Aeroflex Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aeroflex Industries Ltd filed with BSE on 11 May 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 Q4 FY26 total income of Rs 126.5 crore, up 38% year-on-year, with EBITDA of Rs 30 crore, up 59%, and a margin of 23.86%. For FY26, total income grew 17% to Rs 443.3 crore, EBITDA rose 26% to Rs 99.7 crore, and PAT was Rs 55.5 crore, with the skid assemblies business contributing about 5% of full-year sales. Management discussed capacity expansion in skid assemblies from 6,000 to 15,000 units per annum, an income tax demand of about Rs 40 crore under appeal, and growth across the hose assemblies, Hyd-Air and metal bellows businesses.
Numbers mentioned
Total income: INR126.5 crores (Q4 FY26)
p. 4
“our total income stood at INR126.5 crores, which is a growth of 38% on a year-on-year basis”
Asad Daud, page 4 of the filed PDF · View the filing
EBITDA: INR30 crores (Q4 FY26)
p. 4
“The EBITDA for the quarter came in at INR30 crores, which is a robust growth of 59% on a year-on-year basis.”
Asad Daud, page 4 of the filed PDF · View the filing
EBITDA margin: 23.86% (Q4 FY26)
p. 3
“We have achieved an EBITDA margin of 23.86% in Q4, which also reflects our strong operating leverage and also is a result of the continued improvement in our product mix.”
Asad Daud, page 3 of the filed PDF · View the filing
PAT: INR17.6 crores (Q4 FY26)
p. 4
“The profit after tax stood at INR17.6 crores, which is a growth of 57% on a year-on-year basis with a PAT margin of almost 14%.”
Asad Daud, page 4 of the filed PDF · View the filing
Cash profit: INR25.4 crores (Q4 FY26)
p. 4
“Our cash profit grew significantly to”
Asad Daud, page 4 of the filed PDF · View the filing
Total income: INR443.3 crores (FY26)
p. 5
“Our total income stood at INR443.3 crores, which is a growth of 17% on a year-on-year basis.”
Asad Daud, page 5 of the filed PDF · View the filing
EBITDA: INR99.7 crores (FY26)
p. 5
“EBITDA stood at almost INR100 crores, INR99.7 crores to be precise, translating to an EBITDA margin of 22.6% and a growth of 26% in value terms on a year-on-year basis.”
Asad Daud, page 5 of the filed PDF · View the filing
PAT: INR55.5 crores (FY26)
p. 5
“Our PAT stood at INR55.5 crores with a PAT margin of 12.5%.”
Asad Daud, page 5 of the filed PDF · View the filing
Skid assemblies sales: 617 units, approximately INR21.2 crores (FY26)
p. 4
“we achieved a strong traction in our skid assemblies business with the sales of 617 skid assemblies, which resulted in an overall sales of approximately INR21.2 crores”
Asad Daud, page 4 of the filed PDF · View the filing
Hyd-Air revenue: INR31.64 crores (FY26)
p. 6
“Hyd-Air's revenue in FY26 was INR31.64 crores.”
Asad Daud, page 6 of the filed PDF · View the filing
Metal bellows revenue: INR8 crores (FY26)
p. 6
“In the current year, on an annual basis, we did about INR8 crores of business from the metal bellows section.”
Asad Daud, page 6 of the filed PDF · View the filing
Domestic sales contribution: 31% (FY26)
p. 5
“The domestic sales contribution has also increased to 31% from 26%, which is mainly driven by the increased traction coming in from the skid assemblies and also from Hyd-Air.”
Asad Daud, page 5 of the filed PDF · View the filing
Value-added product segment contribution: 52% (FY26)
p. 5
“Our value-added product segment, which includes assemblies and fittings and bellows contributed 52% of the total sales.”
Asad Daud, page 5 of the filed PDF · View the filing
Largest international customer contribution: 25% to 26%
p. 12
“I think our biggest customer in the international market contributes about 25% to 26% of our sales right now.”
Asad Daud, page 12 of the filed PDF · View the filing
Metal bellows ARR: INR12 crores
p. 18
“We are at an ARR right now of about INR12 crores right now at an ARR.”
Asad Daud, page 18 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.
Skid assemblies capacity — 15,000 skids per annum · next two quarters
stated firmly by Asad Daud
p. 4
“we are on track to further expand the same by the next two quarter to 15,000 skids per annum”
Asad Daud, page 4 of the filed PDF · View the filing
Skid assemblies capacity utilization — 60% to 70% · March of next year
stated as an aspiration by Asad Daud
p. 10
“Well, our target would be that by the end of the financial year to reach -- to reach to at least 60% to 70%.”
Asad Daud, page 10 of the filed PDF · View the filing
Revenue at 75% skid capacity utilization — INR325 crores to INR330 crores
stated conditionally by Asad Daud
p. 12
“could be the peak, we can expect a total revenue for the business to come in at about INR325”
Asad Daud, page 12 of the filed PDF · View the filing
Skid assemblies contribution to business — 20% to 22% · FY27
stated as an aspiration by Asad Daud
p. 18
“20% to 22% contribution of the entire business would be through skid assemblies.”
Asad Daud, page 18 of the filed PDF · View the filing
Metal bellows capacity utilization — 50% to 60% · two to three years
stated as an aspiration by Asad Daud
p. 18
“Yes, that's the target between two to three years, yes.”
Asad Daud, page 18 of the filed PDF · View the filing
Metal bellows peak revenue — INR80 crores
stated as an aspiration by Asad Daud
p. 18
“I think at the peak utilization of the metal bellows, I think we would reach about INR80 crores at the top utilization, the maximum utilization.”
Asad Daud, page 18 of the filed PDF · View the filing
Overall EBITDA margin — around 23% · FY27
stated as an aspiration by Asad Daud
p. 17
“I think this year, the full year target is to have an EBITDA margin of around 23% in terms of EBITDA.”
Asad Daud, page 17 of the filed PDF · View the filing
EBITDA margin (medium term) — about 25% annually · next couple of years
stated as an aspiration by Asad Daud
p. 17
“our aim is that ultimately, over the next couple of years, the EBITDA margin should reach to about 25% annually”
Asad Daud, page 17 of the filed PDF · View the filing
Overall business growth — about 35% · FY27
stated as an aspiration by Asad Daud
p. 20
“you can say about 35-odd percent growth is something that we are looking at in the financial year FY '26.”
Asad Daud, page 20 of the filed PDF · View the filing
Base business growth — 15% to 20% · FY27
stated as an aspiration by Asad Daud
p. 20
“Base business growth would be somewhere in the range of about 15% to 20%.”
Asad Daud, page 20 of the filed PDF · View the filing
Skid assemblies international supply — current financial year
stated as an aspiration by Asad Daud
p. 15
“our aim is to have or to start at least some supply of skid assemblies in the international market in the current financial year”
Asad Daud, page 15 of the filed PDF · View the filing
Average selling price per skid — INR3 lakhs to INR3.25 lakhs
stated conditionally by Asad Daud
p. 17
“I think INR3 lakhs to INR3.25 lakhs would be an average that we can consider in terms of the average selling price for skid assembly.”
Asad Daud, page 17 of the filed PDF · View the filing
Annealing furnace facility commissioning — end of this year
stated firmly by Asad Daud
p. 4
“we are also investing in advanced manufacturing capabilities, including a new annealing furnace facility targeted for commissioning by the end of this year”
Asad Daud, page 4 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.
Management said due to disclosure agreements with their exclusive supplier they could not share the order book but had visibility for the year.
Answered by Asad Daud
Asked by Nikunj Bhanushali: What is the order book for liquid cooling skids currently?
p. 6
“since right now, we are dealing with one specific or only one particular supplier due to disclosure agreements, we'll not be able to share the order book with them that we have”
Asad Daud, page 6 of the filed PDF · View the filing
Management said peak utilization would be 75% to 80%.
Answered by Asad Daud
Asked by Nikunj Bhanushali: What planned utilization levels for the 15,000 skid capacity?
p. 6
“So I would say the maximum utilization that we can do of the capacity would be about 75% to 80% at the peak level.”
Asad Daud, page 6 of the filed PDF · View the filing
Management clarified exports did not decline in value, only the ratio changed because domestic grew faster.
Answered by Asad Daud
Asked by Raman K.V.: Has the export share declined to a new 60-40 domestic-export normal?
p. 7
“No, I would just like to clarify, export has not decreased. The ratio has changed.”
Asad Daud, page 7 of the filed PDF · View the filing
Management estimated the TAM at about $3 billion growing to $21 billion in 5-6 years, and that liquid cooling is about 10-11% of data center cost.
Answered by Asad Daud
Asked by Karan Gupta: What is the total addressable market for liquid cooling in data centers?
p. 8
“Right now, it's about -- I think we are about INR3-odd billion right now and which is expected to grow to almost about INR21 billion in the next 5 to 6 years.”
Asad Daud, page 8 of the filed PDF · View the filing
Management estimated Rs 325-330 crore in revenue at 75% peak utilization, but declined to translate this into megawatt terms.
Answered by Asad Daud
Asked by Saumil Jain: What revenue can 15,000 skids at full utilization generate?
p. 12
“we can expect a total revenue for the business to come in at about INR325 crores to about INR330-odd crores”
Asad Daud, page 12 of the filed PDF · View the filing
Management explained the demand relates to a loan interest waiver from a stressed-company acquisition and expressed confidence the appeal would succeed.
Answered by Asad Daud
Asked by Shwetha: Is there an income tax demand of around Rs 40 crore and how confident is management on the appeal?
p. 14
“we are confident that this is something, which will be -- which would come in our favor in the appeal that we are going to file”
Asad Daud, page 14 of the filed PDF · View the filing
Management gave an average selling price range and said it varies by data center design specifications.
Answered by Asad Daud
Asked by Akshay: What is the average selling price for skid assemblies and how might it evolve?
p. 17
“I think INR3 lakhs to INR3.25 lakhs would be an average that we can consider in terms of the average selling price for skid assembly.”
Asad Daud, page 17 of the filed PDF · View the filing
Management said current utilization is very low, below 20%, with a target of 50-60% utilization in two to three years and peak revenue potential of about Rs 80 crore.
Answered by Asad Daud
Asked by Maitri Shah: How is metal bellows utilization and revenue expected to scale?
p. 18
“Very low. I do not have the exact figures, but yes, I think extremely low and so less than 20%.”
Asad Daud, page 18 of the filed PDF · View the filing
Management said the tariff on their products had been reduced from mid-February and was currently in the 10-15% range.
Answered by Asad Daud
Asked by Muskan: What is the impact of the Section 232 tariff on the business?
p. 19
“So right now, the tariff on our products has been lowered. We don't have any issues with tariffs as I speak.”
Asad Daud, page 19 of the filed PDF · View the filing
Management said margins could improve if the company moves into higher-end industries such as aerospace and AI infrastructure, though it depends on the industry entered.
Answered by Asad Daud
Asked by Jai Chauhan: Can metal bellows margins move above the current guided 28-30% range?
p. 20
“Obviously, as we move our products into higher end, for example, applications such as AI infrastructure, data center, plus also some kind of ancillary to aerospace industries, definitely margins over there are much higher than other conventional industries.”
Asad Daud, page 20 of the filed PDF · View the filing
Risks flagged
Design and customer quality audit bottlenecks slowing skid assembly production versus demand
p. 10
“So there is a very, very stringent and very detailed quality check that has been conducted -- that are conducted by each and every customer and every customer have their own unique way of doing the audits.”
Asad Daud, page 10 of the filed PDF · View the filing
US tariff and geopolitical issues affecting the metal bellows and US business during the year
p. 18
“the tariff actually paid us as points for specifically for the metal bellows business because that was a new vertical for the company”
Asad Daud, page 18 of the filed PDF · View the filing
Geopolitical situation in West Asia affecting exports
p. 7
“exports has also increased in double digits in Q4 despite the fact of the entire situation that you are seeing, which is happening in West Asia”
Asad Daud, page 7 of the filed PDF · View the filing
Longer sales cycle in metal bellows business compared to other products
p. 18
“Metal bellows definitely has the best margins as compared in relation to all our products, but the sales cycle in metal bellows is slightly longer as compared to our other products.”
Asad Daud, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.