Aditya Vision Q2 FY27 Earnings Call — Analysis (NSE: AVL)
Aditya Vision delivered 28.1% YoY revenue growth to ₹586.23 Cr in Q2FY27 with PAT surging 45.2%, while accelerating store expansion across Chhattisgarh, Madhya Pradesh, and West Bengal.
Result quality: watch — Margin pressure. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹586.23 Cr ( +28.1% YoY ) . New guidance — FY27 aditya vision limited total sto… 230-235 stores . New story: Geographic Expansion into Adjacent States .
Results
Revenue rose 28.1% YoY to ₹586.23 Cr with gross margin expanding 125 bps to 16.3% and PAT increasing 45.2% YoY to ₹18.47 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹586.23 Cr | +28.1% | yoy · Q2FY27 · vs Q2FY26 |
| Gross Profit | ₹95.59 Cr | +38.8% | yoy · Q2FY27 · vs Q2FY26 |
| Gross Margin | 16.3% | +125bps | yoy · Q2FY27 · vs Q2FY26 |
| EBITDA | ₹45.65 Cr | +31.6% | yoy · Q2FY27 · vs Q2FY26 |
| EBITDA Margin | 7.8% | +21bps | yoy · Q2FY27 · vs Q2FY26 |
| Profit After Tax | ₹18.47 Cr | +45.2% | yoy · Q2FY27 · vs Q2FY26 |
| Same Store Sales Growth | 18% | +1600bps | yoy · Q2FY27 · vs 2% in H1FY26 |
| Store Count | 214 stores | +26 stores | yoy · Q2FY27 · vs 188 stores as of Sep-25 |
| Total Inventory | ₹865 Cr | point_in_time · Q2FY27 · Sep-26 (vs ₹840 Cr in Mar-26) | |
| Total Borrowings | ₹293 Cr | point_in_time · Q2FY27 · Sep-26 (vs ₹331 Cr in Mar-26) |
Guidance
Management targets closing FY27 at 230-235 stores and adding ~35 stores in FY28 to reach ~270 stores, while sustaining 8%-10% annual EBITDA margins.
What management committed to
- I think we will be closing at around 230 stores in this financial year, and maybe more than 230, it can go up to 235. — 230-235 stores, FY27
- And next year, again, we are anticipating the addition of around another 35 stores, so that will come to around 270 stores. — ~270 stores, FY28
- Our normal guidance will remain the same, around 15%-15.5% [on gross margin]. — 15%-15.5%, FY27
- We always give guidance of EBITDA margin between 8% and 10%, and that is also on an annual basis. — 8%-10%, FY27
- In Chhattisgarh, we have already opened five showrooms, six showrooms. We plan to open another 9-10 stores in Chhattisgarh. — 9-10 stores, FY28
- In Madhya Pradesh, we will be opening around three stores very shortly, and we plan to add another, let us say, 15 to 17 stores in the coming year. — 15 to 17 stores, FY28
- In West Bengal, we have already opened two stores, and another two are work in progress. So, we are expecting to add at least 15 stores in West Bengal also. — at least 15 stores, FY28
- The CAPEX will be around Rs. 90 lakhs per store... And we expect that it will break even in around one year's time. — Rs. 90 lakhs per store, one year's time
Key themes
Geographic diversification and store network expansion
How the narrative shifted
- Geographic Expansion into Adjacent States: Management is executing a cluster-based rollout into Chhattisgarh, MP, and West Bengal, starting with border districts contiguous to Bihar.
- Gross Margin Sustainability and Normalization: Management distinguishes between temporary margin bumps from OEM price hikes (~75-80 bps) and baseline trading margin, guiding cautiously to 15.0-15.5%.
- Festive Season Demand Dynamics: Acknowledging early October slowness due to inflation and weather disruptions, management expects demand concentration around Dhanteras and Diwali.
- Store Maturation Offsetting Expansion Drag: Operating cost and margin drag from new territory entries will be balanced by higher operating leverage and profitability from maturing older stores.
Operational commentary
- Geographic revenue mix in Q2FY27 was Bihar 73%, Uttar Pradesh 15%, Jharkhand 11%, and Chhattisgarh 1%.
- Entered three new states during CY2026: Chhattisgarh, Madhya Pradesh, and West Bengal, targeting border districts first before penetrating metro clusters.
- Extended summer season supported growth in cooling categories led by ACs, followed by mobile phones and refrigerators.
- Gross margin expansion of 125 bps included ~75-80 bps benefit from OEM price hikes / pre-bought inventory, with the remainder from normal trading.
- Opex/indirect expenses grew YoY due to store additions (+26 stores YoY), elevated sales volume charges (CMS, card fees, freight), and initial setup in new states.
Analyst Q&A
Q. Drivers of 125 bps gross margin expansion and full-year margin guidance.
About 75-80 bps came from OEM price hikes and low-cost inventory, with normal trading contributing the rest; normalized gross margin guidance remains 15.0%-15.5%.
Q. Festive season demand traction in October and whether delayed Diwali impacted growth rates.
Early October sales were relatively slow, but demand was expected to accelerate heading into Dhanteras and Diwali week.
Q. Store addition roadmap across new geographies (Chhattisgarh, MP, West Bengal).
Planning to add 9-10 stores in Chhattisgarh, 15-17 in MP, and at least 15 in West Bengal over the next 1-2 years, with longer-term potential for 40-50 stores in West Bengal within 4 years.
Q. Store economics, payback period, and capex difference in new states like West Bengal and MP.
Store capex averages ~₹0.90 Cr (up due to inflation), running 10%-15% higher in new states due to vendor freight, with store-level breakeven anticipated within one year.
Research and educational content only. Not investment advice.