Aeroflex Q1 FY27 Results (NSE: AEROFLEX)
Signal: Margin expansion
The read
Consolidated revenue hit ₹4,531 Cr (+66% YoY) as standalone liquid cooling skid capacity expansion to 9,000 units drove 75.5% standalone revenue growth. Gross margin jumped sharply on raw material deflation (cost fell to 46.8% from 54.6% of revenue). 3rd consecutive quarter of OPM expansion (+400bps YoY). PAT grew 162% YoY with no exceptional items. Subsidiary Hyd-Air Engineering contributed ₹765.66 Cr revenue but a small loss of ₹26.58 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹45.32 Cr | 66.0% | -15.5% |
| EBIT | ₹9.24 Cr | 53.9% | |
| Net profit | ₹18.79 Cr | 162.1% | |
| EPS | ₹1.42 | 158.2% | |
| EBIT margin | 20.4% |
P&L walk
Consolidated revenue surged 66% YoY to ₹4,531 Cr, driven by strong standalone sales (+75.5% YoY) and the inclusion of Hyd-Air Engineering (₹765.66 Cr revenue). Gross margin expanded sharply as raw material cost fell to 46.8% of revenue vs 54.6% YoY (-780bps). EBITDA margin climbed 400bps YoY to 20.4% as operating leverage and input deflation combined. PAT grew 162% YoY, tracking operating profit growth. EPS tracked PAT closely, no dilution.
Segments
Company operates in a single segment (manufacturing). Consolidated P&L includes Hyd-Air Engineering as subsidiary; standalone revenue is ₹13,901 lakh, consolidated ₹45,31,61 lakh, with the difference largely from the subsidiary's ₹765.66 lakh revenue. The subsidiary reported a loss of ₹26.58 lakh in Q1FY27, dragging group profit slightly.
Key positives
- Standalone revenue grew 75.5% YoY to ₹13,901 lakh, driven by capacity addition (liquid cooling skid capacity raised to 9,000 units/annum).
- Gross margin improved sharply: raw material cost fell to 46.8% of revenue on consolidated basis from 54.6% YoY (-780bps).
- OPM expanded 400bps YoY to 20.4%, the 3rd consecutive quarter of margin expansion.
- PAT surged 162% YoY to ₹1,879 Cr, with strong operating leverage and no exceptional items.
Key concerns
- Revenue declined 15.5% QoQ versus Q4FY26 (₹5,337 Cr), though Q4 included a year-end spike.
- Subsidiary Hyd-Air Engineering posted a loss of ₹26.58 lakh in the quarter.
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