Aeroflex posts 23.76% margin as SFN skids add Rs 32.4 cr
Standalone results were filed after market close; management cited 9,000-skid capacity and a path to 15,000 skids per annum.
Filed 27 Jul 2026, 19:32 IST · after market close · Aeroflex Industries Ltd (AEROFLEX)
Key takeaways
- Aeroflex's standalone operating margin of 23.76% was 9.83 percentage points above the 13.93% median for 14 Industrials peers.
- SFN skid assemblies generated Rs 32.4 cr in Q1FY27, while stainless-steel flexible hoses grew +40.53% YoY.
- Other income of Rs 0.76 cr was small against standalone profit before tax of Rs 26.16 cr, indicating limited reliance on non-operating income.
Price around the results
Operating profit was largely operating-led
Aeroflex reported a 23.76% standalone operating margin in Q1FY27, with operating profit of Rs 33.03 cr on revenue of Rs 139.01 cr. Other income was Rs 0.76 cr against profit before tax of Rs 26.16 cr, so the reported profit was not materially supported by non-operating income.
SFN skids and value-added products led the business mix
SFN skid assemblies generated Rs 32.4 cr of revenue in the quarter, giving the newer business line a material contribution to sales. Management reported that stainless-steel flexible hoses grew +40.53% YoY, while assemblies and other value-added products grew +36.96% YoY.
Margin remained well above the Industrials peer median
Aeroflex's 23.76% operating margin was 9.83 percentage points above the 13.93% median among 14 Industrials companies that had reported the same quarter. The company ranked 13th from the bottom, placing it near the top of that peer set on operating margin.
Management is expanding skid capacity for liquid cooling
Management said skid assembly capacity had increased from 6,000 to 9,000 skids per annum and that it remained on track to scale further to 15,000. The company said rising AI rack densities and heat generation are accelerating the shift from air cooling to liquid cooling, and that it remains confident about sustaining growth momentum in this opportunity.
Results were filed after the market close
Aeroflex filed its standalone Q1FY27 results after market close on 27 Jul 2026. The filing timing leaves no post-result market reaction to assess in this note.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹139 cr |
| Other income | ₹1 cr |
| Expenses | ₹106 cr |
| Operating profit | ₹33 cr |
| Operating margin (%) | 23.76% |
| Interest | ₹0 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹26 cr |
| Tax | ₹7 cr |
| Net profit | ₹19 cr |
| EPS (₹) | ₹1.44 |
Operating margin of 23.76% compares with a Industrials sector median of 13.93% across 14 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- SFN skid assemblies generated revenue of Rs. 32.4 crore in Q1FY27.
- Stainless-steel flexible hoses grew 40.53% year on year in the quarter.
- Assemblies and other value-added products grew 36.96% year on year in the quarter.
Guidance & outlook
- The company remains on track to scale skid assembly capacity to 15,000 skids per annum.
- The company is confident of sustaining growth momentum and capturing the opportunity from liquid-cooled AI infrastructure.
Expansion
- Skid assembly capacity has increased from 6,000 to 9,000 skids per annum, with further scaling planned to 15,000.
New initiatives
- Aeroflex is integrating SAP ERP and Salesforce CRM to connect production, sales and customer data.
- The company has collaborated with IIT Bombay, IIT Indore, IIT Guwahati and IIT Ropar to develop new products.
Problems & risks
- The company says AI workloads are increasing rack densities and heat generation, accelerating the shift away from conventional air cooling.
What to watch
- Whether standalone operating margin holds above 23.76%.
- Whether SFN skid assembly revenue moves beyond Rs 32.4 cr.
- Whether skid assembly capacity progresses from 9,000 towards management's stated 15,000 skids per annum.