Aeroflex Industries Ltd

Meeting Details

• Date and time: August 19, 2026, 10:00 AM IST onwards
• Type/Mode: 1x1 and group meeting, virtual
• Organised by: Axis Capital's India Corporate Day 2026
• Location: Singapore

Participants

• Key participants: company officials (management)

Purpose

• Purpose: investor/analyst interaction during Axis Capital India Corporate Day 2026

Meeting Details

• Date and time: August 18, 2026, 10:00 AM IST onwards.
• Type of interaction: 1x1 and group meetings; mode: physical in Mumbai.
• Organised by: Motilal Oswal 22nd Annual Global Investor Conference.
• Location: Mumbai.

Participants

• Key company participants: management officials, including Company Secretary & Compliance Officer.

Purpose

• Purpose: investor and analyst interactions during the conference.

Additional Notes

• Public documents will be referred to during discussions.
• No UPSI is intended to be discussed.

Financial Performance

• Q1 FY27 consolidated revenue was INR 145.97 crores, up 72.4% YoY.
• EBITDA was INR 33.5 crores; margin 23.04%, up 116% YoY, 468 bps expansion.
• PAT was INR 18.79 crores; PAT margin ~13% (440 bps higher).
• Cash profit INR 26.64 crores; cash profit margin 18.25%.
• Exports grew 43% YoY; domestic demand driven by liquid cooling skid assemblies.

Operating Update

• Skid assemblies capacity expanded to 9,000 units per annum; plan to reach 15,000 by start of Q3.
• Flexible hoses capacity to 20 million meters per annum; completion by Q3 FY27.
• Fire hose assemblies for data centres nearing commercialization; commercialized end of this quarter or start of next.
• Hyd-Air revenue last quarter INR 7 crores; metal bellows INR 3 crores; uptick expected.
• Margins in flexible hose form 16-20%; assemblies 22-26%.
• Q1 revenue mix: ~63% fittings/assembly; ~37% flexible hose.
• SFN skid revenue in Q1: INR 32.4 crores; volume 1,040.
• West Asia logistics costs rose; impacted Q1.
• Q2 margins expected around 23%.
• 15,000 skid capacity expected by Oct–Nov; exact month uncertain.
• Q4 exit run-rate guidance: ~750 skids per month; remains intact.
• FY28 target: 80% utilization for the expanded capacity.

Capex and Projects

• Capex for skid capacity expansion INR 48 crores.
• Capex for flexible hoses expansion INR 54 crores; remaining in FY27.
• Some expenditure incurred in FY25/26; remaining to complete in FY27.
• Some skid equipment reusable for bellows and other flow-control applications.

Outlook and Guidance

• 15,000 skid capacity available by start of Q3.
• FY28 target: 80% utilization for the expanded capacity.
• Target EBITDA margin of 25% over the next few years.
• Fire hose commercialization timeline and international orders remain in progress.

Q&A Highlights

• Q3 timing for 15,000 skid capacity due Oct–Nov; month uncertain.
• International skid opportunities exist; designs vary; some orders expected in Europe/USA.
• Skid margins are blended with company-wide margins; exact numbers not disclosed.
• SFN skid value in Q1 was INR 32.4 crores; volume 1,040.
• Hyd-Air components used for hose assemblies; not supplied to third parties.

Business Overview

• Leading manufacturer of metallic flexible flow solutions with growing data-center liquid cooling exposure.
• Strategic shift towards liquid cooling aligns with AI infrastructure demand.
• Diverse product portfolio includes SS hoses, assemblies, SFN skid assemblies.

Operational Highlights

• Q1FY27 revenue Rs 145.97 crore, up 72.4% YoY.
• EBITDA Rs 33.49 crore; EBITDA margin 23.04%.
• PAT Rs 18.79 crore; PAT margin 12.87%.
• SFN skid assemblies revenue Rs 32.4 crore.
• Skid-assembly capacity expanded to 9,000 p.a.; target 15,000.
• SS Flexible Hoses capacity 17.5 mn meters; target 20 mn by Q3 FY27.
• Exports accounted for 59% of revenue in Q1FY27.
• India data-center market expansion supported by cloud adoption and investments.
• Hose capacity to 20 million meters per annum by Q3 FY27.
• Liquid cooling skid assemblies capacity to 15,000 per annum.

Financial Performance

• Total income Rs 145.97 crore; YoY growth 72.4%.
• Cash profit Rs 26.64 crore; cash profit margin 18.25%.
• PAT Rs 18.79 crore; PAT margin 12.87%.
• EPS Rs 1.42.
• EBITDA margin 23.04% (+468 bps YoY).
• PAT margin 12.87% (+441 bps YoY).
• Quarterly revenue growth YoY 72.4%; QoQ 15.5%.

Capital Structure & Liquidity

• No capital-structure changes disclosed for the quarter.
• Strong cash generation evidenced by cash profit.

Strategic Priorities & Outlook

• Focus on liquid cooling solutions for AI data centers.
• Expand data-center liquid cooling capacity; leverage 9+ GW India pipeline.
• ERP and Salesforce CRM integrations to create a connected value chain.
• Strategic partnerships with global digital infrastructure suppliers.

Risks & Mitigation

• Risks include earnings volatility, growth management, competition, macro, talent retention, delays, regulatory changes.

Governance & Leadership

• MD-led management; independent directors from Tata Group, Ashok Leyland, Senior India.
• Great Place to Work certification 2025-26.
• NABL-accredited R&D lab; in-house design and development.
• ERP/CRM transformations to unify data and improve decisions.
• Strategic customer partnerships; supplier to leading digital infrastructure provider.

Utilisation of funds

• Purpose: Confirmation that there is no deviation in use of funds raised.
• Mode: Preferential equity issue.
• Date of fund-raising: disclosed in the filing.
• Amount raised: disclosed as proceeds of preferential issue.
• Deviation: No deviation observed in use of funds.
• Monitoring: Not Applicable.
• Audit Committee: No comments.
• Objects/allocations: unchanged; no variation.
• Utilisation status: Partly utilised; unutilised balance remains.

Financial results

• Board approves unaudited standalone and consolidated results for quarter ended 30 Jun 2026.
• Standalone Q1 FY27 revenue from operations Rs 13,901.13 lakh; PAT Rs 1,905.89 lakh.
• Standalone Q1 FY27 PBT Rs 2,615.97 lakh; total comprehensive income Rs 1,905.89 lakh.
• No exceptional items in the quarter.
• Results prepared under Ind AS with limited review reports attached.

Consolidated results & coverage

• Consolidated results include Hyd-Air Engineering Pvt Ltd; reviewed by other auditors.
• SEBI Listing Regulations compliance; no material misstatement per reviewer.

Capex & capacity

• SFN skid assembly capacity expanded to 9,000 pieces per annum.

Corporate actions

• Tax auditor appointed for FY 2026-27: Kailash Chand Jain & Co.
• Appointment date: 27 July 2026.

Other details

• Single-segment manufacturing; no segment reporting.

Summary

• No dematerialisation/rematerialisation requests were received during the reporting quarter.
• Securities dematerialised have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical dematerialisation certificates were mutilated and cancelled after due verification.
• Depository name substituted as registered owner in the records within prescribed timelines.
• Securities received from depository participants for dematerialisation were confirmed to the depositories.