Aeroflex Industries (AEROFLEX) Q3 24/25 earnings summary

Executive summary

• Q3 and nine-month FY25 saw strong growth, with Q3 total income at ₹100.37 Cr (up 35% YoY), EBITDA at ₹22.27 Cr (up 48% YoY), and PAT at ₹15.21 Cr (up 68% YoY); nine-month income was ₹286.95 Cr (up 18%), EBITDA ₹62.57 Cr (up 25%), and PAT ₹41.28 Cr (up 30%).

• Growth was driven by a strategic shift to assemblies, increased domestic project-based sales, and sustained demand from oil, gas, and steel sectors.

• Assembly business contributed 49.2% of nine-month sales, achieving the target ahead of schedule.

• Major expansion plans in S S Hose & Braiding and Metal Bellows divisions, with significant capacity increases and new product introductions.

• Appointment of new COO with 37+ years of industry experience to drive global expansion.

Financial highlights

• Q3 FY25 EBITDA margin was 22.18% (up 199 bps YoY); PAT margin at 15.15% (up 299 bps YoY); nine-month EBITDA margin at 21.80% and PAT margin at 14.38%.

• Hyd-Air subsidiary posted ₹3 crore revenue and ₹36 lakh net profit (12% margin) in Q3.

• Assembly business margins: 22%-25%; hose business: 15%-19%; miniature metal bellows: 30%-35%.

• EPS for Q3 FY25 was ₹1.18; for nine months, ₹3.19.

• Company remains debt-free.

Outlook and guidance

• S S Hose & Braiding capacity to increase from 16.5 million to 20 million meters per annum by March 2026; miniature metal bellows capacity of 240,000 pieces annually by March 2026, with total expansion investment of ₹77 crores funded through internal accruals.

• Assembly stations to increase from 40 to 70 within a year.

• EBITDA margin target of 24%-25% by FY27, driven by product mix and new launches.

• Hyd-Air expected to reach ₹40-50 crore annual revenue in the next couple of years.

• Focus on sustainable progress, innovation, and stakeholder value creation through expansion.