Aditya Infotech Ltd IPO

Its financial performance is primarily dependent on the revenue from sale of closed circuit television ("CCTV") cameras, network video recorders ("NVRs"), digital video recorders ("DVRs") and pan-tilt-zoom ("PTZ") cameras which collectively contributed to 77.47% of its revenue from operations in Fiscal 2025. Variations in demand and changes in consumer preference towards CCTV cameras, NVRs, DVRs, PTZs cameras and other surveillance equipment could have an adverse effect on its business, results of operations, cash flows and financial condition.

The company depends on a limited number of suppliers for parts, materials and products. Any interruption in the availability of parts, materials and products could adversely affect its business, results of operations, cash flows and financial condition.

Its import a portion of the company parts and materials primarily from China. Any restrictions on imports or fluctuation in global commodity prices that affect its parts and materials could adversely affect the company business, results of operations, cash flows and financial condition.

Its manufacturing facility is located in Andhra Pradesh, which exposes its operations to potential risks arising from local and regional factors such as adverse social and political events, weather conditions and natural disasters.

A significant portion of its revenue from operations is generated from sale of products supplied by Dahua which contributed to 24.65% of the company revenue from operations in Fiscal 2025. Any disruption in the supply of products for sale by Dahua at commercially viable terms, or demand thereof, may adversely affect its business, results of operations, cash flows and financial condition. Further, the company distribution agreements with Dahua have certain restrictive covenants and can be terminated without cause, which could negatively impact its business, results of operation and financial condition.

The company relies primarily on its synergies with AIL Dixon Technologies India Private Limited and Dixon Technologies (India) Limited, for the manufacture of its products. Any disruption in the company relations may adversely affect its business, results of operations, cash flows and financial condition.

The company may be restricted from offering its products in certain geographical region pursuant to arrangement with CP Plus FZE, UAE, which may adversely affect the company business, results of operations, financial condition and cash flows.

The company is subject to strict quality requirements and the sale of its products is dependent on the company quality controls and standards. Any failures to comply with quality standards may adversely affect its business, results of operations, cash flows and financial condition.

Any disruption or shutdown of its warehouse facilities, or failures to achieve optimal capacity utilisation at such facilities could adversely affect the company business, results of operations and financial condition.

The company branch offices, service centers and experience centers are located on leased premises. The company cannot assure you that the lease deeds governing its premises will be renewed upon termination or that the company will be able to obtain other premises on same or similar commercial terms.