Aeroflex Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aeroflex Industries Ltd filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aeroflex Industries reported consolidated Q1 FY27 revenue of INR145.97 crores, up 72.4% year-on-year, with EBITDA of INR33.5 crores and PAT of INR18.79 crores. Growth was driven by both the core flexible hose business, which grew 41% year-on-year, and the SFN skid assemblies business for data centre liquid cooling, which contributed INR32.4 crores or about 23% of revenue. Management discussed capacity expansion plans for both skid assemblies and flexible hoses, along with margin trends and international business development.
Numbers mentioned
Consolidated revenue: INR145.97 crores (Q1 FY27)
p. 3
“Our consolidated revenue for Q1 FY27 stood at INR145.97 crores, which is an increase of 72.4% on a year-on-year basis, with growth coming in both from our core business as well as our emerging businesses.”
Asad Daud, page 3 of the filed PDF · View the filing
Flexible hose business growth: 41% (Q1 FY27 Y-o-Y)
p. 3
“Our flexible hose business grew 41% on a Y-o-Y basis and the assemblies and other value-added products grew even at a faster pace.”
Asad Daud, page 3 of the filed PDF · View the filing
SFN Skid Assemblies revenue: INR32.4 crores (Q1 FY27)
p. 3
“Revenue from SFN Skid Assemblies reached INR32.4 crores in this quarter, which is contributing to approximately 23% of the total revenue.”
Asad Daud, page 3 of the filed PDF · View the filing
EBITDA: INR33.5 crores (Q1 FY27)
p. 3
“Our EBITDA stood at INR33.5 crores, which is up by 116% on a year-on-year basis with margins expanding by 468 basis points as compared to the same quarter in last year to 23.04%.”
Asad Daud, page 3 of the filed PDF · View the filing
Profit after tax: INR18.79 crores (Q1 FY27)
p. 4
“Our profit after tax stood at INR18.79 crores, which is up 162% on a year-on-year basis.”
Asad Daud, page 4 of the filed PDF · View the filing
PAT margin: about 13% (Q1 FY27)
p. 4
“And our PAT margin currently stands at about very close to 13%, which is an improvement of 440 basis points from last year same quarter.”
Asad Daud, page 4 of the filed PDF · View the filing
Cash profit: INR26.64 crores (Q1 FY27)
p. 4
“Our cash profit grew by more than 100% to INR26.64 crores with cash profit margin improving by 278 basis points to 18.25%, which reflects strong operating leverage and improved cash conversions and profitability across our various business verticals.”
Asad Daud, page 4 of the filed PDF · View the filing
Export growth: 43% (Q1 FY27 Y-o-Y)
p. 4
“Our exports grew by 43% on a year-on-year basis and the higher contribution from the domestic market in this quarter was primarily driven by the rapid scale-up and supply of the liquid cooling solutions, the skid assemblies of the liquid cooling solutions.”
Asad Daud, page 4 of the filed PDF · View the filing
Hyd-Air revenue: around INR7 crores (Q1 FY27)
p. 6
“Yes. So, the revenue from Hyd-Air in the last quarter was around INR7 crores.”
Asad Daud, page 6 of the filed PDF · View the filing
Metal bellows revenue: about INR3 crores (Q1)
p. 6
“And the revenue from the metal bellows was about INR3 crores in this quarter, in Q1.”
Asad Daud, page 6 of the filed PDF · View the filing
Flexible hose capacity utilization: 65% to 66% (current)
p. 5
“Okay. So currently, we are operating at about between 65% capacity utilization -- right now, 65% to 66% capacity utilization.”
Asad Daud, page 5 of the filed PDF · View the filing
Skid assembly volume: 1,040 units (Q1 FY27)
p. 13
“The volume was 1,040. It is mentioned in the presentation also.”
Asad Daud, page 13 of the filed PDF · View the filing
Skid assembly capex budget: INR48 crores
p. 10
“So, the entire capex would be utilized to increase the capacity from 2,000 to 15,000.”
Asad Daud, page 10 of the filed PDF · View the filing
Flexible hose capex budget: INR54 crores
p. 10
“And the budgeted capex for the same for the entire was around INR54 crores.”
Asad Daud, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Flexible hose peak revenue potential — INR650 crores to INR675 crores
stated conditionally by Asad Daud
p. 5
“With the -- at the peak utilization and assuming that 70% of the sales comes in from the assemblies, we are looking at a top line of anywhere between INR650 crores to INR675 crores.”
Asad Daud, page 5 of the filed PDF · View the filing
Blended EBITDA margin — 25% · next few years
stated as an aspiration by Asad Daud
p. 5
“So, the target for the company overall is to achieve an EBITDA margin of 25% in the next few years, and we are right now on track to achieve that.”
Asad Daud, page 5 of the filed PDF · View the filing
Skid assembly capacity expansion — 15,000 units per annum · Q3 FY27
stated firmly by Asad Daud
p. 9
“And based on their projections at that time, we have built up the capacity to 9,000 now and to complete the 15,000 by the start of Q3.”
Asad Daud, page 9 of the filed PDF · View the filing
Flexible hose capacity expansion — 20 million meters per annum · Q3 FY27
stated firmly by Asad Daud
p. 3
“On the flexible hoses vertical, we have planned to increase the production from 17.5 million meters per annum currently to 20 million meters per annum and it should be completed by Q3 of this financial year.”
Asad Daud, page 3 of the filed PDF · View the filing
Skid capacity utilization — 80% optimal utilization · FY28
stated conditionally by Asad Daud
p. 11
“Yes, once it is commissioned, we expect it to be up and running and then to be utilized at the optimum level in the next financial year.”
Asad Daud, page 11 of the filed PDF · View the filing
Fire hose assembly commercialization — end of this quarter or start of next quarter
stated firmly by Asad Daud
p. 7
“Yes. So that product is already almost towards the end of completion, should be commercialized by the end of this quarter or latest by the start of next quarter.”
Asad Daud, page 7 of the filed PDF · View the filing
International skid business orders — this financial year
stated firmly by Asad Daud
p. 9
“Yes. So, we are definitely on track. And in this financial year, we'll definitely have business coming in from international market.”
Asad Daud, page 9 of the filed PDF · View the filing
Beyond 15,000 skid capacity expansion
stated conditionally by Asad Daud
p. 9
“Now in terms of the further expansion and beyond 15,000, they're under discussion, but it's too early for me to comment right now on this until and unless something is finalized and then I will -- I shall share the same.”
Asad Daud, page 9 of the filed PDF · View the filing
Q4 skid utilization run rate — 750 skids per month · Q4 FY27
stated conditionally by Asad Daud
p. 12
“So as of now, how the things are playing up, we feel that, that is intact.”
Asad Daud, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Growth is coming from multiple European countries and includes data centre application exports as well.
Answered by Asad Daud
Asked by Shwetha: What is driving the spurt in European revenue this quarter?
p. 4
“From Europe, it's a mixture of the business growth coming in from various countries, which includes Italy, Spain, France and also the U.K.”
Asad Daud, page 4 of the filed PDF · View the filing
Few domestic competitors have started; internationally, Senior and Parker are also entering the space along with US and European local players.
Answered by Asad Daud
Asked by Karan Dhole: Who are the domestic and international competitors in skid assemblies?
p. 5
“So, in international market, there are companies in the U.S., there are companies in Europe who are manufacturing of these SFN skid assemblies, plus also our competitors such as Senior and Parker are also into this.”
Asad Daud, page 5 of the filed PDF · View the filing
Margins vary by product type, ranging 16-20% for hoses and 22-26% for assemblies, with an overall 25% blended target.
Answered by Asad Daud
Asked by Raman: What is the flexible hose assembly margin range and progress toward the 25% target?
p. 6
“So, the margins in the flexible hose business depends on the products. So, when we sell the flexible hose just in the hose form, margins range between 16% to 20%. And when we sell the assemblies, the margins range anywhere between 22% to 26% margins.”
Asad Daud, page 6 of the filed PDF · View the filing
Price varies by design and piping complexity per project, not due to competition, and does not impact margins as each skid is separately costed.
Answered by Asad Daud
Asked by Shubhi Gupta: Why has the average skid assembly price declined, and does it affect margins?
p. 7
“No, it does not impact our margins because the costing for every skid assembly depending on the design is done separately.”
Asad Daud, page 7 of the filed PDF · View the filing
Management deferred commenting until year-end since the target is annual, not quarterly.
Answered by Asad Daud
Asked by Prem Luniya: Is the 25% SFN revenue contribution target for the year still being reiterated given Q1 already at 22%?
p. 8
“Well, I think I would talk about this at the end of the year because like I mentioned, it is the plan for the end of the year.”
Asad Daud, page 8 of the filed PDF · View the filing
Skid business margins are broadly in line with the company's overall blended average.
Answered by Asad Daud
Asked by Tej Patel: What margins are being made on the skid business this quarter?
p. 10
“See, the margins on the skid business is on a blended -- on the same level as the margins on an average for the entire company as a whole.”
Asad Daud, page 10 of the filed PDF · View the filing
Total capex for expanding from 2,000 to 15,000 skids is INR48 crores, with an exact split between stages difficult to isolate.
Answered by Asad Daud
Asked by Deepak Poddar: What is the capex for skid capacity expansion from 9,000 to 15,000?
p. 10
“So, the overall capex, the plan was to increase the capacity. Yes. The plan is to increase the overall capacity from 2,000 skids per annum to 15,000 skids per annum. And for that, we have budgeted the capex of INR48 crores.”
Asad Daud, page 10 of the filed PDF · View the filing
Management said the guidance remains intact for now but will have better clarity closer to Q3.
Answered by Asad Daud
Asked by Nirvana Laha: Is the Q4 exit run rate guidance of 750 skids per month intact?
p. 12
“So as of now, how the things are playing up, we feel that, that is intact.”
Asad Daud, page 12 of the filed PDF · View the filing
Margin decline was attributed to investment in team expansion, new facility setup, and increased logistics costs from the West Asia crisis.
Answered by Asad Daud
Asked by Omkar Chachad: Why did margins decline sequentially despite skid volumes doubling?
p. 14
“So that is also a cost which has seen a significant increase, specifically in Q1 because the real impact of the West Asia crisis started to begin at the -- towards the middle of March and then it became more and more severe in Q1.”
Asad Daud, page 14 of the filed PDF · View the filing
Approximately 40 skids go into one megawatt on average.
Answered by Asad Daud
Asked by Yash Jhurani: How many skids are needed per megawatt of liquid-cooled IT load?
p. 15
“About 40-odd skids go into 1 megawatt on an average.”
Asad Daud, page 15 of the filed PDF · View the filing
Hyd-Air components are not currently used in SFN due to different technology and are for internal use only, feeding into hose assemblies.
Answered by Asad Daud
Asked by Muskan: Are Hyd-Air components used in SFN skids, and is Hyd-Air for internal or external supply?
p. 16
“So right now, Hyd-Air -- in terms of the SFN, we cannot -- Hyd-Air is not supplying components for SFN because the components for SFN are made with a different technology.”
Asad Daud, page 16 of the filed PDF · View the filing
Risks flagged
Delays from external machine suppliers affecting capacity commissioning timeline
p. 11
“So difficult to tell an exact because it depends on our machine supplier because from where we are facing certain delays from their end.”
Asad Daud, page 11 of the filed PDF · View the filing
Customer design approval delays can hold up production
p. 11
“So that is where sometimes the delay happens where a lot of the time, the designs are not approved by the customers.”
Asad Daud, page 11 of the filed PDF · View the filing
Increased logistics costs due to the West Asia crisis impacting expenses
p. 14
“So that is also a cost which has seen a significant increase, specifically in Q1 because the real impact of the West Asia crisis started to begin at the -- towards the middle of March and then it became more and more severe in Q1.”
Asad Daud, page 14 of the filed PDF · View the filing
Bellows business has not yet reached optimum utilization, weighing on blended margins
p. 12
“because bellows has not yet reached optimum utilization in terms of its positive contribution to the blended margin.”
Asad Daud, page 12 of the filed PDF · View the filing
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