India’s video surveillance market has undergone a major change following the introduction of the STQC framework, which pushed manufacturers to meet localisation and certification requirements.
Among the biggest gainers from this shift has been Aditya Infotech Ltd, whose flagship CP PLUS brand has steadily expanded its presence in the organised surveillance market.
The company’s stronger manufacturing base, higher localisation and diversified sourcing strategy helped it increase market share and deliver robust earnings growth in FY26.
With a market capitalisation of ₹41,500 crore, Aditya Infotech shares were trading at ₹3,529. The stock trades at a P/E ratio of 113, compared with the industry average of 30.
Since listing in August 2025, the stock has gained more than 200%.
STQC Changed the Competitive Landscape
Management described FY26 as a turning point for the Indian surveillance industry.
According to the company, regulatory changes, increasing localisation and the rollout of the STQC framework altered the industry’s structure.
Aditya Infotech had already invested in:
- Manufacturing facilities.
- Localisation efforts.
- Product certifications.
- Supply-chain readiness.
These preparations allowed the company to benefit as barriers to entry increased for smaller and less-prepared players.
Before the STQC transition, management had indicated that the CP PLUS brand held nearly 25% of the domestic market.
During the IPO process, the company had targeted a post-STQC market share of around 36%.
By Q3FY26, CP PLUS had expanded its share to 45.4%, making it the largest player in India’s organised surveillance market.
Management attributed the gains to:
- Early preparedness.
- Local manufacturing.
- Scale advantages.
- A large portfolio of STQC-certified products.
The company said industry conditions turned out to be more favourable than originally anticipated.
Around 30 accredited brands currently compete in the market, including international and domestic players.
Localisation Became a Key Advantage
Local manufacturing emerged as one of the company’s biggest strengths during the transition.
Aditya Infotech has localised several components, including:
- Coaxial cables.
- Cat6 cables.
- Camera cables.
- Recorder cables.
- Housings.
Management said localisation improved:
- Supply-chain resilience.
- Quality consistency.
- Cost control.
The company is also increasing backward integration.
Recent initiatives include:
- A partnership with Orient Cables for LAN and CCTV cable manufacturing.
- A new Rajasthan plant planned for FY27.
- CCTV lens production at the Kadapa facility.
Capacity Expansion Continues
Manufacturing capacity has increased to 2.5 million units, with utilisation expected to remain between 90% and 100%.
Further expansion plans include:
- A housing facility capable of producing 30 million housings and enclosures annually.
- A new lens assembly line with capacity of 500,000 lenses per month, expandable to 1 million units.
- Additional land acquisition at Kadapa.
- A 300,000-square-foot facility in Noida.
Management plans to double production capacity by FY28 and achieve backward integration across critical components.
Supply Chain Strategy Reduced Dependence
Global shortages of semiconductors and memory components posed challenges for the electronics industry during FY26.
Management highlighted disruptions caused by:
- Supply-demand imbalances.
- Geopolitical tensions.
- Higher freight and insurance costs.
- Rising prices of flash memory, sensors and DDR memory.
To manage these risks, Aditya Infotech adopted a multi-SoC strategy.
The company partnered with six non-Chinese SoC suppliers:
- Ambarella.
- Qualcomm.
- Augentix.
- Innofusion.
- Novatek.
- Realtek.
It also strengthened relationships with sensor manufacturers such as:
- SmartSens.
- Sony.
- SOI.
Management said the strategy helped maintain stable supplies while some competitors faced sourcing challenges.
Expanding Beyond Hardware
Aditya Infotech is also investing in AI-based surveillance systems.
The company has partnered with Qualcomm Technologies to develop intelligent video security products for industrial and enterprise applications.
Management said surveillance systems are increasingly moving beyond recording functions and towards analytics and decision support.
Future growth areas include:
- AI analytics.
- Edge computing.
- Cloud services.
- Software-as-a-Service (SaaS).
The company operates DSIR-certified R&D centres in:
- Noida.
- Ahmedabad.
- Bangalore.
- Taiwan.
The platform being developed with Qualcomm is currently under trial and could be launched in phases.
FY26 Earnings Showed Strong Momentum
Operational performance translated into strong financial growth during FY26.
Q4FY26
- Revenue rose 45.5% to ₹1,422 crore.
- EBITDA jumped 162% to ₹258.3 crore.
- Profit increased 207% to ₹169 crore.
- EBITDA margin expanded by 800 basis points to 18%.
FY26
- Revenue grew 35.6% to ₹4,220.8 crore.
- EBITDA surged 124.1% to ₹579 crore.
- Adjusted profit after tax rose 166.1% to ₹368 crore.
Management attributed the performance to:
- Higher market share.
- Increased localisation.
- Cost controls.
- Lower finance costs after debt repayment using IPO proceeds.
The CP PLUS brand contributed 86% of revenue during FY26.
IP products accounted for 73% of CP PLUS revenue, reflecting a shift towards higher-value surveillance products.
FY27 Outlook
Management expects the CCTV industry to grow by 15%-16% in FY27.
For Aditya Infotech, the company has guided for:
- Revenue of ₹6,000 crore to ₹6,500 crore.
- EBITDA margin of 14%-15%.
- PAT margin of 8.5%-9.5%.
Management expects growth to be supported by:
- A broad STQC-approved product portfolio.
- Brand strength.
- Manufacturing scale.
- Local supply chains.
- Investments in AI and R&D.
TL;DR
Aditya Infotech emerged as one of the biggest beneficiaries of the STQC-led changes in India’s surveillance industry. The company’s CP PLUS brand increased its market share to 45.4%, supported by localisation, manufacturing expansion and supply-chain diversification. Revenue grew 35.6% in FY26, and management expects sales of ₹6,000-6,500 crore in FY27.
AI Summary
- CP PLUS increased its market share to 45.4% by Q3FY26.
- STQC implementation accelerated industry consolidation.
- Aditya Infotech expanded localisation and manufacturing capacity.
- FY26 revenue rose 35.6% to ₹4,220.8 crore.
- The company expects ₹6,000-6,500 crore revenue in FY27.
