Aditya Vision Ltd (AVL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Monarch Networth Capital Limited): Ladies and gentlemen, good day and welcome to the Q2 and H1 FY '27 earnings conference call of Aditya Vision Limited hosted by Monarch Networth Capital Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. I now hand the conference over to Mr. Rahul Dani from Monarch Networth Capital Limited. Thank you and over to you, sir.
Rahul Dani (Monarch Networth Capital Limited): Yeah. Thank you, Rituja. Good afternoon, everyone. On behalf of Monarch Networth Capital, it's our pleasure to host Aditya Vision's management. We have with us today Mr. Yashovardhan Sinha, Chairman and Managing Director, and Ms. Yosham Vardhan, Whole-time Director. I will now hand over the call to the management for opening remarks and then we move to Q&A. Thank you and over to you, sir.
Moderator (Monarch Networth Capital Limited): I'm sorry to interrupt, sir. We are unable to hear you.
Yashovardhan Sinha (Aditya Vision Ltd): Sorry. Thank you, Rahul. Good evening, ladies and gentlemen, and a very warm welcome to Aditya Vision's Q2 and H1 FY '27 earnings conference call. Before we begin, I would like to extend my warm, warmest wishes to all of you and your families on the occasion of Diwali. May the festival bring happiness, peace, prosperity, and good health to everyone. I am pleased to share that Aditya Vision has delivered its best-ever Q2 performance, with revenue growing 28% year-on-year to Rs. 586 crore. This reflects the resilience of our business model, the strength of our customer franchise, and our continued focus on execution. For H1 FY '27, revenue grew 27% year-on-year to Rs. 1,779 crore, keeping us ahead of our long-term revenue growth aspiration of 20, between 20 to 25%. The quarter witnessed several headwinds impacting discretionary spending, driven by the prolonged West Asia crisis, disruption in energy supplies, and a sharp rise in global crude oil prices.
Yashovardhan Sinha (Aditya Vision Ltd): considered interest rate hikes after an extended period of stability. The situation was further compounded by flood and cyclone-related disruptions in Bihar alongside rising prices of essential staples and cooking gas amid the ongoing conflict, placing additional pressure on household budgets and dampening consumer sentiment. Despite these challenges, operating challenging operating conditions, we demonstrated resilience and delivered a strong performance with EBITDA growing by 32% and translating into an impressive 45% growth in profit after tax in Q2 FY '27. Notably, H1 FY '27 PAT has already reached over 90% of the entire PAT reported in FY '25, reflecting the strength of our operating performance and sustained profitability momentum. For H1 FY '27, EBITDA grew by 37% with EBITDA margin expanding to 9.6%. Profit after tax increased by 41% with PAT margin improving to 5.4%, reflecting healthy earning growth and improved profitability. While consumer demand has moderated somewhat, underlying demand remained resilient across our market. Same-store sales growth for H1 FY '27 stood at 18% compared to just 2% in H1 FY '26, when unseasonal rains impacted customer footfalls and sales. Our consistent high double-digit SSSG reflects sustained customer traction and continued growth across our established markets, supported by deeper penetration and improving store productivity. Our expansion strategy combines deeper penetration in existing markets with entry into new geographies. As of September 30, 2026, our network comprised 214 stores compared with 188 a year earlier. Our retail footprint expanded by 18.3% to approximately 9.51 lakh square feet. During this calendar year '26, we have entered 3 new states: Chhattisgarh, Madhya Pradesh and West Bengal. As of yesterday, we have made our
Moderator (Monarch Networth Capital Limited): I'm sorry to interrupt ladies and gentlemen, please stay connected.
Moderator (Monarch Networth Capital Limited): Ladies and gentlemen, thank you for patiently holding. We have management reconnected. Over to you sir.
Yashovardhan Sinha (Aditya Vision Ltd): Sorry for this disruption. As of September 30, 2026, our network comprised 214 stores compared with 188 a year earlier. Our retail footprint expanded by 18.3% to approximately 9.51 lakh square feet. During this calendar year '26, we have entered 3 new states: Chhattisgarh, Madhya Pradesh and West Bengal. As of yesterday, we have made our entry into West Bengal and Madhya Pradesh, opening up additional growth opportunities. We continue to follow a cluster-based expansion strategy, leveraging our logistics infrastructure, vendor relationship and brand recall to support efficient store ramp-up. Our focus remains on
Yashovardhan Sinha (Aditya Vision Ltd): building productive outlets that contribute sustain- sustainably as they mature. Alongside expansion, we remain focused on inventory availability and working capital discipline. As of September 30, '26, inventory stood at 865 crores compared with 840 crores at the end of March '26. This reflects stocking ahead of the festive season and competitive pricing due to anticipated price increase across consumer durables. Borrowing stood at 293 crores at the end of September '26, down from 331 crores at the end of March '26. However, borrowings were higher year-on-year, reflecting funding requirements associated with inventory, new stores, and business growth. We see a significant long-term opportunity in India's consumer durable market, particularly across the heartland where rising disposable income, increasing financing penetration, and the shift towards organized retail create substantial headroom for growth. Our immediate focus remains on ensuring strong product availability, meeting customer demand efficiently, and staying competitive while continuing to improve store productivity and maintain disciplined inventory management and cost control. When I look at where we stand today, what gives me confidence is that we are not just expanding our footprint, we are building a more resilient business and reaching a wider set of markets with significant populations and rising purchasing power. Our vision now extends well beyond our established strongholds towards capturing the immense potential of these underpenetrated geographies. Backed by disciplined execution, strong regional understanding, and a customer-first mindset, we believe we are well-positioned to capture this opportunity and deliver consistent, sustainable growth over the medium to long term. With that, I would like to hand over the floor to Mrs. Yosham Vardhan to take you through the financial highlights in greater detail.
Yosham Vardhan (Aditya Vision Ltd): 26 crore while profit after tax increased by 45.2% to 18.47 crore. PAT margin improved by 37 bps to 3.2%. Same-store
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