Thanks, Nirav. On behalf of ICICI Securities, we welcome you all to Q2 FY26 results conference call of Aditya Infotech Limited.

We have with us today senior management represented by Mr. Aditya Khemka, Managing Director; Mr.

Anup Nair, President - Strategy and Business Development; and Mr. Yogesh Sharma, Chief Financial Officer.

Now I will hand over the call to the management for their initial comments on the quarterly performance, and then we will begin the question-and-answer session. I also heartily congratulate the management team for posting a stellar set of numbers in Q2 FY26.

Thanks, and over to you, Aditya, sir.

Yeah. Hi, thank you, Aniruddha, and good afternoon, everyone.

Thank you for joining us today. Aditya Infotech has delivered another quarter of strong performance in quarter two FY26, building on the momentum from the previous quarter.

Our results reflect our aggressive growth strategies, continued market share gains, and an integrated approach combining strong brand recall, industry-leading manufacturing capacity, extensive distribution reach, and sustained investments in R&D and strategic collaborations. The implementation of STQC norms in April 2025 marked a significant regulatory shift for the industry.

While the first quarter was a period of adjustment characterized by temporary supply chain disruptions as well as certification backlogs, the second quarter witnessed a return to normalized growth. This recovery has been led by CP PLUS, which now offers the most extensive STQC-certified portfolio in the market, underscoring our agility, regulatory readiness, and commitment to maintaining market leadership.

With respect to manufacturing capacity expansion to fulfill the growing demand, we continue to invest significantly and have increased capacity to 1.8 million units per month in this quarter, and growing further to 2 million units in the coming quarter four 2026. Most of this has been funded entirely through internal accruals.

Our housing and molding plant was kicked off this week, and the same is expected to be operational by middle of next year, further supporting in-house backward integration. On the R&D side, we continue to expand our investments, adding more engineers on a constant basis and aligning with critical components and semiconductor companies to deliver cyber-secured CCTV products.

We opened a new R&D center in Ahmedabad and are on track to open a subsidiary in Taiwan, all for R&D purposes. This quarter, we also announced a definitive agreement with L&T Semiconductor Technologies to manufacture 9 million IP cameras over the next 3 years as soon as the chip gets ready.

Together, we are co-designing India's first IPC SoC with vision AI technology, enhancing energy efficiency, data security, and AI-driven surveillance. This collaboration further strengthens CP PLUS position as a global brand, proudly building in India for the world.

Let me walk you through briefly now on our financial performance for quarter two 2026. Quarter two FY26 revenue stood at 919.6 crores, growing 37.5% year-on-year, driven by robust traction in CP PLUS-branded IP cameras and record shipments of certified models.

Our EBITDA stood at 111.1 crores, up 157%, with margin expanding to 12%, supported by favorable brand and product mix, increased localization, and operating leverage. PAT rose 239% to close to 70 crores.

If you look at the first half of FY26, revenue has touched close to 1,660 crores, and growth has been about 27% year-on-year. On the EBITDA side, we have increased over 102% and standing at 176 crores, and H1 EBITDA looks at 10.6%.

On the PAT side, we are also grown at 138% year-on-year, crossing 103 crores in the H1. We've also made significant progress in strengthening our balance sheet.

The use of the IPO proceeds for debt repayment has resulted in a meaningful reduction in the net debt and finance costs, thereby enhancing profitability and providing financial flexibility for future growth. Also, our consolidation of the subsidiary AIL Dixon is showing gains in H1 FY26.

CP PLUS is gaining market share across all segments, reinforcing our leadership in the Indian video surveillance market. As per independent source, our market share stood at 31.4% in quarter one of FY26 and has further consolidated in quarter two FY26, report yet to come out.

CP PLUS brand share in AIL overall revenue has grown to 86% in quarter two and is expected to grow further in the second half of this year. Also, the share of IP products in overall CP PLUS portfolio has grown significantly to almost 70% in the last quarter.

We now plan to launch a multi-brand strategy to maximize our market share, serve diverse customer needs, and reach into the roots of Bharat. At IFSEC 2025 next month, we will unveil two new brands: Eyra and NexiView.

Eyra will offer an alternative to partners currently serving Chinese brands, while NexiView targets the Indian interiors market and aims to organize the unorganized segment. The impact of these brand launch will be seen in the last quarter of this financial year.

In CP PLUS brand, we're also focusing on multiple series to capture the value and SMB market, as well as launching soon the Pro series next quarter to target global brands which will go live in the coming quarter. The market in India is undergoing a complete reset driven by strong sector growth and a clear preference for Indian brands, and CP PLUS holds a distinct advantage in this transition.

We've secured key customer acquisitions in private enterprise as well as government sector, and continue to increase our feet-on-street presence to strengthen engagement with consultants, architects, and system integrators. Globally, we are witnessing a shortage in chipsets, sensors, and storage, largely driven due to the DDR and flash prices going up, as well as the supply constraints.

While this may sound disruptive for smaller players, it also will lead to supply consolidation, which will further benefit CP PLUS consolidate its market share. We also expect price rise across various categories in the coming quarter.

All these developments, combined with operational efficiencies, position us well to sustain growth and create long-term value for our shareholders. Looking ahead, we remain confident of meeting our FY26 guidance of 25% to 30% revenue growth, EBITDA at 10% to 11%, and PAT margins of 6% to 7%.

The organization will continue working to meet or beat this guidance in the coming half year. Thank you once again for your continued support, and we now can open the floor for questions.

Thank you.

Thanks for the opportunity, and congratulations on great results. My first question is if you could just split what has been the volume and the value growth in this quarter for the entire revenue.

I think it's pretty much at par, volume and value. See basically the analog market is more or less going flat, and the major growth is coming from IP cameras.

If the market in India is growing 15%, 17%, IP is growing almost 2x because earlier market was literally half-half, 40-60. We, being the largest certified portfolio and the largest Indian brand, are actually growing much faster.

Some of the brands are still grappling in the process of certification. Our growth of IP camera is very high.

On the value side also, it's at par, more or less.

We haven't taken any price rises at the moment, like Aditya was saying. We are expecting price rises from next quarter onwards.

Essentially, this revenue growth has come from volume growth and by market share increases.

Sure. If you could just quantify what kind of price increases do you envisage in the coming quarters?

I think the teams are working on that. We're trying to see how much minimum we can sustain and pass to the Indian consumer.

I think we probably would announce in the first week of January.

Sure. My second question is, in your presentation, you mentioned that you're going to start lens and PC module manufacturing from the fourth quarter onwards.

Just want to understand what kind of margin impact would it have in terms of improvement for the next year?

I think initially, I don't see major margin impact because there will be a sustenance period of learning curve. We will first localize it and try to get more and more localization done on the lens and PTZ module side.

In the mid to long run, there will be few basis points in per camera cost as we gain efficiencies and scale. Hard to say right now, but yeah, I think maybe in the coming quarters, we'll have a better visibility on that question.

Thank you. Those were my questions, and all the best.

Thank you.

Hello.

Hi, Manish.

Hey, hi. Just one question.

Can you help me understand, do you guys have the distribution infra for this new products which are launching or planning to launch? How should one look at, let's say, from a margin perspective when one is trying to think of this new opportunity?

Thank you.

I think great question, Manish. I think margin side, we are very cognizant.

We'll keep it at par with our own brand. What we are trying to do is create different products, different SoCs, working with every semiconductor company, we are having foot in the game across the board, and position these brands in a different strategy.

There is a set of channel which will be serving the Chinese brands, which is created a vacuum where we, of course, a large chunk of that is come into CP PLUS, but there is a chunk which is still scouting other areas. We thought we'll launch a second brand alternative because these guys work largely on a depth model rather than a breadth model where CP PLUS functions.

That model, we are going with the Eyra brand. On the NexiView side is a product more, let's say, for rural market, more mass market, the unorganized sector, those kind of players to attack that segment and have an answer to that price points.

May not be exactly that price point, but slightly higher for the market. That's there.

Margin side, we're keeping it more or less at par with our own brand, CP PLUS. We have the distribution infra because most of them were connected, and in the past, if I can tell you, we were doing a two-brand strategy.

That one brand is already a vacuum, so that channel is still there with us. Some have come to CP, some will go to Eyra, and then we will look at the newer category of channels with NexiView.

Okay. Can you also talk about, let's say, from a capacity perspective—

Sorry. Yeah.

Also, can you talk about, let's say, from capacity per se, I understand you all are increasing capacity in the plant, but can you also talk about, let's say, backward integration in any components as such, which will be critical, let's say, from a thought process, let's say, in the next 12, 18 months, how are you looking at those areas? Thank you so much, and congrats on the results.

Thank you. I think capacity side, we are expanding quarter on quarter, and we are preparing ourselves for the next year market demand also, of keeping some market share in our mind.

With respect to components, yeah, whatever, like I said even in my earlier calls, whatever is locally possible in India as of today, we are already kickstarted that work, either third party or in-house, and things like housing, power, cable, we are going in-house more or less. Things like lenses, we are going in-house.

Stuff like a semiconductor or very basic passive electronics, we are right now not putting our foot in the component ecosystem because that's a different business model. I can't set up a component ecosystem for only serving myself.

That we are partnering or collaborating with the global giants. Some of them are setting shops in India, we'll look at localizing.

Those who are not, well, we'll look at Taiwan or Korea or US, whichever countries. The passive, maybe we may continue buying from Taiwan and China.

That's that we're doing. I think a sizable chunk will be localized.

The goal is that at least half or more than half in the next 12, 18, 24 months, we are able to do majority of products local.

Got it. Thanks.

Thank you.

Hi. My first question is on the inventory and the debtors level.

While we are increasing our top line, they seem to be inching up as well. Just wanted to understand, is this something we expect going forward as well due to say the nature of the industry or do we have something in mind to sort of stabilize at these levels?

Hi, this is Anup here. Debtors and inventory, it's actually stabilized now, and if you see, it's actually improved.

From a cash conversion cycle perspective, there has been improvement this quarter. I think the net working capital possibly is looking up because we retired debt.

I think we are working on improving efficiencies on this level, and I think you should see the efficiencies quarter on quarter.

Got it. The second question is on the supply side gap.

While in the previous quarters we were seeing a supply gap at the ground level, but now do we still see that persisting going into say October, November as well?

It's difficult to say how many more brands are getting certified, but on the ground, we are still seeing sort of status quo. Like we were mentioning, we have gained significant market shares in IP, and we expect this to improve.

There are a lot of players who have applied for certifications, and they are underway, but difficult for us to predict how much of them will get certified in the next two quarters. More so, how much of them will have scaled to catch up soon with the pent-up demand.

I think from that perspective, CP PLUS has a clear distinct advantage.

Got it. The last question was on the margin, the gross profit margin.

There's a 9.4% year-on-year expansion. Out of this, is the margin due to consolidation roughly 4% to 5%?

No. The major drivers has been the change of the mix within the company.

CP PLUS revenue in the quarter past has risen to almost 86%. This was trending at around 70% last year, this has risen to almost 86%, and we see that possibly in H2, this can even rise further to possibly 90%ish levels.

Within the CP PLUS portfolio, the share of IP cameras, that's also improved significantly, and in Q2, it was closer to about 65%, and we foresee this being at these levels. These have been the major margin drivers.

The Then, of course, the finance cost saving and the consolidation benefit. Localization.

The localization benefits. The major drivers have been the CP PLUS mix and the mix within CP PLUS.

Got it. Okay.

Thank you so much. All the best.

Thank you for taking my questions. Congrats on a stellar set of numbers.

Just want to kind of dive deeper into the gross margin expansion. You mentioned that it's largely been driven by the product mix.

Now, the whatever localization kind of efforts that you're taking, firstly, just wanted to understand what percentage of BOM are you kind of trying to localize over a period of time in India? Then what kind of cost benefits do you see coming in because of that?

I think I just answered that the previous one. Basically, as I mentioned, whatever, stuff like all kinds of mechanicals, power, cable, all these things are getting localized either in-house or third party, and in the mid to long run, mostly in-house only.

Some of that work is already started, and in any case, we are localized all of it, whether it's third party or in-house. Then the lens is starting in the coming quarter.

The only thing which will still be dependent on global brands will be the semiconductor, memory, flash, DDR, which is SoCs, sensor, memory, flash, and basic passive components: capacitor, resistor, diodes, these kind of things, which we will continue to buy from global brands or Taiwan, China, depending for the passive components. I believe in the next 12 to 24 months, gradually, we'll see more than half localized and half import in terms of the value of the BOM.

Okay. Understood.

This mix benefit that you're talking about, so that will kind of continue. You're also talking about possibly price increases kind of coming through over the next few quarters or starting from the next quarter.

From that perspective, would it be fair to assume that your gross margin should ideally inch upwards from the current levels?

We hope to achieve that, yeah.

Okay. Understood.

Secondly, just on the other expenses, right? I think other expenses, there has been a pretty sharp increase, 60-odd percent kind of Y-o-Y increase there.

Just any bunching up or any one-offs to kind of call out there?

IPO expense, have

you? No.

There's no one-offs, Nikhil. I think there are investments going into manpower, into R&D, and more or less all in the line of business.

There must be IPO expenses, and other than that, there

is no one-off as such. 25 crores of IPO expenses.

What was the IPO expenses, if you could just quantify that?

No, we believe it's about 25 crores, but I think it's netted off within the share reserves.

Share premium account. Hm.

It's not part of the P&L, not part

of it. Okay.

Understood. Thank you.

Hello, sir. Congratulations for the very good set of numbers.

Sir, I have two questions. First question is there is a notification yesterday came from the Government of India that they want to increase surveillance for all the critical places, and they want to have a surveillance mechanism for like of China and every other country has.

India doesn't have right now the surveillance mechanism. How much order book you are expecting from the government, and second there are two part of it: one is software part and one is hardware part.

Hardware part, yes, we can cater to it, but software part includes surveillance for AI-based surveillance. How much we are prepared for that and how much demand you are expecting from the government?

See, government in India has a long gestation period. We have seen cases which are going on sometimes for years, sometimes they close very fast.

It's very hard to predict government business. It's still about 15% of our revenue.

We feel there are certain sectors of the government which will propel demand in the government space, one being railways, where it's quite hot and a lot of work is going on, and probably one of the biggest-ever supply of CCTV will happen in railways in the next 1 to 2 years, and we stand as a major contender, being the largest Indian player, all made in India here. On the public safety side, pockets here and there, smart city, safe city, critical places, these things are decentralized, very difficult to predict each project.

What I can say is we are one of the largest contender at this moment, even in the government space. We are well prepared with respect to hardware or even a lot of AI solutions also.

From the software side, how much we have, for AI surveillance system, how much we are prepared for the surveillance system?

As I said, for AI solutions, we are quite prepared, and a lot of work is further going on. We will soon have some more information once we go live on those, probably in the coming quarter.

Sir, I want to understand one thing. This product is made by us, why our operating margin is at 10% and EBITDA is 5% 6% to 7%?

What is the reason for that, even though you have all the channel partner with you, everything is there of your own side, and this product is also been developed by you, why it is like that? Why we have 6% to 7% PAT level?

No,

I think we have to understand that we were the only company fighting the might of global brands, and specially global giants of China, which actually in many electronics eroded local brands. We have come out stronger, and now with, thanks to the global leaders right from US, UK, and now India, Australia, where they have given backlash to Chinese companies in critical sectors like telecom, drones, and CCTV.

I think now we have a great opportunity to improve the margins. Like you have already seen a 12% EBITDA last quarter, 7.5% PAT already, and we, as I answered just before in this question, we see improvement, hopefully, in the coming future from this side.

I have done the channel check, sir. Almost all of the brand don't have any portfolio as per the STQC completed.

Even the biggest of the player has only one indoor and one outdoor unit has come. For another 3 months, there is no major player, how much market share you are going to gain in that case?

Will it be continue like last 3 months? This 3 months will also we see that you'll have a tremendous market share gaining from the other players?

That's what the organization is working on. It's a solid platform we have and the readiness also.

Plus, we already are sitting on a large market share of almost over 30%. We feel our market share will further consolidate, and even in my guidance speech which I gave, a lot of factors I mentioned, I ended stating that we are at the best position to further consolidate our market shares.

Even the chips shortages are going to probably help companies like us to further consolidate because past experiences, the big get bigger and the small, medium, unorganized face some challenges when there are shortages of price rises. We are preparing ourselves for a sharp increase in market share in the coming H2 of this year.

We believe the readiness of others, we can't comment, but we believe it will all take time.

That's what they are saying. That's why I'm saying that for the next 3 months, all of them maybe they come after Jan or March.

They are expecting approximate around March. I have talked to each and every player.

That is the feedback I have got. Another feedback that I have got that only you all have the promotional event going on this time, the Tesla event.

Due to that, a lot of people have bought a lot of camera. Do you see for the next 3 months the sale coming down because advance booking they have done to just get to qualify for promotional event that you have done?

Mitul, good. I think you have done a lot of channel checks.

The scheme that you are mentioning was for last quarter, and it's already closed, and these are ongoing schemes which we do for every quarter. There's a new scheme already announced for this quarter and for H2 as well.

These are periodical schemes. There is nothing exceptional here.

These are incentive schemes that we run for the channel quarterly.

Okay. They say so channel has Mitul, Mitul, Mitul,

Mitul, there are others waiting in the queue as well, I think they've taken quite a few questions. If you could just join the queue again if you want any more questions.

Yeah. Sorry, sorry, sorry.

Thank you.

Thank you. Two bookkeeping questions from my side.

Most have been answered. Now I see a sustained improvement in the gross margins.

You've also highlighted that contribution of CP PLUS is only going up. Ideally, that 23%, 24% gross margins have started to move up, and obviously, as quarters go by, we'll see a much higher level than what we saw in the past quarters.

In that context, how should we look at EBITDA margins on a sustainable basis? Should early teens, once the new plant stabilizes and operating leverage comes in, something which is a possibility given the favorable traction and favorable business tailwinds what we have today?

Saumil, I think you're absolutely on the right track. We are also working on those, that early teens would be a good position to be in for the EBITDA moving forward.

We're working strongly to look at that in the H2 of this year only.

Okay. Okay.

In terms of the second question, can you quantify are there any price hikes already taken in the last 4, 5 months because our channel checks suggest that there is already ₹300 to ₹400 on a blended basis in various products already price hike which have been there in the market? Are these already been taken or

No, no. Let me explain.

Price rise, we are planning from next quarter. This is a product change.

What happened was pre-STQC, there were products made on a different SoC. Industry was using Chinese semi-con also and making products.

Some of them, as per the Indian government new norms, might be vulnerable for backdoor surveillance or something like that, which they believe. We have not come across any such case in the last 18 years of our history, but people believe.

Then the government came out with stringent norms to basically elbow out the neighboring country brands on this critical sector, like they did in the Press Note 3 or other things in other sectors, and very strong cybersecurity check, cyber-safety norms, which is what the STQC test labs is. Now, when you develop products for certifying those, you can't develop first on a Chinese SoC because that is not allowed.

You have to look at a Taiwan, Korea, Japan, or US, where, of course, the costs are a little higher because of the neat which puts in in the SoC. The memories on those SoCs are required much higher, which jacks up the further input cost of the product, and so are the certain other components.

Only then, you can put in the right algorithm, the software, the code to fortify the product so that there is no backdoor, nothing possible from anywhere as long as people don't know your password. That is a change of products.

It's like this, ki yaar aap Apple or orange ko compare kar rahe ho. Now,

apple

fruit toh fruit hai. Fruit IP camera hai, but apple pehle bikta tha, ab apple bechna allowed nahi hai.

Ab aapko mango bechna hai, toh mango ka banane ka cost hi ₹200, ₹300 upar jo tha, wahi bazaar ko pass hua tha. No price was raised.

Moving on, there will be a price rise, which is evident because of the component shortage, the foreign exchange, few other things. We'll pass it on to the market.

We are working on that, what is the percentage to pass on to the market from January. It's a reset of the market.

Still the market absorbed that old inventory which was lying in the market at old prices in the H1.

Sure. Sure.

Continuation to this, between market share and pricing, will market share be a clear priority, maintaining margins at healthy levels, maybe about 9%, 10%?

I think you can say so. I think we'll have to strike a right balance on this.

At this moment, I think for us, of course, market share will be a priority because it's a great opportunity to sit at a very high market share opportunity in the coming quarters.

Got it. Thank you so much, Aditya, and wish you all the best for subsequent quarters.

Thank you. Thank you.

Hello. Am I audible?

Yeah. Maybe a little louder, Anuj.

Yes, sir. Good afternoon, Aditya.

Congratulations for the good set of numbers. Sir, last time, we discussed

Anuj, sorry to interrupt you, but your voice is coming little muffled.

Okay. Hello.

Sir, in the last conference, we discussed regarding the some traction in the exports of the surveillance systems. Are we seeing anything on that front?

I think last call, people had asked me about it. I said right now, there's so much handling happening here in the domestic front.

We want to further first consolidate our position here, our market shares here. We stand by that.

While on the parallel, we have started our work, but I think we will look at it with more seriousness and focused approach in sometime later. Right now, I think too much is happening here.

There is multi-brand, multi-series strategy, backward integration, localization, capacity expansion, R&D expansion, so much of work in market share expansion. I think we'll first focus in the coming maybe few quarters in the domestic front, while we will on the parallel side prepare ourselves for the export market, but I think that will be probably a few quarters down the line.

You're right, sir, too much on the plate right now.

Too many fronts.

Yes, sir. Thank you, sir.

That's all from me.

Thank you.

Thanks for taking my question, and really heartiest congratulation on excellent numbers. Sir, can you please help us understand little more about our JV with L&T Technologies for chips and all those things?

What will be the scope of work we will be doing or what will L&T be doing? What kind of revenue generation can we expect out of that?

That's my first question.

Sure. Let me take that.

See, first of all, there is no JV with L&T. It's a MoU with L&T.

It's a definitive agreement, there is no joint venture. L&T has invested into semi-con development, and they came to us probably a year or two ago to co-develop IP camera chips, and we being the anchor customer to work.

Our R&Ds and them have been working closely to define the right BOQ, right chip, right semi-con, right parameters, what is going to be the solution, what kind of cost, and then start developing. The development is being done by their engineers.

Our teams are supporting that. Okay.

We have then signed that we will buy 9 million chips in the 3 years once the development happens, and use it in CP PLUS products, and develop products on those chips, which even the Indian government Ministry of Electronics, the minister is wanting that India se chip nikle aur India ki chip pe kaam ho. Of course, these are time-taking activities.

The development of a chip is a 2-year process. We already passed 1 year.

Hopefully, in the coming year end, we should be able to roll out something, and then product develop hoga us pe. That is the arrangement.

1 second. Sorry.

That's the arrangement with L&T, and I believe they're doing similar structure in other categories of semi-con also.

Okay. Basically, we will be sourcing chips from them rather than importing it or buying it from other vendors.

A part of our requirement. We can't shift everything to a new chip.

Once the chip is passed our stringent quality tests and our product developments, a part of our requirement, we will use for the locally made chip. We will have, of course, preferential pricing, preferential benefits, preferential lock-in at the initial years.

Those kind of things are there.

Great. Great.

Sir, how do we see still the competition from our competitors like Matrix and now with this STQC norms, other China brands are no more sold in India or what is the status, sir?

Most of the Chinese brands are not qualifying because the norms are not allowing those Chinese brands to be playing the IP camera field because of trusted supply chain and the cybersecurity norms, they are not active in this space. You mentioned Matrix.

Matrix is having some products qualified, but we don't see them in the retail distribution space, which is our largest play. We see them in certain cases somewhere in enterprise and government.

I think it's more of a regional player based out of west and few places here and there. Off and on we hear them, but not something which crosses our boardroom thoughts.

Right. Basically, we are the market leaders so far as local production is concerned.

You can say so at the moment, yeah.

Great. Great.

Just if I can squeeze in one, Dixon is our equity holders and one of the subsidiaries where they were also joint partners have become now the shareholders of our main company. What kind of involvement or role they play in manufacturing activities, and do we look at something more also to be produced locally and sold in collaboration with Dixon?

I think Dixon has been a great partner over the last 7, 8 years of relationship as a joint venture, and then we bought over the stake and became a subsidiary, and it was a share swap given to them. They are a shareholder.

The Managing Director of Dixon is a director on the board. They play an active role on strategy side with us and very valuable insights.

With respect to manufacturing, we have a service agreement in continuation with them. For running the plant, while we have already put in our own teams and our teams are driving it, but they are always there for any kind of support should we need any due to the agreement we have and the relationship we have.

With respect to other products if any, I think if we take a call to look at another product category and if Dixon is the right bet, then we will look at that or otherwise. I think it's hard to say today about whether Dixon will be the right bet or not for that product category.

It all depends in the future which product and who's the right EMS, or we do it in our own plant, we'll take a call.

Great. Great, sir.

That's very helpful, and thank you so much, and all the very best. Thank you.

Thank you.

Yeah. Sir, if we look at the large player from China was extremely active in southern markets as well as Mumbai city, and now with that player getting out of the market, what are the strategies we are implementing to gain more market share in southern markets as well as the Mumbai markets?

Means if you can elaborate in terms of what are the new initiatives we would have implemented to gain market share. That is question number one.

Sir, secondly, in terms of we keep hearing that lot of schools CBSE and ICSE both have been made it mandatory, even Maharashtra also I guess some of the schools have been asked to in a way implement CCTV cameras. I guess in UP, school buses are asked to implement CCTV cameras.

What are our initiatives on this side? How do you see the market progressing on this front as well?

Two questions.

Thank you, Aniruddha. I think you pointed out well.

West and South were stronghold of some of the global brands and the Chinese brands. We also are strongly present, but market share relatively was smaller.

We have seen great traction in the last quarter itself from some of these markets. What we've been doing over the last few quarters is investing heavily in feet-on-street in all the western, south regions, and we've fairly gotten a lot of trained manpower, experienced manpower right from government to enterprise to private sector or to distribution space to cover maximum of this market share.

On the other side, we are also in plans to have a south-centric extensive 360-degree marketing campaign. Far if you see, our brand has been very strong brand recall in the Hindi-speaking belt with our tagline 'Uparwala Sab Dekh Raha Hai' and then the brand ambassadors and stuff like that.

We've now planned a very strong south-centric campaign, picking up brand ambassadors from all the south three states and looking at a very comprehensive strategy so that it becomes a household name known to every person right till the village in the south of India also. I think that will help us a lot along with the product portfolio and the offering, the feet-on-street, and the maximum investment growing in those regions.

A part of that we could see in the last quarter, and we believe in this quarter and moving forward, we will keep seeing our market share growing in the west and south of India. Regarding the second question of schools, Government of India came out that all the schools should have cameras.

We are seeing results here and there from most parts, and our teams are working with all the private sector or the government schools to ensure that maximum of the coverage and the pie comes to us, and so and so forth in almost every sector. Manpower expansion, touch points expansion, marketing expansion specifically dedicated to pockets where we need more is all coming, and it's all on the card.

The teams are working on that, yeah.

Okay. Sure, sir.

One more question. What is the strategy of the global players like Bosch or even Honeywell, which are non-China-based players?

Logically, they may be successful eventually in getting the certifications across the product range. Eventually, I guess they're still not in the channels or the retail markets, it's difficult to understand the strategy from retail perspective.

How do we see these players in a way changing the stance, and what is our strategy again to counter these brands also?

The global brands, the most of the DNA has been enterprise and government in the past 2 decades or more. I believe they will still remain there.

One or two brands may try to enter the distribution space, but will take a lot of time. I don't think they can cover up the mass-scale distribution with the scale, size, the DNA, and other things.

Some brands like I believe Honeywell has some certification already there, but we don't see any products out. I don't see that as a major market share play from any of them because, first of all, those who can do that are not having their own products; they're only sourced from others.

Those who have their own products only play in the large-scale, the very very higher end of the market globally. I think it's hard to comment if somebody like Apple would come down to a Vivo or even below price in a mobile market.

I think we'll have to see. At the moment, I don't see anything like that happening or any major traction from most of these brands.

Okay. Sure.

Sir, last question. We also do some of the contract manufacturing for some of the brands like Qubo, etc.

Are we going to continue on these lines to use the excess capacity, or we would be completely using the capacity only for the CP PLUS products now?

I think without naming anyone, I would say we will continue OEM, ODM, EMS work for anyone who we feel is strategically okay and not too much of competing. It only strengthens the manufacturing facility, and we'll continue to expand the capacity to keep feeding that also, of course, without compromising any of our own brand or brands' capacity utilization needs.

First and foremost will be our own brands, and then whatever excess is there, we are okay to manufacture for others, whether Indian brands or global brands.

Okay. Sure, sir.

This is very, very helpful, and congrats to you and entire team for posting such a stellar performance. Thanks a lot from my side.

Thank you.

I think this will be the last question.

Thank you for the follow-up question. You talked about Matrix, CP PLUS.

I think on the STQC side, we see a lot of certifications for, say, Prama as well. Just wanted to understand your views on how are they kind of scaling up in the market?

From your perspective also, what is now the entire product portfolio now kind of STQC certified? How are you placed there?

I think Prama has got certain certifications, which we are seeing on the website. They have also launched certain products in the last quarter.

Supplies were a bit limited. Far, midway of this quarter is very similar stage.

We hope to see some more supplies coming from them in the coming future, but I think that's good enough for the gap fulfillment in the market, they will have their own space. I think that's fairly okay for us,

yeah. Understood.

Just your product portfolio, is it now completely, all the kind of SKUs or different

No, we are still on the way, but a larger chunk is there, and every fortnight, new certifications keep coming in. It's an ongoing process, and I don't think this will finish ever.

It will keep going on, and then new models again will launch and new certifications will come on. It's become a full-on department now in the organization to keep doing this.

Understood. Just, I think there was a lot of inventory that had kind of come in before the certification kind of set in at the industry level.

How are we placed there at the industry level? Do you think now it is kind of normalized or things are

I think it's more or less dried up now. I think it's all consumed more or less.

Now if there are some leftovers here and there on certain pockets, 1, 2 lakh, 3 lakh cameras across India, that might be there, I believe. I'm not sure if any major chunk is lying with anyone.

I think it's more or less dried up. Right.

Got it. Just last one In the last quarter

last quarter, a lot of that got consumed, last quarter.

Understood. Just one last bookkeeping question from my side.

What was the ad and sales promotion spends in this quarter?

Yogesh, you have the marketing spends for the last quarter? Just 1 minute.

He's just checking, yes. Yeah.

It's 29 cr.

29 crores.

Okay. Thank you.

Thank you so much.

Thank you.

We'd like to thank everyone for taking out time and joining this call, and thanks everyone for all the support, and looking forward to hosting you on the next conference call in the next quarter. Thank you.

Thank you.