Date: October 28, 2026

Financial Results (Consolidated)

Q2 FY27 Performance

  • Revenue from operations: ₹207.36 Cr (highest-ever quarterly performance)
  • Other income: ₹0.32 Cr
  • Total Income: ₹207.68 Cr (87.01% YoY growth)
  • Cost of material consumed: ₹114.42 Cr
  • Changes in inventories: ₹3.86 Cr
  • Employee benefit expenses: ₹18.03 Cr
  • Other expenses: ₹20.72 Cr
  • EBITDA: ₹50.34 Cr (94.49% YoY growth)
  • EBITDA Margin: 24.27% (93 bps YoY improvement)
  • Depreciation: ₹4.27 Cr
  • Finance cost: ₹0.60 Cr
  • Profit before tax: ₹45.78 Cr
  • Tax: ₹11.78 Cr
  • Profit after tax: ₹34.00 Cr
  • PAT Margin: 16.37%
  • EPS: ₹2.76

H1 FY27 Performance

  • Revenue from operations: ₹352.74 Cr
  • Other income: ₹0.92 Cr
  • Total Income: ₹353.66 Cr (80.70% YoY growth)
  • Cost of material consumed: ₹198.64 Cr
  • Changes in inventories: ₹0.33 Cr
  • Employee benefit expenses: ₹31.97 Cr
  • Other expenses: ₹37.96 Cr
  • EBITDA: ₹83.83 Cr (102.68% YoY growth)
  • EBITDA Margin: 23.77% (258 bps YoY improvement)
  • Depreciation: ₹8.29 Cr
  • Finance cost: ₹0.96 Cr
  • Profit before tax: ₹75.50 Cr
  • Tax: ₹20.15 Cr
  • Profit after tax: ₹55.35 Cr (158.65% YoY growth)
  • PAT Margin: 15.65%

Change in Depreciation Method

  • Effective April 1, 2026, changed depreciation method from WDV to SLM
  • Accounted prospectively as change in accounting estimate
  • Reduced depreciation expense by ₹8.41 Cr in H1FY27
  • Under previous WDV method, H1FY27 PAT would have been ₹47.12 Cr instead of ₹55.35 Cr

Operational Highlights

Product Segment Performance (Q2FY27)

  • Domestic:Export Mix: 47%:53%
  • Geographical Split (Exports): Americas 66%, Europe 25%, Others 9%
  • SS Flexible Hoses Assemblies & Others: +44% YoY absolute revenue growth
  • SFN: +40% YoY absolute revenue growth
  • Skid Assemblies: +178% YoY absolute revenue growth

Capacity Expansion

  • Completed expansion of SS Hose & Braiding Division to 20 million meters p.a.
  • Completed expansion of Liquid Cooling Skid Assemblies to 12,000 pieces p.a.
  • Ongoing expansion to increase skid assembly capacity to 15,000 pieces p.a. by December 2026
  • Next phase targeting SS Hose capacity of 30 million meters p.a. and Skid capacity of 30,000 pieces p.a. by March 2028
  • Total investment of ₹202 Cr for next phase expansion

Liquid Cooling Skid Business

  • Q2FY27 Sales: 1,475 skids at average price of ₹3,39,196 per skid (Value: ₹50.03 Cr)
  • Q1FY27 Sales: 1,040 skids at average price of ₹3,11,459 per skid (Value: ₹32.39 Cr)
  • Selling price typically ranges between ₹1,10,000 and ₹5,50,000 per skid
  • Participated in Tech Week Singapore in September 2026 to showcase liquid cooling solutions

Strategic Developments

Merger with Hyd-Air Engineering

  • Announced merger of Hyd-Air Engineering with Aeroflex Industries
  • Aimed at strategic integration of operations for streamlined business structure
  • Expected to leverage existing infrastructure, optimize resource allocation, and reduce administrative costs
  • Expected to eliminate operational overlaps and improve coordination

Patent Grant

  • Granted Indian patent for "System and Method for Automatically Generating 3D Computer-Aided Models of Braided Hose Assemblies"
  • Strengthens in-house engineering and design capabilities
  • Reinforces focus on innovation and intellectual property

Balance Sheet (Consolidated as of September 2026)

Assets

  • Total Assets: ₹709.86 Cr (vs ₹565.02 Cr in March 2026)
  • Non-Current Assets: ₹324.33 Cr
  • Property plant & equipment: ₹215.27 Cr
  • CWIP: ₹73.48 Cr
  • Right of use assets: ₹22.18 Cr
  • Current Assets: ₹385.53 Cr
  • Inventories: ₹112.35 Cr
  • Trade receivables: ₹203.83 Cr
  • Cash and cash equivalents: ₹24.80 Cr
  • Bank balances: ₹3.66 Cr

Equity & Liabilities

  • Total Equity: ₹497.42 Cr (vs ₹447.27 Cr in March 2026)
  • Share capital: ₹26.47 Cr
  • Other equity: ₹470.96 Cr
  • Non-Current Liabilities: ₹24.14 Cr
  • Current Liabilities: ₹188.30 Cr
  • Trade payables: ₹136.33 Cr
  • Current tax liabilities: ₹11.75 Cr

Cash Flow Statement (Consolidated H1FY27)

  • Net profit before tax: ₹75.50 Cr
  • Cash generated from operations: ₹56.38 Cr
  • Direct taxes paid: ₹(18.22) Cr
  • Net cash from operating activities: ₹38.16 Cr
  • Net cash from investing activities: ₹(23.73) Cr
  • Net cash from financing activities: ₹(8.62) Cr
  • Net increase in cash: ₹5.81 Cr

Management Commentary

  • Managing Director Mr. Asad Daud stated: "We are pleased to deliver our highest-ever quarterly and half-yearly performance"
  • Expect continued revenue growth and progressive improvement in EBITDA margins
  • Focus on disciplined execution, efficient capital deployment and operational efficiencies
  • Data center liquid cooling presents significant opportunity due to AI and high-performance computing adoption
  • Demand remains encouraging in US and Europe, with ports and terminals emerging as key contributor