ICICI Securities has issued a buy rating on Aditya Infotech with a target price of ₹3,100 in its research report dated May 28, 2026. According to the brokerage's analysis, the company demonstrated strong operational momentum in FY26, materially outperforming earlier expectations across growth, market share, and profitability metrics.
The company's market share expanded sharply to ~45.4%, significantly ahead of earlier expectations, driven by STQC, deep localisation and manufacturing scale. As reported by ICICI Securities, Aditya Infotech is further strengthening its competitive moat through multi-SoC sourcing, backward integration and capacity expansion initiatives.
The company's Kadapa manufacturing capacity expanded to 2.5 million units per month, with management targeting to double capacity by FY28. According to ICICI Securities' analysis, this expansion reflects the company's strategic focus on scaling operations to meet growing demand.
ICICI Securities noted that Aditya Infotech has largely exhausted its low-cost inventory benefits, with replacement inventory now being procured at significantly higher costs. To manage this inflationary environment, the company implemented 6-8% price hikes and further price increases are likely in coming quarters due to persistent inflation in semiconductors and memory chips.
ICICI Securities projects Aditya Infotech to report revenue and PAT CAGRs of 36.2% and 42.9% respectively over FY26-28E. The brokerage maintains its buy rating with a DCF-based revised target price of ₹3,100, representing a significant increase from the earlier target of ₹1,850, implying a P/E of 48x FY28E EPS.
