Aeroflex margin expands as Q2 profit rises 94.57% QoQ
Revenue grew faster than expenses, while a lower tax rate and sharply lower depreciation aided profit conversion; other income was only 0.65% of pre-tax profit.
Filed 28 Oct 2026, 19:16 IST · after market close · Aeroflex Industries Ltd (AEROFLEX)
Key takeaways
- Consolidated Q2FY27 revenue grew +42.63% QoQ while expenses rose +40.36%, lifting operating margin by 1.23 percentage points to 24.27%.
- Net profit increased +94.57% QoQ to Rs 36.56 cr as the tax rate fell 1.12 percentage points and depreciation declined -94.26%.
- Aeroflex's 24.27% operating margin was 13.24 percentage points above the 11.03% median for 47 reported Industrials peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Aeroflex's consolidated revenue rose +42.63% QoQ, while expenses increased +40.36%, so operating profit grew faster at +50.31%. This widened operating margin by 1.23 percentage points to 24.27% from 23.04% in Q1FY27.
Lower tax and depreciation amplified profit growth
Net profit rose +94.57% QoQ, ahead of the +91.62% increase in pre-tax profit. The tax rate fell 1.12 percentage points to 26.30%, while depreciation declined -94.26%; interest expense moved the other way, rising +71.43%. Other income contributed only 0.65% of pre-tax profit, so it was not a material source of earnings.
Margin remained well above the Industrials peer median
The 24.27% operating margin was 13.24 percentage points above the 11.03% median among 47 Industrials companies that had reported the same quarter. Sequentially, margin improved from 23.04% in Q1FY27, but the available comparison does not establish a longer multi-quarter direction.
Results were filed after market close
Aeroflex filed its consolidated Q2FY27 results at 19:16 IST on 28 October 2026, after market close. The stock's response is therefore not assessed in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹207 cr | ₹145 cr | +42.63% |
| Other income | ₹0 cr | ₹1 cr | -46.67% |
| Expenses | ₹157 cr | ₹112 cr | +40.36% |
| Operating profit | ₹50 cr | ₹33 cr | +50.31% |
| Operating margin (%) | 24.27% | 23.04% | — |
| Interest | ₹1 cr | ₹0 cr | +71.43% |
| Depreciation | ₹0 cr | ₹8 cr | -94.26% |
| Profit before tax | ₹50 cr | ₹26 cr | +91.62% |
| Tax | ₹13 cr | ₹7 cr | +83.80% |
| Net profit | ₹37 cr | ₹19 cr | +94.57% |
| EPS (₹) | ₹2.76 | ₹1.42 | +94.37% |
Operating margin of 24.27% compares with a Industrials sector median of 11.03% across 47 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.37% | +8.32% |
| Next session | +6.90% | — |
Volume on the results session was 11.86× its 20-day average.
What to watch
- Whether operating margin holds above 24.27% in the next quarter.
- Whether interest expense growth moderates from +71.43% QoQ.
- Whether the tax rate remains near 26.30% after falling 1.12 percentage points QoQ.