Aeroflex Industries Rockets 18% in Biggest Rally in 6 Months as Q2 Profit
In a dramatic show of buying strength on Dalal Street, shares of metallic flexible hose manufacturer Aeroflex Industries staged an explosive rally on Thursday, October 29, 2026, surging nearly 18% on the National Stock Exchange (NSE) to reach an intraday peak of ₹578.50. Recording its largest single-day advance in more than six months, the counter sustained heavy gains of over 15% throughout afternoon trading as institutional and retail investors piled into the stock. The massive re-rating was triggered by management's aggressive upward revision of its revenue and operational profit guidance for fiscal year 2027, coupled with historic second-quarter financial numbers that saw quarterly revenue cross the ₹200-crore milestone for the first time. The sharp spike brings the stock within 5.7% of its all-time 52-week peak of ₹613.70 set earlier this month, extending an extraordinary 266% recovery from its 52-week low of ₹158 recorded in January.
Stellar Q2 Scorecard: Profit Soars 157% as FY27 EBITDA Guidance Upgraded to 70%
The primary engine behind Thursday’s market rally was an unprecedented upgrade in long-term earnings guidance articulated by the company’s leadership. Speaking to CNBC-TV18, Chairman and Managing Director Asad Daud announced that Aeroflex Industries has revised its fiscal 2027 revenue growth forecast upward to more than 60%, nearly double its earlier projection of 35%. Concurrently, the company elevated its FY27 EBITDA growth guidance from 35% to a massive 70%, signaling substantial operational leverage and pricing power. This ambitious forward trajectory is anchored in a stellar set of second-quarter numbers for the period ending September 2026. Consolidated net profit for the quarter surged 157% year-on-year to ₹365.6 million (₹36.56 crore) compared to ₹142.3 million in the corresponding quarter last year. Revenue from operations jumped 87.1% year-on-year to ₹207.16 crore against ₹110.57 crore in the year-ago period, marking the highest quarterly revenue in the company's operating history. Operating profitability expanded in tandem, with EBITDA climbing from ₹258.4 million to ₹503.3 million as EBITDA margins widened from 23.3% to 24.3%. On a sequential basis compared to the June 2026 quarter, net profit surged by 94.5% from ₹18.79 crore, while revenue expanded by 42.6% from ₹145.18 crore, establishing the half-year period as the strongest operational phase recorded by the enterprise.
Liquid Cooling Boom, Subsidiary Merger, and Internal Accruals Anchor Expansion
Beyond the core quarterly figures, management detailed significant strategic developments in its manufacturing infrastructure aimed at capturing the global artificial intelligence and data center liquid cooling supply chain. Aeroflex has expanded the annual installed capacity of its specialized Stainless Steel Flexible Network (SFN) skid assemblies designed for liquid cooling systems from 9,000 units to 12,000 units, while its primary stainless steel hose and braiding division maintains an annual production capacity of 20 million meters. Management projects that ongoing capital expenditure programs will be fully completed during the upcoming financial year, enabling complete capacity utilization across both divisions by fiscal year 2030. Importantly, CMD Asad Daud emphasized that the capex blueprint will be funded predominantly through internal operational cash generation, ruling out dilutive equity offerings while leaving open the possibility of temporary bridge loans only if strictly required. In addition to operational scaling, the company’s board granted in-principle approval for the scheme of amalgamation to merge its wholly-owned subsidiary, Hyd-Air Engineering Private Limited, into Aeroflex Industries with a proposed appointed date of April 1, 2026, subject to regulatory clearances. Complementing aggressive working capital optimization initiatives designed to unlock stuck cash balances, the company has also standardized its accounting policies by transitioning its asset depreciation calculation methodology from the Written Down Value (WDV) approach to the Straight-Line Method (SLM), further solidifying its balance sheet transparency ahead of sustained multi-year business growth.
