Good evening, everyone, and thank you for joining us today for Aditya Vision's Q1 FY27 earnings conference call. We are glad to have the senior management team with us, including Mr.

Yashovardhan Sinha, Chairman and Managing Director, and Ms. Yosham Vardhan, Whole-Time Director.

Congratulations to the management team on delivering an excellent start to the year. I will now invite the management to share their opening remarks, after which we will move into the Q&A session.

Over to you, sir.

Thank you, Devanshi. Good evening, ladies and gentlemen.

Welcome to Aditya Vision Q1 FY27 earning conference call. Our earnings presentation and financial results for the quarter have been uploaded to the stock exchanges.

We trust you would have reviewed it by now. I'm pleased to share that Aditya Vision has delivered another quarter of strong, profitable, and market share-led growth despite challenging conditions, reflecting the resilience of our business model and disciplined execution of our long-term strategy.

Revenue for the quarter grew 27% YoY, ahead of our long-term growth aspiration of 20-25%, driven by continued market share gains, healthy demand across key product categories, and the contribution from our expanding store network and strategic diversification of showrooms into different geographies pan-India. This steady diversification across India insulates our business of weather-centric challenges, and we are gradually shifting towards more stable business throughout the year.

As per our strategy mooted and implemented from last financial year, we have opened only three stores in Q1, thereby conserving our resources and optimizing it. This shift is clearly visible in our company's marked improvement in lowering opex, which has boosted our profits.

The quality of growth was also equally encouraging. EBITDA stood at ₹124 crores, while EBITDA margin expanded by nearly 90 basis points to 10.4%.

Profit after tax grew 40% year-on-year to ₹77 crores, with PAT margin improving by 61 basis points to 6.5%. The steady improvement in profitability reflects operating leverage, disciplined cost management, and improving productivity across our maturing store network, coupled with sound strategies of optimization.

Our performance becomes even more satisfying when viewed in the context of the operating environment. The quarter reflected the realities of consumption across real Bharat, where purchasing decisions are often influenced not only by income levels, but also by household sentiment and short-term priorities.

During the quarter, LPG availability concerns in large part of our market led to panic reactions in many households. With focus on prioritizing essential spending, consumer sentiments also remained relatively cautious of prompting some families to defer discretionary purchases.

In many districts of our geography, fuel supply disruption resulted in discouraging consumers from impulsive and planned buying to preserve liquidity for a large period. The appeal from government to desist from buying gold and other import-dependent products further casted gloom over our customer's buying sentiment.

This situation has improved since last quarter, but uncertainty still looms large in wake of continued West Asia war. As already spoken, weather pattern also remained significantly different across our operating geographies.

While Eastern India witnessed a relatively mild summer, North and Central India experienced stronger and more sustained heat. Our expanding presence in Uttar Pradesh, therefore, proved to be a strategic advantage, helping offset relatively softer cooling demand across Bihar and Jharkhand.

This demonstrated the benefit of our diversified geography footprint and enabled us to continue gaining market share despite localized disruptions. As our business used to be built around seasonal demand and inventory preparedness.

We entered the summer with adequate inventory to service peak demand across our markets. As weather conditions evolved differently across regions, our supply chain and procurement teams responded quickly by relocating inventory across states and optimizing product availability.

This enabled us to maintain healthy sell-through while strengthening our working capital position. Inventory stood at ₹663 crores as of June 30, 2026, while working capital loan reduced to ₹125 crores, reflecting efficient inventory management, healthy operating cash flows, and continued liquidity-prioritized balance sheet discipline.

Our retail expansion strategy continues to progress in line with our long-term vision. During the quarter, we opened three new stores.

Our network has expanded to 210 stores as on date. We remain firmly on track to add more than 30 new stores during FY27.

Following our successful entry into Chhattisgarh last year, we remain on track to enter Madhya Pradesh and peripheral regions of West Bengal. Our cluster-based expansion strategy allows us to leverage existing logistics infrastructure, vendor relationship, and brand recall, resulting in faster store ramp-up, superior capital efficiency, and improved store-level profitability due to penetration in newer markets.

I would also like to share an very important governance update. In line with our commitment to the highest standards of corporate governance, the board has approved appointment of MSKA & Associates LLP, Chartered Accountants, one of the India's leading audit firms and an independent member firm of the BDO International network, as our statutory auditor.

With our network now crossing 210 stores, we are entering the next phase of our growth journey. As our presence expands across multiple states and our store continues to mature, future growth will increasingly be driven by productivity improvement, operating leverage, and more diversified geographic mix rather than store additions alone.

Looking ahead, we remain optimistic. Improving disposable incomes, increasing financing of penetration, supportive government initiatives, and the upcoming festive season provide a favorable backdrop for demand.

More importantly, we continue to believe that the long-term opportunity for organized consumer durable retail remains highly compelling. Rising incomes, increasing premiumization, higher replacement demand, and the continued shift towards organized retail across India's heartland provide a long runway for sustainable growth.

With that, I now hand over the floor to Yosham Vardhan to take you through the financial highlights for the quarter. Thank you.

Thank you, sir, and good evening, everyone. We are pleased to report another quarter of strong and profitable growth.

The revenue for Q1 FY27 stood at ₹1,193 crores, registering a 27% growth YoY, reflecting continued market share gains and healthy demand across our operating markets. Gross margin remained healthy at 16.1%, expanding by approximately 75 basis points compared to the corresponding quarter last year.

EBITDA for the quarter stood at ₹124 crores, with EBITDA margin improving to 10.4%, reflecting an expansion of around 89 basis points year-on-year. Profit after tax stood at ₹77 crores, with PAT margin improving by approximately 61 basis points to 6.5%, reflecting disciplined cost management and healthy operating leverage.

Our retail footprint continues to expand. As of June 30th, we operate 210 stores: 120 in Bihar, present across all 38 districts; 33 in Jharkhand, covering 22 of 24 districts; 54 in Uttar Pradesh, covering 30 of 75 districts; and 3 stores in Chhattisgarh, covering 2 out of 33 districts.

FY27 Bihar remained our largest revenue contributor at 72% for quarter one, followed by UP at 16%, and Jharkhand at 11%. Same-store sales growth for quarter one stood at 18%.

We also witnessed a reduction in inventory by ₹177 crores compared to March 2026. Now the inventory spans at ₹663 crores, and reduction of short-term borrowing to approximately ₹175 crores as of June 30th, 2026.

Thank you for your continued trust and support. We now open the floor for questions.

We request all participants to ask questions which have not been addressed either in earnings call or our investor presentation to save on time and enable us to take more questions from all of you.

Hello, good evening and thank you for the opportunity. I want to know—

Am I audible?

Yeah. What was the same-store sales growth in Q1?

Also, the growth mainly volume-led or higher product prices also contributed meaningfully?

Can you repeat the second question?

The growth was mainly due to volume-led or it was higher product prices?

Okay. Our SSG in this quarter was 18%, which continued growing since last three quarters.

So 18% was our SSG. It has volume growth as well as ASP growth both.

Okay. My second is could you give some color on the product category, how did AC, cooler, refrigerator, mobile, and television perform?

AC contributed around 42% of our entire sales. Other cooling products, we don't give any figure for coolers or etc.

These are small categories. Refrigerator contributed around 15%.

How much of the older AC inventory still left? Can also benefit continuing in Q2?

Yes, of course, because June has been slightly hot. It is continuing quarter two also.

We are at a comfortable inventory level of AC.

Sir. That's it from my side.

Thank you.

Thank you.

Hi team, thank you for taking my questions. I hope I am audible.

Yes, you are audible.

Yeah. I have three questions.

You already mentioned, the summer was delayed this time. What was the run rate we ended June with the YoY growth for June?

If the summer was delayed, how was the month of July for us? Is the summer really good in July for us or not?

July, I just spoke, the

summer is good in July. It has remained relatively hotter one month.

It is good one. What else you wanted to know?

Run rate of June, which was proper YoY, that summer heated June for us. What was the run rate, growth run rate for June month?

We actually

all three months equally contribute to our top line.

Got it. Another question is from OEM perspective, there has been a lot of raw material pressure.

Has there any change in the incentives or contribution OEM provide in the EMI schemes or anywhere else in our part of the region, or everything stays intact?

I don't think there was any meaningful change in strategy. It was the same just like any other Q1.

There was no policy shift.

Got it. One last question.

Now it has been a lot of time for some of our UP stores, around 19-20 stores has been running for last two years or more than two years. Can you just provide some gist on what is the sales per store or EBITDA margin different between the Bihar store and UP store who has been running for last two years?

Yes, actually, we do not give this figure in our earning call. I can only tell you the share of UP as a state.

It has gone up from 13% YoY to 16% in overall sales, which is quite robust. From 14 even from comparing from Q on Q on quarter-on-quarter also, it has gone up from 14% to 16%.

Got it. Thank you.

That's all from mine.

Yeah.

Hello, am I audible?

Go ahead, Nakul.

Congratulations, sir, for great set of numbers. I just have one question.

What has been the rationale for entering West Bengal even when we are just entering Madhya Pradesh? In the past, we have entered one state per year or so, but now in FY27, we are heading to moving into two states.

How do you see that? It was,

Nakul, it was a very strategic fix. Actually, we had not planned that is also very true recently.

Due to sudden political changes and we are expecting quite a lot of growth coming in Bengal. This was the only reason that we have started to expand in peripheral such cities like Siliguri, Asansol, Durgapur, etc., which are on the borders of Bihar.

We are testing we'll be testing waters also in Bengal, and then only we'll decide how further we can penetrate into Bengal.

That's great. Another question is what has been the reason for slow growth in store opening in this quarter?

What is the full-year guidance for FY28 as well, if you can provide that? That will be great.

We have been adding around 30 stores, not less than 30 stores every year. Again, I've already told in the earning call that we'll be definitely doing more than 30 stores this year also.

If we take FY28, we are going to definitely try to even further increase that run rate.

Sir. Thank you so much for the

answer.

Good luck for the future. Thank you.

Hi, sir. My first question was what has led to the gross margin expansion during the quarter, and is it sustainable going ahead?

We have been maintaining gross margins even YoY last year, we were more than 10% 15.3% gross margin sitting on 15.3% gross margin. This year due to some price hike also where we could have taken leverage and something which was around 50 bps.

Going ahead, I'll say that we'll be definitely between 15 and 16%.

Got it. My second question was how much was the volume and ASP growth for the quarter?

Volume of growth was around 17%, and ASP growth was around 19% volume growth and 8% ASP growth.

Got it. Thank you.

Sir, am I audible?

Yes.

Yes. Sir, can you share the SSG, region-wise, from Bihar, what was our SSG growth versus in Jharkhand and UP?

I just told another participant that actually we do not divulge our SSGs state-wise or region-wise or anything. Overall SSG was 18%, which has continued since last three quarters.

Okay. Sir, second question would be on the product category-wise.

Which product category are we seeing drastic increase in price as we suppose we see laptops or we see mobile phones? Are we seeing major price rise being taken by the OEMs in those?

There has been price hike by the OEM for laptops, mobile. In fact, ASP has gone up by 20-25% for mobiles and laptop as well.

It has been quite less for air conditioners. It just has been 5-6%.

Got it, sir. Sir, I just wanted a guidance on sustainable OPM going forward.

This quarter, we achieved a 10.4% OPM. What do you think would be our sustainable OPM for this year, where our major store expansion would take place now and going forward as well?

Actually, very margins are dependent on quarter on quarters as well. Margins will vary quarter to quarter.

This is this remains our good quarter, best quarter. Margins are there.

We will be definitely achieving around 9-10% of margin.

Sir, I'm saying for the full year. This quarter, we achieved 10.4%.

For the full year, can we expect?

I told you that we give our guidance in investor presentation also that we'll be receiving we'll be definitely between 8-10%, and anything better than that is always welcome.

Sir. That's it from my side.

Thank you, sir.

Sinha sahab, namaskar. I didn't Sir, namaskar.

Namaskar. I didn't really have a question to ask, but I wanted to convey my compliments.

Over years that I have observed Aditya Vision, the very careful and disciplined way the business is being managed, how we have expanded from one geography to three, and I am glad to see that the hunger to grow continues unabated by entry into MP and West Bengal in the current year. All of this while we've seen much larger and national competitors stumbling in many, many ways, Aditya Vision remains at a smaller scale, but a very prudent, wise, and disciplined execution of the business opportunity while maintaining growth as well as the hygiene of the balance sheet and the capital efficiency.

Sincere compliments, Sinha sahab.

Thank you so much, Bharat bhai Bharat Shah ji. It means a lot coming from you.

Thank you.

Hi, sir. Congrats on a great set of numbers, sir.

Just wanted to understand which categories were seeing the highest growth rates, be it AC or refrigerators or washers or TV, laptop, mobile? I understand there was a big component of ASP growth in mobiles and laptops.

Broadly, if you could give color which categories are seeing fast growth and which are seeing somewhat slowed down?

In this quarter Q1, actually AC contributes largest, of course. Contributed around 35.

Contribution of 42% of overall sales and growth with a growth of around 35% over last year.

Understood. Sir, what about refrigerators, washing machine?

They were quite flatish type, which was between 10 10% growth was there in refrigerator over washing machine and panels.

Panels also saw 10% kind of growth only?

Yes.

Understood, sir. That's all from my side for now.

Thank you, sir.

Thank you.

Hi, am I audible?

Yes.

Yeah. Firstly, congratulations for the good set of numbers.

My question is with respect to seasonality, sir. AVL experienced strong quarterly seasonality driven by Q1, and then in Q2, it drops significantly.

What does the management think? Do we think that is there any way to cater this seasonality or reduce the seasonality the impact of seasonality?

What is your thought on it, sir.

We'll have to understand one thing, Prabhat, that major categories which we deal in like cooling products, it consists lot many things. It constitute air room air conditioners, commercial air conditioners as well.

Along with that, refrigerators, deep freezers, commercial refrigerators. This will definitely have this category can only be very very it has to be there in during summer.

This seasonality is not has been there always throughout India wherever there is a climate like this. Wherever the climate is not there, of course, it won't be sold there.

As more and more geographies are experiencing hot temperatures, this augurs well for us. Maybe in time to come, it will spill down over to Q2 also.

What I just said that June was quite good and quite hot this year. July month of July was quite hot this year.

Maybe we expect that gradually where we are shifting, we actually that maybe it will be entire H1 which will be catering to this cooling products.

Actually, I get it, sir. I was just looking at numbers, and I saw that it drops 50 60 50% and 52% that quantum was seasonality.

I was just trying to understand that do we think that is there any way that we can manage this seasonality or reduce the quantum of it?

No, I don't think so, because you cannot refuse the business which is coming in Q1. Rather, it is market is so competitive that we have to be take all the advantage of weather conditions.

Sure. No worries.

Second thing, sir, if you could help me to understand that what is our EBITDA margin guidance for the longer period, 2 3 years in the next few years, what we are thinking that how does our EBITDA margin look like?

We have already given the guidance that our EBITDA margin will be between 8-10%, and it will not be comparable quarter to quarter over quarter. The annual I'm whatever I'm saying is the annual figure.

So 8-10%, but what we have seen that we have been able to cling on to more than 9%.

Okay.

Yes, sir.

Thank you.

Thank you.

Yes, am I audible, sir?

Yes. Go ahead.

Yes. Hi, sir.

Thank you for the opportunity. I have two questions.

First is, how many stores are we targeting in West Bengal, and what is the market size do you see in the entire West Bengal? What will be our store size in West Bengal specially, average store size?

Okay. That's all?

The second question is bookkeeping question. Why did the depreciation went up on quarter-on-quarter basis because we only opened three stores?

Just wanted to understand this.

Okay. We are planning actually, as we had taken this decision, abrupt decision to open in Bengal because of certain development.

We are hoping to add 6-10 stores in this financial year. Typically, our store size will be between 4 to 6,000 square feet.

Depreciation, I'm afraid it includes amortization of rent also, you are taking out that factor. It has not gone up that much.

More actually, there are lot of work-in-progress going on where we have to provide places rent also.

Sir, lastly, how many stores are we planning for MP?

Initially, we are planning to open in we have already work-in-progress in Indore, Ujjain, Bhopal. We are planning to open later on, we are planning to open in Jabalpur, Gwalior, etc.

You can safely take it as 6-10 stores will be opening in Madhya Pradesh.

Will it be this financial year or next year also?

This financial

year. Sir.

Understood, sir. Thank you so much.

Yeah. Hi, sir.

Is my voice audible?

Yes, please go ahead. Sir,

we are entering new geographies. Do we think our other expenses, mainly A&P spends, would increase significantly this year?

Of course, other expenses depend on, in fact, your volume also, sale also. More you sell, more freight is required, more credit card commission is required, more BBDs are required.

Definitely it is related with the sale. Operating expenses, I don't expect that it will go up significantly, but it will go up commensurate to the sales.

Got it. Sir, second question is, what is our plan towards Chhattisgarh?

How many stores are we looking to add in FY27?

Again, Chhattisgarh also, we have already opened three. Work-in-progress is around 4-5 stores.

Let us keep it at 10-12 stores in Chhattisgarh.

10-12 stores this financial year?

I'm talking about this financial year. Sir,

10-12 stores in Chhattisgarh, 6-10 in MP, and 6-10 in West Bengal, and our normal run rate of UP would be above 15. We'll be ending up significantly over our guidance of 30 stores?

UP we have not guided for that what number you are saying,

but

definitely we'll be looking at we have been proving, but we never in fact give a guidance of in such a way. We always say that we will be opening more than 30 stores, and if we do it better, I hope I'm sure you are going to be happy.

Fair enough, sir. Thank you, sir.

Okay.

Yeah. Hi, am I audible?

Yes, very much, Devanshi. Oh

yeah. I just wanted to understand how is our Chhattisgarh EBITDA looking like?

Are we on the path of break-even, and what is the timeline for that since we entered last year?

Only for two months, two stores have entered. What

is

I don't think it is good for me to comment on EBITDA or anything. Let's wait, but they are doing well.

Okay. Since we are planning our new entry in MP and West Bengal over the next 12-18 months, I assume, would that be EBITDA dilutive in any sort, like would it still come within our 8-10% guidance?

No, we stick to this guidance, as I told you. What we have experienced in past also, entering a new state doesn't dilute any EBITDA for us.

Understood. If you could just lastly, if you could talk more about our strategy for West Bengal and Madhya Pradesh, since these are new geographies for us?

Madhya Pradesh offers a very good potential, especially in the towns of Indore, even Ujjain, Bhopal is another very good. If you go through north of Madhya Pradesh, Gwalior is very good market.

This side toward Eastern, you will come to Jabalpur, that is also very good. Even Katni, Kashi, these are the big cities.

These they will also offer us a good opportunity. Overall, I think it is going to do well.

Understood. Just one last question, sir.

We talked about our inventory levels which had come down. What are the basically our working capital days for this quarter, if you could comment on that?

We don't take it for any quarter by quarterly.

Right. Sir.

Thank you.

Yeah.

Thank you very much for participating in Aditya Vision's Q1 earning call conference call. Thank you very much, and be safe and healthy.

Thank you very much. All the best.