Aeroflex Industries (AEROFLEX) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw a 6% YoY revenue decline due to tariff increases, regulatory uncertainty, and temporary buyer hesitation, but underlying demand remains robust and management views the dip as transitory.

• Strategic breakthrough with a long-term agreement to supply liquid cooling solutions for data centres to a major US corporation, with an initial INR 7.8 crore order, opening multi-decade growth opportunities.

• Capacity expansion projects are on track, with significant increases planned across product lines by March 2026.

• Continued focus on innovation, R&D, and onboarding of large new clients across geographies.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with limited review by statutory auditors.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹84.33 crore, down 6.03% year-over-year.

• EBITDA for Q1 FY26 was ₹15.81 crore, with an EBITDA margin of 18.68%, down from 21.07% YoY.

• PAT for Q1 FY26 was ₹7.17 crore, down 42.24% YoY; PAT margin decreased to 8.46% from 13.67%.

• EPS for Q1 FY26 was ₹0.55, compared to ₹0.96 in Q1 FY25.

• Domestic market grew over 30% YoY, while exports declined.

Outlook and guidance

• Management expects normalization from Q2 and growth to resume, maintaining a positive outlook for FY26.

• EBITDA growth guidance remains above 20% for FY26, with margins expected to improve to 21%-22% annually as new capacities scale up.

• Long-term target is to reach 25% EBITDA margin over the next 4-5 years.

• Capacity expansion and new product development are expected to drive future growth.