Synopsis:-Posting its highest-ever quarterly and annual results, Aeroflex Industries has closed FY26 with a total income of Rs. 443 crore and EBITDA of Rs. 99.74 crore, while simultaneously ramping up its liquid cooling skid assembly business, a segment it expects to triple in capacity by Q2 FY27 as global demand for AI data center infrastructure accelerates.
A metallic hose manufacturer that’s quietly become a data center infrastructure play that’s the Aeroflex story investors are waking up to. The company has revealed record numbers across nearly every financial metric. But the more telling shift isn’t just in the headline figures; it’s in what’s driving them: a liquid cooling skid assembly business that barely existed a year ago and is now scaling at a pace that’s rewriting the Aeroflex investment thesis entirely. Ace investor Ashish Kacholia holds a 2.27% stake in the company, a signal that the company’s growth thesis has attracted attention well beyond retail circles.
With a market capitalization of approximately Rs. 4,539 crore, the shares of Aeroflex Industries Limited were trading at Rs. 343.25 per share, up by 8 percent from their previous closing price of Rs. 318.20. It is trading at a P/E of approximately 82x.
Q4 and FY26 Financial Performance
Revenue from operations surged 38% YoY to Rs. 125.84 crore in Q4FY26, driven by steady momentum in the core hoses and assemblies business alongside a sharp ramp-up in liquid cooling skid volumes. EBITDA jumped 59% to Rs. 30.03 crore, with margins expanding 326 bps to 23.86%, reflecting strong operating leverage as higher-value skid assemblies began contributing meaningfully to the mix. Net profit climbed 57% YoY to Rs. 17.64 crore, while cash profit soared 67% to Rs. 25.42 crore. Subsidiary Hyd-Air added to the outperformance, posting 50% YoY growth in the quarter.
For the full year, total income rose 17% to Rs. 443.29 crore. More critically, EBITDA breached Rs. 100 crore for the first time, landing at Rs. 99.74 crore, up 26% YoY as margins improved 156 bps to 22.57%. PAT stood at Rs. 55.53 crore, while cash profit grew 28% to Rs. 81.60 crore, reflecting earnings quality well beyond reported profits. The balance sheet remains entirely debt-free, with cash and equivalents of approximately Rs. 70 crore as of March 31, 2026, giving the company full flexibility to fund its capacity expansion without leverage or dilution.
The Liquid Cooling Business: Where the Real Growth Is
The numbers in the core hose business are steady. The data center segment is something else. During FY26, Aeroflex sold 617 SFN (Secondary Fluid Network) skid assemblies worth Rs. 21.2 crore, with 571 of those units, valued at Rs. 18.9 crore, coming in Q4 alone. That quarter-on-quarter acceleration matters. The company entered Q3FY26 with just 46 skid sales; it exited Q4 with a run rate that, if sustained, would imply over 2,000 skids per quarter.
Capacity is being built to match. Aeroflex added 4,000 units of skid assembly capacity during Q4FY26, taking total installed capacity to 6,000 skids per year. A further 4,500 units are planned by July 2026 and another 4,500 by September 2026, which would put total skid capacity at 15,000 units annually by Q2 FY27. Two robotic welding lines were added during Q4 as well, with an automated welding station and annealing plant scheduled for commissioning by December 2026.
Aeroflex participated in the Data Center World Exhibition in Washington in April 2026, showcasing its SFN skid assemblies as uptime infrastructure rather than conventional metallic closed-loop plumbing flow systems engineered specifically for high-density AI liquid cooling environments. The global data center liquid cooling market is projected to grow at a CAGR of over 33% through CY32, according to Markets & Markets, with the direct-to-chip cooling segment expanding even faster. For a company that has already demonstrated rapid commercial traction in this space, the runway ahead is substantial.
Conclusion
Aeroflex has quietly pivoted from metallic hose manufacturer to liquid cooling infrastructure play, and the market is only beginning to price that in. The inflection is visible in Q4FY26, when skid assembly volumes surged from near-zero to a level that signals genuine customer traction, not just capacity built on hope. With aggressive expansion underway and the global liquid cooling market poised for multi-year hypergrowth driven by AI data center demand, this is a second growth engine just warming up.
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