Q1 2027 Aditya Vision Ltd Earnings Call Transcript
Key Points
- Revenue grew 27% YoY, exceeding the company's long-term growth target of 20-25%.
- EBITDA margin expanded by ~90 basis points to 10.4%, driven by operating leverage and disciplined cost management.
- PAT grew 40% YoY to INR77 crore, with PAT margin improving by 61 basis points to 6.5%.
- Same-store sales growth (SSG) remained strong at 18%, consistent with the last three quarters.
- Inventory reduced by INR177 crore from March 2026, and working capital loans decreased to INR125 crore, reflecting efficient inventory management.
- Geographic diversification (UP, Jharkhand, Chhattisgarh) helped offset softer demand in Bihar, demonstrating resilience.
- Gross margin expanded by ~75 basis points to 16.1%, aided by price hikes in certain categories.
- The company is on track to add more than 30 new stores in FY27, with planned entries into Madhya Pradesh and West Bengal.
- Management reaffirmed its EBITDA margin guidance of 8-10%, and noted that new state entries have not historically diluted margins.
- Strong volume growth of 17% and ASP growth of 8% contributed to the revenue increase.
- Consumer sentiment in Bihar was cautious due to LPG availability concerns and fuel supply disruptions, leading to deferred discretionary purchases.
- The appeal from the government to avoid buying gold and other import-dependent products negatively impacted customer buying sentiment.
- Weather patterns were inconsistent across operating geographies, with a mild summer in Eastern India leading to softer cooling product demand in Bihar and Jharkhand.
- The company's business remains highly seasonal, with Q1 being the peak quarter and Q2 typically seeing a significant drop in revenue.
- The ongoing West Asia war continues to create uncertainty in the operating environment.
- The company is entering two new states (MP and West Bengal) in FY27, which may increase operational complexity and initial costs.
- Depreciation increased on a quarter-on-quarter basis, partly due to amortization of rent and work-in-progress expenses.
- The company does not provide state-wise or region-wise SSG or EBITDA details, limiting transparency for investors.
- Management did not provide a specific store opening guidance for UP, which may create uncertainty for investors.
- The company's growth is still heavily reliant on the AC category, which contributed 42% of sales, making it vulnerable to weather fluctuations.
Ladies and gentlemen, good day and welcome to Aditya Vision Limited Q1 FY27 Earnings Conference Call.
(Operator Instructions)
I now hand the conference over to Ms. Devanshi Kandar from Aditya Capital.
Thank you, and over to you, ma'am.
Good evening, everyone, and thank you for joining us today for our Division's Q1 FY27 conference call.
We are glad to have the senior management team with us, including Mr. Yashovardhan Sinha, Chairman and Managing Director; and Ms. Yosham Vardhan, Whole-Time Director.
First of all, congratulations to the management team on delivering an excellent start to the year.
I will now invite the management to share their opening remarks, after which we will move into the Q&A session. Over to you, sir.
Thank you, Devanshi.
Good evening, ladies and gentlemen. Welcome to Aditya Vision
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