilient consumer demand, ~17% volume growth and ~12% improvement in average selling prices (ASPs).
EBITDA increased 39% YoY to ₹124 crore in Q1FY27, with EBITDA margin expanding 89 bps to 10.4%, reflecting operating leverage and disciplined cost management.
PAT for Q1FY27 rose 40% YoY to ₹77 crore, while PAT margin improved 61 bps to 6.5%, demonstrating the company's ability to consistently convert revenue growth into faster earnings growth.
Operational Efficiency Strengthens Cash Conversion
Same Store Sales Growth (SSSG) remained at a robust 18% for the third consecutive quarter, extending the strong recovery after a one-off negative SSSG quarter and reflecting sustained customer traction.
Management dynamically reallocated inventory across markets to align product availability with regional demand trends, supporting healthy sell-through and improving inventory efficiency.
Working capital improved materially, with inventory declining by ₹177 crore QoQ to ₹663 crore and short-term borrowings reducing to ₹175 crore vs ₹331 crore, reflecting stronger cash conversion, lower working capital intensity and enhanced financial flexibility.
Broad-Based Demand Supports Growth Visibility
Air-conditioners remained the key growth driver, with sales increasing ~35% YoY and contributing 42% of total revenue. Management highlighted that cooling demand has remained healthy into Q2, supported by comfortable inventory levels.
Demand remained broad-based across core appliance categories, with refrigerators contributing over 15% of revenue, while refrigerators, washing machines and televisions each registered ~10% growth, reflecting resilient replacement demand.
ASPs increased across key categories, with mobiles and laptops witnessing 20–25% growth driven by OEM price hikes, while AC ASPs increased by a modest 5–6%.
Cluster-Led Expansion Enhances Long-Term Scalability
The company added three stores during Q1, taking its retail footprint to 210 stores, while maintaining a disciplined approach towards capital allocation and store economics.
Geographic expansion remains on track, with plans to add 6-10 stores each in Madhya Pradesh and West Bengal, alongside 10-12 stores in Chhattisgarh during FY27. The West Bengal rollout will initially focus on Siliguri, Asansol and Durgapur.
Structural Tailwinds Underpin Long-Term Growth
Management reiterated its guidance to add 30+ stores during FY27, while indicating the potential to exceed the planned target based on execution.
The company also reaffirmed its 20-25% annual revenue growth guidance, with gross margins expected to remain within 15-16% and annual EBITDA margins sustained at 8-10%.
Management's confidence is underpinned by favourable industry dynamics, including rising disposable incomes, increasing financing penetration, premiumisation, festive demand and the continued shift towards organised consumer durable retail, providing sustained visibility on long-term growth.
Corporate Governance Update
The appointment of MSKA & Associates LLP as one of the company's statutory auditors reinforces Aditya Vision's commitment to robust corporate governance and high standards of financial reporting as it enters its next phase of growth.
Aditya Vision's strong return profile is yet to be fully reflected in its valuation, suggesting meaningful scope for multiple expansion as execution remains consistent.
For further queries, feel free to reach out to -
Garima Singla
Sr. Research Analyst
[email protected]
Mehal Gogia
Research Associate
[email protected]
GoIndia Advisors LLP | SEBI Registered Research Analyst | Reg. No. INH000020040 | BSE Enlistment No. - 6518