Aeroflex FY26 results: ₹443 crore income, skid ramp

Record FY26 and Q4FY26 performance

Aeroflex Industries Limited reported its highest-ever quarterly and annual performance for Q4FY26 and FY26, supported by stronger demand in its core hoses and assemblies business. Total income for Q4FY26 stood at ₹126.46 crore, up 38% year-on-year. For FY26, total income rose to ₹443.29 crore, up 17% year-on-year. The company also highlighted improved profitability and cash generation, pointing to stronger operational efficiency during the year. Alongside core growth, FY26 also marked a meaningful step-up in a newer product line linked to data center infrastructure.

Profitability, cash profit, and PAT trends

On profitability, Aeroflex said FY26 EBITDA crossed ₹99.74 crore, up 26% year-on-year. Cash profit increased to ₹81.60 crore, up 28% year-on-year. Profit after tax (PAT) for FY26 was reported at ₹55.53 crore, up 5.75% year-on-year. The update indicates that EBITDA growth outpaced PAT growth in FY26, even as operating metrics strengthened. Management linked the performance to a mix of steady core demand and a growing contribution from value-added solutions.

Liquid cooling skid assemblies: entry into a new vertical

FY26 marked Aeroflex’s entry into liquid cooling skid assemblies for high-density data center and AI infrastructure. The company sold 617 skids in FY26, with most volumes concentrated in Q4FY26. It reported skid sales value of ₹21.2 crore for FY26. Aeroflex also disclosed that a skid’s selling price typically ranges from ₹1.10 lakh to ₹5.50 lakh, depending on specifications. The company positioned this segment as a diversification move toward mission-critical applications and repeat-order potential.

Capacity expansion plan: 2,000 to 15,000 skids

To support skid demand, Aeroflex expanded skid assembly capacity from 2,000 units in December 2025 to 6,000 units per annum by March 2026. The company said the new capacity level is operational as of April 1, 2026. It also laid out the next steps: scaling to 10,500 units by July 2026 and 15,000 units by Q2FY27. Separately, the company has indicated that the expanded skid capacity to 15,000 units per annum is expected to be completed by June 2026. Aeroflex also said it is setting up a supportive production unit at Chakan, Pune, to augment capacity.

Five-year exclusive agreement and funding plan

Aeroflex entered the data centre liquid cooling segment in Q3FY26 after securing a five-year exclusive India supply agreement for liquid cooling skid assemblies. It noted that capacity expansion and manufacturing upgrades are being funded through internal accruals and a preferential issue. The company disclosed internal accrual funding of around ₹42.5 crore and a preferential equity issue of around ₹55 crore, while maintaining a debt-free status. It also discussed broader FY27 capital expenditure plans of about ₹90 crore to ₹115 crore, with a focus on liquid cooling, metal bellows, and expanding Hyd-Air’s hydraulic connector capabilities. Additionally, management commentary referenced total capex of under ₹100 crore for scaling skid capacity from 2,000 to 15,000 units.

Core operations: hoses, assemblies, and the mix shift

Aeroflex said its core business of hoses and assemblies continued to deliver steady growth, supported by global customer relationships. It also outlined a product-mix focus where assemblies generate higher EBITDA margins than the raw hose segment, and metal bellows deliver still higher margins. The mix has shifted from 24% assemblies in FY21 to more than 50% currently, with a stated target of 70% by FY27E. Operationally, assembly stations increased from 40 stations in March 2025 to 46 stations, and the company plans to add 24 more by Q2FY27 to reach 70 stations. It also expanded stainless steel (SS) flexible hoses capacity to 17.5 million meters per annum, with a planned addition of 2.5 million meters to reach 20.0 million meters by Q2FY27.

Automation push: robotic welding and annealing facility

The company added two robotic welding lines in Q4FY26 and plans to add two more by Q2FY27. It also plans to set up an automatic welding station and an annealing plant by December 2026. Aeroflex framed these investments as a way to improve throughput and consistency for critical applications, spanning both new liquid cooling products and existing lines. These upgrades sit alongside its broader capacity expansion roadmap across hoses, assemblies, and skid systems.

Subsidiary performance and exports: key operating signals

Aeroflex said its Hyd-Air subsidiary recorded 50% year-on-year growth, indicating improving performance at the acquired business. In Q3FY26, Hyd-Air generated revenue of ₹8.50 crore versus ₹2.90 crore in the same quarter of the previous year. The company also disclosed that in Q3FY26, quarterly export business grew 30% year-on-year despite tariff-related headwinds. Export business contributes 74% of total revenue, with about 85% to 95% coming from EU and USA markets. Aeroflex also pointed to its participation at the Data Center World Exhibition in Washington, USA in April 2026, where it showcased liquid cooling-related flexible flow solutions.

Key numbers at a glance

Capacity and timeline checkpoints

Dividend update

For FY26, the board declared a final dividend of 20%, which is ₹0.40 per equity share of face value ₹2 each. The dividend announcement came alongside the record FY26 performance update, reflecting continued cash generation during the year.

Why the update matters for investors

The FY26 performance combines two threads visible in Aeroflex’s disclosures: steady growth in the established hoses and assemblies business, and a capacity-backed expansion into liquid cooling skids for data centers. The company’s narrative links higher-value products and automation to margin resilience, while the skid ramp-up adds a new revenue stream that is still early in its cycle. Investors are likely to track execution milestones that Aeroflex itself flagged, including the pace of skid capacity ramp-up to 15,000 units, the order book development for liquid cooling solutions, and progress on automation projects like robotic welding and the annealing plant.

Closing summary

Aeroflex closed FY26 with record income of ₹443.29 crore and EBITDA of ₹99.74 crore, while also scaling a new liquid cooling skid business with 617 skids sold during the year. Over the next few quarters, key signposts include the planned capacity ramp to 10,500 units by July 2026 and 15,000 units by Q2FY27, alongside manufacturing automation targets through December 2026.