Aeroflex Industries Ltd
NSE: AEROFLEX · BSE: 543972 (one source; an earlier brief said 543975) · Stainless steel flexible hoses and AI data-centre liquid-cooling assemblies, Taloja, Maharashtra
~₹57712 Oct 2026 intraday. Record high ₹599.70 that day.
~₹7,600 crMarket cap at ₹577 (₹6,888 cr at the ₹520.50 prior close)
₹157.9 / 599.752-week low / high
13.23 crShares outstanding, face value ₹2
No quote for 14 Oct was found. The stock is about 5.3 times the 2023 IPO price of ₹108. [Fact]
Company overview
| Headquarters | Navi Mumbai. Single plant at Taloja of about 3.6 lakh sq ft. |
| Listed | 31 Aug 2023 through an IPO at ₹108 |
| Promoter | Aeroflex Enterprises Ltd (formerly SAT Industries) holds 59.84%. Italica Global FZC holds 5.63%. Total 65.47%. Chairman and MD is Asad Daud. |
| Products | Stainless steel flexible hoses, hose assemblies, metal bellows, hydraulic fittings through Hyd-Air, and liquid-cooling skid assemblies for data centres |
| Sales mix | About 69% exports in FY26 and 58% in Q1 FY27 |
| Index membership | Not Available — not found |
Aeroflex is a small manufacturer of corrugated stainless steel hoses and the assemblies built from them. Until 2025 it was a steady exporter growing in the mid-teens. Since late 2025 it has added skid assemblies for liquid cooling in AI data centres. These were about 22% of Q1 FY27 revenue, from about 5% in FY26. The stock has risen more than 200% in 2026 on that shift.
Key figures
₹442 crFY26 revenue (+17.5%)
₹55.5 crFY26 PAT (+6%)
22.6%FY26 EBITDA margin
~14%RoE FY26, derived on average equity
₹145 crQ1 FY27 revenue (+72%)
₹33.5 crQ1 FY27 EBITDA (+116%)
₹18.8 crQ1 FY27 PAT (+162%)
~114xTrailing P/E, derived at ₹577
Quick verdict
BusinessMedium
ManagementMedium
FinancialMedium to strong
ValuationExpensive
OverallNeutral, cautious
Data freshness. Prepared 14 Oct 2026. Latest results are Q1 FY27 (June 2026), reported 27 Jul 2026. Q2 FY27 is not yet declared. A board meeting on expansion plans was due on 14 Oct and I found no outcome. Filings on NSE and BSE and Screener could not be read directly, so figures come from aggregators and broker notes. Gaps are labelled and listed in Tab 14.
Analyst Notes
First-person view, dated 14 Oct 2026, built on the data tabs and their gaps.
What happened. A hose maker became an AI infrastructure play in about a year. Liquid-cooling skids went from 617 units and ₹21 cr in FY26 to 1,040 units and ₹32 cr in the June 2026 quarter alone. Revenue rose 72% to ₹145 cr, EBITDA more than doubled and profit rose 162%. The stock moved from about ₹158 to a record ₹599.70 on 12 October. That is nearly fourfold.
What the market is pricing. At about ₹577 the market cap is about ₹7,600 cr. Trailing profit is about ₹67 cr, so the stock trades near 114 times earnings and about 64 times EBITDA. Even if management delivers 35% growth in FY27 and a 23% margin, profit would be roughly ₹75 to 80 cr, still near 100 times. The only target that supports the price is Arete's ₹502 at 45 times FY28 earnings of ₹11.15 a share. The price is above every published target I found. [Est.]
Why the growth is real but narrow. The base business grew 17.5% in FY26 and management guides 15 to 20% for it. Almost all the upside is skids, which ICICI Securities sees rising from about 5% of revenue in FY26 to 37% by FY28. The end customer is described only as a subsidiary of a US company worth over $50 bn. The company has not named it, and no concentration figure is disclosed. One order, for ₹7.8 cr in October 2025, is the only disclosed skid-related contract. Visibility therefore rests on management's word and one unnamed buyer.
The record has two sides.
- Misses. FY26 revenue grew 17.5% against a 20 to 25% guide, because US tariffs delayed shipments. PAT grew only 6%. Skid capacity targets slipped three times.
- Hits. EBITDA grew 26% in FY26, in line with the roughly 25% guided, and margin reached 22.6%. FY25 revenue grew 18% against 18% guided.
- Profit lag. FY26 depreciation rose from about ₹11 cr to ₹26 cr. That absorbed much of the EBITDA gain. The reason is not found.
Cash and balance sheet. The company is debt-free with about ₹70 cr of cash and ₹447 cr of net worth. It raised ₹55 cr from six outside investors in February 2026 at ₹182.70, including Ashish Kacholia. But free cash flow was negative ₹77 cr in FY25 and about −₹5 cr in FY26. Receivable days are about 100. Heavy capex and slow collections are the cash drag, and expansion will add to both.
Control. The listed promoter Aeroflex Enterprises holds about 60%. It sold its stake in another subsidiary to Ingersoll Rand for ₹222.87 cr in April 2026. A parent sell-down is a plausible overhang, but I found no evidence of one. Related-party amounts are not found.
My view. The operating inflection is genuine and the balance sheet is clean. But the price needs skids to keep compounding for years from a single undisclosed customer, at 100 times earnings. I would want the Q2 results, the customer's identity and the expansion decision before treating this as more than a high-risk momentum holding. [Analyst View]
Limits of this report. No exchange filings, transcripts or Screener pages could be read. Quartr and Financial Modeling Prep need paid plans. The figures come from aggregators and brokers, and FY22 to FY24 numbers are indicative only.
Business Deep-Dive
Sourcing note. The annual report, IPO papers and transcripts were not opened. Customer names, certifications beyond ISO, supplier names and utilisation were Not Available — not found. [Fact]
History
| Date | Event |
|---|---|
| 1993 or 1995 | Incorporated (sources differ). Earlier name Suyog Intermediates, per one summary. |
| Aug 2023 | IPO at ₹108 for about ₹351 cr: ₹162 cr fresh issue and ₹189 cr sold by SAT Industries. Listed 31 Aug 2023. Subscribed 97 times. |
| Oct 2023 | Infomerics rating withdrawn after bank facilities were surrendered. |
| Apr 2024 | Bought 100% of Hyd-Air Engineering for about ₹17.2 cr. It makes hydraulic fittings, flanges and couplings. |
| Jan 2025 | Stock rose 43% in eight days after Q3 FY25 profit grew 68%. |
| Oct 2025 | ₹7.8 cr order for data-centre liquid-cooling flow-control components. |
| Feb 2026 | ₹55 cr preferential issue at ₹182.70 to six outside investors. |
| Jul 2026 | Skid capacity raised to 9,000 a year. |
| 12 Oct 2026 | Record share price. Board meeting to consider further expansion on 14 Oct. |
Aeroflex Industries is often confused with Aeroflex Enterprises (its parent), Aeroflex Neu, the US company Aeroflex Inc and a Thai company. This report covers only the NSE-listed Aeroflex Industries. [Fact]
Products
Stainless steel flexible hoses
- Braided, unbraided, interlock, gas, vacuum and solar hoses.
- Sizes from 1/4 to 14 inches, from −196 to 982 degrees C, up to 300 bar (IPO-era data).
- Meet BS 6501, ISO 10380 and PED CE standards.
- About 43% of FY26 revenue and 37% of Q1 FY27.
Assemblies and bellows
- Hose assemblies with welded end fittings, metal bellows and expansion joints.
- A miniature bellows plant is planned at about ₹23 cr.
- About 52% of FY26 revenue and 41% of Q1 FY27 (assemblies and other).
Liquid-cooling SFN skids
- Pre-built flow-control assemblies for AI data-centre cooling.
- FY26: 617 units, ₹21.2 cr. Q1 FY27: 1,040 units, ₹32.4 cr, about ₹3.1 lakh each.
- Management expects 25 to 27% of FY27 revenue.
Hyd-Air fittings
- Hydraulic and instrumentation fittings, hose clamps and valves, made at Chakan, Pune.
- Revenue about ₹9 cr in Q2 FY26 against ₹1.5 cr a year earlier.
- Targets railways, shipbuilding and heavy industry.
Manufacturing and capacity
| Item | Finding |
|---|---|
| Plant | One Taloja facility of about 3.6 lakh sq ft with corrugation, interlock and braiding machines (IPO-era list: 34 mechanical and 20 hydraulic corrugation machines, 28 braiding machines). |
| Hose capacity | 16.5 mn metres in FY25, 17.5 mn after a 1 mn addition in Jan 2026, 20 mn targeted for FY27 |
| Skid capacity | 6,000 a year, then 9,000 from 1 Jul 2026, 15,000 targeted for Q3 FY27. The target date slipped three times. |
| Capex | ₹97.56 cr approved Dec 2025 (₹55 cr from the preferential issue, ₹42.56 cr internal). About ₹104 cr of capex in FY25 and ₹71 cr in FY26. |
| Utilisation | Not found. ICICI Direct assumes about 80% at peak skid revenue. |
| Certifications | ISO 9001, ISO 14001 and CE listed on a vendor page (dates unclear). ASME, defence, aerospace and semiconductor approvals: not found. |
Moat and distribution
The moat is product qualification, certifications and long customer relationships in hoses, plus early scale in skid assembly in India. Evidence of pricing power is only the margin rise from 21% to 23 to 24%. Distribution is direct to industrial customers, with exports to more than 80 countries and about 723 customers (IPO-era). Patents: Not Available. [Analyst View]
Segment Analysis
Coverage. The company does not report segment profit. Revenue mix is from presentations and aggregators, and sources differ on whether percentages are full-year or nine-month. Interlock hoses, bellows and expansion joints are not broken out. [Fact]
| Product group | FY26 | Q1 FY27 |
|---|---|---|
| Assemblies and others | 52% | 41% |
| Stainless steel flexible hoses | 43% | 37% |
| Liquid-cooling skids | ~5% | ~22% |
Domestic versus export, and geography
| Item | FY26 | Q1 FY27 |
|---|---|---|
| Exports share of sales | ~69% | 58% |
| Domestic share | ~31% | 42% |
| Americas share of exports | 59% | NA |
| Europe share of exports | 27% | 33% (23% a year earlier) |
| Asia share of exports | 11% | NA |
The shift to a 42% domestic share suggests skids and new assemblies are selling in India, but no source says so. Industries served (semiconductor, pharma, steel, defence, aerospace) were not found. Q4 FY26 commentary said domestic demand was strong in steel, ports and railways, and exports grew about 30% on existing US and European customers.
What is moving [Analyst View]
Fastest: liquid-cooling skids
- Units rose from 571 in Q4 FY26 to 1,040 in Q1 FY27.
- Capacity 9,000 a year from July, target 15,000.
- One unnamed US customer is the only described buyer.
Mature: legacy hoses
- Management guides 15 to 20% growth for the base business.
- Q1 FY26 revenue fell 6% when US tariffs disrupted buyers.
- Stainless steel price swings and imported coils affect cost.
Financials: Profit & Loss
Data basis. Consolidated figures from broker notes, StockAnalysis, Arihant, Kotak Neo and press summaries. FY22 to FY24 come from aggregators and are indicative. Gross profit and exceptional items were Not Available — not found. [Fact]
Annual consolidated (₹ crore)
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 240.8 | ~269 | ~318 | 376.2 | 441.9 |
| Growth | NA | +12% | +18% | +18% | +17.5% |
| EBITDA | 47.7 | 53.0 | 65.7 | 79.1 | 99.7 |
| EBITDA margin [Est.] | 19.8% | 19.7% | 20.5% | 21.0% | 22.6% |
| Depreciation | 4.2 | NA | NA | ~11 | 26.1 |
| Finance cost | 6.6 | NA | NA | 0.9 | 1.5 |
| PBT | NA | NA | NA | 70.0 | 74.1 |
| PAT | 27.5 | 30.2 | 41.7 | 52.5 | 55.5 |
| EPS (₹) | 2.13 | 2.33 | 3.39 | 4.06 | 4.20 |
FY25 EBITDA is ₹79.05 cr excluding other income and ₹81.58 cr including it. FY26 depreciation more than doubled from about ₹11 cr to ₹26 cr, so EBITDA rose 26% while PAT rose only 6%. The reason is not found. Capex and the Hyd-Air acquisition are likely drivers, which I could not verify. Hyd-Air consolidates from FY25. No specific one-off items were found. Business-agent figures that show FY26 revenue growth of about 11% are for nine months or standalone and are not used.
Quarterly revenue (₹ crore)
| Quarter | Revenue | YoY | EBITDA | Margin | PAT |
|---|---|---|---|---|---|
| Q1 FY25 (Jun-24) | 89.8 | +8% | NA | NA | 12.4 |
| Q2 FY25 (Sep-24) | 95.8 | NA | 21.2 | ~22% | 13.7 |
| Q3 FY25 (Dec-24) | 100.4 | +35% | 22.3 | 22.2% | 15.2 |
| Q4 FY25 (Mar-25) | 91.7 | +16% | 19.0 | 20.7% | 11.2 |
| Q1 FY26 (Jun-25) | 84.3 | −6% | 15.5 | 18.4% | 7.2 |
| Q2 FY26 (Sep-25) | 111.1 | +16% | 26.1 | 23.5% | 14.2 |
| Q3 FY26 (Dec-25) | 121.1 | +21% | 28.5 | 23.5% | 16.5 |
| Q4 FY26 (Mar-26) | 125.8 | +37% | 30.0 | 23.9% | 17.6 |
| Q1 FY27 (Jun-26) | 145.4 | +72% | 33.5 | 23.0% | 18.8 |
The four FY26 quarters sum to PAT of ₹55.5 cr and the FY25 quarters to ₹52.5 cr, matching the full years. Q2 and Q3 FY25 revenue are total income. Q1 FY27 standalone revenue was ₹139.0 cr, EBITDA margin 23.8%, net profit about ₹19.1 cr. Some sources show Q1 FY27 EBITDA of ₹34.1 cr.
Growth, margins and one-offs
- Growth is partly inorganic from Hyd-Air, which grew from ₹1.5 cr to about ₹9 cr a quarter. Volume and price split: Not Available. [Fact]
- Margin rose from about 18% in Q1 FY26 to 23 to 24% for four quarters. Management targets 25% medium term. [Fact]
- Q1 FY26 was hit by US tariffs delaying shipments. Q1 FY25 lost about ₹8.2 cr to container delays. [Fact]
Earnings quality. Profit is partly backed by cash. FY26 operating cash flow was ₹65.8 cr, about 1.2 times PAT. FY25 was only about 0.5 times, and FY23 about 0.24 times, because receivables and inventory absorbed cash. Receivable days are about 100. [Est.]
Financials: Balance Sheet, Cash Flow & Ratios
Coverage gap. Fixed assets, payables, goodwill and total assets by year were Not Available — not found. Figures come from StockAnalysis and IIFL snippets with column order inferred. Verify against the annual report. [Fact]
Balance sheet (₹ crore)
| Item | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net worth | NA | 114.2 | 293.3 | 341.9 | 446.5 |
| Receivables | 52.6 | 67.0 | 94.7 | 116.5 | 129.8 |
| Inventory | NA | NA | NA | 66.7 | 83.7 |
| Cash and short-term investments | 8.3 | 6.3 | 105.7 | 26.8 | 69.7 |
| Total debt | 39.1 | 45.0 | 0.1 | 0.6 | 8.9 |
The FY24 net worth step-up reflects the IPO fresh issue. FY26 reflects PAT plus the ₹55 cr preferential issue. The ₹8.9 cr of FY26 debt is probably leases or minor borrowings. Total assets were about ₹565 cr in FY26.
Cash flow (₹ crore)
| Item | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Operating cash flow | 32.1 | 7.2 | 44.1 | 26.6 | 65.8 |
| Capex | 13.4 | 9.5 | 37.7 | 103.5 | 71.1 |
| Free cash flow | 18.7 | −2.2 | 6.4 | −76.9 | −5.2 |
| CFO to PAT [Est.] | 1.17x | 0.24x | 1.06x | 0.51x | 1.19x |
Capex outpaced cash. FY25 and FY26 capex of about ₹175 cr exceeded operating cash flow of about ₹92 cr over the two years. The gap was covered by IPO cash held from FY24 and the ₹55 cr preferential issue. Another ₹97.6 cr of capex was approved in December 2025, and a further expansion was on the 14 October board agenda. [Est.]
Ratios (derived)
| Ratio | FY25 | FY26 |
|---|---|---|
| RoE on average equity | ~16.5% | ~14.1% |
| RoCE (EBIT over net worth plus debt) | NA | ~16.6% |
| Debtor days | NA | ~102 average-balance basis |
| Inventory days / payable days | NA | ~62 / ~100 |
| Cash conversion cycle | NA | ~64 days |
| Interest coverage | Very high | ~50x |
Screener snapshots show higher returns (RoCE 22 to 26%, RoE 17 to 20%) and a ratio widget shows RoE of 12%. I prefer the derived figures until the annual report is checked.
Equity and dilution
| Date | Event |
|---|---|
| Aug 2023 | IPO: 1.50 cr fresh shares (₹162 cr) and 1.75 cr sold by SAT Industries, at ₹108. Anchors put in ₹103.7 cr. Use of fresh proceeds: about ₹32 cr debt repayment, ₹84 cr working capital, the rest general purposes. |
| 3 Feb 2026 | Preferential issue of 30,10,398 shares at ₹182.70 (₹55.0 cr) to six outside investors: Ashish Kacholia (4.11 lakh shares), Bengal Finance (4.11 lakh), Sanjay Surana (8.21 lakh), Vaibhav Shah (8.21 lakh), Madhu Silica and Nareshkumar Mehta. |
| Now | 13,23,30,768 shares of ₹2. No bonus or split found. ESOP detail not found. |
Credit rating
No current rating. CRISIL assigned BB- in 2020, BB in 2021 and withdrew in Oct 2022. Infomerics assigned BBB- in Jul 2022 and withdrew in Oct 2023 after facilities were surrendered. The company describes itself as debt-free. [Fact]
Key balance-sheet risks
- Receivable days near 100 tie up cash as skid sales grow. [Est.]
- Free cash flow has been negative or near zero for two years while capex continues. [Fact]
- Large new capex is planned against a customer base the company does not disclose. [Fact]
Management, Promoters & Governance
Sourcing note. The annual report and board lists were not read directly. Remuneration, related-party amounts and the auditor's name were Not Available — not found. A "Kapadia family" label in the brief was not confirmed in any source. [Fact]
Promoters and control
| Item | Finding |
|---|---|
| Main promoter | Aeroflex Enterprises Ltd, also listed (NSE: AEROENTER), formerly SAT Industries. Renamed in May 2025. Holds 7.92 crore shares, 59.84%. |
| Other promoter | Italica Global FZC, 5.63%. Total promoter holding 65.47%. |
| Holding history | 92.18% and 6.52% before the IPO. About 67.0% before the Feb 2026 allotment, now 65.47%. |
| Pledge | Not found for 2026. Zero in older records. |
| Parent's own deals | Aeroflex Enterprises sold 68% of M.R. Organisation to Ingersoll Rand for ₹222.87 cr on 30 Apr 2026. Its use of the money is not found. |
I found no evidence that the parent plans to sell shares in Aeroflex Industries. With a roughly fivefold share price, a sell-down is a risk to watch. [Analyst View]
Management and board
| Person | Role | Note |
|---|---|---|
| Asad Daud | Chairman and Managing Director since 15 Oct 2022 | Also a non-executive director of the parent since 2014. Holds only 500 shares directly. |
| Mustafa Abid Kachwala | Whole-time director and CFO | From an older board list |
| Harikant Turgalia | Non-executive director | |
| Shilpa Bhatia, R C Soni, Parthasarathi Sarkar, Arpit Khandelwal | Independent directors | List may be dated |
Shareholding
| Holder | Mar 2026 | Jun 2026 |
|---|---|---|
| Promoters | 65.47% | 65.47% |
| FII | NA | 2.8% to 3.6% |
| DII | NA | 0.7% to 1.5% |
| Mutual funds | 2.12% | 0.80% |
| Public | NA | 24% to 29% |
Aggregators disagree and the categories do not sum. Ashish Kacholia is the largest named public holder at about 2.27%. Insider and block deal data: not found. A June 2025 spike of 16% on volume 25 times average, with 29% of equity traded, had no catalyst I could find.
Auditors, related parties and litigation
- Statutory auditor fee ₹3 lakh for FY27 was set in the AGM notice. The firm's name was not found. [Fact]
- Related-party transactions with the parent: Not Available. The policy was last updated 21 Apr 2026. [Fact]
- Income tax demand of ₹41.76 cr for assessment year 2018-19, ordered 25 Mar 2026. It relates to tax on interest waived in an old loan settlement. The company will appeal and expects no material impact. [Fact]
- Dividends: ₹0.30 for FY25 and ₹0.40 for FY26. [Fact]
Subsidiaries
| Entity | Note |
|---|---|
| Hyd-Air Engineering Pvt Ltd | 100%, bought for about ₹17.2 cr in April 2024. FY24 turnover about ₹8 cr. |
| UK subsidiary | Struck off in FY25 per one summary |
| Metflex, Lloyd Insulations, Metallica, Aeroflex International DMCC | Named in my brief. None appeared in any source and I cannot confirm them. |
Governance view [Analyst View] There are no red flags from sources, but disclosure is thin. The controlling parent is a listed company with its own deals. Customer concentration, related-party amounts and the auditor's name should be checked in the annual report.
Supply Chain
Thin disclosure. Named suppliers, steel import share, nickel exposure and top-customer shares were Not Available — not found. [Fact]
Value chain
Where pricing power sits. For hoses it sits with large industrial buyers and steel suppliers, and Aeroflex wins on qualification and delivery. For skids it likely sits with the hyperscale buyer. Margins have held at 23 to 24% through tariff pressure, which suggests some pricing room. [Analyst View]
↑ Upstream: what Aeroflex depends on
| Item | Finding |
|---|---|
| Raw materials | Stainless steel coils of various grades, stainless steel wire and fittings. A summary of the annual report says most coils are sourced internationally. Nickel exposure and supplier names not found. |
| Cost pass-through | A reported 8% price hit from tariffs was offset by cost optimisation and vendor support (one paywalled summary). Terms not found. |
| Capacity and equipment | One Taloja plant. Braiding and corrugation machines, a robotic welding line and an annealing plant are being added. |
| Logistics | Q1 FY25 lost about ₹8.2 cr of revenue to container delays. |
↓ Downstream: who depends on Aeroflex
| Item | Finding |
|---|---|
| Customers | About 723 customers at IPO time, exports to more than 80 countries. Americas take 59% of exports and Europe 27%. |
| Skid customer | A subsidiary of a US corporation worth over $50 bn, under a global agreement. Not named. A forum post links Aeroflex to Vertiv as an exclusive Indian partner, unverified. |
| End uses | Industrial plants, steel, ports, railways, and AI data-centre liquid cooling. Semiconductor, pharma, defence and aerospace uses were not found. |
| Concentration | Not disclosed. A summary says the data-centre business relies heavily on large hyperscale operators. |
The fastest-growing line depends on one undisclosed buyer type and on the pace of AI data-centre build-out, which is outside Aeroflex's control. [Analyst View]
Competitive Position
Incomplete peer data. Peer margins and returns were Not Available. International peers' multiples were not retrieved. Indian listed peers are pipe makers, not direct hose competitors. [Fact]
Peer snapshot (Jul to Aug 2026, dates differ)
| Company | Market cap (₹ cr) | P/E |
|---|---|---|
| Aeroflex Industries (late Jul) | 5,590 to 5,630 | ~100 |
| Ratnamani Metals & Tubes | 16,824 to 18,692 | 35 to 43 |
| Venus Pipes & Tubes | 3,528 | 35 to 37 |
| Hi-Tech Pipes | 1,735 | 22.8 |
Aeroflex trades at about three times the earnings multiple of Indian steel-tube peers. Its operating margin of about 18% (Value Research basis) is close to the peer median of about 17.5%, so the premium rests on skid growth. [Analyst View]
Competitors by business
| Business | Competitors named |
|---|---|
| Flexible metal hoses and bellows | Witzenmann (broadest range), Senior Flexonics, Technetics, EagleBurgmann, FlexEJ, Parker Hannifin, Eaton. None of the sources mention Aeroflex alongside them. |
| Data-centre liquid cooling | Vertiv appears only in an unverified forum post. Other competitors not found. |
| Indian peers | Not found |
Industry
- No credible flexible-hose market size was found. One low-quality report puts electroformed metal bellows at US$0.78 bn in 2024, growing 6.8% a year. That is a narrower segment. [Fact]
- Tailwind: AI data-centre liquid cooling. Other tailwinds in my brief, such as semiconductors, hydrogen, defence and PLI, were not found in sources. [Fact]
- Policy: US tariffs delayed export shipments in FY26. [Fact]
Five forces [Analyst View]
| Force | Strength | Reason |
|---|---|---|
| Rivalry | Medium | Global leaders in hoses; few Indian peers. |
| Buyer power | High | Large industrial and hyperscale buyers. |
| Supplier power | Medium | Stainless steel is a commodity, mostly imported coils. |
| New entrants | Medium | Qualification and certification take time. |
| Substitutes | Low | Flexible metal hose has few direct substitutes in high-pressure use. |
Moat durability. Moderate for hoses, unproven for skids, where entry looks easier for larger firms. [Analyst View]
Risks & Red Flags
| Risk | Category | Severity | Explanation | Mitigant |
|---|---|---|---|---|
| Valuation | Financial | High | About 114x trailing earnings and 64x EBITDA. Price is above every target found. | Growth guidance of 30 to 35% for FY27. |
| Skid customer concentration | Business | High | Skids were 22% of Q1 revenue and are meant to reach 25 to 27%. One undisclosed buyer type drives them. | Global agreement with the buyer. |
| AI cycle dependence | Macro | High | Skid demand rests on data-centre build-out. | Hose business continues to grow 15 to 20%. |
| Execution on capacity | Execution | Medium | Skid capacity target dates slipped three times. New capex approved with a decision pending on a further expansion. | Capacity rose to 9,000 in July as planned. |
| Cash conversion | Financial | Medium | Receivable days near 100. Free cash flow of −₹77 cr in FY25 and −₹5 cr in FY26. | Debt-free with about ₹70 cr cash. |
| US tariffs and exports | Macro | Medium | Q1 FY26 revenue fell 6% and PAT 42% on shipment deferrals. About 69% of FY26 sales were exports. | Domestic share rose to 42% in Q1 FY27. |
| Rising depreciation | Financial | Medium | FY26 depreciation more than doubled, holding PAT growth to 6%. | Operating margin 23 to 24%. |
| Tax demand | Regulatory | Medium | ₹41.76 cr for AY 2018-19 against FY26 PAT of ₹55.5 cr. | Appeal planned. Company expects no material impact. |
| Parent control and overhang | Governance | Medium | Listed parent holds 59.84%. Related-party amounts not found. A sell-down could weigh on the stock. | No evidence of selling. |
| Single plant | Business | Medium | All hose capacity is at Taloja. | Hyd-Air adds a Pune site. |
| Raw material cost | Business | Medium | Stainless steel prices and imported coils. | Margin held through FY26. |
| Data quality | Data | Medium | Conflicts include an article quoting ₹857 in July, a BSE code, FY22 to FY24 figures and shareholding splits. | Verification list in Tab 14. |
| Thin institutional ownership | Market | Medium | Institutions hold about 5%. Retail-driven moves can reverse quickly. | Mutual funds are beginning to appear. |
Currency and commodity. Exports make revenue sensitive to the dollar and euro. Sensitivity was Not Available. [Analyst View]
Concall Highlights & Guidance
Transcript gap. Calls are held after each result, but no transcript could be read. The table below uses results, presentation summaries and short paraphrases. Analyst Q&A is Not Available. [Fact]
| Call | Results | Commentary |
|---|---|---|
| Q3 FY25 (16 Jan 2025) | PAT ₹15.2 cr (+68%) | Guided FY25 growth of 18%+. Capacity of 16.5 mn metres, plus 3.5 mn by FY26. ₹23 cr miniature bellows capex. Stock +43% in eight days. |
| Q4 FY25 (2 May 2025) | FY25 revenue ₹376 cr (+18%), PAT ₹52.5 cr (+26%) | Guided FY26 revenue growth of 20 to 25% and about 25% EBITDA growth. |
| Q1 FY26 (Jul 2025) | Revenue −6%, PAT −42% | Blamed tariffs and "disruption in the buyer segment". |
| Q2 FY26 (Oct 2025) | Revenue ₹111 cr, margin 23.5% | Tariffs caused deferrals, not cancellations. Margin guided 21 to 22%. Liquid cooling to contribute from Q3. |
| Q3 FY26 (29 Jan 2026) | Revenue ₹121 cr | First commercial skid dispatch. Skid capacity to 15,000 by June 2026. |
| Q4 FY26 (6 May 2026) | Revenue ₹125.8 cr (+37%), PAT ₹17.6 cr | FY27 growth about 35%. Base business 15 to 20%. Skids 20 to 22% of sales. EBITDA margin about 23%, 25% medium term. |
| Q1 FY27 (27 Jul 2026) | Revenue ₹145 cr (+72%), PAT ₹18.8 cr | FY27 growth 30 to 35% reaffirmed. Skids to reach 25 to 27% of revenue by year-end. 25% blended margin target. |
Short paraphrase, Q4 FY25: "optimistic about FY26 ... priority is expanding our EBITDA ... through operational efficiencies, higher value-added offerings, and enhanced scale benefits". This comes from a secondary summary and is not a verified quote. [Fact]
Guidance versus outcome
| Guidance | Outcome | Verdict |
|---|---|---|
| FY25 growth of 18%+ | +18% revenue, EBITDA +24% | Met |
| FY26 revenue growth 20 to 25% | +17.5% | Missed |
| FY26 EBITDA growth about 25% | +26% | Met |
| FY26 margin 21 to 22% (given Oct 2025) | 22.6% | Beat |
| Skid capacity 15,000 by Q2 FY27, then June 2026 | 9,000 from July. 15,000 now targeted for Q3 FY27. | Slipped |
| FY27 growth 30 to 35% | Q1 +72% on a weak base | Pending |
Tone [Analyst View]
- Confident through FY25, defensive when tariffs hit in mid-2025, then increasingly bullish on skids.
- Guidance is clearer than most small caps, with ranges for growth, margin and skid mix.
- Skid capacity dates have been repeatedly moved while growth guidance was raised, which should be probed.
Growth, Outlook & Valuation
Visibility and expansion
30 to 35%FY27 revenue growth guidance
25 to 27%Skid share of FY27 revenue, guided
9,000Skid capacity per year from 1 Jul 2026
₹97.6 crCapex approved Dec 2025
Order book and book-to-bill are Not Available. The only disclosed order is ₹7.8 cr for flow-control components (Oct 2025). Visibility comes from the global agreement with the skid customer and from management's guidance. The 14 Oct 2026 board meeting on further expansion has no reported outcome. [Fact]
| Item | Detail |
|---|---|
| Hose capacity | 17.5 mn metres, 20 mn targeted for FY27 |
| Skid capacity | 15,000 a year targeted for Q3 FY27 |
| Capex funding | ₹55 cr preferential issue plus ₹42.56 cr internal accruals |
| Management margin target | About 23% in FY27, 25% medium term |
Catalysts [Analyst View]
Next 12 months
- Outcome of the 14 Oct expansion decision.
- Q2 FY27 results and skid volumes.
- Disclosure of the skid customer or a second customer.
- Receivable days and cash flow.
3 to 5 years
- Skids reaching a third or more of revenue.
- Capacity at 20 mn metres of hose.
- Bellows and Hyd-Air growth in railways and shipbuilding.
- A durable 25% margin.
Analyst views
| Broker | Date | Target | Basis |
|---|---|---|---|
| ICICI Direct | Feb 2026 | ₹245 (Buy) | 30x FY28E EPS of ₹8.1. Price then about ₹190. |
| ICICI Direct | May 2026 | ₹410 (Buy) | 45x FY28E. Skids from 5% to 37% of revenue by FY28E. |
| Arete Securities | 29 Jul 2026 | ₹502 | 45x FY28E EPS of ₹11.15. Price then ₹456. |
| ICICI Securities (via a blog) | Undated | ₹545 | Unverified |
The share price of about ₹577 is above every target. Consensus estimates were not retrieved.
Valuation
| Metric | Value | Note |
|---|---|---|
| Price | ₹520.50 to ~577 | Close on 9 Oct to 12 Oct intraday. Record ₹599.70. |
| Market cap | ₹6,900 to 7,600 cr | On 13.23 cr shares |
| P/E trailing [Est.] | ~114x | TTM PAT of about ₹67 cr. Sources show 101 to 113x. |
| P/E on FY28E EPS [Est.] | ~52x | Arete's EPS of ₹11.15 |
| P/B [Est.] | ~15 to 17x | On FY26 net worth of ₹446.5 cr |
| EV/EBITDA [Est.] | ~64x | TTM EBITDA about ₹118 cr, net cash about ₹61 cr |
| Dividend yield | ~0.07% | ₹0.40 per share |
| 3-year average P/E | NA | Not Available |
~5.3xPrice vs the ₹108 IPO price
+206 to 221%1-year return (Aug to Sep data)
+200%2026 year to date
+54%3-year annual return
What the price assumes. Even on 35% growth in FY27 the stock trades near 100 times earnings. It needs skid growth to continue into FY28 and beyond at 25% margins from one undisclosed buyer type. [Analyst View]
Final Verdict
Business qualityMedium
Management qualityMedium
Financial qualityMedium to strong
ValuationExpensive
Overall viewNeutral, cautious
Opinion. A debt-free niche manufacturer has found a high-growth outlet in AI data-centre cooling, and results show it. The share price has run far ahead of earnings and of every published target. I would wait for the expansion decision, the Q2 results and some disclosure on the skid customer. [Analyst View]
Bull case
- Skids reach 25 to 37% of revenue by FY28 and total growth stays above 30%.
- Margin reaches 25% as scale builds.
- A second large skid customer reduces concentration.
Bear case
- Data-centre orders pause or the customer dual-sources, and growth drops back to 15 to 20%.
- Receivables and capex squeeze cash again.
- A parent sell-down or a de-rating of AI-linked small caps cuts the multiple.
Base case, 12 to 18 months
Revenue grows 30 to 35% in FY27. Margin stays near 23%. Profit lags revenue because of depreciation. The stock stays volatile and tracks skid news. [Analyst View] This is a judgment, not a forecast.
Five things to remember
- Q1 FY27 revenue rose 72% on a weak base, with skids at 22% of sales.
- FY26 revenue grew 17.5% against 20 to 25% guided, but EBITDA met its goal.
- FY26 profit rose only 6% because depreciation more than doubled.
- Free cash flow was negative in FY25 and FY26, with receivable days near 100.
- The price is above every target, at about 114 times trailing earnings.
Five questions before investing
- Who is the skid customer, and what share of revenue do skids and flow control make for it?
- Why did depreciation double in FY26?
- What was decided at the 14 October board meeting, and how will it be funded?
- What are the related-party dealings with Aeroflex Enterprises?
- Will the parent sell shares as the stock trades near its high?
Sources
What could not be accessed. NSE and BSE filing pages, Screener and the company site could not be read, and Quartr and Financial Modeling Prep need paid plans. Every source was reached through web search summaries, and filing links appear because they surfaced in results. Transcripts were not readable. Search was limited to roughly 30 queries per research area. All sources were accessed on 14 Oct 2026.
Results and company material
Financial data and shareholding
| Source | URL |
|---|---|
| StockAnalysis income statement | https://stockanalysis.com/quote/nse/AEROFLEX/financials/income-statement/ |
| StockAnalysis balance sheet | https://stockanalysis.com/quote/nse/AEROFLEX/financials/balance-sheet/ |
| StockAnalysis cash flow | https://stockanalysis.com/quote/nse/AEROFLEX/financials/cash-flow-statement/ |
| Arihant profit and loss | https://www.arihantcapital.com/company-information/profit-loss/34305 |
| Value Research key ratios | https://www.valueresearchonline.com/stocks/323705/aeroflex-industries-ltd/key-ratios/ |
| Upstox shareholding | https://upstox.com/stocks/aeroflex-industries-ltd-shareholding/ |
| Share.market | https://www.share.market/stocks/aeroflex-industries-ltd-share |
| Anand Rathi share price | https://anandrathi.com/stocks/aeroflex-industries-ltd/share-price-today |
| Kotak Neo, 12 Oct 2026 record high | https://www.kotakneo.com/news/stocks/aeroflex-industries-share-price-record-high-expansion-plans/ |
Corporate actions, litigation and ratings
Analysts, peers and industry
| Source | URL |
|---|---|
| ICICI Direct, Q4 FY26 | https://www.icicidirect.com/mailcontent/idirect_aeroflex_q4fy26.pdf |
| ICICI Direct, Feb 2026 | https://www.icicidirect.com/mailcontent/idirect_aeroflex_shubhnivesh_feb26.pdf |
| Arete Securities target | https://investmentguruindia.com/newsdetail/aeroflex-industries-limited-for-target-rs-502-by-arete-securities-ltd241855 |
| Peer comparison with Ratnamani | https://www.stockezee.com/compare/aeroflex-vs-ratnamani |
| Peer comparison, Motilal Oswal | https://www.motilaloswal.com/share-market/peer-comparison/aeroflex-enterprises-ltd |
| Skid capacity, Sahi | https://www.sahi.com/news/aeroflex-industries-boosts-liquid-cooling-sfn-skid-output-50-to-9-000-units-from-july-1-3826-PE1_COR |
| Stock rally, Business Standard Jan 2025 | https://www.business-standard.com/amp/markets/news/aeroflex-stock-zooms-43-in-8-days-outperforms-market-on-strong-q3-results-125012300446_1.html |
Data conflicts and open items
- The BSE scrip code is 543972 per the financials agent and 543975 per another source and my brief. I used 543972, which needs checking.
- A DSIJ article dated 3 Jul 2026 quotes a price of ₹857.60. This conflicts with other data (about ₹421 on 16 Jul and ₹520 on 9 Oct) and is treated as an error.
- FY26 revenue growth is 17.5% consolidated. A business-agent figure of about 11% is a nine-month or standalone number and is not used.
- Q1 FY27 EBITDA is ₹33.5 cr in most sources and ₹34.1 cr in one. Skids are about 22% of revenue (₹32.4 cr of ₹145.4 cr), shown as 23% in some summaries.
- Trailing P/E ranges from 101x to 114x depending on date and earnings used. One snapshot shows 58.7x and is not used.
- FY22 to FY24 financials are from aggregators and indicative. FY26 depreciation of ₹26 cr and its doubling are from one aggregator.
- Shareholding splits conflict across Upstox, Anand Rathi and IIFL.
- Names in my brief that were not found in any source: Kapadia family, Lloyd Insulations, Metallica, Metflex, Aeroflex International DMCC.
- Not found: customer concentration, order book, auditor name, remuneration, related-party amounts, pledge in 2026, Q2 FY27 date, outcome of the 14 Oct 2026 board meeting, and a live 14 Oct price.
- Next filings to read: the FY26 annual report, the 14 Oct board outcome, the Q1 FY27 transcript and the latest shareholding pattern.