AEROFLEX - Aeroflex
📢 Recent Corporate Announcements
Aeroflex Industries Limited has confirmed zero deviation in the utilization of ₹54.99 crore raised through a preferential issue in February 2026. For the quarter ended March 31, 2026, the company utilized ₹12.59 crore, with the largest portion of ₹9.50 crore going towards long-term working capital. The remaining funds are earmarked for working capital and general corporate purposes. This transparency confirms that the management is adhering to the capital allocation plan shared with shareholders.
- Raised ₹54.99 crore via preferential allotment of equity shares on February 3, 2026
- Reported zero deviation or variation in fund usage for the quarter and year ended March 31, 2026
- Utilized ₹9.50 crore for long-term working capital out of the planned ₹41.52 crore
- General corporate purpose spending stood at ₹1.64 crore against an allocation of ₹12.02 crore
- Total funds utilized as of March 31, 2026, amount to ₹12.59 crore
Aeroflex Industries reported its highest-ever quarterly and yearly performance, with Q4FY26 revenue growing 38% YoY to ₹126.46 crore. The company's EBITDA margins expanded significantly to 23.86% in Q4, driven by operational efficiencies and a shift towards high-value products like liquid cooling skid assemblies for data centers. For the full year FY26, the company achieved a total income of ₹443.29 crore and a PAT of ₹55.53 crore. Aeroflex is aggressively expanding its skid assembly capacity from 6,000 to 15,000 units per annum by Q2FY27 to capture the AI-driven data center market.
- Q4FY26 PAT surged 57% YoY to ₹17.64 crore, while EBITDA grew 59% to ₹30.03 crore.
- Full-year FY26 EBITDA reached ₹99.74 crore (+26% YoY) with a healthy margin of 22.57%.
- Successfully scaled SFN skid assembly sales to 571 units in Q4, generating ₹18.9 crore in revenue.
- Company remains debt-free with cash and bank balances of approximately ₹70 crore as of March 2026.
- Board recommended a final dividend of 20% (₹0.40 per equity share of ₹2 each).
Aeroflex Industries Limited has announced its earnings conference call scheduled for May 6, 2026, at 11:00 AM IST. The management team, led by Managing Director Mr. Asad Daud, will discuss the company's operational and financial performance for the fourth quarter and the full fiscal year 2026. This virtual meeting is a standard regulatory procedure to provide transparency to analysts and institutional investors. The call will offer insights into the company's recent growth and future outlook following the conclusion of the 2026 fiscal year.
- Earnings call scheduled for May 6, 2026, at 11:00 AM IST to discuss Q4 and FY26 results.
- The session will be conducted virtually with participation from the Managing Director and management team.
- Primary access numbers for the call are +91 22 6280 1309 and +91 22 7115 8210.
- International toll-free dial-in options are available for investors in the USA, UK, Singapore, and Hong Kong.
Aeroflex Industries Limited has scheduled a virtual group meeting with institutional investors and analysts for May 20, 2026. The meeting is organized by Goldman Sachs India as part of their 'Supply Chain Resilience Corporate Day' and will take place from 10:00 AM to 11:00 AM. The company has clarified that the discussions will be based strictly on publicly available information, with no unpublished price-sensitive information being shared. This event highlights the company's engagement with major global financial institutions.
- Virtual group meeting scheduled for May 20, 2026, from 10:00 AM to 11:00 AM.
- Event organized by Goldman Sachs India under the theme 'Supply Chain Resilience Corporate Day'.
- Interaction will involve multiple institutional investors and analysts.
- Company confirms that no unpublished price sensitive information (UPSI) will be discussed.
Aeroflex Industries has announced its participation in the Data Center World 2026 exhibition in Washington, USA, scheduled from April 20 to April 23, 2026. The company will present its specialized portfolio of advanced flexible flow solutions designed for liquid cooling systems within data center environments. This move signifies a strategic push into the high-growth global data center infrastructure market, focusing on next-generation thermal management. This international exposure is intended to position the company as a supplier for the rapidly expanding AI and cloud infrastructure sectors.
- Participating in Data Center World 2026 in Washington, USA, from April 20-23, 2026.
- Showcasing advanced flexible flow solutions specifically for liquid cooling systems.
- Strategic focus on high-growth global data center infrastructure and thermal management.
- Aims to capture demand for next-generation cooling technologies in the global market.
Aeroflex Industries Limited has received an order from the Central GST Commissionerate, Raigad, demanding a total of ₹7.19 crore. The demand includes ₹3.59 crore in tax and an equivalent penalty of ₹3.59 crore for the period April 2021 to March 2024. The dispute primarily concerns input tax credit (ITC) claims on expenses related to the company's Initial Public Offering (IPO). The company intends to appeal the order and believes it will not have a material financial impact on its operations.
- Total demand of ₹7.19 crore, comprising ₹3.59 crore tax and ₹3.59 crore penalty.
- Issue relates to Input Tax Credit (ITC) on IPO-related expenses and other matters.
- Order covers the tax period from April 2021 to March 2024 under Section 74 of the CGST Act.
- Company plans to file an appeal before the Appellate Authority within the prescribed time limit.
Aeroflex Industries has successfully tripled its production capacity for liquid cooling SFN skid assemblies from 2,000 to 6,000 pieces per year as of April 1, 2026. The company has already commenced production at this new level and aims to further expand capacity to 15,000 pieces per year by June/July 2026. This expansion is supported by strong market traction, with 571 units sold in Q4 FY26 and successful installations across multiple data centers. The move signals a strategic pivot towards high-growth data center infrastructure components.
- Immediate capacity increase from 2,000 to 6,000 SFN skid assemblies per year effective April 1, 2026
- Further expansion target of 15,000 pieces per year set for completion by June/July 2026
- Reported sales of 571 SFN skid assembly units during Q4 of FY 2025-26
- Successful product validation with installations completed across multiple data centers
- Production has already commenced at the newly expanded capacity level
Aeroflex Industries Limited has been served an income tax demand of ₹41.76 crore by the Assessment Unit of the Income Tax Department. The order, pertaining to Assessment Year 2018-19, relates to the disallowance of a claim regarding the waiver of interest on a working capital loan during a one-time settlement. The company has expressed its intention to challenge this order before the Appellate Authority, citing strong merits in its case. Management currently anticipates no material financial impact as they expect a favorable outcome from the appeal process.
- Income Tax Department raised a total demand of ₹41,75,88,940.
- The issue involves disallowance of interest waiver claims under Section 41 for AY 2018-19.
- Order received under Section 147 read with Section 144B of the Income Tax Act, 1961.
- Company intends to file an appeal with the Appellate Authority within the prescribed time limit.
- Management believes the order will not have a material financial impact on the company's operations.
Aeroflex Industries Limited has announced the closure of its trading window for all designated persons starting April 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming audited financial results for the quarter and year ending March 31, 2026. The window will remain closed until 48 hours after the results are officially declared. Additionally, the company has implemented PAN-level freezing for designated persons to ensure strict regulatory adherence.
- Trading window closure effective from Wednesday, April 01, 2026.
- Restriction applies to all insiders, designated persons, and their immediate relatives.
- Window to reopen 48 hours after the declaration of Audited Financial Results for FY 2025-26.
- PAN freezing implemented for security level ISIN: INE024001021 as per SEBI circulars.
- Board meeting date for result approval to be announced separately in due course.
Aeroflex Industries Limited has scheduled a virtual group meeting with institutional investors and analysts on March 9, 2026. The interaction is organized by JM Financial Services Ltd as part of their 'Data Centre Day' event. The session is scheduled for one hour, from 3:00 PM to 4:00 PM. The company has clarified that the discussions will be based strictly on publicly available information with no sharing of unpublished price-sensitive information.
- Virtual group meeting scheduled for March 09, 2026, from 3:00 PM to 4:00 PM
- Event organized by JM Financial Services Ltd under the 'Data Centre Day' theme
- Interaction aimed at institutional investors and analysts to discuss company performance
- Company confirms that no unpublished price sensitive information (UPSI) will be disclosed
- Compliance filing made under Regulation 30(6) of SEBI LODR Regulations 2015
Aeroflex Industries Limited has scheduled a virtual group meeting with analysts and institutional investors on March 9, 2026. The interaction is part of the 'Bharat Connect Conference: Rising Stars' organized by Arihant Capital. The meeting is slated to take place from 1:00 PM to 2:00 PM. The company has clarified that discussions will be based strictly on publicly available information and no unpublished price-sensitive information will be shared.
- Group meeting scheduled for March 9, 2026, from 1:00 PM to 2:00 PM
- Participation in the 'Bharat Connect Conference: Rising Stars' organized by Arihant Capital
- The interaction will be conducted via virtual mode
- Company confirms no unpublished price-sensitive information (UPSI) will be discussed
Aeroflex Industries has successfully completed a preferential allotment of 30,10,398 equity shares at an issue price of ₹182.70 per share, raising approximately ₹55 crore. Marquee investor Ashish Kacholia participated in the round, increasing his total stake in the company from 2.01% to 2.27%. Other notable allottees include Bengal Finance and Investment and Madhu Silica Private Limited. This capital infusion strengthens the company's equity base and provides growth capital for future operations.
- Allotted 30,10,398 equity shares at a price of ₹182.70 per share (including ₹180.70 premium).
- Total capital raised through this preferential issue amounts to ₹54,99,99,714.60.
- Ashish Kacholia was allotted 4,10,509 shares, taking his post-issue holding to 30,08,589 shares (2.27%).
- Total paid-up equity share capital increased from 12.93 crore shares to 13.23 crore shares.
- The issue involved 6 non-promoter investors including Bengal Finance and R K Investments.
Aeroflex Industries achieved its highest-ever quarterly performance in Q3 FY26, with revenue growing 21% YoY to ₹121 crore and EBITDA rising 28% to ₹28.5 crore. The growth was primarily driven by a 30% surge in exports and an increasing contribution from value-added products, which now account for 54% of total sales. The company is strategically pivoting towards the AI and data center infrastructure market by expanding its liquid cooling skid assembly capacity to 15,000 units by June 2026. Despite rationalizing capex for its bellows project to ₹10.5 crore, the management remains optimistic about sustaining growth through high-margin applications.
- Reported highest-ever quarterly revenue of ₹121 crore and PAT of ₹16.5 crore (up 8% YoY).
- EBITDA margins improved to 23.6% driven by a better product mix and operational efficiencies.
- Export revenue grew 30% YoY, now representing 74% of total business, with 85% of exports going to US and EU markets.
- Expanding liquid cooling skid assembly capacity from 2,000 to 15,000 units per annum by June 2026 to capture AI infrastructure demand.
- Installed hose capacity increased to 17.5 million meters, with a target of 20 million meters by Q2 FY27.
Aeroflex Industries Limited has scheduled an interaction with institutional investors and analysts on February 10, 2026, in Mumbai. The management will participate in the MANTHAN- Systematix India Annual Conference, involving both 1x1 and group meetings. The company has clarified that discussions will be strictly based on publicly available information with no disclosure of unpublished price sensitive information (UPSI). This move is part of the company's standard investor relations calendar to engage with the financial community.
- Investor meeting scheduled for February 10, 2026, starting at 09:00 AM.
- Participation in the MANTHAN- Systematix India Annual Conference in Mumbai.
- Interaction format includes both 1x1 and group meetings with institutional participants.
- Company confirms that no unpublished price sensitive information (UPSI) will be shared during the meet.
Aeroflex Industries has made the audio recording of its Q3 FY26 earnings conference call available to the public. The call, held on January 29, 2026, discussed the company's financial performance for the quarter ended December 31, 2025. This disclosure is a standard compliance procedure under SEBI (LODR) Regulations. Investors can access the recording on the company's website to gain deeper insights into management's commentary and future outlook.
- Audio recording for the Q3 FY26 earnings call held on January 29, 2026, is now live.
- The recording pertains to the financial performance for the quarter ended December 31, 2025.
- Disclosure made in accordance with Regulation 30 and 46 of SEBI (LODR) Regulations, 2015.
Financial Performance
Revenue Growth by Segment
Hyd-Air subsidiary sales grew 500% from INR 1.5 Cr to INR 9 Cr in Q2 FY26. The value-added assembly segment contributed 53% of total sales, aligning with high-margin targets.
Geographic Revenue Split
Exports contributed 75% of total revenue in FY25. Domestic sales contribution improved from 19% to 27% in H1 FY26, driven by standalone growth and Hyd-Air integration.
Profitability Margins
Gross margins improved in Q2 FY26. Net Profit margin for H1 FY26 was 10.93% (INR 21.4 Cr), while Cash PAT margin stood at 17.08% (INR 33.43 Cr).
EBITDA Margin
EBITDA margin reached a record 23.47% in Q2 FY26, up 136 bps YoY from 22.10%. H1 FY26 EBITDA margin was 21.39% (INR 41.87 Cr).
Capital Expenditure
Production capacity was expanded by 22.22% to 16.5 Mn mtrs in FY25. IPO proceeds of INR 351 Cr were utilized for debt prepayment and working capital.
Credit Rating & Borrowing
IVR BBB- (Under watch with positive implications) was withdrawn in Oct 2023 after the company prepaid all outstanding debt using IPO proceeds.
Operational Drivers
Raw Materials
Stainless Steel (SS), Bronze, Inconel, Monel, and PTFE represent the primary raw materials, with material costs totaling INR 65.68 Cr in Q2 FY26 (59.2% of revenue).
Import Sources
Sourced from global markets with a strategic focus on supporting growth in the Americas and Europe.
Capacity Expansion
Current installed capacity is 16.5 Mn mtrs (FY25), up from 13.5 Mn mtrs. Capacity utilization stands at 75.14%.
Raw Material Costs
Cost of materials consumed was INR 65.68 Cr in Q2 FY26, up 7.7% YoY, while revenue grew 16.7%, indicating improved procurement efficiency.
Manufacturing Efficiency
Capacity utilization is 75.14%. Automation and process optimization are being implemented to improve productivity and sustain 23%+ margins.
Strategic Growth
Expected Growth Rate
16-18%
Growth Strategy
Growth will be achieved through the launch of the Liquid Cooling segment (INR 16 Cr orders secured), increasing the share of 53% value-added assemblies, and inorganic expansion in Americas/Europe.
Products & Services
Stainless steel corrugated flexible hoses, braided/non-braided hoses, assemblies, fluid control solutions, and liquid cooling systems.
Brand Portfolio
Aeroflex, Hyd-Air Engineering.
New Products/Services
Liquid cooling systems for data centers/high-performance computing launch in Q3 FY26 with an initial order book of INR 16 Cr.
Market Expansion
Focussed thrust on the Americas and Europe for FY 2024-25, alongside domestic expansion in Railways and Shipbuilding via Hyd-Air.
Market Share & Ranking
Metal bellows market projected to reach USD 5,607.7 Mn by 2035 (6.4% CAGR); Aeroflex is positioning for global leadership in metallic flexible hoses.
Strategic Alliances
Sole supplier for a major liquid cooling project in India, with potential for international customer delivery.
External Factors
Industry Trends
The metal bellows market is growing at a 6.4% CAGR, evolving toward specialized applications in Aerospace, Semiconductors, and Green Energy.
Competitive Landscape
Intense competition in standard hose segments is mitigated by moving into the 53% value-added assembly segment.
Competitive Moat
Moat is sustained by sole-supplier status for critical cooling projects, NABL-accredited R&D, and high switching costs for specialized metallic assemblies.
Macro Economic Sensitivity
Sensitive to global industrial capex and the shift toward high-performance computing/data centers driving cooling demand.
Consumer Behavior
Increasing global demand for sustainable cooling systems and high-performance computing is driving the pivot to liquid cooling.
Geopolitical Risks
US-India trade tariffs are a primary risk, causing shipment deferments in Q2 FY26.
Regulatory & Governance
Industry Regulations
Complies with TUV NORD Germany accreditation and NABL standards for R&D and manufacturing.
Environmental Compliance
Sustainability initiatives are integrated to enhance operational efficiency, though specific costs are not disclosed.
Taxation Policy Impact
Effective tax rate is approximately 27.8% based on Q2 FY26 PBT of INR 19.72 Cr and PAT of INR 14.23 Cr.
Risk Analysis
Key Uncertainties
Impact of international tariffs on export volumes (75% of revenue) and the timing of revenue realization for deferred US shipments.
Geographic Concentration Risk
High concentration in exports (75%), with North/South America and Europe being key growth drivers.
Technology Obsolescence Risk
Mitigated by R&D focus on new materials (Inconel, Monel) and transition to liquid cooling for the semiconductor industry.
Credit & Counterparty Risk
Strong liquidity with a current ratio of 2.89 and significant cash generation (Cash PAT of INR 20.33 Cr in Q2 FY26).