Aeroflex Industries Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 5 Aug 2026 | Industrial Products | Market Cap: ₹6.0K Cr
Large customers continue placing orders; next calendar year discussions indicate higher business than the current year. - Liquid cooling division expected to significantly contribute to growth over the next 2-3 years. - Post tariff rationalization, U.S. Mid- to high-teens CAGR growth expected over the next few years, particularly from 2027 onwards, driven by tariff improvements and increased demand. - Significant revenue growth anticipated from Hyd-Air’s expanding capacity and orders, with H1 FY26 showing INR15 crores sales vs.
From Aeroflex Industries Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹503
Market Cap
₹6.0K Cr
P/E Ratio
89.9
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Aeroflex Industries Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹126 Cr, net profit ₹18 Cr.
Full financials →📊 Revenue & Sales Performance
- →Large customers continue placing orders; next calendar year discussions indicate higher business than the current year.
- →Liquid cooling division expected to significantly contribute to growth over the next 2-3 years.
- →Post tariff rationalization, U.S. market contribution (currently ~40-45% of exports) expected to increase.
- →Mid- to high-teens CAGR growth anticipated over the next few years, especially from 2027 onwards.
- →Expansion plans underway for Hyd-Air and liquid cooling segments, with capacity ramp-ups expected in phases post-March 2026.
- →Hose division capacity to increase to 20 million meters per annum; miniature metal bellows expected annual revenue of INR 25-30 crores at peak utilization.
- →Focus on higher-margin, value-added products and larger diameter hoses to drive revenue and margin growth.
- →Overall aim for sustained top-line and bottom-line growth over the next 4-5 years.
📈 Profitability & Margins
- →Mid- to high-teens CAGR growth expected over the next few years, particularly from 2027 onwards, driven by tariff improvements and increased demand.
- →Significant revenue growth anticipated from Hyd-Air’s expanding capacity and orders, with H1 FY26 showing INR15 crores sales vs. INR3 crores last year.
- →Liquid cooling business projected to contribute significantly over the next 2-3 years, with INR16 crores orders already received for FY26 and ramp-up planned.
- →EBITDA margins expected to stabilize between 21%-22% annually, with Q2 FY26 margin at an all-time high of 23.5% due to value-added products and favorable currency movement.
- →Incremental revenue potential post-capex: INR650-670 crores for hose division and INR25-30 crores for miniature metal bellows at peak utilization.
- →Focus on profitable growth via capacity expansion, higher value products, geographic diversification, and product innovation.
- →Strong cash PAT growth witnessed (26% Y-o-Y for H1 FY26), reflecting improved operational performance.
🏗️ Capital Expenditure Plans
- →Total capex budgeted in January 2025: INR 77 crores
- → - INR 54 crores for hose division
- → - INR 23 crores for miniature metal bellows division
- →Capex progress till Q2 2025:
- → - Hose division: INR 19.74 crores spent
- → - Miniature metal bellows: INR 6.08 crores spent
- →Capex expected completion: By March 2026
- →Capacity and revenue potential post-capex:
- → - Hose division capacity expected to reach 20 million meters per annum
- → - Miniature metal bellows expected to generate annual revenue of INR 25-30 crores
- → - Hose division potential revenue at peak utilization around INR 650-670 crores
- →Plans for Hyd-Air capacity expansion are under discussion and expected announcement soon
- →Peak utilization of expanded capacity expected within 2 years after completion
💰 Fundraising & Capital Structure
- →There is no mention of any current or planned fundraising through debt or equity in the provided transcript.
- →The company discussed ongoing and planned capital expenditure (capex) of INR77 crores for capacity expansion in hose assemblies and metal bellows divisions, funded presumably through internal resources.
- →No explicit reference to raising funds from the market or banks for this capex or any other purpose.
- →The focus appears to be on organic growth through operational expansion, new product development, and improving capacity utilization.
- →The management encourages investors to contact their Investor Relations Advisors or the company for any further information, but no fundraising plans were disclosed during the call.
📋 Order Book & Pipeline
- →Aeroflex has already received orders for the cooling product worth approximately INR16 crores (two orders of about INR8 crores each).
- →Discussions for next calendar year orders have started with many customers, with expectations of significant business growth compared to the current year.
- →Approximately INR5-6 crores worth of U.S. orders were deferred from Q2 to Q3, but no cancellations were reported.
- →Bellows division currently holds about INR2-2.5 crores in orders from Europe, Canada, and South America.
- →The company has ongoing and expected capacity expansions to meet increasing demand, such as miniature metal bellows and hose assembly capex.
- →Hyd-Air has seen substantial order growth, with H1 sales increasing from INR3 crores to INR15 crores year-over-year, indicating strong order inflow.
- →Overall, Aeroflex is confident in growing order book and business despite temporary deferments and tariff-related challenges.
Key Metrics
Frequently Asked Questions
What were Aeroflex Industries Ltd Q2 FY26 results?
Large customers continue placing orders; next calendar year discussions indicate higher business than the current year. - Liquid cooling division expected to significantly contribute to growth over the next 2-3 years. - Post tariff rationalization, U.S. Mid- to high-teens CAGR growth expected over the next few years, particularly from 2027 onwards, driven by tariff improvements and increased demand. - Significant revenue growth anticipated from Hyd-Air’s expanding capacity and orders, with H1 FY26 showing INR15 crores sales vs.
What is Aeroflex Industries Ltd share price analysis?
Aeroflex Industries Ltd currently shows a neutral. The stock trades at a P/E of 89.9 with a market cap of ₹6,034 Cr. Investors should review the full earnings analysis for detailed insights.
Is Aeroflex Industries Ltd planning capital expenditure?
Total capex budgeted in January 2025: INR 77 crores - INR 54 crores for hose division - INR 23 crores for miniature metal bellows division - Capex progress till Q2 2025: - Hose division: INR 19
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.