Aeroflex Industries Limited (AEROFLEX) share price

₹563.95 on NSE as of 2026-09-11. -0.04% on the day. market cap ₹7,463 Cr. P/E 109.3. 52-week range ₹158.80 to ₹573.50. Capital Goods.

Aeroflex Industries Q1 FY27: ₹32.4 Crore of Revenue Came From Cooling Somebody Else's Computers

At a glance

Aeroflex Industries reported consolidated revenue of ₹145.38 crore for the quarter ended June 2026, up 72.4% from ₹84.33 crore a year earlier and 15.5% above the ₹125.84 crore of the March 2026 quarter. Operating profit was ₹33.49 crore against ₹15.48 crore, and PAT was ₹18.79 crore against ₹7.17 crore — a 162% year-on-year increase. Operating margin came in at 23%, against 18% in the June 2025 quarter. EPS for the quarter was ₹1.42, up from ₹0.55.

The single largest change in the revenue line came from a product that barely existed eighteen months ago. SFN liquid cooling skid assemblies — units that circulate coolant through data centre floors — contributed ₹32.4 crore, about 23% of total revenue, on 1,040 skids. The comparable figure two quarters earlier was 46 skids and ₹2.3 crore. The board raised skid capacity from 6,000 to 9,000 pieces per annum, disclosed in the results notes, with 15,000 targeted by Q3 FY27.

Management describes the quarter as its highest-ever performance and frames it as a transition from flexible hose manufacturer to what it calls an integrated provider of flow control and flow management solutions for mission-critical applications. On margins, management notes sequential EBITDA margin pressure of 82 basis points, attributing it to manpower ramp for the skid business and the new Chakan facility, plus logistics cost inflation it links to disruption in West Asia.

Depreciation for the quarter was ₹7.84 crore against ₹5.93 crore a year ago, which the company attributes to higher capital expenditure. Full-year FY26 revenue was ₹441.94 crore with PAT of ₹55.53 crore. The market currently pays 84.2x.

Which is a number we will return to.

Introduction

Aeroflex Industries was incorporated in 1993 and manufactures metallic flexible flow solution products — stainless steel plumbing for situations where ordinary plumbing would melt, burst, or slowly dissolve. The company's investor material dates the operating business to 1998 and records its acquisition by Aeroflex Enterprises Limited (formerly Sat Industries Limited) in 2018. It listed on both exchanges, and its promoter entity still holds 65.47%.

For most of its recorded history the story was one of steady, unglamorous compounding. Consolidated sales went from ₹144.34 crore in FY20 to ₹441.94 crore in FY26. Operating margin climbed from 15% in FY20 to 23% in FY26. Borrowings, which stood at ₹63.46 crore in FY20, were down to ₹8.9 crore by March 2026. It was the corporate equivalent of someone quietly paying off a home loan while everyone else discussed cryptocurrency.

Then came the data centres.

The last twelve months of announcements read differently from the preceding decade. In October 2025 the company disclosed a ₹7.8 crore order for liquid-cooling solutions for data centres from a subsidiary of a US corporation. In December 2025 the board approved a ₹97.56 crore expansion covering cooling, welding and annealing capacity, alongside a preferential issue of 30,10,398 shares at ₹182.70. That allotment completed on 3 February 2026, raising ₹54.99 crore, and the company filed its Q1 FY27 deviation statement confirming no deviation in the use of those funds. Share count moved from 12.93 crore to 13.23 crore as a result.

Two tax matters also sit on record from the same window. An income tax order dated 25 March 2026 demanded ₹41.76 crore for AY2018-19, which the company stated it would appeal. In April 2026, a Raigad GST order demanded ₹3.60 crore plus an equal penalty on IPO-related input tax credit issues.

The June 2026 board meeting, held on 27 July, approved the quarter's results, appointed Kailash Chand Jain & Co. as tax auditor for FY27, and formalised the skid capacity increase to 9,000 units. It ran forty-six minutes. Efficient people.

Business model

Aeroflex makes tubes that bend without breaking, and it makes an enormous number of them — 3,300+ SKUs at last count, from a base of 2,388 three years ago. If you have ever wondered who supplies the bit of a refinery that has to flex under thermal expansion while containing something that would ruin your afternoon, the answer is a company in Taloja, Navi Mumbai.

The portfolio has five broad legs. Stainless-steel corrugated flexible hoses — seam-welded tubes with hydroformed corrugations, braided or unbraided — go into high-pressure, extreme-temperature service in manufacturing and oil refineries. Assemblies and fittings are those hoses with connectors already welded on, so the customer doesn't have to, and they head into railways, shipbuilding and heavy industry. Metal bellows run from 10mm to 3,000mm in stainless steel, nickel alloys and Inconel, absorbing vibration and misalignment for space, aviation, robotics, semiconductors and hydrogen applications. Composite and interlock hoses handle corrosive chemical transfer up to 20 inches. And specialised industrial hoses cover vacuum, gas, firefighting and air delivery.

Then there is the fifth leg, which is really the whole reason this quarter looks the way it does: Secondary Fluid Network solutions for liquid-cooled data centres, combining stainless piping, precision hoses and metallic expansion joints into a skid you wheel into the white space and plug in.

Here is the part worth sitting with. A skid sells for somewhere between ₹1,10,000 and ₹5,50,000 depending on specification, and management's realised average was ₹3,11,459 in Q1 FY27 against ₹3,31,763 in Q4 FY26 and ₹4,98,861 in Q3 FY26. Management's response to a question about that decline was that price isn't a meaningful metric here, because each skid has a different design — different, they noted, even floor to floor within the same data centre — and each is costed separately.

Three plants now: Taloja, Palava in Thane, and MIDC Chakan in Pune. Capacity is 17.5 million metres of hose annually, 46 assembly stations, two robotic welding lines, 1,20,000 bellows pieces and 9,000 skids. The workforce is 760+, up from 550+ in FY25. R&D is fourteen people in a NABL-accredited lab with 58 products in the pipeline, sixteen of them liquid-cooling related, and collaborations with four IITs.

Exports were 72% of the mix in Q1 FY27, spanning 90+ countries, with Americas at 57% and Europe at 33%. The subsidiary Hyd-Air Engineering contributed ₹7.66 crore of revenue for the quarter and a loss after tax of ₹0.27 crore, per the auditor's review report.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Aeroflex Industries Limited.

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