Shares of Aeroflex Industries surged up to 18% on Thursday, October 29, marking their biggest intraday jump in six months, after the company raised its FY27 revenue growth guidance to over 60% from 35% earlier.
Speaking to CNBC-TV18, Asad Daud, Chairman and Managing Director (CMD) of Aeroflex Industries, also raised the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) growth guidance to 70% from 35% earlier.
“We expect to clock over 60% revenue growth in FY27,” Daud said.
The stock gained as the company reported a strong September quarter, with consolidated net profit rising 157% year-on-year (YoY) to ₹36.56 crore. Revenue nearly doubled, increasing 87.1% to ₹207.16 crore from ₹110.57 crore a year ago.
EBITDA margin improves; sequential performance strengthens
Aeroflex Industries reported EBITDA of ₹50.33 crore in the September quarter, compared with ₹25.84 crore in the year-ago period. EBITDA margin improved to 24.3% from 23.3%.
Sequentially, net profit rose 94.5% from ₹18.79 crore in the June quarter, while revenue increased 42.6% from ₹145.18 crore.
Daud said the company had recorded its highest-ever quarterly and half-yearly performance, with quarterly revenue crossing ₹200 crore for the first time. He attributed the performance to strong execution and sustained demand.
Capex to be funded largely through internal accruals
On the company’s expansion plans, Daud said the capital expenditure (capex) programme would be completed in the next financial year. The company is unlikely to raise funds through an equity issue, he said.
“We will fund capex largely through internal accruals, bridge financing and equity, if needed,” Daud said.
He added that peak capacity utilisation from the new capex is expected in FY30. The company has expanded annual capacity for liquid cooling stainless steel flexible network (SFN) skid assemblies from 9,000 to 12,000 pieces, while capacity in its stainless steel hose and braiding division stands at 20 million metres annually.
Working capital and accounting change
Daud said overall working capital days had improved and the company would continue to focus on bringing them down further.
Aeroflex Industries has also changed its depreciation method from the written-down value method to the straight-line method.
Separately, the company’s board has given in-principle approval for the merger of its wholly owned subsidiary, Hyd-Air Engineering Private Limited, with an appointed date of April 1, 2026, subject to regulatory and other approvals.
Aeroflex Industries shares react
Shares of Aeroflex Industries jumped about 17.5% to an intraday high of ₹578.50 on Thursday. This was the biggest single-day gain the stock has seen in over six months. It was trading about 15% up at ₹566.50 as of 11.34 am.
Aeroflex Industries shares stand around 6.7% below their 52-week high of ₹613.70, recorded earlier this month and have surged about 262% from their 52-week low of ₹158, which it hit in January this year. The stock has advanced more than 194% since January this year and 205% over the last 12 months.
Aeroflex Industries shares jump 18% after company raises FY27 revenue, EBITDA growth targets