Aeroflex Industries Ltd

- 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.

- 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

- 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.

- 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.

- 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.