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Aeroflex Industries reported healthy Q1FY27 performance

ICICIdirect Research 28 Jul 2026 DISCLAIMER

News: Aeroflex Industries reported healthy Q1FY27 performance, with consolidated revenue from operations increasing 72.4% YoY to ₹145.4 crore. EBITDA grew 116.4% YoY to ₹33.5 crore, while EBITDA margin expanded 468 bps YoY to 23.0%. PAT surged 162.2% YoY to ₹18.8 crore, with PAT margin improving 441 bps YoY to 12.9%. The liquid cooling solutions business continued its rapid scale-up, with skid assembly revenue rising to ₹32.4 crore, supported by the sale of 1,040 skids at an average realisation of ₹3.11 lakh per skid, compared with 571 skids and ₹18.9 crore revenue in Q4FY26.

View: Aeroflex's growth momentum remains strong, supported by rapid scaling of its liquid cooling solutions business and healthy demand across both domestic and export markets. SFN skid assembly revenue increased to ₹32.4 crore in Q1FY27 from ₹18.9 crore in Q4FY26 and ₹2.3 crore in Q3FY26, highlighting strong adoption of its AI-driven data centre cooling solutions. To support this demand, the company has already expanded skid assembly capacity from 6,000 to 9,000 skids per annum and plans to further increase it to 15,000 skids per annum by Q3FY27. The core business also remained healthy, with stainless-steel flexible hoses growing 40.5% YoY and assemblies & other value-added products increasing 37.0% YoY. Management remains confident of sustaining growth, supported by the structural shift towards liquid cooling, expanding hyperscale data centre investments and continued capacity expansion. Key monitorables remain timely capacity ramp-up, execution of the liquid cooling opportunity and margin sustainability. 

Impact: Positive

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