Aditya Infotech Ltd Forensic Report - SOIC x StockScans Report

as of Jul 2026

Aditya Infotech’s record is audited and unqualified, but the numbers tell a sharper story: revenue doubled to ₹4,221 crore in two years while receivables swelled to ₹1,404 crore and operating cash conversion over seven years sits at just 0.39 times adjusted profit. A ₹535 crore goodwill asset from the AIL Dixon acquisition dominates the balance sheet, contingent liabilities have escalated sharply in FY2026, and the promoter family holds 74.74% while securing pay increases that 98% of public non-institutional shareholders opposed.

Key findings

  1. Revenue grew 52% but cash conversion is near zero Major - Consolidated revenue grew from ₹2,782 crore in FY24 to ₹4,221 crore in FY26, while trade receivables reached ₹1,404.36 crore and receivable days stretched to 121. Cumulative operating cash flow over seven years was ₹302 crore against adjusted profit of ₹766 crore, a conversion of 0.39 times, and FY26 alone delivered just ₹13.47 crore of CFO on ₹368 crore of PAT, a ratio of 0.04 times. Free cash flow was negative ₹120 crore in FY26, and management stated on the Q4 call that the cash conversion cycle “will sort of continue” to increase.
  2. A ₹535 crore goodwill asset rests on a no-impairment assertion Major - Goodwill of ₹534.95 crore was recognised on the acquisition of AIL Dixon Technologies Private Limited, effective 18 September 2024, and allocated to that subsidiary as a single cash-generating unit. Management concluded no impairment and stated that any reasonably possible change in key assumptions would not cause the carrying amount to exceed the recoverable amount. The former joint venture suffered a fire loss of stock of ₹176.99 crore in January 2024 and recognised no share of profit from 1 April 2024 to 17 September 2024.
  3. Contingent liabilities jumped in FY2026 with a customs penalty, an arbitration claim, and a new corporate guarantee Major - The Commissioner of Customs Chennai-II issued an Order-in-Original on 13 January 2026 demanding ₹30.86 crore for alleged incorrect availment of concessional duty on 4G routers; the Company deposited ₹6 crore under protest and filed an appeal before CESTAT on 7 April 2026. Avathon, Inc. and SparkCognition India Private Limited submitted a Request for Arbitration dated 28 May 2026 claiming USD 5,000,000 plus interest at 18% for alleged breach of contract. The Company also issued corporate guarantees for a subsidiary with an outstanding amount of ₹151 crore as at 31 March 2026, compared to nil a year earlier.
  4. Promoter family holds 74.74%, controls the board, and secured pay rises despite 98% public shareholder dissent Minor - Promoter and promoter group shareholding stood at 74.74% with zero shares pledged. The board comprised three executive directors from three generations of the Khemka family as on 31 March 2026. A postal ballot on 31 March 2026 approved revision in the MD’s remuneration with 93.87% votes in favour, but public non-institutional shareholders voted 98.36% against. The revised remuneration effective 1 April 2026 sets the MD’s basic salary at ₹13.20 crore annually with 15% annual increment plus 5% commission on net profits.
  5. The group added three wholly owned subsidiaries in two years and launched a new cable JV post-year-end Minor - AIL Dixon Technologies Private Limited was a 50:50 joint venture until 17 September 2024; the Company acquired the remaining 50% equity from Dixon Technologies (India) Limited via a share-swap effective 18 September 2024, making it a wholly owned subsidiary. A new wholly owned subsidiary, Aditya Infotech Taiwan Co. Ltd, was incorporated in Taiwan on 2 February 2026 for R&D. A 50:50 joint venture, Corelink Cable Technology Private Limited, with Orient Cables (India) Limited was incorporated on 10 June 2026, with commercial production expected in Q2-Q3 FY2027.
  6. Audit opinions are clean, but the auditor flags a database-level audit-trail gap and reliance on other auditors for a large subsidiary Minor - Walker Chandiok & Co LLP issued an unmodified audit opinion for FY2025-26. The auditor reported that the accounting software’s audit-trail feature was not enabled at the database level for the holding company throughout FY2025-26, though no instance of tampering was found. Three subsidiaries with total assets of ₹1,502.7 crore and total revenues of ₹2,160.71 crore were not audited by the principal auditor; the consolidated audit opinion relies on other auditors’ reports for these entities.
  7. Operating cash flow trails profit, capex is ramping, and dividends are paid despite negative free cash flow Minor - The Board recommended a final dividend of ₹1.64 per share for FY26, with a total outgo of approximately ₹18 crore, while free cash flow was negative ₹120 crore. Management guided capex of ₹200-300 crore for FY27, to be funded “largely from internal accruals or some debt maybe”. CWIP stood at ₹84.01 crore as of FY26, representing 44% of net PP&E of ₹190 crore, and includes ₹61.68 crore for construction at the Noida Sector 135 property where an extension application remains pending with the Noida Authority as of 31 March 2026.

What to watch

Bottom line: This is a high-growth story with an audited, unqualified record and a promoter group that has put no shares in pledge. The tension is between the pace of reported revenue and the pace of cash: receivables have run far ahead of collections, the AIL Dixon goodwill rests on a single no-impairment assertion against a unit that has yet to demonstrate sustained profitability, and contingent liabilities have multiplied in a single year. Watch the CESTAT appeal, the arbitration claim, and the FY27 receivables ageing for the first hard evidence on whether the numbers on the profit-and-loss statement turn into cash.