Aeroflex Industries Q2 FY26 results: net profit up 4.2% to ₹14.23 crore, revenue up 16.7%

How did Aeroflex Industries perform in Q2 FY26?

Aeroflex Industries reported consolidated revenue of ₹110.87 crore in Q2 FY26, up 16.7% from ₹94.99 crore in Q2 FY25 and 31.5% from ₹84.33 crore in Q1 FY26. EBITDA was ₹25.88 crore, compared with ₹20.37 crore and ₹15.48 crore in the two comparison quarters, while the margin rose to 23.3% from 21.4% and 18.4%.

Profit before tax was ₹19.72 crore, up 5.6% from Q2 FY25 and 103.1% from Q1 FY26. Net profit rose to ₹14.23 crore from ₹13.66 crore and ₹7.17 crore, while basic EPS was ₹1.10, compared with ₹1.06 and ₹0.55. On the standalone basis, revenue was ₹101.76 crore, up 8.8%, and profit after tax was ₹13.65 crore against ₹13.59 crore.

What changed in Aeroflex Industries' costs and profit?

Total expenses increased ₹14.20 crore, or 18.4%, from Q2 FY25 to ₹91.34 crore, compared with revenue growth of 16.7%. Cost of materials rose ₹4.72 crore to ₹65.68 crore, employee cost increased ₹1.97 crore to ₹10.82 crore and other expenses were up ₹1.88 crore at ₹11.88 crore.

Depreciation and amortisation rose ₹3.67 crore to ₹6.10 crore from ₹2.43 crore in Q2 FY25, while finance costs increased ₹0.16 crore to ₹0.24 crore. The company’s presentation said depreciation increased because of higher capital expenditure undertaken compared with the previous year.

Other income fell ₹0.63 crore to ₹18.07 lakh from ₹80.93 lakh, and tax expense increased ₹0.47 crore to ₹5.48 crore. There was no exceptional item in either Q2 FY26 or Q2 FY25. The PAT margin consequently declined 1.6 percentage points to 12.8%, despite the higher EBITDA margin.

How did the first half of FY26 go?

In H1 FY26, consolidated revenue increased 5.7% to ₹195.21 crore from ₹184.74 crore in H1 FY25, while total income rose 4.9% to ₹195.72 crore from ₹186.58 crore. Profit before tax fell 16.8% to ₹29.42 crore from ₹35.36 crore.

Net profit for the first half declined 17.9% to ₹21.40 crore from ₹26.07 crore, and basic EPS fell to ₹1.65 from ₹2.02. The quarter’s improvement did not offset the lower profit recorded in the first half of FY26.

What do the balance sheet and cash flow show?

Total assets increased to ₹469.31 crore as of 30 September 2025 from ₹426.55 crore on 31 March 2025. Total equity was ₹359.94 crore, compared with ₹342.42 crore, while borrowings fell to ₹0.46 crore from ₹0.58 crore and cash rose to ₹28.00 crore from ₹26.30 crore.

Inventories increased to ₹72.25 crore from ₹66.68 crore, trade receivables to ₹123.31 crore from ₹116.52 crore and trade payables to ₹75.00 crore from ₹56.83 crore. H1 FY26 operating cash flow was ₹27.25 crore, compared with an outflow of ₹0.31 crore in H1 FY25.

Investing cash flow was an outflow of ₹20.09 crore in H1 FY26, compared with ₹19.44 crore a year earlier, and financing cash flow was an outflow of ₹5.46 crore against ₹2.76 crore. Capital expenditure was ₹20.50 crore, compared with ₹44.40 crore in H1 FY25, while closing cash a year earlier was ₹54.00 crore.

How has Aeroflex Industries done over the last 8 quarters?

Revenue increased from ₹73.13 crore in Q3 FY24 to a peak of ₹110.87 crore in Q2 FY26, after falling to ₹84.33 crore in Q1 FY26. Net profit followed a similar path, bottoming at ₹7.17 crore in Q1 FY26 before rising to ₹14.23 crore in the latest quarter.

The EBITDA margin bottomed at 18.4% in Q1 FY26 and reached a peak of 23.3% in Q2 FY26. Revenue and profit had also reached their earlier quarterly peak in Q2 FY26, reversing the decline recorded in Q1 FY26.

What else did the company announce?

The board approved the un-audited standalone and consolidated financial results, including statements of assets and liabilities and cash flows, for the quarter and half year ended 30 September 2025. Limited review reports received from the statutory auditors accompanied the results.

Aeroflex Industries also filed an investor presentation for the quarter and half year ended 30 September 2025. The presentation stated that the company had secured a second repeat order for advanced flow-control components used in high-performance liquid cooling systems for data centres.

What did Aeroflex Industries' management say?

Management said the higher revenue reflected increased contribution from the Hyd-Air fittings business and higher domestic sales. It also said the margin expansion was driven by a focus on higher-margin, value-added products and favourable currency movement, while no existing US orders had been cancelled.

Management said it expected the EBITDA margin to remain within 21–22% in the coming quarters and maintained the 21–22% range for FY26. It said liquid cooling would contribute to revenue from Q3 onwards and that Hyd-Air’s momentum was expected to continue.

Management identified smaller US customers deferring orders, approximately ₹5–6 crore of US shipments deferred from Q2 to Q3 because of tariffs, and a higher-diameter hose mix as risks. Asad Daud said, “we have not received any cancellation of our existing orders from our U.S. customers,” and added that “the major of the tariff is being borne by the customers themselves.”

Management said the company was focused on higher-value products, liquid cooling, capacity expansion, automation, geographic diversification and possible inorganic growth. It expected hose capacity of 20 million metres per annum by March 2026, and said miniature metal bellows could reach 240,000 pieces per annum at peak utilisation in two to three years.

How did Aeroflex Industries shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock rose 3.4% after five minutes, 1.9% after 15 minutes and 0.8% after 30 minutes; on the reaction day, it closed 0.3% below the previous close.

By the next day’s close, the stock was 3.1% below its pre-results close, and it remained 3.0% below that level after five sessions. The Iron & Steel Products median moved 0.8% on the reaction day, 0.3% by the next day and -2.0% after five days, leaving Aeroflex Industries behind the industry median by 1.1, 3.3 and 1.0 percentage points.

How did other Iron & Steel Products companies do?

A total of 95 other Iron & Steel Products companies were compared for revenue growth, with a median revenue growth of 5.6%. Of the companies with slower revenue growth, 60 grew more slowly than Aeroflex Industries, while 35 grew faster.

Among the 104 peers for which profit was compared, 60 reported higher profit.