Aeroflex Industries reported its highest-ever quarterly performance for Q1FY27, with consolidated net profit after tax (PAT) surging 162% year-on-year to ₹18.79 crore. The sharp profitability expansion was driven by a 72% jump in total income to ₹145.97 crore, fueled by accelerating demand for liquid cooling solutions in data centers and broad-based growth in core stainless-steel hose segments. This result underscores the company’s successful pivot toward high-value AI infrastructure components.

The Board of Directors approved the unaudited results on July 27, 2026. Statutory auditors Shweta Jain & Co LLP issued an unmodified limited review opinion. The company also appointed M/s. Kailash Chand Jain & Co. as Tax Auditor for FY26–27. Managing Director Asad Daud attributed the growth to strong execution across domestic and international markets, highlighting that SFN skid assemblies alone generated ₹32.4 crore in revenue during the quarter.

Financial Performance Highlights

Consolidated EBITDA more than doubled to ₹33.49 crore from ₹15.48 crore in Q1FY26, expanding the margin by 468 basis points to 23.04%. Standalone PAT also rose significantly by 150% to ₹19.06 crore, with standalone revenue reaching ₹139.01 crore. Cash profit grew 103% to ₹26.64 crore, reflecting robust operational cash generation.

Liquid Cooling and Capacity Expansion

The rapid adoption of AI workloads is driving a shift from air cooling to liquid cooling systems. Aeroflex’s SFN skid assemblies, critical for this infrastructure, saw volume surge to 1,040 units in Q1FY27, up from just 46 units in Q3FY26. To meet this pipeline, the company has expanded its skid assembly capacity from 6,000 to 9,000 units per annum, with plans to scale further to 15,000 units by Q3FY27. Additionally, capacity for stainless-steel flexible hoses is set to increase from 17.5 million meters to 20.0 million meters annually.

Revenue Mix and Geographic Shifts

Domestic revenue share increased to 42% from 28% in Q1FY26, growing 163% year-on-year, while exports declined slightly to 58% of the mix despite absolute growth of 43%. Within exports, Europe’s share rose to 33% from 23%, indicating diversification beyond the Americas. The product mix also shifted, with Assemblies & Others rising to 41% of revenue, while traditional SS Flexible Hoses accounted for 37%.

What the Numbers Show

The disproportionate rise in net profit (162%) relative to revenue growth (72%) demonstrates significant operating leverage as fixed costs are spread over higher volumes. The emergence of SFN skid assemblies as a 23% revenue contributor in a single quarter highlights a structural shift in the business model toward higher-margin, value-added data center solutions. This transition is supported by strategic partnerships with global digital infrastructure providers and sustained R&D investment in leak-free, precision-engineered cooling systems.

Aeroflex Industries Limited received disclosures from its promoter group entities, Aeroflex Enterprises Limited and Italica Global F.Z.C, regarding their shareholding status as on March 31, 2026. The filings, submitted in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, detail the equity shares held by the promoters and confirm that no shares were encumbered during the financial year ended March 31, 2026.

Aeroflex Enterprises Limited, formerly known as SAT Industries Limited, declared holding 7,91,81,833 equity shares. Harikant Turgalia, Whole Time Director & CFO, signed the disclosure on behalf of the entity on April 3, 2026. The company confirmed that it had not made any encumbrance of shares, either directly or indirectly, during the specified period.

Shareholding Details

The following table outlines the shareholding disclosed by the promoter group entities:

Italica Global F.Z.C disclosed its holding of 74,54,830 equity shares in a separate filing. Asad Daud, Director, signed the declaration on April 3, 2026. The entity also affirmed that no encumbrance was created on the shares during the financial year.

Ruthu Parampogi, Company Secretary & Compliance Officer of Aeroflex Industries Limited, submitted the consolidated disclosures to the stock exchanges on April 4, 2026. The filings were addressed to BSE Limited and National Stock Exchange of India Limited for their records.