Aeroflex Industries Limited Q2 Income Rises 87% to INR 207.68 Crore

Aeroflex Industries Limited reported Q2 FY27 total income of INR 207.68 crore, an 87% year-on-year increase and its first quarterly income above INR 200 crore. The company also reported a 157% rise in profit after tax to INR 36.56 crore, while outlining a INR 202 crore capacity-expansion programme.

Why did Aeroflex's Q2 FY27 result matter?

Aeroflex's Q2 FY27 result mattered because revenue crossed INR 200 crore for the first time, supported by growth in its hoses, assemblies and liquid-cooling businesses. Total income rose to INR 207.68 crore from the year-earlier period, while EBITDA increased 74% year on year to INR 50.34 crore.

Profitability also improved during the quarter. EBITDA margin reached 24.27%, compared with 20.34% a year earlier, and profit after tax rose 157% to INR 36.56 crore. The PAT margin was 17.6%. These figures indicate that earnings growth outpaced the increase in total income during the period.

What drove Aeroflex's revenue growth in the quarter?

Aeroflex said growth was broad-based across its core hose, assembly and liquid-cooling operations. Liquid cooling was an important contributor to the changing business mix, accounting for 24% of H1 FY27 revenue, according to management.

The company reported H1 FY27 total income of INR 353.66 crore, up 81% year on year. Management said first-half income was nearly equal to Aeroflex's full-year FY26 revenue base, underlining the pace of growth recorded in the first six months of the financial year.

Liquid cooling has gained importance as the company expands its offering beyond its established flexible flow-solution products. However, Aeroflex did not provide an exact estimate of the Indian market size for this segment during the earnings call. Management stated that precise figures for the domestic market were not available.

What is Aeroflex's INR 202 crore expansion plan?

Aeroflex plans to invest INR 202 crore in capacity expansion, with the project targeted for completion by March 2028. Management said the expansion will be undertaken at the existing facility as well as at a new facility.

The company has indicated that the expansion could support incremental annual revenue of INR 500 crore to INR 550 crore. This plan is linked to Aeroflex's stated growth targets as it seeks to add manufacturing capacity for its expanding product lines, including liquid-cooling solutions.

Management has guided for FY27 revenue of INR 715 crore to INR 725 crore, implying growth of about 60% for the full year. It has also outlined a longer-term FY2030 revenue target of around INR 1,500 crore. These targets remain management guidance and are dependent on execution, capacity additions and demand conditions.

How does the expansion affect Aeroflex's market position?

The expansion gives Aeroflex a stated framework to build capacity against rising demand across hoses, assemblies and liquid cooling. Its importance is heightened by the fact that liquid cooling contributed nearly one-fourth of first-half revenue, making the segment material to the company's current mix.

For investors, the reported margin expansion and higher profit growth are key parts of the Q2 result. EBITDA margin increased by 3.93 percentage points year on year, from 20.34% to 24.27%, while PAT rose faster than total income. The capacity plan also introduces a significant investment programme that will need to be tracked alongside revenue growth and project completion timelines.

Aeroflex clarified that its exclusivity arrangement applies only to the Indian market. Management said there is no exclusivity internationally, leaving scope for the company to pursue overseas customer opportunities. The statement also means that international business expansion will operate without the same exclusivity position described for India.

What other reporting changes did Aeroflex disclose?

Aeroflex disclosed a change in its depreciation method from written-down value to the straight-line method, effective April 1, 2026. Management said the change was made to better reflect the expected usage of its assets.

The company reported H1 FY27 profit after tax of INR 55.35 crore and an H1 PAT margin of 15.65%. Investors assessing future reported earnings may consider the disclosed accounting-policy change alongside operating metrics such as income growth, EBITDA and margins. The earnings call did not provide a quantified impact of the depreciation-method change on the reported quarterly profit.

Conclusion

Aeroflex delivered record Q2 FY27 total income of INR 207.68 crore, with growth across its core businesses and a larger contribution from liquid cooling. Higher EBITDA margin and a 157% increase in quarterly PAT accompanied the revenue milestone, while H1 income reached INR 353.66 crore.

The next developments to watch are progress toward FY27 revenue guidance of INR 715 crore to INR 725 crore, the execution of the INR 202 crore expansion plan and the March 2028 completion target. Investors will also monitor whether liquid cooling maintains its contribution to revenue as Aeroflex works toward its longer-term FY2030 target of around INR 1,500 crore.