Aditya Vision Limited (NSE: AVL) The Patna-based consumer electronics retailer expanded its retail footprint to 192 stores during the quarter ended December 31, 2025. The company’s financial performance was supported by strong festive demand and tax rationalization under the GST 2.0 framework.
Demand Drivers
The quarter’s performance was supported by strong festive season demand and the rollout of GST 2.0 reforms, which reduced input taxes on air conditioners, televisions above 32 inches and dishwashers from 28% to 18%. The tax cut led to an estimated 7–8% decline in retail prices, driving higher volumes across these categories. The company also recorded a one-time statutory expense of ₹1.53 crore related to the implementation of new labor codes, mainly reflecting increased gratuity provisions following revised wage definitions.
Financial Performance
For the quarter ended December 31, 2025 (Q3 FY26), revenue from operations rose 27.6% year-on-year to ₹649 crore, up from ₹508 crore in the corresponding period of the previous year. Gross margins improved marginally to 15.8%, aided by a more favorable product mix.
EBITDA for the quarter stood at ₹53 crore, a 13.8% increase over the ₹47 crore reported in Q3 FY25, though EBITDA margins compressed by 99 basis points to 8.2%. Adjusted profit after tax (PAT), which excludes the non-recurring labor code impact, increased 18% year-on-year to ₹28 crore.
For the nine-month period (9M FY26), revenue reached ₹2,047 crore, representing 15.4% growth compared to ₹1,773 crore in the prior-year period. The company reported a diluted EPS of ₹7.36 for 9M FY26, compared to ₹6.96 for 9M FY25.
Net profit for the nine months was ₹95 crore, up 6.3% from ₹90 crore, while the 9M PAT margin stood at 4.7%. The company’s historical performance shows a revenue CAGR of 36% between FY22 and FY25, with store count growing from 79 to 175 in that same period.
Business Outlook and Strategy
Aditya Vision added four outlets during the third quarter, taking its total store count to 192, and said it remains on track to exceed 200 stores by the end of FY26. Expansion continues to be driven by a cluster-based strategy across core Hindi heartland markets, with planned entry into Chhattisgarh and Madhya Pradesh during the current calendar year. The company is also prioritizing the expansion of premium and emerging product categories to improve store-level economics, while reinvesting cash flows into regions offering higher returns on invested capital.
Structural Tailwinds
India’s consumer durables market continues to benefit from a structural shift from unorganized to organized retail, with the organized segment’s share projected to rise to about 77% by FY27 from 58% in FY21. In the Hindi heartland, supportive macro factors include direct benefit transfers to women, higher disposable incomes following 8th Pay Commission salary revisions, and rising personal loan penetration. Despite recent growth, consumer durable penetration in India remains low at roughly 3%, well below global averages, underscoring a long-term growth runway for established organized retailers.