Aeroflex Shares Zoom 18% as Over 31 Million Change Hands on Huge Volume

Aeroflex’s Record Quarter Puts Liquid Cooling Expansion in Focus

A sharp increase in revenue and profit coincided with heavy trading, while planned capacity additions put execution at the centre of the growth story.

Record sales and margins underpin the rally

Aeroflex’s consolidated revenue from operations rose 87% year on year to ₹207.4 crore in Q2FY27. EBITDA increased 94.5% to ₹50.3 crore, while the EBITDA margin expanded by 93 basis points to 24.3%. The company attributed the improvement to a stronger contribution from higher-value products and operating leverage.

Profit after tax reached ₹36.6 crore, up 156.9% from a year earlier. That growth also reflects a change in depreciation method: the shift from the written-down value method to the straight-line method reduced depreciation expense by ₹8.4 crore in the quarter. This is an important qualification for investors assessing how much of the profit increase came from operating performance and how much from accounting treatment.

Liquid cooling is becoming a larger growth driver

The company makes flexible flow solutions for liquids and gases, serving customers across several industries and markets. It is also building its presence in liquid cooling infrastructure for data centres, including the assembly of cooling skids. The opportunity is linked to rising demand for cooling as artificial intelligence and high-performance computing increase data-centre power density, although converting that opportunity into sustained orders and revenue remains a key execution test.

Liquid cooling skid assembly revenue rose to ₹50 crore in Q2FY27, from ₹32.4 crore in Q1FY27 and ₹18.9 crore in Q4FY26, figures cited by ICICI Securities. Aeroflex sold 1,475 skids during the quarter at an average realisation of ₹339,000 each, compared with 1,040 skids at ₹311,000 in the previous quarter. The combination of higher volumes and improved realisation points to growing scale in this business.

Capacity plans raise the execution stakes

Aeroflex has completed an expansion that takes stainless-steel hose and braiding capacity to 20 million metres a year and liquid cooling skid assembly capacity to 12,000 units a year. It aims to lift the latter to 15,000 units by December 2026. A further investment of ₹202 crore is planned to take hose and braiding capacity to 30 million metres a year and skid assembly capacity to 30,000 units a year by March 2028.

Management expects revenue growth and gradual margin improvement, supported by capacity expansion, higher utilisation and operating leverage. Those expectations depend on new capacity being commissioned and used effectively. The investment may strengthen Aeroflex’s ability to meet demand, but it also makes timely execution and the pace of customer orders important to future returns.

The company also cited encouraging demand in its core flow-control businesses, particularly in the US and Europe, and identified ports and terminals as a significant contributor. This gives the business more than one potential source of growth, though the supplied results do not quantify the contribution from each end market beyond the liquid cooling figures.

Heavy turnover signals attention, not certainty

Aeroflex shares rose as much as 18% to ₹579 in intraday trade and were up 17% at ₹573.40 at 11:50 AM, compared with a 0.82% rise in the BSE Sensex. About 31 million shares—23.23% of the company’s total equity—changed hands across the NSE and BSE. The stock had recorded a 52-week high of ₹613.50 on October 14, 2026.

The volume and price move show strong market attention to the results, but turnover alone does not establish whether investors are building long-term positions. After a sharp rally, the more durable measures will be whether liquid cooling sales continue to grow, margins hold up and the announced capacity plans translate into profitable business.

Key Highlights

• Q2FY27 revenue rose 87% year on year to ₹207.4 crore, crossing ₹200 crore for the first time.
• EBITDA increased 94.5% to ₹50.3 crore, with margin up 93 basis points to 24.3%.
• Profit after tax grew 156.9% to ₹36.6 crore; lower depreciation following a change in method contributed to the increase.
• Liquid cooling skid assembly revenue reached ₹50 crore, with 1,475 skids sold in the quarter.
• Aeroflex plans a further ₹202 crore investment to expand hose and skid capacity by March 2028.
• Shares gained as much as 18% amid trading of 31 million shares across the two exchanges.

Investor Note: Aeroflex’s results show strong growth and improving operating margins, but investors should distinguish recurring business progress from the depreciation-related boost to reported profit. Capacity execution, sustained liquid cooling demand and margin durability will be important measures to track after the sharp share-price move.