The promoter stake will fall to 77% after the IPO from 95%. The standardisation testing and quality certification (STQC) norms, which came into effect in April 2025, will affect the sale of products from Chinese companies in the internet protocol (IP) driven surveillance systems thereby increasing the addressable market opportunity for Indian manufacturers.
While this augurs well for Aditya, the extent of the benefit will take a few quarters to become clear. In addition, the company’s Ebitda margin was in single digits, at 8-9% between FY23 and FY25. It indicates that the company operates in a highly competitive market. Given these factors, the IPO looks more suitable for long-term investors with high risk appetite.
Aditya undertakes manufacturing and sales of its own products as well as trading of products of China-based Dahua Technology. Trading of Dahua products contributed 24.7% to revenue in FY25. This is expected to fall given the STQC norms. Trading margin is typically one-third of Aditya’s own products margin. A lower trading contribution in revenue, therefore, may improve the Ebitda margin. Revenue grew 16.7% annually to ₹3,111.8 crore between FY23 and FY25. In July 2024, the company acquired control of its JV with Dixon technology in a share swap agreement with the latter.
AgenciesAditya’s PAT was boosted by ₹248.6 crore in FY25 as a gain on account of fair valuation of its stake in the JV, taking the total annual net profit to ₹351.4 crore.
Net debt was ₹231 crore in FY25 compared with ₹334.8 crore in the prior year. Net profit in FY25 includes a one-time fair value gain, which renders the trailing P/E multiple less effective. Profit before exceptional items and tax at ₹185.4 crore in FY25 was similar to ₹189.9 crore in FY24. Valuation based on FY24 numbers makes more sense. The FY24 P/E works out to be 68.7. The company does not have any listed peers.