Aditya Infotech Ltd Q4 FY26 Results Analysis: Revenue Surges 45.5%, EBITDA Margin Expands 800 bps

Aditya Infotech Ltd reported Q4 FY26 numbers with revenue of Rs. 1,422.03 Cr (+45.50% YoY) and PAT growth of +207.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

CPPLUS delivered an exceptional Q4 and FY26, beating management's own revenue, margin, and earnings guidance by meaningful margins. Revenue grew 45.5% YoY with EBITDA margins expanding 800 bps YoY to 18.1%, while FY26 normalized PAT surged 258% YoY well above the 75% target. The company's STQC certification moat, strong operating leverage, and near-complete deleveraging (net debt to net cash) provide a solid foundation for the FY27 guidance of 27-30% revenue growth; however, cash conversion remains weak at 3.7% of PAT, warranting monitoring.

Key Investment Insights

Key Positives

• Revenue grew 45.5% YoY to Rs.14,220 million in Q4 FY26, the highest quarterly revenue
• EBITDA margin expanded 800 bps YoY to 18.1% in Q4 FY26
• FY26 revenue of Rs.4,221 Cr exceeded the upper end of management's guidance of Rs.4,100 Cr by 3%
• FY26 EBITDA margin of 13.7% exceeded upgraded guidance of 11-12% by 170 bps
• Normalized PAT grew 258% YoY in FY26, well above the 75%+ target
• Total borrowings reduced 72.6% to Rs.1,129 million, converting net debt to net cash of Rs.523 million
• Material operating leverage — total expenses grew 13pp slower than revenue (32.5% vs 45.5%)

Risk Factors

• Operating cash flow of Rs.134.82 million was only 3.7% of PAT — CFO/PAT ratio of 0.04x indicates poor cash conversion
• Free cash flow deeply negative at (Rs.1,228.45 million) due to working capital outflow of Rs.4,771 million
• Trade receivables grew 35% YoY to Rs.14,044 million broadly in line with revenue growth, indicating limited collection improvement
• Customs dispute of Rs.308.58 million (Rs.103.29 million duty + Rs.205.29 million penalties) under appeal — outcome uncertain