Aeroflex Industries Limited , a prominent player in the industrial sector, has announced significant changes to its board composition following shareholder approval at its Annual General Meeting (AGM) held on August 5, 2025.

Board Restructuring

The company's shareholders have given their nod to the re-appointment of two directors, reinforcing the leadership team at Aeroflex Industries:

1. Mr. Parthasarathi Sarkar: Re-appointed as Non-Executive Independent Director for a second term of five years, effective from September 3, 2025, to September 2, 2030.

2. Mr. Mustafa Kachwala: Re-appointed as Whole-Time Director for a three-year term, from April 1, 2026, to March 31, 2029.

Both appointments were based on recommendations from the Nomination and Remuneration Committee and the Board of Directors, highlighting the company's commitment to maintaining strong corporate governance practices.

Director Profiles

Mr. Parthasarathi Sarkar

• Holds an MBA from IIM Ahmedabad and a B.Tech from IIT Delhi
• Extensive experience includes roles at Unilever and Tata Administrative Services
• Currently runs P. Sarkar Associates, a management consulting business focusing on acquisitions and financial restructuring

Mr. Mustafa Kachwala

• Associated with Aeroflex Industries since 2010
• Oversees the company's financial affairs as Whole-Time Director

AGM Highlights

The 31st AGM of Aeroflex Industries Limited was conducted through video conferencing on August 5, 2025. Key points from the meeting include:

• The meeting was chaired by Mr. Asad Daud, Managing Director of the company
• A total of 68 members attended, including 2 from the Promoter and Promoter Group
• Several resolutions were passed, including the adoption of financial statements and declaration of final dividend
• The re-appointment of both Mr. Sarkar and Mr. Kachwala was approved as special business items

Corporate Governance

In line with regulatory requirements, Aeroflex Industries confirmed that neither Mr. Sarkar nor Mr. Kachwala is related to any other director of the company. Furthermore, both directors are not debarred from holding directorship positions by SEBI or any other authority, ensuring compliance with corporate governance norms.

The re-appointment of these experienced directors signals Aeroflex Industries' focus on maintaining a balanced and skilled leadership team to guide the company's future growth and strategic initiatives.

Aeroflex Industries , a leading manufacturer of stainless steel flexible hoses and assemblies, reported a 6% year-on-year decline in total income for Q1, amounting to INR 84.67 crores. The company attributed this dip to external macroeconomic factors, particularly tariff issues affecting export customers.

Financial Performance

Despite the revenue decline, Aeroflex maintained a solid financial position:

• EBITDA stood at INR 15.80 crores with an 18.68% margin
• Profit after tax was INR 7.10 crores, representing an 8.46% margin
• The hoses and assemblies segment continued to deliver strong margins in the range of 22% to 23%

The company's Managing Director, Asad Daud, explained that the revenue decline was primarily due to tariff increases, which rose from 3.5% to 10% for their products. This led to temporary procurement delays from export customers.

Domestic Growth and Market Expansion

While exports faced challenges, Aeroflex's domestic business grew over 30% during the quarter. The company is actively working to diversify its market presence:

• Domestic sales now contribute 28% to overall revenue, up from 15-16% a year ago
• Aeroflex remains the largest exporter of hoses and assemblies from India
• The company is the market leader in both domestic and export markets

Entry into Data Center Cooling Solutions

In a significant move, Aeroflex has entered the next-generation cooling technology market for data center infrastructure:

• Signed a long-term agreement with a U.S. corporation having over USD 50 billion market capitalization
• Received first order worth INR 7.80 crores for providing cooling solutions to data centers
• The order involves developing advanced flow control components for cooling systems
• This marks Aeroflex's entry into a market estimated at $4.40 billion, growing at a CAGR of 20%

Other Business Segments

Aeroflex is also seeing growth in other segments:

• Metal bellows contributed INR 1.30 crores in revenue for Q1
• The company expects metal bellows and Hyd-Air Engineering to contribute 10-15% to overall sales on a yearly basis

Future Outlook

Despite the Q1 challenges, Aeroflex maintains a positive outlook:

• Management expects the tariff impact to be temporary
• The company maintains EBITDA growth guidance of over 20% for the full year
• Margins are expected to normalize at 21-22% as new capacity utilizations improve
• Aeroflex aims to increase EBITDA margins from 20% to 25% over the next 4-5 years

Asad Daud commented, "We remain confident that the impact seen in this quarter will be offset over the remainder of the year. The long-term demand for our products continues to remain strong, and our strategic roadmap is firmly intact."

As Aeroflex Industries navigates through temporary challenges, its entry into the high-growth data center cooling market and strong domestic performance indicate promising opportunities for future growth and diversification.