With smart city initiatives and growing demand for advanced monitoring solutions, the CCTV industry is poised for robust growth in the coming years.
Among the top players, D-Link and Aditya Infotech stand out with innovative products and services tailored to diverse customer segments.
In this article, we compare these two prominent CCTV stocks.
Business overview of CCTV stocks
D-Link India
D-Link India Ltd., a subsidiary of Taiwan-based D-Link Corporation, markets and distributes D-Link-branded networking products across India and the SAARC region. The company offers consumer solutions like Wi-Fi routers and security cameras, along with enterprise networking systems including switches and surveillance setups. With over 15,000 resellers and local manufacturing partnerships, D-Link maintains a channel-focused approach.
Revenue
D-Link India’s revenue largely stems from networking product sales and network security services through its subsidiary, TeamF1 Networks.
While the company imports a significant share of its products, more than 70% is now sourced locally via over 30 manufacturing units.
In FY25, India contributed ₹13.8 billion in revenue, while global markets added only ₹14 million. The company pays a royalty of 1.5% on total sales to its parent company for branded products.
Growth plans
D-Link’s growth strategy is aligned with India’s digital transformation, investing in AI, cloud computing, 5G, and IoT technologies. It is upgrading its AQUILA PRO AI series with Matter technology and expanding accessory offerings. The company also targets underserved Tier-2 and Tier-3 cities while strengthening its enterprise networking footprint.
Aditya Infotech
Aditya Infotech is a leading player in advanced video security solutions in India. It serves both enterprise and consumer segments under its flagship ‘CP PLUS’ brand, offering CCTV cameras, NVRs, DVRs, and PTZ cameras.
As the exclusive distributor for Dahua Technology India Private Ltd., it expands its portfolio further. The company’s manufacturing facility in Kadapa produces 17.2 million units annually, supported by a wide distribution network across multiple channels.
Revenue
Aditya Infotech’s revenue is dominated by its core video security products, contributing nearly 79% of FY25’s total income.
The company’s dual-brand strategy—proprietary ‘CP PLUS’ and exclusive ‘Dahua’ distribution—enhances profitability.
Additional income streams include cloud storage, business support services, and training. Its manufacturing-driven model offers better margin control and scalability.
Growth plans
The company’s innovation efforts centre on continuous product development and next-generation upgrades, with a focus on creating an integrated ecosystem for both commercial and consumer applications.
Over the next three years, Aditya Infotech plans to develop unified mobile applications and AI-driven platforms that will seamlessly connect its entire product portfolio. These initiatives will be backed by a mix of in-house expertise and strategic collaborations.
On the retail front, the company aims to expand its presence by launching more ‘CP PLUS World’ experience centres in Tier II and Tier III cities. It will also grow its network of ‘CP PLUS Galaxy’ stores and partner outlets to boost direct customer engagement and enhance brand visibility.
Financial performance
Revenue
D-Link India’s revenue growth is driven by India’s favourable market conditions as one of the world’s fastest-growing economies. Government initiatives like the Production-Linked Incentive scheme, national manufacturing policy, and Digital India have boosted enterprise networking demand.
The company’s strategic focus on R&D investments has led to technologically advanced products, such as cloud switches, 2.5 Gbps smart switches, EAGLE PRO AI routers, and AIoT applications. Operational excellence through product mix optimisation, digital transformation in sales and marketing, and workforce upskilling has further supported growth.
D-Link’s strong commitment to ‘Make in India’ is reflected in local EMS and ODM partnerships, along with robust support from its parent company, D-Link Taiwan. This provides a steady pipeline of innovative products and enhances competitive positioning.
View Full Image
Aditya Infotech’s revenue growth, meanwhile, was powered by an 11.78% increase in security equipment sales. A key contributor was its strategic acquisition of AIL Dixon Technologies in September 2024, which added ₹7,781.58 million in revenue from the acquisition date through March 2025.
The previous year’s 21.79% revenue surge was driven by rising demand for CCTV cameras. Core products – CCTV cameras, NVRs, and PTZ cameras – have reinforced Aditya’s strong market presence in India’s fast-growing surveillance sector, supported by the adoption of advanced technologies in both enterprise and consumer segments.
Profitability
D-Link India has delivered consistent profitability growth through strategic consolidation and operational efficiency. By rationalising its product mix, embracing digital transformation, and enhancing supply chain operations with regional warehousing, the company has expanded its margins.
Lower finance costs, along with higher other income from foreign exchange gains and investment returns, further supported margin improvements.
View Full Image
Aditya Infotech, however, has seen volatile profitability trends influenced by exceptional items and acquisitions. Competitive pressures have squeezed core margins, but reported profits received a boost from the AIL Dixon acquisition and fair valuation gains.
At the same time, higher employee costs, finance expenses, and expansion investments have constrained operating profit margins despite revenue growth.
Risks of investing in CCTV stocks
Technology obsolescence risk
Rapid advancements in AI-driven surveillance and changing industry standards can render existing products obsolete. Companies must continually invest in R&D to stay relevant or risk losing market share.
Supply chain vulnerability
A heavy dependence on imported components, especially from China, exposes companies to geopolitical tensions, trade restrictions, fluctuating commodity prices, and potential manufacturing disruptions.
Intense competition and margin pressure
Fierce competition forces companies to offer steep discounts and rebates to retain market share, compressing profit margins and keeping profitability under constant pressure.
Operational and pricing challenges
Operational competition further compels players to adjust pricing strategies aggressively, risking long-term sustainability and requiring efficiency improvements.
Regulatory compliance burden
With evolving policies, mandatory certifications like STQC, and stringent quality standards, companies need ongoing compliance investments. Failure to meet requirements can restrict market access.
Conclusion
India’s CCTV and surveillance market is expanding rapidly, driven by rising urban security concerns, government initiatives in smart cities, and increasing adoption across residential, commercial, and industrial segments.
D-Link emphasises strong brand recognition in networking solutions, widespread distribution, and steady growth through product diversification in security and connectivity.
Aditya Infotech, on the other hand, leverages its position as a leading distributor of global brands, offering scale advantages, market penetration, and a strong presence in India’s CCTV ecosystem.
While performing due diligence, investors should consider their risk appetite, return expectations, and time horizon along with the company fundamentals, corporate governance, as well as the valuations of the stocks.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
