At a Glance
Aeroflex Industries just dropped its Q1 FY26 results—revenue at ₹84 Cr and net profit at ₹7.2 Cr. Margins stayed strong (OPM 18%), but profit fell 42% YoY. The stock at ₹206 trades at a spicy P/E of 56. The “flex” is real, but growth? Meh.
Introduction
Imagine an acrobat—flexible, shiny, but occasionally slips. That’s Aeroflex for Q1 FY26. Revenue dipped 6% YoY while profit nosedived. Still, with ROCE at 22% and a debt-free status, it’s a tightrope walker with a safety net.
Business Model (WTF Do They Even Do?)
Aeroflex makes metallic flexible flow solutions—basically fancy pipes that bend without breaking.
- Products: 2,777 SKUs of hoses, expansion joints, and connectors.
- Use Cases: Oil & gas, chemicals, automotive, aerospace—anywhere flow control matters.
- USP: Stainless steel, eco-friendly, export-heavy.
Roast: They sell pipes, but the hype flows better than water.
Financials Overview
- Revenue (Q1 FY26): ₹84 Cr (↓6% YoY)
- Net Profit: ₹7.2 Cr (↓42% YoY)
- OPM: 18% (steady)
- ROE: 16.6%
- ROCE: 22.3%
Verdict: Profitable, but not thrilling.
Valuation
- P/E: 56×
- CMP/BV: 7.8×
- Fair Value Range: ₹170–₹210
DCF whispers caution; market still buying the dream.
What’s Cooking – News, Triggers, Drama
- Q1 Call: Scheduled for July 29, expect management spin.
- New CS Appointed: Governance check.
- Capacity & Exports: Stable, no fireworks.
- Margin Resilience: Good, despite lower sales.
Drama rating: 3/10—no scandals, just business.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 214 | 375 | 427 |
| Liabilities | 214 | 375 | 427 |
| Net Worth | 114 | 293 | 343 |
| Debt | 45 | 0 | 1 |
Punchline: Strong equity, negligible debt—built like a tank.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 7 | 44 | 27 |
| Investing | -9 | -64 | -74 |
| Financing | 0 | 90 | -3 |
Snark: Cash in, cash out—still ends with decent reserves.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 20% | 26% | 17% |
| ROCE % | 34% | 26% | 22% |
| D/E | 0.2 | 0.0 | 0.0 |
Verdict: Ratios still hot, even if growth cooled.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 269 | 318 | 376 |
| Net Profit | 30 | 42 | 53 |
Comment: Past growth was solid, Q1 hints at slowdown.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| APL Apollo | 20,885 | 801 | 52× |
| Ratnamani Metals | 5,186 | 542 | 34× |
| Jindal Saw | 20,829 | 1,473 | 9× |
| Aeroflex | 371 | 47 | 56× |
Humour: Small fish in a steel ocean, but priced like a shark.
Miscellaneous – Shareholding, Promoters
- Promoters: 67%
- FIIs: 0.4%
- DIIs: 3.9%
- Public: 28.7%
Promoters hold tight, FIIs barely touch it.
EduInvesting Verdict™
Aeroflex is a solid niche player with strong margins and a fortress balance sheet. But with growth slipping and valuation stretched, it’s not exactly a flex.
Final Word: Good product, pricey stock, growth hiccup—handle with care.
Written by EduInvesting Team | 28 July 2025
SEO Tags: Aeroflex Industries, Flexible Flow Solutions, Stainless Steel Hoses, Industrial Products, Smallcap Stocks
