Aeroflex Industries expects to beat 35% growth guidance, says MD Asad Daud

Aeroflex Industries expects to beat its full-year revenue growth guidance of 35%, according to Managing Director and CEO Asad Daud. The company had held onto that guidance after the April-June 2026 quarter, which saw growth exceed 70%, citing limited visibility at the time. Daud said the second quarter has strengthened that outlook, though he held off on naming a specific number.

"We have a strong demand and a strong pipeline, so things are looking upwards right now," Daud said. He added that a precise figure would follow once July-September 2026 results are released in October, once the first half of the year is complete and plans for the second half take shape.

Aeroflex Industries shares were trading at ₹572.05 as of 2:42 pm on the NSE. The company has a market capitalisation of ₹ 7,581.89 crore, with the stock up more than 219% over the last year.

Aeroflex Industries, headquartered in India, manufactures and sells stainless steel flexible hoses, assemblies and fittings, serving customers in India and export markets including the US and Europe.

Daud pointed to the financial year 2027-28 (FY28) as a marker for the company's growth path. He said revenue near ₹800 crore, with margins around 21-23%, was a fair estimate, and that the company is aiming for margins between 24% and 25% over the next two years.



Daud attributed the growth to demand across the company's full product range rather than any single segment. "It's not just one segment. It's all our product verticals which are doing well both in the international market as well as in India," he said.

He named skid assemblies for data centers as a significant contributor, alongside growth in the core hose business from Europe and the US.



Skid assemblies made up about 23% of Aeroflex's sales in the April-June 2026 quarter. The company is expanding capacity for this segment from 9,000 to 15,000 units by the end of the October-December 2026 quarter, following an earlier increase from 6,000 units. The 9,000-unit capacity was completed in quarter two and will enter production this quarter and into quarter three; the rest is set for quarter four or the start of quarter one.

Realisation per skid currently averages about ₹3.1 lakh, though it ranges from ₹1 lakh to ₹5 lakh depending on the design of each skid and the data center it serves. At 80% capacity utilisation and 15,000 units, Daud estimated the skid plant's top line at ₹350-360 crore at peak output. He said margins on the segment are currently in line with the company's existing products.



A further expansion of skid capacity is under discussion internally and awaits board approval, with a decision expected around Q3. The company has a forecast for skid orders through December and is in talks with customers on plans for the fourth quarter.

Daud said freight costs have risen sharply on the export side, by as much as four to five times in some regions, affecting both container availability and cost. He said Aeroflex had limited exposure to West Asia and was largely unaffected by disruption there. In the US and Europe, the main impact has been longer transit times, which have delayed deliveries to customers.

For the full interview, watch the accompanying video



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