Aeroflex Industries (AEROFLEX) Q2 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated financial performance in Q2 FY26, surpassing INR 100 crore in revenue, with record EBITDA margins of 23.5% and strong YoY and QoQ growth in revenue, EBITDA, and cash PAT.

• Hyd-Air subsidiary contributed significantly, turning profitable and validating recent capex investments.

• Secured repeat orders for advanced flow control components in high-performance liquid cooling systems for data centers, expected to be a major growth driver.

• Despite U.S. tariffs causing shipment deferments, no order cancellations occurred, reflecting strong customer relationships and resilience.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with limited review by statutory auditors and no exceptional items reported.

Financial highlights

• Q2 FY26 consolidated revenue: ₹111.05 Cr, up 16% YoY and 31% QoQ; EBITDA: ₹26.06 Cr, up 23% YoY and 65% QoQ; EBITDA margin at 23.47%.

• Q2 FY26 PAT: ₹14.23 Cr, up 4% YoY and 99% QoQ; PAT margin 12.82%.

• H1 FY26 revenue: ₹195.21 Cr, up 5% YoY; EBITDA: ₹41.87 Cr, margin 21.79%.

• Cash PAT for Q2: ₹20.33 Cr, up 26% YoY and 55% QoQ.

• Consolidated net profit for Q2 FY26 was ₹1,423.36 lakhs; total comprehensive income for H1 FY26 was ₹2,140.05 lakhs.

Outlook and guidance

• Margins expected to remain in the 21%-22% range for coming quarters; liquid cooling business to contribute to revenue from Q3 onwards.

• Capacity expansion underway for hoses, assemblies, and metal bellows, targeting completion by March 2026.

• Targeting mid to high teens (15%-20%) CAGR in revenue over the next few years, contingent on tariff relief.

• Focus on value-added products, new product development, and geographic diversification.

• Results reviewed and approved by the board, with no material misstatements identified by auditors.