Aeroflex Enterprises Q2 FY27 results: net profit up 87.1% to ₹38.24 crore, revenue up 45.0%

How did Aeroflex Enterprises perform in Q2 FY27?

Aeroflex Enterprises reported Q2 FY27 consolidated revenue of ₹249.90 crore, up ₹77.55 crore, or 45.0%, from ₹172.35 crore in Q2 FY26. Against Q1 FY27, revenue was higher by ₹60.90 crore, or 32.2%, from ₹189 crore. EBITDA rose to ₹32.47 crore from ₹29.64 crore a year earlier and ₹17.27 crore in the previous quarter.

The EBITDA margin was 13.0%, compared with 17.2% in Q2 FY26 and 9.1% in Q1 FY27. Profit before tax was ₹52.50 crore, up from ₹28.32 crore a year earlier but below ₹150.13 crore in Q1 FY27. Net profit was ₹38.24 crore versus ₹20.44 crore and ₹103.22 crore, respectively, while basic EPS was ₹2.27 compared with ₹1.24 and ₹8.54.

The results are on a consolidated basis. On a standalone basis, revenue was ₹2.96 crore, down 15.9%, and profit after tax was ₹8.11 crore against ₹3.78 crore in the year-ago period. The consolidated review covered the parent, Aeroflex Neu, Aeroflex Industries, Aeroflex Finance, Italica Global and M R Organisation, which was consolidated up to 30 April 2026.

What changed in Aeroflex Enterprises' costs and profit?

Against Q2 FY26, total expenses increased by ₹68.62 crore, or 45.2%, to ₹220.37 crore. Cost of materials was higher by ₹33.28 crore, or 32.4%, at ₹135.86 crore, while employee cost increased by ₹3.17 crore, or 16.7%, to ₹22.17 crore. Other expenses rose by ₹25.74 crore, or 90.3%, to ₹54.24 crore, and finance costs were ₹1.25 crore against ₹1.24 crore.

Depreciation fell by ₹6.09 crore, or 78.2%, to ₹1.70 crore. The investor presentation said Aeroflex Industries changed property, plant and equipment depreciation from written-down value to straight-line method prospectively from 1 April 2026, lowering depreciation expense for Q2 and H1 FY27 by ₹8.41 crore. Other income increased by ₹19.39 crore, or 241.2%, to ₹27.43 crore.

How did the first half of FY27 go?

In H1 FY27, Aeroflex Enterprises reported consolidated revenue of ₹438.9 crore, up ₹132.07 crore, or 43.0%, from ₹306.83 crore in H1 FY26. Total income rose by ₹288.07 crore, or 89.3%, to ₹610.5 crore from ₹322.43 crore.

Profit before tax increased by ₹157.02 crore, or 344.3%, to ₹202.63 crore from ₹45.61 crore. Net profit rose by ₹106.6 crore, or 305.8%, to ₹141.46 crore from ₹34.86 crore, while EPS increased by ₹8.67, or 405.1%, to ₹10.81 from ₹2.14. The presentation noted that MRO was consolidated for only one month in Q1 FY27 after the 30 April 2026 divestment and that Q1 EBITDA included proceeds from the MRO stake sale.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,354.01 crore against ₹1,155.79 crore at 31 March 2026. Total equity rose to ₹1,041.57 crore from ₹962.39 crore, while borrowings increased to ₹44.11 crore from ₹40.59 crore and cash fell to ₹36.96 crore from ₹50.42 crore.

Inventories declined to ₹131.24 crore from ₹159.44 crore, while trade receivables increased to ₹247.31 crore from ₹213.72 crore and trade payables rose to ₹149 crore from ₹101.52 crore. In H1 FY27, operating cash flow was negative ₹41.92 crore, compared with ₹1.71 crore in H1 FY26.

Investing cash flow was ₹46.7 crore, compared with negative ₹5.12 crore in the year-ago period, and financing cash flow was negative ₹16.72 crore compared with negative ₹1.15 crore. Capital expenditure was ₹67.7 crore in H1 FY27 against ₹23.34 crore in H1 FY26.

How has Aeroflex Enterprises done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters. Across the reported series, revenue bottomed at ₹134.48 crore in Q1 FY26 and reached ₹249.90 crore in Q2 FY27, while profit after tax was lowest at ₹14.42 crore in Q1 FY26 and highest at ₹103.22 crore in Q1 FY27.

The EBITDA margin rose from 13.6% in Q1 FY26 to 19.7% in Q3 FY26 before falling to 9.1% in Q1 FY27 and recovering to 13.0% in Q2 FY27. Profit after tax declined from ₹103.22 crore in Q1 FY27 to ₹38.24 crore in Q2 FY27, while revenue increased from ₹189 crore to ₹249.90 crore.

Which businesses drove the quarter?

Flexible Flow Solution was the main contributor, reporting revenue of ₹203.02 crore, up 80.4% from ₹112.51 crore, and EBIT of ₹45.75 crore against ₹15.99 crore. Its EBIT margin was 22.5%. Flexible Packaging reported revenue of ₹33.8 crore, up 2.2% from ₹33.07 crore, and EBIT of negative ₹1.37 crore against negative ₹1.29 crore.

Engineering Services reported revenue of ₹1.6 crore, down 94.2% from ₹27.57 crore, and EBIT of ₹1.51 crore against ₹5.65 crore. Financing reported revenue of ₹11.48 crore, up 153.5% from ₹4.53 crore, and EBIT of negative ₹18.73 crore against ₹3.78 crore. Trading reported no revenue and EBIT of ₹10.7 crore.

What else did the company announce?

On 4 November 2026, the board approved the unaudited consolidated and standalone results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. It approved Fredrick Pinto’s appointment as Group Vice President – Legal and Compliance and Senior Management Personnel, effective 4 November 2026.

The board also approved further investment of up to ₹25 crore in Aeroflex Finance Private Limited through subscription to equity shares, in one or more tranches. No dividend was announced in the same-day filings. Separately, Aeroflex Industries’ board in-principle approved the amalgamation of Hyd-Air Engineering with an appointed date of 1 April 2026, subject to regulatory and other approvals.

The Ministry of Corporate Affairs approved amendments to Aeroflex Enterprises’ object clauses. These added businesses covering data centres, server farms, IT infrastructure, related hosting and cooling services, as well as hospitality businesses including resorts, hotels, restaurants, serviced apartments, clubs, spas and related facilities.

What did Aeroflex Enterprises' management say?

Management said Aeroflex Neu’s certified-packaging expansion would enable it to supply food, pharma and beverage customers and expand its presence, particularly in the High End FIBC market. Management said the integration of Aeroflex Industries and Hyd-Air was intended to create a more streamlined and efficient business structure, subject to necessary approvals.

Management said Aerolex Cables would enter and expand manufacturing of power connectivity and solutions for AI infrastructure and data centres. The presentation said Aeroflex Neu completed the 51% Stilonn acquisition, which adds specialised valve manufacturing, and approved definitive agreements for the 55% Aerolex Cables acquisition, a transaction that remained at the definitive-agreement stage.

Management identified earnings comparability as a risk because Q1 FY27 EBITDA included proceeds from the MRO stake sale and MRO was consolidated for only one month. It also highlighted Aeroflex Neu’s H1 FY27 total income and EBITDA declines of 2.87% and 16.53%, with an EBITDA margin of 5.80% against 6.75%, and a PAT loss of ₹3.83 crore. The presentation stated that Aeroflex Industries had signed a long-term liquid-cooling agreement and received major data-centre orders.

How did Aeroflex Enterprises shares react?

The filing appeared after market hours. From the price when the results were released, the stock fell 2.4% after five minutes, rose 1.7% after 15 minutes and rose 2.8% after 30 minutes. On the reaction day, it closed 2.5% above its previous close of ₹125.5; the industry median was unchanged and the Nifty Microcap 250 rose 0.7%.

By the next day’s close, the stock was down 0.6% from its pre-results close. The industry median was down 1.0% and the Nifty Microcap 250 was down 1.9%, leaving the stock 0.4 percentage points above the industry median. Earlier reaction-day moves were negative, including 1.3% on 11 August 2026 and 1.6% on 13 November 2025.

How did other Iron & Steel Products companies do?

Among 29 other Iron & Steel Products companies that filed for the quarter, median revenue growth was 23.2%. Twenty-six peers grew slower than Aeroflex Enterprises and three grew faster. Of the 34 peers for which profit was compared, 22 reported higher profit.