Aeroflex Q2 FY27 Results (NSE: AEROFLEX)
Signal: Margin expansion
The read
The key inflection is growth re-acceleration: consolidated revenue rose to ₹20,716.29 lakh, +87% YoY and +43% QoQ, after Q1FY27 revenue of ₹14,517.63 lakh, while operating margin improved to approximately 24% from approximately 23%; however, reported PAT also benefits materially from the prospective WDV-to-SLM change, which lowered Q2 depreciation by ₹841.25 lakh versus the counterfactual WDV charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹207.16 Cr | +87% | +43% |
| Net profit | ₹36.56 Cr | +84% | |
| EPS | ₹2.76 | +84% | |
| EBIT margin | 24% |
P&L walk
Consolidated revenue increased to ₹20,716.29 lakh, +87% YoY and +43% QoQ, with operating margin around 24% and PAT of ₹3,655.92 lakh, +84% YoY; growth was broad enough for group earnings to remain close to standalone earnings.
Key positives
- Consolidated revenue reached ₹20,716.29 lakh, +87% YoY and +43% QoQ, showing acceleration from ₹14,517.63 lakh in Q1FY27.
- Operating margin improved to approximately 24%, up approximately 100bps YoY and QoQ, despite revenue scaling sharply.
- Liquid cooling SFN skid capacity increased from 9,000 to 12,000 pieces per annum, while SS Hose & Braiding capacity reached 20 million metres per annum.
- Standalone operating cash flow was ₹3,782.66 lakh in H1FY27 versus ₹2,524.48 lakh in H1FY26.
Key concerns
- The depreciation-method change increased Q2FY27 PAT by ₹823.48 lakh on a consolidated basis versus the counterfactual WDV method, making reported profit growth less representative of underlying operating growth.
- The filing does not provide segment-wise reporting, limiting visibility into the relative contribution of flexible hoses versus liquid-cooling skid assemblies.
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