Aeroflex Industries (AEROFLEX) Q2 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated financial performance in Q2FY26, surpassing INR 100 crore in revenue, with record EBITDA margins of 23.5%, and strong YoY and QoQ growth in revenue, EBITDA, and cash PAT, despite U.S. tariffs causing shipment deferments but no cancellations.

• Hyd-Air subsidiary contributed significantly, turning profitable and validating recent capex investments, with Q2 revenue of ₹9 crore and repeat orders in liquid cooling solutions.

• Secured repeat orders for advanced flow control components in high-performance liquid cooling systems for data centers, marking a strategic breakthrough.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with limited review by statutory auditors and no exceptional items reported.

Financial highlights

• Q2FY26 total revenue: ₹111.05 Cr, up 16% YoY and 31% QoQ; EBITDA: ₹26.06 Cr, up 23% YoY and 65% QoQ; EBITDA margin at 23.47%; PAT: ₹14.23 Cr, up 4% YoY and 99% QoQ; PAT margin at 12.82%.

• H1FY26 revenue: ₹195.72 Cr, up 5% YoY; EBITDA: ₹41.87 Cr (margin 21.79%); PAT: ₹21.4 Cr (margin 10.93%).

• Cash PAT for Q2: ₹20.33 Cr, up 26% YoY and 55% QoQ.

• Consolidated net profit for Q2 FY26 was ₹1,423.36 lakhs; standalone net profit was ₹1,365.06 lakhs.

• Total comprehensive income for H1 FY26 was ₹2,140.05 lakhs (consolidated) and ₹2,127.35 lakhs (standalone).

Outlook and guidance

• Margins expected to remain in the 21%-22% range for coming quarters, with liquid cooling business to start contributing to revenue from Q3 and further growth anticipated.

• Management targets mid to high teens revenue growth CAGR over the next few years, contingent on tariff relief.

• Capacity expansion underway for hoses, assemblies, and metal bellows, targeting completion by March 2026.

• Focus remains on value-added products, margin optimization, capacity utilization, and geographic diversification.

• Results reviewed and approved by the board, with no material misstatements identified by auditors.