Aditya Infotech Ltd (NSE: CPPLUS) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Aditya Khemka — Managing Director
Anup Nair — President , Strategy & Business Development
Analysts:
Nikhil Kandoi — Analyst
Renu Baid Pugalia — Analyst
Aniruddha Joshi — Analyst
Dhruv Jain — Analyst
Naushad Chaudhary — Analyst
Prateek Chaudhary — Analyst
Anuj Kashyap — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Aditya Infotech Limited Q3FY26 earnings conference call hosted by Access Capital. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Nikhil Kandoi from Access Capital for opening remarks. Thank you. And over to you, Nikhil.
Nikhil Kandoi — Analyst
Thanks, Rehan. On behalf of Access Capital, we welcome you all to Q3FY26 earnings conference call of Aditya Infotech Ltd. We have with us today senior management represented by Mr. Aditya Finka, Managing Director, Mr. Anuk Nair, President Strategy and Business Development and Mr. Yogesh Sharma, CFO. Now I’ll hand over the floor to Mr. Aditya Khemka for his initial comments. And then we’ll open the floor for Q and A. Thank you. And over to you, sir.
Aditya Khemka — Managing Director
Hi. Thank you Nikhil and good afternoon everyone. Thank you for joining us today. In the third quarter of 2026, Aditya Infotech Limited continued its profitable growth. Operational discipline and robust execution. Favorable industry tailwinds. Largest portfolio of CP+ trusted core cyber secured products, large scale domestic manufacturing, deep R and D skill sets, comprehensive distribution network and sustained investments in technology and strategic partnerships help sustain our continued market share growth trajectory. Before I take you through the financials, let me briefly outline the broader industry environment in which we operate. The CCTV market demonstrates a robust long term growth trajectory.
Rapid urbanization with more emphasis on safety, improving spending power and sustained government investments under smart and safe city initiatives are propelling strong and sustainable demand. Market projections suggest a consistent high double digit growth over the medium to long term. We are also witnessing a decisive shift from HD analog products to network IP based solutions. Along with AI enabled surveillance systems, advanced video analytics, edge computing and integrated command control platforms are becoming central to both government and private enterprise deployments. Expanding the role of surveillance far beyond just security. From a policy standpoint, The Union Budget 2627 has significantly bolstered India’s technology and manufacturing ecosystem.
The launch of the India Semiconductor Mission 2.0 seeks to expedite domestic capabilities throughout the semiconductor value chain in the country. These advancements strengthen the technology foundation that supports advanced CCTV and connected systems. They also enhance India’s competitiveness in high growth sectors such as artificial intelligence, industrial Internet of things data centers and sensor based technologies. Which are increasingly integral to future video surveillance solutions. The market landscape has also undergone a significant transformation with notable shift towards cybersecurity certified domestic Indian brands and some MNC global brands. CP plus stands out as the single largest player in this evolving landscape with its constant effort in R and D manufacturing and localization.
This shift has permeated all stages of the value chain encompassing distributors, system integrators and even the end users which includes mid market small and medium enterprises, large corporations and government sectors. This has accelerated market share gains for CP plus and our market share rose to almost more than 39% during the second quarter of FY26. The market share gain is expected to continue for Q3 as well. In Q3 the CP plus brand continued its strong growth contributing 87% of our overall AIL company revenue. IP products made up to 75% of CP portfolio underscoring the sustained shift towards high value IT solutions.
Let me walk you now through the financial results on the quarterly performance. Revenue grew 37.3% year on year to 1,139.1 crores driven by strong demand from our expanding portfolio of CP CDC technology products across all segments from retail to projects and government. EBITDA increased 98.7% year on year to 144.6 crores with margin improving by 391 basis points to 12.6% primarily due to favorable product and brand mix, higher localization and strong operating leverage. Adjusted PAT stood at 96 crores up 138.8% year on year after accounting for 7.7 crore of one time provisioning related to the new labor codes.
On a ninth nine month cumulative performance revenue grew 31.1% to 2798.9 0.8 crores and EBITDA increased 100.5% year on year to 320.6 crore with margin expanding by 395 basis points to 11.4%. Our adjusted pad rose to 198.8 crore reflecting 138.8% year on year growth over the nine months period. On the manufacturing expansion, we are actively expanding our manufacturing infrastructure and capabilities. Our installed capacity for Q3 was 1.9 million units per month which represent already a 20% increase from our previous peak. We are on track to achieve a capacity of 2.1 million units by quarter four of FY26.
During the quarter we also commenced construction of our enclosures and housing plant in Kadappa, Andhra Pradesh expected to be operational by mid-2026. This initiative will deepen backward integration, improve cost competitiveness and enhance supply chain resilience. The project is fully funded through internal accruals. We have also successfully commissioned the CCTV camera lens assembly line and commercial production will begin from quarter one of FY27. Once operational, this line will deliver a production capacity of up to 3 lakh lenses per month to be further scaled up to 10 lakh per month by the end of next year enabling us to meet future volume demands more efficiently.
I’ll talk on the R and D and Global Technology expansion Now our investments in R and D continue to grow. We are adding highly experienced engineers on regular basis and strengthening collaborations with semiconductors and critical component manufacturers to deliver world class advanced cyber secured CCTV solutions to our customers. We have also incorporated Aditya Infotech Taiwan Co. Ltd. A wholly owned subsidiary dedicated to global R and D for security and surveillance technologies. Taiwan is a global hub for semiconductor manufacturing and hardware innovation with world class foundries, IC design houses and a mature electronic supply chain. This enables us to access high caliber engineering talent for the following work much ahead of time including SOC architecture, embedded systems and firmware, hardware, software integration, AIOT and edge computing.
This aligns tightly with our long term innovation and technology roadmap. This quarter we announced two significant collaborations. We entered in a strategic partnership with Qualcomm Technologies to build AI enabled insight driven video security solutions for industrial enterprise and public safety applications. These next generation offerings powered by Qualcomm’s Edge AI hardware and CP extensive market reach and product ecosystem are expected to be commercially available in the H1 of coming year. This marks a pivotal shift from hardware led surveillance to AI analytics driven solutions enhancing both revenue mix and margins. The vision is that while we have successfully made cameras available to the Nook and corner of India and there is something for all kinds of customers, next for us is to make it more intelligent to derive even business outcomes and also to provide action oriented security to make AI as part of life for all our customers in the coming years.
We are also advanced our backward integration agenda by signing an MOU with Orient Cables for the manufacturing of coaxial and network cables primarily for CP captive consumption. This collaboration will strengthen supply assurance, enhance cost efficiencies and support for our long term growth ambitions. This JV will also be making camera cables for complete backward integration and localization. A bit on the Brand strategy and consumer engagement now as part of our multi brand strategy we have launched two new brands Aira and Nexiview at IFSEC in December 2025 primarily targeted at mass market and unorganized segments, Nexiview Brand is set to hit the market in Q4, FY26 and Aira brand is planned to launch in the first quarter of next financial year.
Our consumer engagement also gained significant momentum with our new brand campaign featuring TN superstar Vijay Sethupathy deepening our connect with the audiences in Tamil Nadu. We also enhanced visibility through our largest ever presence at IFSEC India Exhibition title Sponsorship of PAC 2026, a high impact visibility across Indian Cricket series and outdoor campaign across major airports in India. We have also announced a price hike of 6 to 8% in the month of January 2026 which is already passed to the market and a further price hike is expected in the coming quarters in FY2627. In line with the input cost rise from the memory gaps which are emerging in the market, we’ll talk a little bit on the supply chain visibility now.
The global supply challenges persist across SOC memory including DDR and flash and sensors. We have implemented several mitigation plans and are relatively better positioned and adequately covered for the next coming quarters. Our Multi SOC Product development strategy involves product ranges across various SOC manufacturers including Realtek, InnoFusion, Novatech, Umbrella and Qualcomm, thereby diversifying our chipset sourcing base for procurement. We are mapping the entire supply chain and directly engaging with all the chip manufacturers and their authorized distributors and also intermediaries so as to ensure we have maximum availability at all times for for the chipsets, especially in these crazy times.
We are placing forward orders up to even three quarters in advance and in some cases even doing prepayments to lock the chipsets, thereby securing supplies and maintaining market share. Growth Trajectory Given strong execution, a favorable external environment and a robust product and manufacturing and localization pipeline, we up our guidance for FY 2026 on the revenue growth side. Year on year the range will be 3900 to 4100 with moving with the expectation closer to the higher slab, the EBITDA margins We increased to 11 to 12% and PAT from 6 to 7 now to 7 to 7.5% in this year.
To establish the tone for the upcoming financial year, we anticipate sustained robust growth and bullish sentiment. Consequently, our initial guidance for FY27 would be revenue between 5350 to 5550 crores which is almost 30 to 35% growth over this coming year. The EBITDA margins are further raised to 12 to 13% and the PAT from 7.5% to 8.5%. Thank you everyone. We are now open to take questions from you.
Questions and Answers:
operator
Thank you, ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Renu Bed from IIFL Capital. Please go ahead.
Renu Baid Pugalia
Yeah, hi, good morning team and congratulations for the strong performance. So first question, while you’ve elaborated quite a bit on the supply chain concerns and inflationary impact and price hikes, could you share a bit more detail in terms of to what extent you’re seeing the shortages impacting you and you think by your placing forward orders, near term execution may be slightly softer? When we look at fourth quarter and in terms of inflationary impact, what would be the exact cost increase that we’re seeing? And in addition to the 6 to 8% price hike for Jan, would it possible for you to quantify what is the quantum of price hike planned for fourth quarter and subsequently first quarter of 27? That’s the first question.
Aditya Khemka
Okay, thank you, Renu. So Renu, you see generally what I have seen in the past couple of decades also in a situation like this when there is a, you know, component shortage or something, it’s actually for the big players an opportunity to scale bigger. The challenge comes to the long tail of the small players which are, you know, unable to secure supplies because the supply is that much only. So what we have done is we’ve, we’ve locking first we have done multi SOC supply chain. So all our products, we have option A, B or C available that something or the other will be available to, you know, for the same set of customers to be provided.
Second, we have ensured enough supplies and lock ins with all the chipset owners across the board. So all these four or five main chipset owners and the flash guys that we keep securing and the only major change which will be there is the flash where the prices are beyond control. So that is the thing. But the supply we are, so our focus will be to provide the supply even though the cost may be a little higher on the DDR and the flash side. But supply side we are ensuring that we don’t fall short and our production keeps scaling up and our market share keeps scaling up.
So this is an, we are taking it as an opportunity to scale up further. Now our guidance for next year and your second part of the question that how much impact will be there on the price? It will be a double digit. Now what level of double digit hike? Further we are quantifying and seeing what we are trying to do is that it doesn’t impact our margins because we are the largest supplier, almost 40% of the market and we are aiming to scale it up further in the coming future. And the other side of the supply there is a shortage which is there for the balance 60%.
So we don’t see a challenge with respect to the revenue, you know, achieving as long as we are able to maintain supply. So whatever is the input cost rise due to this, we are passing on without affecting our margins and I think that’s, that’s how it is. But it will be a double digit because the at the moment the next six months, the six to eight months rather the, the memory and DDR is going over the roof. So it could be 10, 15, 20, 25. It be just quantifying what best we can do to balance out the, you know, supply.
So it depends every month price May, every month 2 months Price May have to alter.
Renu Baid Pugalia
Correct. Get it. Secondly, in line with some of the strategic initiatives that you have planned along with Orient Cables as well as with Qualcomm, how do we see the capex numbers for FY26 closure and for fiscal 20 sale along with the backward integration plan?
Aditya Khemka
So I think this year CapEx we have primarily funded from our own with respect to capacity expansion and a little bit was done on the corporate office which we intend to finish in the Q1 of next year and move in there, which is the R and D center where we have a huge R and D set of labs and everything. And next year I think the Orient Cable capex will soon be out, but it’s not much. We’ll most likely be funding through internal rules.
Anup Nair
It’s a 50, 50 JV. So both partners will be providing for the CapEx and it’s not, it’s not too significant or material.
Renu Baid Pugalia
Right.
Anup Nair
But for the Qualcomm. Sorry and for the Renault, let me answer the Qualcomm part also. The Qualcomm part is more of a collaboration so there’s no investment. So they are using our market reach and knowledge of CCTV and they are bringing in the cloud and IoT knowledge. So there is no CapEx in that. It’s more of an cost and revenue share. So once the product is ready there’s a revenue share model. So there’s no Capex in the Qualcomm model.
Renu Baid Pugalia
So broadly on analyzed basis they should be within the 100, 150 crores of guided Capex range.
Anup Nair
Absolutely. Yeah. The same that we guided for it.
Aditya Khemka
Could be within that. Unless there is an inorganic thing where we will see separately but more or less for our current plans there should be okay with it.
Renu Baid Pugalia
Got it. And lastly in terms of slightly long dated capacity expansion, where are we for fiscal 27 and capacity targets?
Aditya Khemka
So we are going to raise it to 2.4 million as we mentioned Renu. So 2.4, 2.5 million with the current Kadappa plant though that should suffice. Our FY27 or even a part of FY28 and 30 million included. And 30 million enclosures also which will be the housing and enclosure plant and my million of lenses per month apart from the rest being imported. But post that maybe in the next year we’ll, we’ll. We’ll explore a second manufacturing facility. So we are working on that yet to decide at the moment.
Renu Baid Pugalia
Got it, Got it. Thanks and best wishes team. Thank you.
Aditya Khemka
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question please press star and one, we take the next question from the line of Aniruddha Joshi from ICICI Securities. Please go ahead.
Aniruddha Joshi
Yeah, thanks for the opportunity and congrats entire team at Aditya Infotech for posting such great set of numbers. Two questions from my side in terms of Nexi View and Aira brands. If you can share more details. Means now almost three odd months are over. So are they well distributed across the regions and how do you see the distribution upside? Point 1. Secondly, is there any revenue target for these brands? Let’s say one year down the line or three year down the line. Anything on that? That is question one and then second question is in terms of CCTV camera issue.
So at least whatever we have spoken with peers we understand compared to Aditya the preparation level at PS might be slightly lower. So is there a potential to gain material market share as the issue progresses over six months and will it result in higher working capital also? Yeah. Thanks.
Aditya Khemka
Yeah. Thank you Aniruddh. I think I’ll take the first question on the Aira and Nexi view. See the logic of launching these brands were because we wanted to evolve with a substantial market share as a company. CP plus has already close to 40% and we believe we will strive to further scale this up. Now there are, you know we have we being the largest player in the market in trading and distribution across India there are a set of customers who believe in a depth distribution model. So we launched the Nexi View brand to cater to those customers.
Like a guy maybe in Surat will say I want exclusivity in Surat. The guy in Ahmedabad will say, I mean Ahmedabad exclusive. So it’s like a city based exclusive kind of a model with the Nexi View brand. And this takes care of them. Had we not done that, these guys would probably give given some, you know, ray of light to small private Indian other brands. And these are long term partners who have been working with us on one of our brands. So nexteview takes care of that story. The product will go live or if all goes well end of this month or the first week of March in terms of feeding the market, the products will start flowing in the market.
We’re just awaiting the final bis. The secuz is all done. So any, any day it will come and then we’ll start shipping. The Aira brand will go to the next quarter and that will be where we have an option of, you know, playing prize cards against the private Indian brands. The long tail of unorganized, you know, small things. So there we are not playing very big, but more just keeping something under our belly. And between these two brands, we believe over the years 7, 8%, 10% of our revenue may come into this. But we are yet to take the final call because the product is still yet to hit the field.
So I think another quarter down the line we’ll have a fair visibility of what revenues we will plan. We have some plan, but it’s too early to make a solid comment out of that. The second question is with respect to the market share than the readiness of the competitors. Yes, we believe we are right now the only player who has the solid readiness with respect to all facets of business, be it the market reach, coverage, be it brand power, be it distribution, be it the manufacturing localization, certification, all those things. So we are putting all our guns on fire and we feel that in the next six to 12 months our market share will continue to rise.
Now to what percentage is early to say, but we are trying to hit the halfway mark. Let’s see how it goes.
Aniruddha Joshi
Sure, sir. And the working capital, do you see any increase in working capital?
Aditya Khemka
Not really. I think we should be in the similar lines in the coming year also because you see when there is a supply tightness also from across the board, their extensive use of working capital will not be publicly required. So I think more broad basing and more faster turnarounds will be the situation. So we are improving on that side. So I don’t see even if with the high growth some slip up here and there, but still the faster turnaround will balance it out. And we should not have an excess requirement of working capital. We are not factoring in any weather.
Aniruddha Joshi
No, sure. So that’s a very helpful last thing. As the inventory means, as the supply chain situation remains tight, I guess the inventory in the trade may also reduce and while the demand for product may remain, but the trade inventory goes down. So it’s a very ideal situation for price hikes. So you see a possibility of a very strong price hike at the earliest or it will be more of a staggered manner.
Aditya Khemka
So I think a double digit hike is just across the line, I think from the coming quarter. And let’s see after that staggered way how we can do because the impact is sizable with respect to the flash and all. And with such impact you need to, you see the smaller players will never take a stance so they will play it safe. So there will be further gaps which we foresee. That’s where we anticipating.
Aniruddha Joshi
Okay. Okay, sure, sir. So this is very helpful and many congrats to the team. Thanks.
Aditya Khemka
Thank you. Thank you.
operator
Thank you ladies and gentlemen. A reminder, if you wish to ask a question, please press star and one, we take the next question from the line of Dhruv Jain from Ambed Capital. Please go ahead.
Dhruv Jain
Thank you for the opportunity, sir. So my first question is on market growth, right? So you spoke about double digit market growth in, you know, in the coming years. So if you could just speak about some of the sectors that in your view are doing well in terms of growth and incrementally over the next two or three years, which are the two or three subsectors you expect to drive this growth consistently ahead.
Aditya Khemka
Market, you know, India is actually still under penetrated with these technologies. The general, you know, consensus is 16, 18% market growth should happen year on year. We feel last year was a little muted growth because of the transition to the new certification norms. And there is an expectation of a pent up demand growth in this year. Lately due to the supply chain challenges and the cost rise, we have internally mitigated that maybe the pent up will not happen and it will just remain at the 15, 20% slab and that kind of growth will happen. Now with respect to sectors, I mean this coming to us, we see huge growth coming.
When we talk about government, we see huge growth from Railways, National Highway Authority where they are removing all the all the toll knockers, railway coaches, railway itself will be a 2,3000 crore worth of supplies in the coming two years. And we are one of the solid most solid contender on that front. And many other government sectors will be there. Private and sector enterprise also is growing. Whenever there is new establishments they are deploying. It’s part of their establishment now and so is in the small businesses and home. So I can’t define a specific sector barring if you talk about a high ticket four digit revenue where there’s NHAI and railway which we can see.
But across all manufacturing, manufacturing is scaling up like crazy in every sector. They all need surveillance also. So all these sectors are deploying technologies and more interestingly is now there’s a lot of talk on AI and our partnership with Qualcomm is just apt at the right time. So we feel in the coming few years this will become, we intend to make it mass for everyone to use at least in the enterprise government trickling down to the SME sector.
Dhruv Jain
And for second question linked to the comment that you made right with respect to AI and generally the share of IP going up. So you know, for the next year you’ve you know guided for a very strong growth. So if you could just talk about, you know what kind of premiumization driven growth that we see in the next year. So you know, one is price, second is volume growth. But you know, if you have to break down the growth guidance for the next year that’ll be very helpful.
Aditya Khemka
So you see look at the front end camera devices. There are three categories we bucketize the product. One is analog HD. Second is the IP camera and third is the Wi Fi 4G home cameras where we call it the plug and play devices. Now what is going to happen is HD is going to go flat, HD will not grow and HD ASPs are maybe 30% of IP camera. So suppose camera. So the only four cameras will be put whether you put IP or analog or a WI fi because that can be most likely covered or maybe five camera four or five.
So the the whole growth is going to be on the IP maximum and some growth in the WI fi. IP is three point almost three plus three times or three and a half times cost of a analog camera. And that is because of the scalability because of the flexibility control of the product because of AI usage in the future. So that is what is going to drive. So there is a. If you talk about per unit ASP of all cameras put together that will grow up because HD is not growing and IP is growing in terms of total units and I think the price rise and the cost rise will also play an impact.
We haven’t to be honest factored too much on that in our guidance at the moment. We are still yet to do that because we haven’t passed it on. So, so, so we have some leeway there although.
Dhruv Jain
Fair enough sir. And sir, if you could just spell out the contribution of Dahua revenue for the nine months in this quarter and what is the kind of revenue you expect to you know generate from that, that vertical in FY27.
Aditya Khemka
So, so I think first I’ll take the second part. Next year would be not even 100, 150 crores of our revenue. So it will be just like a feeder thing. So it’s negligible. It doesn’t cross our mind also in our planning. And so this year also the whatever inventories we had we cleared out now the revenue is about 10, 15 crores a month kind of a thing only it’s not much in this year also.
Anup Nair
So Dhruv, the CPU revenue as we have said is almost at 87 percentage. So we see this almost touching 90 plus going forward.
Dhruv Jain
Okay. Okay. And thank you so much and all the best.
Aditya Khemka
Thank you.
operator
Thank you. We take the next question from the line of Naushat Chaudhary from Aditya Birla Mutual fund. Please go ahead.
Naushad Chaudhary
Yeah, hi. Thanks for the opportunity and congrats on. Very good set of numbers sir. On the, on the price hiker I just wanted to understand because historically this category would have been largely deflationary category and this is the way the channel and users mindset would have been. How you think the price hike would be absorbed and should not impact anything on the demand side at least for short term because nobody in the channel would have you know, experienced this kind of thing from this category.
Aditya Khemka
Yeah. Hi Nushad. Thank you. So I think you’re absolutely right. People are not used to these kind of things. But what, what, what is happening this time is it’s across the board. It’s not just security and serverless today. You talk about the Nvidia gpu. You talk about a Seagate hard disk. You talk about a basic laptop. I was told 45,000 laptop is now 65, 70,000 in the market already. So it’s already 40, 50%, 30%. So what is happening is the price hike in the very higher end products will not be that much because those chips are not going too high there.
It might be just a single digit in the medium range will be probably early Double digit. But the low end one, the entry level one is where the maximum impact is because the DDR3 is reduced completely. It’s now going to DDR4. Then there is most of the manufacturers have started have stopped making 8 and 16 GB. The render level has gone to 32 GB. So that entry level product which you know, the low end, you know developing countries were using is is in the under challenge. And when you add a medium Range SoC or DDR to make that product the cost goes to a middle mid level product.
So that’s where the impact is. We believe the channel is mentally ready. You know the dealer distributors are mentally ready because for last two, three months they are seeing this in the market. And one of the product we trade is the micro SD card with our WI FI camera. The cost have gone up 3x already and it’s whatever we are getting people just buy. So it’s not something which you know we are quite confident that that absorption will happen. And like I said the pent up demand we were expecting will happen this year. Whether it will happen or not is yet to see to be seen.
But the normal growth of the market will happen in terms of 15 20%. We believe that should happen may not have the pent up demand. So that is the mitigation we have done. But more than that will be covered up by the revenue growth itself in terms of the price resetting.
Naushad Chaudhary
So 15 20% volume growth should not be a challenge and balance you will cover from the price hike.
Aditya Khemka
So that is so you can say we we will Target More than 20 revenue unit growth and the balance from price hike. And then this unit growth will largely happen on IP camera not on the analog HD. So that will the ASP is much higher right?
Naushad Chaudhary
And second on the, on the growth levers beyond FY28 if I understand it correctly your core categories would hit a substantial market share by then and post that how should we you know look at aditya infotech beyond FY28 between 28 to 3031 how the growth journey would be? What are the levers we have in place?
Aditya Khemka
So Nasha, that’s far drawn question but I can give you some sense of what we are thinking. So we are preparing ourselves to be a global company. We are you know preparing ourselves on all you know fronts. The Taiwan R D setup some more we are expanding which will come in the future. Some inorganic plans are going on, you know. So we are looking at being one of the large players from India moving into the world market and having bases in multiple countries and probably expand some product categories without diluting the focus of highest possible market share as the single largest highest market share in India in this product category.
So that’s where we are working and then the last point is to enter into the cloud and the cloud data center and the AI services. So these are the visions. So work is going on and on. How far we will be successful is early times but that’s the direction we are taking the company into.
Naushad Chaudhary
Sure sir. Thank you so much. All the best.
Aditya Khemka
Thank you. Thank you.
operator
Thank you Ladies and gentlemen, if you wish to ask a question please press star and one we take the next question from the line of Prateek Chaudhary from Samarthia Capital. Please go ahead.
Prateek Chaudhary
So if we look at the number. Of players which are getting into this market, what would be the current number presently in terms of players having both ER and sdqc? And also I, I mean we presume that there are many in the pipeline, you know. So what is your current perspective on this and how do you see that shaping up industry dynam over the next 12 years?
Aditya Khemka
So Pratik, before the ER if you had studied the earlier presentations the market was segmented almost 1/3 into Chinese, 1/3 into Indian brands and balance, 1/3 was unorganized in some, you know, global brands. So right now the er certification I don’t know the exact number but I think you know five, six Indian brands have gotten some models and about five, seven global brands have got so a dozen over brands have been have qualified Now I don’t know how much portfolio is qualified for all. CP plus of course is the largest one at the moment and most of them, you know, most of them apart from the Chinese who don’t qualify any further did not have proper manufacturing localization or any you know of the proper setup in India.
There’s just few people doing here and there, one or two offices, that kind of thing. So they’re all scaling up their infrastructure by step. Some are, some are not, some are living with that. So it right now the global brands doesn’t cross our mind in terms of whether their pie is less than 10% of the overall market which is another 5, 6 brands who have qualified and largely in the enterprise sector here and there, very selective in the government and nowhere in the assembly and the home market which is almost 60% of the Indian market.
The other Indian players, most of them who have qualified barring one or two who were there in the retail distribution, the most of them were again in the enterprise and government. So enterprise government. Yeah some brands are qualified retail distribution. Still there are not much competition. I don’t see with this supply tightness of the semicolon and the memory that new entrants will come so fast. So any new entrant maybe from another industry would want to try this may have to take a year or two delay because first they will be grappling with their own product supplies because the shortage is not just in cctv, it’s all across all electronics.
So let’s say another electronics company has to come. They need to first focus on their home turf for whatever product they are doing post that they will work on getting this and in this whether they will get the supply is another question at the moment in terms of the semiconductor. So we feel we have a good year headway at least and the supply shortage will play to our favor even more before we see more competition. And those people will of course take few years to even challenge because it’s a lot of solution selling.
Prateek Chaudhary
Right. And Chinese players are completely out right. Not a single one of them would remain post 1st April 2026.
Aditya Khemka
As for the policy they the government has smartly done a trusted supply chain clause and that those kind of things. So they don’t qualify into these.
Prateek Chaudhary
Okay. And and how many of our models, our camera models have been, have already been ER or SDK.
Aditya Khemka
So we have a full set of products needed to cover most of the market. 90% plus already qualified. We are developing parallel as I mentioned multiple SOCs. Some of them are also qualified as a fallback option and some more are in the process. So we are fairly in a good, good position.
Prateek Chaudhary
Okay. Okay. Thank you sir. I’ll get back in the day.
Aditya Khemka
Thank you.
operator
Thank you. We take the next question from the line of Anuj Kashyap from A3 capital. Please go ahead.
Anuj Kashyap
Hi, good afternoon. I’m audible.
Aditya Khemka
Yes.
Anuj Kashyap
Sir, I wanted to know do you have any data in terms of percentage penetration like in Indian. If you compare the Indian population size visa vis to China what is the penetration right now of the products of the camera products?
Aditya Khemka
I think it’s there in the Frost report and I think there must be a couple of other reports of from counterpoint as well. We’ll have somebody try and see if we can get out some of the data.
Anuj Kashyap
Okay and so the one more sir like you have mentioned your tie up with the Qualcomm like at present Aditya Infotech is basically a hardware company, right. And now it’s like if we are we analysis. Let me turn into A service company plus hardware plus software as a service company.
Anup Nair
So yeah, that’s the direction Anode. So even even in the cameras we sell now there is base level of analytics that are there. But what we are talking about is actually exploding the market and trying to take AI and analytics to the mass market with Qualcomm. And yes, that will be part of our journey to start selling services and AI to each and every customer that we are selling the IP camera range to. So that’s of our mandate for the long term.
Anuj Kashyap
And sir, do you have any like in your mind, any revenue breakup? Like if, like if just for imagine like 90% is hardware and 10% software, do you have some such type of data in your mind?
Anup Nair
So it’s too early. The Qualcomm relationship also, you know is currently in the POC stage and we’re looking at anchor customers and the OLE market is also nascent so it’s too early to put a percentage to that. We would have some internal benchmarks into what percentage of our revenue should be from services. But that’s way too early at this point in time.
Anuj Kashyap
Thank you sir, best of luck for you.
Anup Nair
Thank you.
operator
Thank you. We take the next question from the line of Arniruddha Joshi from ICICI Securities. Please go ahead.
Aniruddha Joshi
Yeah, thanks for the follow up question. Just one question. There have been lot of news flows regarding railways, even cbac, ICIC schools also installing the cameras in the classroom. So any further update on that and in which stage these initiatives from the government would be means either planning stage or execution and where does the pain for text and as of now on that. Yeah, thank you.
Anup Nair
So Anirudh, the railway orders have started flowing in. The orders are closed, the orders already logged in the system so the materials are being procured. So you should see some billing in this quarter and majority of the billing will flow into the H1 of next year and we will have our share of the business. So it’s still ongoing. There are tenders happening left, right and center and as the largest player we would take our market share.
Aniruddha Joshi
Yeah, thanks, thanks. And in terms of schools etc, any, any update on that?
Anup Nair
So yeah, the government has mandated for the schools to update but it’s a slow process. Aniruddh. It’s not as if it’s a definite mandate where everybody has to comply overnight. So we are getting wins there. But it’s not something it’s, it’s not a large tender or a large state driven thing. It’s you know more school wise, district wise and that falls into our mid market strategy and we are winning. Those cases we mentioned in our speech that we can see CP brand permeating all through the layers. So it’s not just the market shares happening at the distribution.
This has actually now become the de facto brand even at the end consumption level be it the retail customer, the mid enterprise or the large corporate or government. So that’s the positive sign that we are seeing. And any new greenfield projects that are coming in by default, it’s on cp.
Aniruddha Joshi
Okay, sure, sure. Very helpful. Many thanks.
Aditya Khemka
Thank you. Aniros, I think that’s the last question we take.
operator
Yes sir. Ladies and gentlemen, with that we conclude the question and answer session. I now have the conference over to the management for their closing comments.
Anup Nair
Thank you guys for joining this call. You know I will host further calls as well and we hope to stay on this growth trajectory and you know stay as per or even over deliver on guidance. Thank you guys.
operator
Thank you on behalf of Access Capital. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.
Aditya Khemka
Thank you.