Aeroflex Industries (AEROFLEX) Q3 24/25 earnings summary

Executive summary

• Achieved 35% year-on-year growth in Q3 total income and 48% growth in EBITDA, with EBITDA margins reaching 22% for both Q3 and the nine-month period.

• Assembly business contributed 49% to total sales for the nine months, reaching the target a year ahead of schedule, with assembly sales growing 101.4% YoY in Q3 FY25.

• Expanded production capacity for stainless steel hose and braiding to 16.5 million meters and initiated production in the metal bellows division.

• Appointed a new COO with over 37 years of industry experience to drive professionalization and global expansion.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 total income: ₹100.37 Cr, up 35% YoY; EBITDA: ₹22.27 Cr, up 48% YoY (margin 22.18%); PAT: ₹15.21 Cr, up 68% YoY (margin 15.15%).

• 9M FY25 total income: ₹286.95 Cr, up 18% YoY; EBITDA: ₹62.57 Cr, up 25% YoY (margin 21.80%); PAT: ₹41.28 Cr, up 30% YoY (margin 14.38%).

• EPS for Q3 FY25: ₹1.18; for 9M FY25: ₹3.19.

• Hyd-Air subsidiary Q3 revenue: INR 3 crore, net profit INR 36 lakh (12% margin).

Outlook and guidance

• Focus on new product development, capacity expansion, and growing domestic and international project-based sales.

• S S Hose & Braiding capacity to increase from 16.5 million to 20.0 million meters per annum by March 2026, with investment of ₹54 crores.

• New Miniature Metal Bellows product line to add 2,40,000 pieces annual capacity, investment of ₹23 crores, completion by March 2026.

• EBITDA margin target of 24%-25% by FY 2027, driven by product mix shift and higher assembly contribution.