Aeroflex Industries Share Price Surges 14% After Q2: Profit Jumps 157%, Why the Depreciation Change Matters
- October 29, 2026
- Posted by: Kunal Singla
- Category: News
The Aeroflex Industries share price was Rs 565.75 on the NSE, up 14.93%, at 10:59 AM IST on Thursday, 29 Oct 2026, after Q2 FY27 results showed revenue up 87% to Rs 207.36 crore, EBITDA up 94.5% to Rs 50.34 crore and net profit up 156.9% to Rs 36.56 crore, with a change in the depreciation method adding about Rs 8.41 crore to pre-tax profit.
Quick Answer
The Aeroflex Industries share price jumped 14.93% to Rs 565.75 at 10:59 AM IST on 29 Oct 2026, after the previous close of Rs 492.25, following Q2 FY27 results with revenue up about 87% to Rs 207.36 crore and net profit up about 157% to Rs 36.56 crore. EBITDA rose about 94% to Rs 50.34 crore at a margin of 24.27%, which is the cleaner measure because the company moved from the written-down-value to the straight-line depreciation method from 1 April 2026, cutting depreciation by Rs 8.41 crore in the quarter. Liquid-cooling skid sales were Rs 50.03 crore from 1,475 units, and the valuation is high at 72.71 to 96.97 times earnings depending on the source. This is educational and not a recommendation.
The Aeroflex Industries share price jumped 15% on results, which is easy to understand when profit rises more than 150%, but the quality of that profit matters. This article explains the Q2 numbers, shows how much of the profit growth came from the accounting change, looks at the data-centre cooling skids that are driving revenue, covers the capacity expansion and valuation, and sets out what could go wrong.
Two flags. Sources give slightly different revenue figures (Rs 207.06 crore, Rs 207.36 crore and Rs 207.68 crore total income), and valuation ratios differ by basis. The stock’s high is also reported inconsistently: one report said it touched Rs 613.50 on 14 Oct, while another listed a 52-week high of Rs 573.10. I could not reconcile these. It is educational and not advice.
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Aeroflex Industries Share Price Today: Snapshot
| Aeroflex Industries share price: item | Value (NSE, 10:59 AM IST) |
|---|---|
| Last price | Rs 565.75, up 14.93% |
| Previous close | Rs 492.25 |
| Open, high and low | Rs 528 (a gap-up of about 7.3%), Rs 570 and Rs 511.10 |
| Volume so far | About 2.37 crore shares |
| Market capitalisation | About Rs 6,506 crore |
| One-year return | About 191%, against about minus 9% for the BSE 500 (one source) |
The Aeroflex Industries share price opened about 7% higher, dipped to Rs 511.10 and then climbed, which shows buyers stepping in on weakness. Volume of about 2.37 crore shares in under two hours is very heavy for a company of this size, so the move has strong participation. The one-year return of about 191% shows how far the stock has already run.
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Q2 FY27 Results Behind the Aeroflex Industries Share Price
| Aeroflex Industries share price: Q2 measure (Rs crore) | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 207.36 | 110.87 | Up about 87% |
| EBITDA | 50.34 | 25.88 (my calculation from the growth rate) | Up about 94.5% |
| EBITDA margin | 24.27% | About 23.3% | Up 93 basis points |
| Profit before tax | 49.61 | 19.71 | Up about 152% (my calculation) |
| Net profit | 36.56 | 14.23 | Up about 157% |
| Net profit margin | 17.6% | 12.8% | Up about 4.8 percentage points |
| Earnings per share (Rs) | 2.76 | 1.10 | Up about 151% (my calculation) |
Revenue crossed Rs 200 crore for the first time, and EBITDA margin held near 24%, which indicates that growth did not come at the cost of operating profitability. Net profit grew faster than EBITDA, and the gap is explained by the depreciation change. The Aeroflex Industries share price reacted to the headline growth, and the next section shows how much of it is operating.
The Depreciation Change: How Much of the Aeroflex Industries Share Price Jump Is Operating?
| Aeroflex Industries share price: adjustment | Figure (my rough calculation) |
|---|---|
| Reduction in depreciation from the method change | About Rs 8.41 crore in Q2 (reported) |
| Depreciation implied by the data provider | About Rs 0.45 crore in Q2 against about Rs 7.85 crore in the June 2026 quarter |
| Effective tax rate in Q2 | About 26% (profit before tax Rs 49.61 crore to profit Rs 36.56 crore) |
| After-tax value of the change | About Rs 6.2 crore |
| Net profit without the change | About Rs 30.4 crore |
| Growth over Rs 14.23 crore | About 114% |
The company moved from the written-down-value method to the straight-line method from 1 April 2026, which lowers depreciation in the early years of an asset’s life. That raised profit but not EBITDA, so EBITDA is the cleaner guide. Even without the change, my rough arithmetic puts profit growth above 100%, so the operating improvement is real, but the 157% headline overstates it.
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Liquid-Cooling Skids: The Growth Engine Behind the Aeroflex Industries share price
| Aeroflex Industries share price: skid item | Q1 FY27 | Q2 FY27 | Change (my calculation) |
|---|---|---|---|
| Skid sales (Rs crore) | 32.39 | 50.03 | Up about 54% |
| Units sold | 1,040 | 1,475 | Up about 42% |
| Revenue per unit (Rs lakh) | About 3.1 | About 3.4 | Up about 9% |
| Share of revenue | About 22% | About 24% | Up about 2 percentage points |
| Rest of the business (Rs crore) | About 113 | About 157 | Up about 39% |
Liquid-cooling skids used in data centres grew faster than the rest of the business, but even without them revenue grew about 39% from the previous quarter (my calculation). That shows broad strength and not a single product. Revenue per skid also rose, which points to a better mix. The Aeroflex Industries share price is therefore a bet on both the skid ramp and the core hose and braiding business.
Capacity Expansion and Corporate Actions Affecting the Aeroflex Industries share price
| Aeroflex Industries share price: expansion item | Detail |
|---|---|
| Skid capacity | 12,000 units a year in place; target 15,000 by December 2026 and 30,000 by March 2028 |
| Hose and braiding capacity | 20 million metres a year now; 30 million by March 2028 |
| Expansion cost | About Rs 202 crore (Rs 124 crore hose, Rs 78 crore skids), funded by internal accruals, equity and bridge loans |
| Subsidiary merger | Hyd-Air Engineering, a wholly owned subsidiary making fittings and connectors, to be merged, subject to approvals |
| Management change | A new CFO from 28 Nov 2026; the current CFO becomes a whole-time director |
| Shareholder | Ashish Kacholia held 2.27% (30 lakh shares) at the end of June 2026 |
Capacity must be filled to pay for itself, so capacity expansion only helps if orders follow, and the skid plan doubles output from 15,000 to 30,000 units in about 15 months after December 2026. If orders keep up, the expansion supports the Aeroflex Industries share price, and if they slow, the extra cost and borrowing become a drag. The funding mix includes equity and bridge loans, which may mean dilution or interest cost.
Valuation and Chart: Where the Aeroflex Industries Share Price Stands
| Aeroflex Industries share price: indicator | Value |
|---|---|
| Price to earnings | 96.97 (data provider, industry 20.14); 72.71 (another source) |
| Price to book | 14.55 |
| Return on equity | 12.41% |
| Debt to equity | 0.02 |
| EV to EBITDA (trailing) | About 45 times (one source) |
| RSI | 55.34 |
| 20-day EMA | Rs 514.18; price is about 10% above it (my calculation) |
| Supertrend | Rs 574.03, bearish; price is about 1.5% below it (my calculation) |
The valuation is demanding at a price to earnings of 72 to 97 and a price to book of 14.55, with a return on equity of 12.41% that does not match those multiples. Debt is almost nil, which is a strength. The chart is mixed: the price is far above its 20-day average but still below a bearish Supertrend near Rs 574, so a close above that line would be the signal to watch.
Risks Around the Aeroflex Industries Share Price
- Valuation. A price to earnings of 72 to 97 leaves little room for a growth slowdown in the Aeroflex Industries share price.
- Accounting boost. The depreciation change added about Rs 8.41 crore before tax, so reported profit growth overstates operating growth.
- Concentration. Skids are about a quarter of revenue and depend on data-centre demand and customer approvals.
- Execution. Doubling skid capacity by March 2028 requires orders and timely commissioning.
- Volatility. The stock fell sharply before today’s 15% jump and has risen about 191% in a year, so reversals can be fast.
- Data conflicts. Revenue, valuation and the stock’s high differ across sources, so check the exchange filings.
Conclusion: The Aeroflex Industries Share Price Is Rewarding Real Growth, With a Rich Valuation
The Aeroflex Industries share price jumped 15% on a quarter of real operating growth, helped by a depreciation change that makes the profit growth look larger than it is. The liquid-cooling skids and the capacity plan are the story, and the valuation is the risk. Read the filing, watch the Rs 574 level and decide according to your own risk profile.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why did the Aeroflex Industries share price surge today?
Ans. The stock rose about 15% to Rs 565.75 after Q2 FY27 results showed revenue up about 87%, EBITDA up about 94% and net profit up about 157%. It opened about 7% higher on 29 Oct and traded on very heavy volume.
What were the Q2 FY27 results behind the Aeroflex Industries share price?
Ans. Revenue from operations was Rs 207.36 crore, EBITDA Rs 50.34 crore at a 24.27% margin and net profit Rs 36.56 crore, against Rs 14.23 crore a year earlier. It was the first quarter with revenue above Rs 200 crore.
How did the depreciation change affect the profit behind the Aeroflex Industries share price?
Ans. From 1 April 2026 the company moved from the written-down-value to the straight-line method, which cut depreciation by about Rs 8.41 crore in Q2. That raised profit but not EBITDA, and my rough calculation puts profit growth without it near 114%.
What are liquid-cooling skids and how big are they in the Aeroflex Industries share price story?
Ans. The skid assemblies are used for liquid cooling in data centres. Sales were Rs 50.03 crore from 1,475 units in Q2, up from Rs 32.39 crore from 1,040 units in Q1, about 24% of revenue (my calculation).
What is the capacity expansion plan behind the Aeroflex Industries share price?
Ans. The company approved about Rs 202 crore for capacity: hose and braiding to 30 million metres a year and skid assemblies to 30,000 a year by March 2028. Skid capacity is 12,000 now, with a 15,000 target by December 2026.
Is the Aeroflex Industries share price expensive?
Ans. The data provider shows a price to earnings of 96.97 against an industry figure of 20.14, and another source shows 72.71. The price to book is 14.55 and the return on equity is 12.41%, so the market is pricing in strong growth.
What does the chart show for the Aeroflex Industries share price?
Ans. The RSI is 55.34 and the 20-day average is Rs 514.18, with the price about 10% above it. The Supertrend is bearish at Rs 574.03, just above the price, so a close above it would improve the signal.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.
