Ashish Kacholia's Small-Cap Multibagger Stock Jumps 13% as Company Reports Highest-Ever Quarterly Revenue, Profit Nearly Doubles and Margins Improve

Aeroflex Industries has been moving beyond stainless-steel flexible hoses towards higher-value assemblies and liquid-cooling systems used in data centres and artificial intelligence infrastructure. That shift was evident in Q2FY27, when the company reported its highest-ever quarterly revenue, with consolidated total income rising 87.01 per cent YoY to Rs 207.68 crore.

Aeroflex Industries Q2FY27 Quaterly Results

Revenue from operations rose to Rs 207.36 crore from Rs 110.87 crore a year earlier, crossing the Rs 200 crore quarterly mark for the first time. Earnings before interest, Tax, depreciation and amortisation (EBITDA) increased 94.49 per cent to Rs 50.34 crore, while EBITDA margin improved by 93 basis points to 24.27 per cent. Profit after tax (PAT) rose 156.85 per cent to Rs 36.56 crore, with PAT margin expanding to 17.60 per cent from 12.82 per cent.

The performance was also stronger sequentially. Total income increased 42.27 per cent QoQ, while EBITDA rose 50.29 per cent and PAT nearly doubled from Rs 18.79 crore in Q1FY27. The company attributed the EBITDA-margin improvement to a higher contribution from high-value products and better operating leverage.

However, the profit growth also reflects an accounting change. Effective April 1, 2026, Aeroflex changed the depreciation method for property, plant and equipment from the written-down-value method to the straight-line method. The prospective change reduced depreciation expense by Rs 8.41 crore in Q2FY27 and H1FY27, which supported reported profit but did not affect EBITDA.

Liquid-cooling skid assemblies generated Rs 50.03 crore of sales in Q2FY27 from 1,475 units, compared with Rs 32.39 crore from 1,040 units in Q1FY27. Aeroflex has completed expansion of skid capacity to 12,000 units annually and plans to increase it to 15,000 units by December 2026. A further Rs 202 crore expansion programme targets 30 million metres of stainless-steel hose and braiding capacity and 30,000 skid assemblies annually by March 2028.

The company has also proposed merging wholly owned subsidiary Hyd-Air Engineering with itself, subject to approvals. Hyd-Air manufactures fittings and fluid connectors, and the merger is intended to integrate operations, reduce overlaps and improve capital deployment.

Aeroflex Industries Share Price Jumps 13%

As of 9:45 am on October 29, 2026, Aeroflex Industries shares were trading at Rs 555.30, up 12.95 per cent from the previous close. The stock was about 3.1 per cent below its 52-week high of Rs 573.10. Over one year, the shares had risen 190.92 per cent, as a result, the stock has delivered multibagger returns for its shareholders. 

Ashish Kacholia Porfolio Stock

Ace investor Ashish Kacholia holds a 2.27 per cent stake in Aeroflex Industries, representing 30,08,589 shares in the company.

What This Means for Investors

The quarter supports Aeroflex's effort to build a larger presence in value-added flow-control products, particularly liquid-cooling skid assemblies for data-centre applications. Skid revenue of Rs 50.03 crore was a meaningful contributor to quarterly sales, while the EBITDA-margin expansion indicates that mix improvement and operating leverage are beginning to translate into operating gains. The proposed Hyd-Air merger could also strengthen integration of fittings and assemblies within the group.

The earnings profile remains constructive, although the reported PAT increase should be read alongside the Rs 8.41 crore reduction in depreciation following the accounting-method change. EBITDA offers a clearer measure of underlying operating momentum. Capacity additions create a larger revenue opportunity, but their returns depend on timely customer approvals, project dispatches and utilisation. At 72.71 times trailing 12-month earnings and 45 times enterprise value to trailing EBITDA, the valuation places considerable importance on sustained growth, stable margins and disciplined execution of the Rs 202 crore expansion programme.

Disclaimer: The article is for informational purposes only and not investment advice.