Aeroflex Industries Q2 FY27 results: net profit up 156.9% to ₹36.56 crore, revenue up 87.0%

How did Aeroflex Industries perform in Q2 FY27?

Aeroflex Industries reported consolidated revenue of ₹207.36 crore in Q2 FY27, up ₹96.49 crore or 87.0% from ₹110.87 crore in Q2 FY26. Revenue was also up ₹61.98 crore or 42.6% from ₹145.38 crore in Q1 FY27. Total income for the September 2026 quarter was ₹207.68 crore, against ₹111.05 crore a year earlier and ₹145.97 crore in the previous quarter.

EBITDA was ₹50.34 crore, up ₹24.46 crore or 94.5% from Q2 FY26 and ₹16.85 crore or 50.3% from Q1 FY27. The EBITDA margin was 24.3%, compared with 23.3% in Q2 FY26 and 23.0% in Q1 FY27. Profit before tax rose to ₹49.61 crore from ₹19.72 crore a year earlier and ₹25.89 crore in the previous quarter.

Net profit was ₹36.56 crore, up ₹22.33 crore or 156.9% from Q2 FY26 and ₹17.77 crore or 94.6% from Q1 FY27. Basic EPS was ₹2.76, against ₹1.10 in Q2 FY26 and ₹1.42 in Q1 FY27. On the standalone basis, revenue was ₹202.06 crore and profit before tax was ₹13.65 crore.

What changed in Aeroflex Industries' costs and profit?

Total expenses increased to ₹158.08 crore in Q2 FY27 from ₹91.34 crore in Q2 FY26, a rise of ₹66.74 crore or 73.1%. Cost of materials rose ₹48.74 crore or 74.2% to ₹114.42 crore, employee cost increased ₹7.21 crore or 66.6% to ₹18.03 crore, and other expenses increased ₹8.84 crore or 74.4% to ₹20.72 crore.

Finance costs were ₹0.60 crore, up ₹0.36 crore from ₹0.24 crore in Q2 FY26, while depreciation fell ₹5.65 crore or 92.6% to ₹0.45 crore. Other income rose ₹0.14 crore or 77.8% to ₹0.32 crore. There was no exceptional item, while tax increased ₹7.57 crore or 138.1% to ₹13.05 crore.

Aeroflex Industries said the EBITDA-margin improvement was driven by a higher contribution from high-value products and improved operating leverage. The company changed its depreciation method for property, plant and equipment from WDV to SLM effective 1 April 2026, accounting for the change prospectively as a change in accounting estimate.

How did the first half of FY27 go?

In H1 FY27, Aeroflex Industries reported consolidated revenue of ₹352.74 crore, up ₹157.53 crore or 80.7% from ₹195.21 crore in H1 FY26. Total income was ₹353.66 crore, an increase of ₹157.94 crore or 80.7%, while EBITDA was ₹83.83 crore compared with ₹41.36 crore.

Profit before tax increased ₹46.08 crore or 156.6% to ₹75.50 crore, and net profit rose ₹33.95 crore or 158.6% to ₹55.35 crore. Basic EPS increased from ₹1.65 to ₹4.18, a rise of ₹2.53 or 153.3%. The EBITDA margin for the first half was 23.77%, compared with 21.19% a year earlier.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹709.86 crore, up from ₹565.02 crore at 31 March 2026, and total equity was ₹497.42 crore compared with ₹447.27 crore. Borrowings declined to ₹0.85 crore from ₹1.07 crore, while cash increased to ₹24.80 crore from ₹18.99 crore. Inventories rose to ₹112.35 crore from ₹83.72 crore, trade receivables to ₹203.83 crore from ₹129.82 crore, and trade payables to ₹136.33 crore from ₹80.71 crore.

H1 FY27 operating cash flow was ₹38.16 crore, compared with ₹27.25 crore in H1 FY26. Investing cash flow was negative ₹23.73 crore against negative ₹20.09 crore, while financing cash flow was negative ₹8.62 crore compared with negative ₹5.46 crore. Capital expenditure was ₹67.46 crore, against ₹20.50 crore in the year-ago period.

How has Aeroflex Industries done over the last 8 quarters?

Aeroflex Industries’ revenue rose from ₹84.33 crore in Q1 FY26, its lowest point in the eight-quarter series, to ₹207.36 crore in Q2 FY27, its highest. Net profit increased from ₹7.17 crore in Q1 FY26, the period low, to ₹36.56 crore in Q2 FY27, the peak.

The EBITDA margin bottomed at 18.4% in Q1 FY26 and reached 24.3% in Q2 FY27, the series high. Revenue and profit have now increased year on year for five consecutive quarters. The latest quarter also recorded sequential increases from Q1 FY27 revenue of ₹145.38 crore and net profit of ₹18.79 crore.

What else did the company announce?

The board approved the un-audited standalone and consolidated results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. It gave preliminary approval to the amalgamation of wholly owned subsidiary Hyd-Air Engineering Private Limited with Aeroflex Industries, subject to regulatory and other approvals, with 1 April 2026 as the appointed date.

The board also noted that CFO Mustafa Abid Kachwala’s tenure would end at the close of business on 27 November 2026, after which he would continue as a whole-time director and key managerial personnel. Drashti Bhil was redesignated CFO and key managerial personnel for three years from 28 November 2026. The same-day investor presentation set out a ₹202 crore expansion plan; no dividend or fund-raise approval was reported in the same-day filings.

What did Aeroflex Industries' management say?

Management said a ₹202 crore expansion would raise stainless-steel flexible-hose capacity from 20 million metres to 30 million metres per annum by March 2028 and skid-assembly capacity to 30,000 units per annum by March 2028. Asad Daud said: “At the peak capacity utilization, these additional capacities are expected to generate incremental revenue potential of approximately INR500 crores to INR550 crores per year.”

Asad Daud said: “The global transition towards AI-led computing and liquid-cooled data center infrastructure represents a multiyear opportunity for us.” Management also said the company was expanding its network of technology and business partners in liquid cooling and that demand in core flow-control businesses remained encouraging, particularly in the US and Europe.

How did Aeroflex Industries shares react?

After the filing appeared, the Aeroflex Industries share price fell 2.3% after 5 minutes, rose 2.8% after 15 minutes and rose 5.3% after 30 minutes. By the reaction day’s close, it was up 9.0% from the previous close of ₹491.65. By the next day’s close, it was up 7.2% from that pre-results close.

On the reaction day, the median move among the industry’s other stocks was 0.0%, while the Nifty Microcap 250 rose 0.7%. Aeroflex Industries therefore moved 9.0 percentage points more than the industry median and 8.3 percentage points more than the market benchmark. Earlier results-day moves included 6.2% on 27 July 2026, 9.0% on 5 May 2026, 7.3% on 28 January 2026 and negative 0.3% on 28 October 2025.

How did other Iron & Steel Products companies do?

Among 26 other Iron & Steel Products companies that had filed for the quarter, the median revenue growth was 23.5%. Twenty-five peers grew more slowly than Aeroflex Industries, while one grew faster than the company, whose Q2 FY27 revenue rose 87.0%.

Of the 31 peers for which profit was compared, 20 reported higher profit. The peer comparison was available as of 4 November 2026 and excluded Aeroflex Industries itself.