Aeroflex Industries Limited has informed the Exchange about Transcript
AEROFLEX · price
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Aeroflex Industries reported a soft Q1 FY26 with total income of INR84.67 crores, down 6% year-on-year, marking its first major performance blip. EBITDA stood at INR15.8 crores (18.68% margin) and PAT at INR7.1 crores (8.46% margin), with margin pressure attributed to higher depreciation and scaling-up costs at subsidiary Hyd-Air and the metal bellows plant. The dip was driven by US tariff hikes (from ~3.5% to 10%) and cautious customer procurement, though the domestic market grew over 30% and now contributes 28% of sales. A major new development is the entry into data center liquid cooling with a long-term agreement signed with a US-listed corporation (>$50B market cap), securing an initial order of INR7.8 crores to be executed in H2 FY26. Management reiterated FY26 EBITDA growth guidance of over 20%, with annual EBITDA margins expected at 21–22% and a 4–5 year target of reaching 25%.
Near-term pain from tariffs is being acknowledged as transient, with order flows already recovering from July. The new data center cooling foray opens a high-growth adjacency ($4.4B market, 20% CAGR), and continued margin expansion guidance is positive, though execution on Hyd-Air and metal bellows scaling remains key to delivering on the 25% long-term margin target.