Aditya Infotech IPO: Check IPO Date, Lot Size, Price & Details

Introduction

Business Overview

Aditya InfoTech Limited is one of India’s largest providers of video security and surveillance products, solutions, and services, marketed under its flagship ‘CP PLUS’ brand. The business model is structured across two primary segments: (i) manufacturing and trading activities, involving the production and sale of CP PLUS products along with after-sales services, and (ii) trading activities, which focus on the distribution of Dahua Technology products. With a strong presence in both enterprise and consumer markets, the company addresses a wide range of industries, including banking, real estate, healthcare, defence, education, hospitality, retail, and law enforcement.

The company’s portfolio spans over 2,900 stock-keeping units (SKUs) as of Fiscal 2025, comprising a diverse mix of hardware, software, and integrated solutions. These include high-definition (HD) analogue and IP cameras, DVRs, NVRs, biometric access systems, body-worn cameras, mobile surveillance solutions, thermal imaging products, temperature screening devices, smart routers, structured cabling solutions, power supply units (SMPS), and related accessories. Its proprietary solutions, such as CP PLUS AI and OnVigil, focus on enhancing traditional CCTV systems with AI-driven intelligent video analytics, IoT automation, and centralised surveillance.

Distribution and Market Presence

Aditya InfoTech has established a nationwide presence, with products sold in over 550 cities and towns across India. Its distribution network comprises more than 1,000 distributors, 2,100 system integrators, and 69 CP PLUS Galaxy experience stores. The company also leverages e-commerce platforms for online sales. To ensure strong market engagement, it conducts regular training workshops for installers, technicians, and partners, thereby enhancing product awareness and service delivery. The operational backbone is supported by 41 branch offices, 13 RMA centres, and 10 strategically located warehouses in key regions across India, ensuring efficient inventory management and faster product delivery.

Manufacturing and R&D Strength

Aditya Infotech’s Kadapa manufacturing facility in Andhra Pradesh is a key asset, with an annual installed capacity of 1.72 crore units. The facility is equipped with advanced surface mount technology (SMT) lines, automated assembly lines, and robust quality control systems. A dedicated R&D team of 86 professionals focuses on hardware and software innovation, including AI and ML-enabled solutions, cloud-based platforms, and intelligent edge devices. This innovation-driven approach aligns with the company’s long-term strategy of expanding its product offerings while maintaining high-quality standards.

Strategic Collaborations

The company maintains a strong relationship with Dahua Technology as its exclusive distributor in India. Furthermore, its collaboration with Dixon Technologies has enabled the expansion of its manufacturing capabilities, enhancing cost efficiencies and supply chain reliability.

By combining a strong brand identity, robust operational infrastructure, and continuous product innovation, Aditya Infotech has positioned itself as a strong player in the Indian surveillance and security market, with an emphasis on sustainable growth and technological advancement.

IPO Details

OBJECTIVES OF THE ISSUE

• The net proceeds will be used for prepayment or repayment of certain term loans and working capital facilities
• The company has entered into various financing arrangements, including term loans and working capital lines, which will be reduced using the proceeds.
• The borrowings to be repaid will be selected based on interest rates, prepayment conditions, penalties, and remaining tenure.
• The proceeds may also be used for repayment or refinancing of additional borrowings taken before the allotment of shares.
• The company has obtained the required approvals from lenders for the planned repayment. 

KEY STRENGTHS

• Market Leadership with Strong Brand Recall

Aditya Infotech is the largest Indian provider of video security and surveillance products, solutions, and services. The flagship ‘CP PLUS’ brand has built strong recall through continuous investments in brand-building initiatives, celebrity endorsements, and targeted marketing campaigns. The Indian video surveillance market is witnessing rapid growth, driven by increasing security requirements, adoption of advanced technologies, and government initiatives like smart city projects. The company has consistently strengthened its position by focusing on product quality, customer engagement, and expanding its reach across commercial and consumer segments.

• Extensive Distribution and Service Network

The company has the widest pan-India presence in the video surveillance ecosystem, with products sold in over 550 cities and towns. Operations are supported by 41 branch offices, 13 RMA centers, over 1,000 distributors, and 2,100+ system integrators across tier I, II, and III cities. A workforce of 1,274 employees (including 404 sales and marketing personnel) ensures efficient operations and customer support. The company conducts training programs, webinars, and workshops to upskill partners and enhance service delivery.

• Diverse Product Portfolio

Aditya Infotech offers a wide range of 2,986 Stock Keeping Units (SKUs) under the ‘CP PLUS’ and ‘Dahua’ brands, covering a variety of security needs. The portfolio includes High Definition (HD) analog cameras, Internet Protocol (IP) cameras, Digital Video Recorders (DVRs), Network Video Recorders (NVRs), biometric devices, thermal cameras, body-worn cameras, mobile surveillance solutions, interactive displays, access control systems, and video door phones. The company also provides Artificial Intelligence (AI) and Internet of Things (IoT) based solutions such as device Health Monitoring Systems (HMS), Attendance Management Systems (AMS), and advanced video analytics for both commercial and residential markets.

• Advanced Manufacturing and R&D Capabilities

The Kadapa manufacturing facility in Andhra Pradesh is among the largest CCTV production units globally, with a capacity of 1.72 crore units annually. Spread across over 2 lakh square feet, the facility employs over 3,200 personnel (including contractual and on-roll employees). It is equipped with six high-speed SMT lines, multiple IP and HD camera assembly lines, and advanced quality control systems. A dedicated R&D team of 86 employees focuses on AI, ML, IoT, and cloud-based innovations to strengthen the company’s technological leadership.

• Strategic Collaborations and Technology Partnerships

The company’s exclusive distribution arrangement with Dahua Technology provides access to advanced products and solutions. Strategic collaborations with L&T Semiconductor Technologies (for indigenous SoCs and AI-based products) and VVDN Technologies (for embedded systems, IoT, cloud, and 5G) enhance manufacturing and product engineering capabilities. The partnership with Dixon Technologies has further strengthened its supply chain and localised production in line with the ‘Make in India’ initiative.

RISKS

• High Dependence on Core Products

A major portion of revenue is derived from the sale of Closed-Circuit Television (CCTV) cameras, Network Video Recorders (NVRs), Digital Video Recorders (DVRs), and Pan-Tilt-Zoom (PTZ) cameras, collectively contributing over three-fourths of revenue in Fiscal 2025. Any decline in demand, technological shifts toward alternative surveillance devices, or changes in regulations could adversely impact revenue, cash flows, and profitability.

• Limited Supplier Base

The company depends on a limited number of suppliers for critical components such as chips, lenses, printed circuit board components, housing, and sensors. The largest supplier contributed over half of the material cost in Fiscal 2025, while the top five suppliers accounted for more than 90%. Any disruption in supply, pricing volatility, or delays from these suppliers could affect production and financial performance.

• Import Dependency on China

A significant share of components and materials is sourced from China. Geopolitical tensions, import restrictions, currency fluctuations, or global commodity price changes can impact the availability and cost of parts, potentially disrupting operations and affecting margins.

• Revenue Dependence on Dahua

About one-fourth of revenue in Fiscal 2025 came from products supplied by Dahua Technology, with whom the company has an exclusive distribution agreement in India. Any disruption in this arrangement, cancellation of shipments, or restrictive covenants under the agreement could negatively impact business operations, cash flows, and financial condition.

Financial Snapshot

KPI Comparison with Industry Peers

Note: There are no listed companies in India that are comparable in all aspects of business and services

Conclusion

Aditya Infotech’s leadership in the security and surveillance market, backed by its strong ‘CP PLUS’ brand, extensive distribution, and advanced manufacturing capabilities, positions it well for continued growth. Management’s proven execution and strategic partnerships further enhance confidence in sustained business momentum, despite supplier concentration risks. The company’s focus on R&D, AI-powered solutions, and indigenized manufacturing under ‘Make in India’ initiatives strengthens its long-term competitiveness. Strong visibility in domestic markets and planned capacity expansion provide an additional growth cushion. Considering the financial performance, healthy return ratios, and sector tailwinds, we suggest that investors subscribe to the IPO for the long term.