Financial Performance Summary

Q4 FY26 Performance

  • Revenue: ₹1,422 crores, up 45.5% YoY
  • EBITDA: ₹258.3 crores, up 162% YoY
  • EBITDA Margin: 18% (800 basis points improvement)
  • Adjusted PAT: ₹169.1 crores, up 207.7% YoY
  • Gross Margin: 31.8% (approximately 900 basis points increase)

Full Year FY26 Performance

  • Revenue: ₹4,220.8 crores, up 35.6% YoY
  • EBITDA: ₹579 crores, up 124.1% YoY
  • EBITDA Margin: 13.7% (540 basis points improvement)
  • Adjusted PAT: ₹368 crores, up 166.1% YoY
  • Finance Cost: Reduced by 27.8% following debt repayment from IPO proceeds

Key Operational Highlights

Market Position & Share

  • Current market share: 45.4% in Indian organized surveillance industry (as of Q3 FY26)
  • CP PLUS brand contributes 86% of overall revenue
  • IP products constitute 73% of CP PLUS portfolio
  • From 30% market share pre-STQC to current leadership position

Strategic Partnerships & Alliances

  • Partnership with Qualcomm Technologies for AI-enabled video security solutions (advanced trial phase)
  • Agreement with L&T Semiconductor Technologies for 9 million next-generation CCTV IP cameras over 3 years
  • Joint venture with Orient Cables for LAN and CCTV cable manufacturing (1 lakh sq ft facility in Rajasthan, operational Q2-Q3 FY27)
  • Partnerships with 6 non-Chinese SoC companies: Ambarella, Qualcomm, Augentix, Innofusion, Novatek, Realtek
  • Alignment with top sensor players: SmartSens, Sony, SOI

R&D Capabilities

  • DSIR-certified in-house labs
  • Expansion with Bangalore center and Taiwan office operations
  • Focus on AI-powered video analytics, unified platforms, mobile applications
  • Scaling R&D teams with global talent (20+ years expertise)

Manufacturing & Localization

  • Current manufacturing capacity: 2.5 million units
  • Housing manufacturing: 50 machines in-house plant + partner ecosystems
  • CCTV lens production to start soon in Kadapa facility
  • Localization progress: coaxial Cat6 camera and recorder cables
  • HD analog job work to be moved to EMS players (0.5 million units/month capacity)

Capacity Expansion Plans

  • Housing plant Phase-1 operational by Q2 FY27, Phase-2 by Q4 FY27
  • Target production capacity: 30 million housing and enclosures per year
  • New lens assembly line: 5 lakh lenses/month initial capacity, scalable to 1 million
  • Kadapa expansion: Additional 50,000 sq ft manufacturing space
  • Noida facility: 3 lakh sq ft in Sector 68, operational by Q4 FY27
  • FY28 vision: 2x existing production capacity, complete backward integration

Supply Chain Challenges & Mitigation

Global Challenges

  • Semiconductor and memory industry disruption due to supply-demand imbalances
  • Geopolitical uncertainties and manufacturing constraints
  • Critical components under severe supply pressure: SoC, DDR, flash, sensors
  • Extended lead times and rising procurement challenges
  • High US dollar increasing landed cost of imported components
  • Middle East conflicts increasing global insurance premiums and freight costs

Mitigation Strategies

  • Multi-SoC product strategy
  • Diversified multi-supply chain procurement
  • Forward procurement and long-term planning
  • Monthly phased price increases instead of abrupt hikes
  • Securing supplies from multiple channels: direct from fab makers, distributors, open market

Brand Building & Market Presence

  • Celebrity partnerships: Vijay Sethupathi and Prithviraj Sukumaran for South India campaigns
  • Title sponsorship of Punjab Kings in Indian Premier League
  • Major airport campaigns and IFSEC India 2025 presence
  • 141 Brand Galaxy stores operational across Pan-India (co-funded business model)

Financial Guidance & Outlook

FY27 Guidance (Revised Upward)

  • Revenue: ₹6,000-6,500 crores (approximately 50% growth over FY26)
  • EBITDA Margin: 14-15%
  • PAT Margin: 8.5-9.5%

Market Expectations

  • CCTV market unit growth: 15-16%
  • Company target growth: 25-30% in units
  • Average per unit camera recovery expected to rise by 20-25%
  • Price hikes: 6-8% already implemented in January 2026, further increases expected

Capital Allocation

  • Dividend: ₹1.6 per equity share (face value ₹1)
  • Capex: ₹200-300 crores for FY27, funded from internal accruals and some debt
  • Focus on EPS-accretive inorganic growth opportunities
  • Investments in R&D capabilities and technological expertise

Management Commentary from Q&A Session

Margin Sustainability

  • Q4 margin improvement driven by combination of low-cost inventory, price rise, and favorable SKU mix
  • Low-cost inventory now exhausted, replacement inventory at higher costs
  • Monthly phased price increases to manage cost transmission
  • Margins expected to be sustainable but may not mirror revenue growth pace

Supply Chain Advantage

  • Strong purchasing power and volume providing competitive advantage in securing supplies
  • Direct relationships with fab makers and chipset companies
  • Big players getting bigger in supply-constrained environment

Market Dynamics

  • No single large competitor across all vertical segments
  • Most competitors are one-tenth the size or smaller
  • Focus on outgrowing industry rather than specific market share targets

Growth Drivers

  • FY26 volume growth: 18-20%, rest from ASP growth
  • FY27 expected: 25-30% volume growth, 25% ASP growth
  • Growth driven by portfolio mix enhancement and brand mix, not just price rises

Working Capital & Cash Flow

  • Cash conversion cycle increased due to advance payments for securing supplies
  • Working capital needs factored into planning
  • Capex funding primarily from internal accruals, some debt if needed

Future Initiatives

  • Export market focus expected to start in current year
  • Cloud services and AI SaaS models under development
  • Multi-brand strategy with Nexivue (already certified and shipping) and Eyra (certification expected in 2 months)