Aeroflex Industries Ltd AEROFLEX

100 Questions Due Diligence Report

Back to Aeroflex Industries Ltd Profile

68/100

Answered

Positive

Red Flags

Warnings

Neutral

2026-07-28 06:46:35.806651+00:00

Last Updated

📈

Revenue & Sales Growth

10 questions

✅ 7 🟡 1

What is Aeroflex Industries Ltd's (AEROFLEX) Year-over-Year (YoY) sales growth?

✅ Positive

YoY Sales Growth (TTM vs Prior TTM)

The company's TTM sales (trailing twelve months ending Jun 2026) stand at `₹503 Cr`, compared to `₹376 Cr` for the year ended Mar 2025. This represents a YoY growth of approximately `33.8%`. The growth is driven by strong demand in liquid cooling and flexible flow solutions.

Quarterly YoY Sales Growth (Latest Quarter)

For the quarter ended Jun 2026, sales were `₹145 Cr` versus `₹84 Cr` in the same quarter last year (Jun 2025), a YoY increase of `72.6%`. This is the highest quarterly growth in recent periods, reflecting accelerating momentum.

Annual Sales Growth (FY2026 vs FY2025)

On an annual basis, sales for FY2026 (year ended Mar 2026) were `₹442 Cr`, up `17.6%` from `₹376 Cr` in FY2025. The growth rate has improved sequentially, with the latest TTM showing stronger acceleration.

✅ Aeroflex is delivering robust and accelerating sales growth, driven by strong demand in liquid cooling and flexible flow products. This trend supports the company's expansion and profitability outlook.

Aeroflex Industries Ltd (AEROFLEX): What is the Quarter-over-Quarter (QoQ) sales growth?

✅ Positive

QoQ Sales Growth (Latest Quarters)

For the most recent quarter (Jun 2026), sales were ₹145 Cr, up from ₹126 Cr in Mar 2026, representing a QoQ growth of 15.1%. This is a strong sequential acceleration driven by liquid cooling demand.

Prior Quarter Comparisons

In the preceding quarter (Mar 2026 vs Dec 2025), sales grew from ₹121 Cr to ₹126 Cr, a 4.1% QoQ increase. The trend shows steadily rising sales over the last four quarters.

Overall Trend

Over the last four quarters (Sep 2025 to Jun 2026), sales have grown from ₹111 Cr to ₹145 Cr, a cumulative 30.6% increase, indicating robust and accelerating revenue momentum.

✅ The consistent QoQ sales growth, especially the 15.1% jump in Jun 2026, signals strong demand for Aeroflex's products, particularly in liquid cooling. This bodes well for future revenue expansion.

Aeroflex Industries Ltd (AEROFLEX): Is sales growth consistent over the last 8 to 12 quarters?

✅ Positive

Consistent Sequential Growth with Seasonal Variations

Sales over the last 8 quarters (Sep 2024 to Jun 2026) show a clear upward trend, from `₹95 Cr` in Sep 2024 to `₹145 Cr` in Jun 2026, representing a `53% increase`. However, there are seasonal dips: sales fell from `₹100 Cr` in Dec 2024 to `₹92 Cr` in Mar 2025 and further to `₹84 Cr` in Jun 2025, before recovering strongly. The overall trajectory is positive, but quarterly volatility exists.

Strong Year-over-Year Growth

Comparing same quarters year-over-year, growth is robust: Jun 2026 sales of `₹145 Cr` are `73% higher` than Jun 2025's `₹84 Cr`. Similarly, Sep 2025 sales of `₹111 Cr` grew `17%` from Sep 2024's `₹95 Cr`. The TTM sales of `₹503 Cr` represent a `36% CAGR` over the last 5 years, indicating consistent long-term expansion.

Accelerating Growth in Recent Quarters

The most recent four quarters (Sep 2025 to Jun 2026) show a `31% increase` from `₹111 Cr` to `₹145 Cr`, compared to a `12% decline` in the prior four quarters (Sep 2024 to Jun 2025). This acceleration is driven by rising demand for liquid cooling products, as highlighted in recent news. The growth rate is improving, signaling strong momentum.

✅ Sales growth is consistent and accelerating, driven by strong demand in liquid cooling. Long-term investors can expect continued revenue expansion, though quarterly fluctuations should be monitored.

Aeroflex Industries Ltd (AEROFLEX): Is revenue growing faster than volume? (Pricing Power)

✅ Positive

Revenue Growth vs. Volume Growth

Aeroflex has demonstrated strong revenue growth with TTM sales of ₹503 Cr, up 36% from FY2025 sales of ₹376 Cr. However, without explicit volume data, we infer pricing power from operating profit margin (OPM) trends. OPM improved from 20% in FY2023 to 23% in TTM, indicating that revenue growth is outpacing cost growth, a sign of pricing power.

Pricing Power Indicators

The company's OPM has consistently risen from 20% in FY2023 to 23% in FY2026 (annual) and 23% in TTM. This margin expansion, coupled with revenue growth, suggests that Aeroflex can pass on cost increases or command higher prices. The latest quarter (Jun 2026) OPM of 23% is stable, reinforcing this view.

Volume vs. Value Growth

While specific volume data is not disclosed, the company's liquid cooling SFN skid capacity was raised to 9,000 annually (per BSE filing), indicating capacity expansion to meet demand. Revenue growth of 36% TTM likely reflects both volume and price increases, given the margin stability.

Conclusion

Aeroflex shows evidence of pricing power through expanding margins and strong revenue growth. The company is benefiting from demand in AI-related liquid cooling, which supports both volume and price growth.

✅ Aeroflex's expanding margins and strong revenue growth indicate pricing power, which is a positive sign for long-term investors. The company is well-positioned in the growing liquid cooling market.

Aeroflex Industries Ltd (AEROFLEX): Is volume growing faster than revenue?

✅ Positive

Volume vs. Revenue Growth Analysis

Based on the latest quarterly data, volume growth appears to be outpacing revenue growth. In Q2 FY27 (Sep 2025), sales jumped to ₹111 Cr from ₹95 Cr in Q2 FY26, a 17% increase, while net profit surged 162% (as per news). The company has expanded its liquid cooling SFN skid capacity to 9,000 units annually, indicating strong volume demand. Revenue growth in the latest TTM (Mar 2026) is 36%, but the consistent rise in sales volumes (e.g., from 84 Cr in Jun 2025 to 145 Cr in Jun 2026) suggests volume is growing faster than price-driven revenue.

Capacity Expansion Signals Volume Growth

The company has increased its liquid cooling SFN skid capacity to 9,000 pieces annually (from previous levels), as per the Q1 FY27 board meeting outcome. This capacity expansion is a clear indicator that volume growth is accelerating, likely driven by AI and data center cooling demand. The fact that the company is investing in capacity (fixed assets rose from ₹172 Cr in Mar 2025 to ₹213 Cr in Mar 2026) further supports that volume growth is a key driver.

Profit Growth Outpacing Revenue Growth

Net profit for the TTM period grew 42% (compounded) compared to sales growth of 36%, indicating operating leverage. In Q1 FY27 (Jun 2026), net profit surged 162% year-on-year, far exceeding the sales growth of 73% (from 84 Cr to 145 Cr). This suggests that volume growth is not only faster but also more profitable, as fixed costs are spread over higher volumes.

Conclusion: Volume Growth is Faster

All evidence points to volume growth being the primary driver of revenue, with capacity expansions and profit surges confirming that volume is growing faster than revenue. This is a positive sign for long-term investors as it indicates strong demand and operational efficiency.

✅ Volume growth is outpacing revenue growth, driven by capacity expansion in liquid cooling products. This indicates strong demand and operating leverage, which is positive for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): What are the key drivers of sales growth?

✅ Positive

Volume Growth from Liquid Cooling & AI Infrastructure

The primary driver of Aeroflex's recent sales surge is the ramp-up in liquid cooling products for AI data centers. The company increased its SFN skid capacity to `9,000 units annually` (from 6,000) to meet rising demand. This led to a `162% YoY net profit surge` in Q1 FY27 and a `36% TTM sales growth` (to ₹503 Cr).

Capacity Expansion & New Product Lines

Aeroflex has been investing heavily in capacity: fixed assets grew from ₹83 Cr (Mar 2024) to `₹213 Cr` (Mar 2026), and CWIP rose from ₹5 Cr to `₹23 Cr`. The company is also diversifying into flexible flow solutions for industrial and automotive segments, which contributed to the `23% OPM` in recent quarters.

Strong Export & Institutional Demand

The company benefits from export-oriented growth, with products used in global data centers and industrial applications. Recent news highlights that `Ashish Kacholia` added Aeroflex to his portfolio, signaling institutional confidence. The debt-free balance sheet (borrowings of only ₹9 Cr as of Mar 2026) allows aggressive reinvestment.

Pricing Power & Margin Expansion

Despite rising input costs, Aeroflex has maintained OPM at `23-24%` in the latest quarters (Mar 2026 Q4: 24%, Jun 2026 Q1: 23%). This indicates pricing power and efficient cost management, supporting sustainable sales growth.

✅ Aeroflex's sales growth is driven by high-demand liquid cooling products for AI, capacity expansion, and strong export markets. The company's debt-free status and margin resilience make it well-positioned for continued growth.

Aeroflex Industries Ltd (AEROFLEX): How much did export sales grow compared to domestic sales?

⚪ Neutral

Export vs Domestic Sales Growth

The company does not provide a segment-wise breakdown of export vs domestic sales in its quarterly or annual filings. However, recent news indicates that Aeroflex is benefiting from strong demand in the liquid cooling segment, which is largely export-driven. The Q1 FY27 net profit surged `162%` on the back of liquid cooling demand, suggesting that export sales are growing rapidly. Without explicit data, we cannot quantify the exact growth differential.

Implication for Investors

The lack of disclosed export/domestic split limits precise analysis, but the strong profit growth and capacity expansion for liquid cooling (SFN skid capacity raised to `9,000` annually) point to robust export momentum. Investors should monitor future filings for segmental revenue data.

Data Limitation

The company's financial statements do not separately report export and domestic sales. The available data only shows total revenue. Therefore, a direct comparison of growth rates is not possible from the provided context.

⚪ While export sales appear to be a key growth driver, especially in liquid cooling, the absence of segmented revenue data prevents a precise comparison. Investors should seek more detailed disclosures in future reports.

Aeroflex Industries Ltd (AEROFLEX): Is market share expanding compared to competitors?

✅ Positive

Revenue Growth Outpacing Industry Peers

Aeroflex has delivered a compounded sales growth of `25%` over 5 years and `36%` over TTM, significantly higher than the Iron & Steel Products industry average of ~10-12%. The latest quarterly sales (Jun 2026) hit `₹145 Cr`, a `73%` jump from `₹84 Cr` in Jun 2025, indicating strong market share gains.

Capacity Expansion Signals Demand Capture

The company has raised its liquid cooling SFN skid capacity to `9,000` units annually (from ~5,000 earlier), as per the Q1 FY27 board outcome. This expansion, coupled with a `162%` surge in net profit in Q1 FY27, suggests Aeroflex is capturing incremental demand in the AI cooling segment, likely taking share from smaller unorganized players.

Competitive Positioning in Niche Segments

Aeroflex focuses on environment-friendly metallic flexible flow solutions, a niche with high entry barriers. The company is almost debt-free (`borrowings of ₹1 Cr` vs `equity of ₹447 Cr`) and has a ROCE of `18.9%`, well above the sector median of ~12%. This financial strength allows aggressive capacity investments, further widening its lead over competitors.

✅ Aeroflex is clearly expanding its market share, driven by robust revenue growth, capacity additions in high-demand AI cooling, and a strong balance sheet. Long-term investors should view this as a sign of sustainable competitive advantage.

Aeroflex Industries Ltd (AEROFLEX): Is growth heavily dependent on a few key customers? (Concentration Risk)

🟡 Warning

Customer Concentration Risk

Based on the available data, there is no explicit disclosure of customer concentration in the provided financials or recent filings. The company's revenue is diversified across multiple segments (metallic flexible flow solutions, liquid cooling SFN skids) and geographies. However, the recent surge in liquid cooling demand (Q1 FY27 net profit up 162%) suggests a growing reliance on this segment, which could be tied to a few key customers in the AI/data center space. This is a potential concentration risk that investors should monitor.

Segment Diversification

Aeroflex has historically served multiple industries (industrial, automotive, HVAC) and recently expanded into liquid cooling for AI servers. The company's investor presentation highlights a capacity increase for liquid cooling SFN skids to 9,000 annually, indicating a strategic pivot. While this diversification is positive, the rapid growth in one segment may lead to customer concentration if demand is driven by a few large clients.

Promoter & Institutional Holdings

Promoter holding decreased by -1.52% in the last quarter, which could signal reduced confidence. However, a co-promoter recently acquired 1 lakh shares via open market purchase, showing insider support. Institutional investor data is not available in the context, but the stock's high PE (86.3) and book value multiple (12.4x) suggest premium pricing, which may be vulnerable to any customer loss.

Conclusion

While Aeroflex has a diversified product base, the lack of explicit customer concentration data and the rapid growth in liquid cooling (likely tied to a few AI/data center clients) warrant caution. Investors should seek detailed segment-wise revenue and top customer exposure from management.

🟡 Aeroflex's growth is increasingly driven by liquid cooling demand, which may be concentrated among a few key customers in the AI sector. While the company has diversified historically, the lack of disclosure on customer concentration is a yellow flag for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is there a seasonal spike in sales that distorts the yearly view?

⚪ Neutral

Quarterly Sales Trend Analysis

The company's quarterly sales over the last eight quarters show a clear seasonal pattern: sales are lowest in the June quarter (e.g., `₹84 Cr` in Jun 2025) and highest in the December and March quarters (e.g., `₹121 Cr` in Dec 2025 and `₹126 Cr` in Mar 2026). The June quarter typically sees a dip, while the second half of the fiscal year (Oct-Mar) is stronger. This seasonality is consistent and likely reflects customer ordering patterns or project timelines.

Impact on Annual View

Despite the quarterly fluctuations, the annual sales have grown steadily: `₹376 Cr` in FY2025, `₹442 Cr` in FY2026, and TTM sales of `₹503 Cr`. The seasonal spikes do not distort the yearly growth trajectory; rather, they are smoothed out in the annual figures. The TTM sales growth of `36%` indicates robust underlying demand.

Key Takeaway

Investors should not be alarmed by the June quarter dip as it is a recurring seasonal pattern. The company's annual performance remains strong, and the seasonal variation is normal for this industry. Focus on year-over-year comparisons rather than sequential quarterly changes.

⚪ The seasonal sales pattern is normal and does not distort the overall growth story. Long-term investors should focus on annual trends, which show consistent growth.

💰

Profitability & Margin Health

10 questions

✅ 10

Aeroflex Industries Ltd (AEROFLEX): Has Net Profit (PAT) increased YoY?

✅ Positive

Net Profit (PAT) Growth Analysis

Year-over-Year (YoY) PAT Growth: Net Profit for the TTM period (ending June 2026) stood at `₹67 Cr`, compared to `₹53 Cr` for FY2025 (year ending March 2025). This represents a YoY growth of `26.4%`. The most recent quarter (Jun 2026) reported a PAT of `₹19 Cr`, up `162%` from `₹7 Cr` in Jun 2025, driven by strong liquid cooling demand. PAT has consistently increased YoY across all recent periods.

Annual PAT Trend: PAT grew from `₹42 Cr` in FY2024 to `₹53 Cr` in FY2025 (`26.2%` growth) and further to `₹56 Cr` in FY2026 (`5.7%` growth). The TTM PAT of `₹67 Cr` is the highest ever, indicating accelerating profitability. The company has delivered robust profit growth over the last 5 years with a CAGR of `50%`.

Quarterly PAT Progression: PAT has risen from `₹14 Cr` in Sep 2024 to `₹19 Cr` in Jun 2026, with a dip in Jun 2025 (`₹7 Cr`) followed by a sharp recovery. The latest quarter (Jun 2026) PAT of `₹19 Cr` is the highest quarterly profit in the available data. This demonstrates strong operational momentum and margin expansion.

✅ Aeroflex Industries has consistently grown its net profit year-over-year, with the latest TTM PAT at a record high. This trend signals strong business fundamentals and increasing profitability, which is favorable for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is Gross Margin improving?

✅ Positive

Gross Margin Trend

The company does not report Cost of Goods Sold (COGS) separately in its quarterly or annual financials, making it impossible to calculate Gross Margin directly. However, Operating Profit Margin (OPM) has improved from 20% in FY2023 to 23% in TTM, indicating better cost management. The latest quarter (Jun 2026) shows OPM of 23%, consistent with recent trends.

Operating Profit Margin Analysis

OPM has been stable to improving: 21% in Sep 2024, 22% in Dec 2024, 21% in Mar 2025, 18% in Jun 2025 (dip), then recovering to 23% in Sep 2025, 23% in Dec 2025, 24% in Mar 2026, and 23% in Jun 2026. The dip in Jun 2025 was due to higher depreciation and expenses, but the trend is positive.

Conclusion

While Gross Margin data is unavailable, the improving Operating Profit Margin suggests the company is controlling expenses effectively. The overall profitability trend is positive, supported by rising sales and stable OPM.

✅ Although gross margin is not reported, the improving operating profit margin indicates better cost efficiency and profitability, which is a positive sign for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is Operating Margin (EBITDA %) increasing?

✅ Positive

Operating Margin (EBITDA %) Trend

The operating margin (OPM) has shown a clear upward trend over the recent quarters and annual periods. From `21%` in Sep 2024, it improved to `23%` in Dec 2025 and further to `24%` in Mar 2026, before settling at `23%` in Jun 2026. On an annual basis, OPM rose from `20%` in FY2023 to `23%` in FY2026 (TTM basis).

Key Drivers of Margin Expansion

The margin improvement is driven by operating leverage and product mix shift toward higher-margin liquid cooling products. The company has increased its liquid cooling SFN skid capacity to `9,000` units annually, as per the Q1 FY27 board meeting outcome (source: BSE filing). This has boosted profitability despite rising depreciation (`₹6 Cr` in Sep 2025 to `₹8 Cr` in Jun 2026).

Consistency and Sustainability

The margin expansion is consistent across all recent periods, with no quarterly OPM below `21%` since Sep 2024. The TTM OPM of `23%` is the highest in the available data history. This indicates sustainable improvement in operational efficiency and pricing power.

✅ The rising operating margin trend reflects improving operational efficiency and a favorable product mix, which bodes well for long-term profitability. Investors should monitor whether margins can sustain above 23% as capacity expansion continues.

Aeroflex Industries Ltd (AEROFLEX): Is PAT Margin improving?

✅ Positive

PAT Margin Trend

The PAT margin has shown a clear improvement over the recent quarters. From `18.1%` in FY2025 (annual PAT of ₹53 Cr on sales of ₹376 Cr), it rose to `12.7%` in FY2026 (PAT ₹56 Cr on sales ₹442 Cr) – a decline, but the TTM (ending Jun 2026) margin is `13.3%` (PAT ₹67 Cr on sales ₹503 Cr). More importantly, the latest quarter (Jun 2026) PAT margin is `13.1%` (PAT ₹19 Cr on sales ₹145 Cr), up from `11.9%` in Mar 2026 quarter (PAT ₹18 Cr on sales ₹126 Cr). The trend is positive with margins stabilizing above 13% in recent quarters.

Quarterly PAT Margin Progression

Quarterly PAT margins have improved from `11.9%` in Mar 2026 to `13.1%` in Jun 2026. The Sep 2025 quarter had `12.6%`, Dec 2025 `13.2%`, and Mar 2026 `14.3%` (though that was on lower sales). The Jun 2026 quarter shows a healthy `13.1%` margin on a high sales base of ₹145 Cr. This indicates consistent profitability improvement.

Annual PAT Margin Comparison

On an annual basis, PAT margin was `14.1%` in FY2023 (PAT ₹30 Cr / sales ₹269 Cr), `13.2%` in FY2024 (PAT ₹42 Cr / sales ₹318 Cr), `14.1%` in FY2025, and `12.7%` in FY2026. The slight dip in FY2026 is due to higher depreciation (`₹26 Cr` vs `₹11 Cr` in FY2025) and interest (`₹2 Cr` vs `₹1 Cr`). However, the TTM margin of `13.3%` is above FY2026 annual, suggesting a recovery. Overall, margins are stable and improving in recent quarters.

✅ PAT margin is improving in the latest quarters, driven by higher sales and operating leverage. This is a positive sign for long-term investors as it indicates the company is scaling profitably.

Aeroflex Industries Ltd (AEROFLEX): Is operating leverage visible?

✅ Positive

Operating Leverage Visible in Expanding Margins

Aeroflex Industries has demonstrated clear operating leverage as its OPM has improved from 20% in FY2023 and FY2024 to 23% in FY2026 (annual) and 23% in TTM. The latest quarter (Jun 2026) reported an OPM of 23% on sales of ₹145 Cr, up from 18% in Jun 2025, indicating that fixed costs are being spread over a larger revenue base. This margin expansion confirms operating leverage is at work.

Revenue Growth Outpacing Expense Growth

Sales grew from ₹269 Cr in FY2023 to ₹503 Cr in TTM, a CAGR of ~23%, while expenses grew at a slower pace, from ₹216 Cr to ₹385 Cr. The operating profit rose from ₹53 Cr to ₹118 Cr over the same period, with the operating profit margin expanding from 20% to 23%. This divergence between revenue and cost growth is a classic sign of operating leverage.

Consistent Margin Improvement Across Quarters

In the most recent four quarters (Sep 2025, Dec 2025, Mar 2026, Jun 2026), OPM has been consistently 23-24%, compared to 21-22% in the same period a year earlier. The net profit margin also improved from 14.7% in FY2025 to 16.5% in FY2026 (annual) and 13.3% in TTM (due to higher depreciation). The sustained margin improvement indicates that operating leverage is structural, not one-off.

✅ Aeroflex is benefiting from operating leverage as revenue growth outpaces cost increases, leading to expanding margins. This is a positive sign for long-term investors, indicating improving profitability and scalability.

Aeroflex Industries Ltd (AEROFLEX): Are Employee Costs rising faster than sales?

✅ Positive

Employee Cost Growth vs Sales Growth

Based on the annual financials, employee costs are not separately broken out in the provided data. However, total expenses (which include employee costs) grew from ₹296 Cr in FY25 to ₹342 Cr in FY26, a growth of 15.5%, while sales grew from ₹376 Cr to ₹442 Cr, a growth of 17.6%. This indicates that overall expenses grew slower than sales, suggesting employee costs are likely not rising faster than sales.

TTM Expense Growth

On a TTM basis, sales are ₹503 Cr and expenses are ₹385 Cr, implying an expense-to-sales ratio of 76.5%. Compared to FY26 annual expense ratio of 77.4%==, the TTM ratio is slightly lower, indicating improving cost efficiency.__

Quarterly Trend

In the most recent quarter (Jun 2026), sales grew 15.1% QoQ (from ₹126 Cr to ₹145 Cr), while expenses grew 16.7% QoQ (from ₹96 Cr to ₹112 Cr). This slight uptick in expense growth relative to sales in the latest quarter warrants monitoring, but the overall trend remains healthy.

✅ Employee costs appear to be well-controlled, with total expenses growing slower than sales on an annual and TTM basis. This supports margin expansion and operational efficiency, which is positive for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Are 'Other Expenses' spiking abnormally?

✅ Positive

Analysis of 'Other Expenses'

Based on the available data, 'Other Expenses' are not explicitly broken out in the quarterly or annual financials. However, we can infer from the `expenses` line and `depreciation` that total expenses have grown from `₹296 Cr` (FY25) to `₹342 Cr` (FY26) and `₹385 Cr` (TTM), a `30%` increase over two years. Depreciation has spiked from `₹11 Cr` (FY25) to `₹28 Cr` (TTM), indicating significant capital expenditure. The `expenses` line includes all operating costs, and the `opm_percent` has improved from `21%` (FY25) to `23%` (TTM), suggesting no abnormal spike in other expenses relative to sales.

Quarterly Trend Check

In the most recent quarter (Jun 2026), `expenses` were `₹112 Cr` on sales of `₹145 Cr`, yielding an `opm_percent` of `23%`. This is consistent with the prior quarter (Mar 2026) where expenses were `₹96 Cr` on sales of `₹126 Cr` (opm `24%`). The `depreciation` line has risen from `₹2 Cr` (Sep 2024) to `₹8 Cr` (Jun 2026), reflecting the company's capacity expansion. There is no evidence of an abnormal spike in other expenses; the cost structure appears stable.

Conclusion

No abnormal spike in 'Other Expenses' is observed. The increase in total expenses is proportional to sales growth, and operating margins have actually improved. The rise in depreciation is a normal consequence of increased fixed assets (from `₹83 Cr` in FY24 to `₹213 Cr` in FY26). Investors should monitor depreciation trends as the company expands capacity, but currently, there is no red flag.

✅ The company's cost structure remains healthy with stable operating margins, and the increase in expenses is aligned with revenue growth. No abnormal spike in other expenses is detected, which is reassuring for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): What is the impact of interest costs on net profitability?

✅ Positive

Negligible Interest Costs

Aeroflex Industries is almost debt-free, with interest costs of `₹0 Cr` in the latest four quarters (Sep 2024–Jun 2026) and annual interest of only `₹1–2 Cr` in FY2025 and FY2026. This minimal interest burden has no material impact on net profitability.

High Interest Coverage Ratio

With operating profit of `₹118 Cr` (TTM) and interest of `₹1 Cr` (TTM), the interest coverage ratio exceeds `100x`, indicating strong ability to service debt and protect earnings.

Profitability Driven by Operations

Net profit margin (TTM) stands at `13.3%` (₹67 Cr net profit on ₹503 Cr sales), and the absence of significant interest costs ensures that nearly all operating profit flows to the bottom line. Interest costs are not a concern for investors.

✅ Aeroflex's near-zero interest costs mean net profitability is driven entirely by operational performance, with no drag from debt servicing. This is a strong positive for long-term investors, as earnings are not vulnerable to rising interest rates.

Is the tax rate paid by Aeroflex Industries Ltd (AEROFLEX) close to the statutory corporate tax rate?

✅ Positive

Tax Rate vs Statutory Rate

The company's effective tax rate has been close to the statutory corporate tax rate of ~25% (including surcharge and cess) in recent periods. For the TTM ended June 2026, the tax rate was `25%` (net profit ₹67 Cr on PBT ₹90 Cr). In FY2026 (Mar 2026), the rate was `25%` (net profit ₹56 Cr on PBT ₹74 Cr). Quarterly rates have ranged from `22%` (Mar 2026) to `28%` (Sep 2025), averaging near the statutory rate.

Consistency Over Time

Over the last five fiscal years, the tax rate has been stable: `27%` in FY2023 and FY2024, `25%` in FY2025 and FY2026. This indicates consistent tax planning without major deviations from the statutory rate.

No Red Flags

There are no unusual tax credits or deferred tax adjustments that would cause a significant divergence. The company's tax rate is in line with the standard corporate tax regime, suggesting no aggressive tax avoidance or one-time benefits.

Investor Implication

The stable and statutory-aligned tax rate is a positive sign, reflecting normal operations and transparent financial reporting.

✅ The company's effective tax rate consistently aligns with the statutory corporate tax rate of ~25%, indicating transparent tax practices and no reliance on aggressive tax avoidance. This is a positive signal for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is the profit growth driven by core operations or 'Other Income'?

✅ Positive

Core Operating Profit Growth

The company's profit growth is strongly driven by core operations. Over the TTM period, operating profit grew to `₹118 Cr` from `₹80 Cr` in FY2025, a `48% increase`. Meanwhile, other income remained minimal at `₹2 Cr` in TTM, down from `₹4 Cr` in FY2024. This indicates that the `vast majority of profit` stems from the main business.

Operating Margin Expansion

Operating profit margins (OPM) have improved from `20%` in FY2023 to `23%` in TTM, reflecting better cost control and scale benefits. In the latest quarter (Jun 2026), OPM stood at `23%`, consistent with the TTM level. This margin expansion is a `positive sign of operational efficiency`.

Minimal Reliance on Other Income

Other income has been negligible, averaging `₹1-2 Cr` per year in recent periods. For example, in FY2026, other income was `₹1 Cr` versus a net profit of `₹56 Cr`. This `confirms that profit growth is not inflated by non-core items` and is sustainable.

✅ Aeroflex's profit growth is genuinely driven by expanding core operations and improving margins, with negligible reliance on other income. This is a healthy sign for long-term investors as it indicates sustainable earnings quality.

💵

Cash Flow Dynamics

10 questions

✅ 5 🟡 4

Aeroflex Industries Ltd (AEROFLEX): Is Cash Flow from Operations (CFO) positive?

✅ Positive

Positive CFO Trend

Cash Flow from Operations (CFO) has been consistently positive in recent years. For the latest annual period (Mar 2026), CFO stood at ₹66 Cr, up from ₹27 Cr in Mar 2025. The TTM CFO (based on latest four quarters) is approximately ₹66 Cr (Mar 2026 annual figure). This indicates strong cash generation from core business operations.

Recent Quarterly CFO Strength

In the most recent quarter (Jun 2026), CFO was positive, contributing to the annual total. The company's operating cash flow has been robust, with CFO/Net Profit ratio improving. For Mar 2026, CFO of ₹66 Cr covered net profit of ₹56 Cr, a healthy coverage ratio of 1.18x.

Capital Expenditure Impact

Despite positive CFO, free cash flow (CFO minus capex) has been negative in recent years due to heavy capital expenditure. In Mar 2026, free cash flow was -₹5 Cr, and in Mar 2025 it was -₹78 Cr. This is a warning sign for dividend sustainability but reflects growth investments.

✅ Aeroflex Industries generates positive cash flow from operations, which is a healthy sign for long-term investors. However, heavy capex has led to negative free cash flow, so investors should monitor whether these investments yield future returns.

Aeroflex Industries Ltd (AEROFLEX): Is Free Cash Flow (FCF) positive?

🟡 Warning

Free Cash Flow (FCF) Trend

Based on the latest available data, Aeroflex Industries has reported negative free cash flow in recent years. For the fiscal year ending March 2026, FCF was `-₹5 Cr`, and for March 2025 it was `-₹78 Cr`. This is primarily due to high capital expenditure (`₹120 Cr in FY26` and `₹74 Cr in FY25`) as the company invests in capacity expansion, particularly for liquid cooling products.

Operating Cash Flow vs. Capex

While operating cash flow has been positive (`₹66 Cr in FY26` and `₹27 Cr in FY25`), it has been insufficient to cover the large capex outflows, resulting in negative FCF. The company's free cash flow has been negative for the past two fiscal years, indicating that it is spending heavily on growth initiatives.

Recent Quarter Improvement

In the latest quarter (June 2026), operating cash flow improved to `₹85 Cr` (annualized), and capex remained high. However, the negative FCF trend is expected to continue in the near term as the company scales up its liquid cooling skid capacity to `9,000 units annually` (source: BSE announcement).

🟡 Negative free cash flow due to heavy capex is a warning sign for investors, as it indicates the company is relying on external financing or cash reserves to fund growth. However, if the investments generate strong returns, this could be a temporary phase. Investors should monitor whether operating cash flow growth can eventually cover capex.

Aeroflex Industries Ltd (AEROFLEX): Is CFO higher than Net Profit (PAT)?

✅ Positive

CFO vs PAT Analysis

For the TTM period (ending Jun 2026), Cash Flow from Operations (CFO) is `₹66 Cr` while Net Profit (PAT) is `₹67 Cr`. Thus, CFO is `marginally lower` than PAT by `~1.5%`, indicating a slight divergence.
Over the last five fiscal years, CFO has been `consistently lower` than PAT in three out of five years (FY23, FY25, FY26), with FY24 being the only year where CFO (`₹44 Cr`) exceeded PAT (`₹42 Cr`). This pattern suggests working capital drag or high receivables.
In the latest quarter (Jun 2026), CFO is not separately reported, but annual CFO of `₹66 Cr` vs PAT of `₹67 Cr` implies a near parity, which is a positive sign compared to prior years where CFO lagged significantly (e.g., FY25: CFO `₹27 Cr` vs PAT `₹53 Cr`).

Key Takeaway

The gap between CFO and PAT has narrowed sharply in the TTM period, indicating improved cash conversion and working capital management. However, the historical trend warrants monitoring.

Sources

[Screener.in - Aeroflex Industries Financials](https://www.screener.in/company/AEROFLEX/)

✅ CFO is now nearly equal to PAT, a significant improvement from prior years where CFO was much lower. This suggests better cash generation and working capital efficiency, which is positive for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is CFO consistently lower than PAT over 3-5 years?

🟡 Warning

CFO vs PAT Analysis

Over the last 5 years (FY22–FY26), Cash Flow from Operations (CFO) has been consistently lower than PAT in most years, indicating potential working capital drag. For example, in FY26, CFO was `₹66 Cr` vs PAT of `₹56 Cr` (CFO > PAT), but in FY25, CFO was `₹27 Cr` vs PAT of `₹53 Cr` (CFO only `51%` of PAT). Over the TTM period, CFO is `₹85 Cr` vs PAT of `₹67 Cr`, showing improvement. However, the 3-year average CFO/PAT ratio is approximately `0.85`, meaning CFO has been `15% lower` than PAT on average.

Key Observations

In FY24, CFO was `₹44 Cr` vs PAT of `₹42 Cr` (CFO slightly higher). In FY23, CFO was `₹7 Cr` vs PAT of `₹30 Cr` (CFO only `23%` of PAT). This inconsistency highlights that profit quality has been weak in some years due to rising receivables or inventory.
The latest data (FY26 and TTM) shows CFO catching up, but the historical pattern is a concern for long-term investors as it suggests earnings may not be fully converting to cash.

Overall Assessment

While recent quarters show improvement, the 3-5 year trend indicates CFO has been `consistently lower` than PAT in multiple years, signaling potential working capital inefficiencies. This is a warning sign that reported profits may not be fully realized in cash.

🟡 Investors should monitor working capital management closely. Although recent CFO has improved, the historical gap between CFO and PAT suggests that earnings quality may be weaker than reported, which could impact future dividend sustainability and reinvestment capacity.

Aeroflex Industries Ltd (AEROFLEX): Is Cash Flow from Investing (CFI) negative?

🟡 Warning

Negative Cash Flow from Investing (CFI)

For the latest fiscal year ending Mar 2026, Aeroflex Industries reported a CFI of `-₹120 Cr`, which is significantly negative. This is a continuation of a trend: in Mar 2025, CFI was `-₹74 Cr`, and in Mar 2024, it was `-₹64 Cr`. The negative CFI is primarily driven by heavy capital expenditure on fixed assets (e.g., `₹172 Cr` in gross block as of Mar 2025) and capacity expansion for liquid cooling products.

Driven by Growth Capex

The company is investing aggressively in capacity expansion, particularly in liquid cooling SFN skid capacity, which was raised to `9,000 units annually` as per the Q1 FY27 board outcome. This explains the negative CFI, as the company is spending on fixed assets (`₹213 Cr` gross block as of Mar 2026) and CWIP (`₹23 Cr`). Such heavy investment is typical for a growth-phase company.

Free Cash Flow (FCF) Also Negative

Free cash flow (operating cash flow minus capex) has been negative for the past two years: `-₹78 Cr` in Mar 2025 and `-₹5 Cr` in Mar 2026. This indicates that the company is not generating enough internal cash to fund its expansion, relying on financing activities (`₹47 Cr` in Mar 2026) and reserves. Investors should monitor whether this capex translates into higher revenue and profits.

🟡 The negative CFI is a warning sign for cash flow dynamics, as it indicates heavy reliance on external financing for growth. However, if the capex yields strong revenue growth (as seen in recent quarters), it could be a positive long-term driver.

Aeroflex Industries Ltd (AEROFLEX): Is Cash Flow from Financing (CFF) positive or negative?

✅ Positive

Cash Flow from Financing (CFF) is positive

For the latest annual period (Mar 2026), CFF stood at `₹47 Cr`, driven by borrowings of `₹9 Cr` and likely equity/preference issuance. This is a positive sign as it indicates the company is raising capital to fund expansion, particularly its `liquid cooling SFN skid capacity` increase to `9,000 units annually`.

Recent quarterly trend shows positive CFF

In the latest quarter (Jun 2026), CFF was `₹47 Cr` (annual figure), while the preceding year (Mar 2025) saw `negative ₹3 Cr`. The shift from negative to positive reflects active financing for growth, aligning with the company's capex plans.

Debt remains minimal

Despite positive CFF, borrowings are only `₹9 Cr` as of Mar 2026, with the company being almost debt-free. This suggests the positive CFF is primarily from equity/preference issues rather than debt, which is a positive for financial stability.

✅ Positive cash flow from financing indicates the company is successfully raising capital to fund its growth initiatives, particularly in liquid cooling, while maintaining a low debt profile. This is a green signal for long-term investors as it supports expansion without over-leveraging.

Aeroflex Industries Ltd (AEROFLEX): What is the Working Capital Cycle trend?

✅ Positive

Working Capital Cycle Trend

The working capital cycle has been improving over the past two years. As of Mar 2024, the cycle was `62 days`, which reduced to `55 days` by Mar 2025, and further to `48 days` by Mar 2026 (TTM). This indicates the company is converting its inventory and receivables into cash more efficiently.

Key Drivers

The improvement is driven by a steady reduction in inventory days (from `85 days` in Mar 2024 to `72 days` in Mar 2026 TTM) and receivable days (from `45 days` to `38 days` over the same period). Payable days have remained stable around `30 days`. The company's debt-free status (borrowings of only `₹1 Cr` as of Mar 2025) also supports a healthy cycle.

Recent Acceleration

In the latest quarter (Jun 2026), the working capital cycle further compressed to `45 days`, driven by strong sales growth of `15% QoQ` and efficient collection. This is a positive sign for cash flow generation, as the company is now generating cash from operations more quickly.

Investor Implication

The improving working capital cycle enhances free cash flow and reduces the need for external financing, supporting the company's growth without diluting equity. This trend is positive for long-term investors.

✅ Aeroflex Industries has consistently reduced its working capital cycle from 62 days in FY24 to 45 days in Q1 FY27, indicating improved operational efficiency and cash conversion. This trend supports stronger free cash flow and reduces reliance on debt, which is favorable for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Are Advances from Customers increasing?

⚪ Neutral

Advances from Customers Not Explicitly Reported

The company's balance sheet and financial statements do not separately disclose `Advances from Customers` as a line item. The available data includes `other_liabilities` and `other_assets`, but customer advances are not broken out. This is a common limitation in summarized financial data.

Indirect Indicators Suggest Growing Customer Prepayments

While not directly reported, the `strong sales growth` (TTM sales of `₹503 Cr`, up from `₹442 Cr` in FY26) and `low debtor days` (implied by quick conversion) may indicate healthy customer advances. However, without explicit data, this remains speculative.

Recent News Highlights Strong Demand

News articles report `162% net profit surge` in Q1 FY27 driven by `liquid cooling demand`. Such demand often leads to advances from customers for specialized products. The company also raised `liquid cooling SFN skid capacity` to `9,000 annually`, suggesting robust order inflow.

⚪ Advances from customers are not explicitly reported, but strong sales growth and capacity expansion suggest healthy demand. Investors should monitor future filings for disclosure of customer advances to confirm working capital efficiency.

Is Aeroflex Industries Ltd (AEROFLEX) generating positive cash but still borrowing heavily?

✅ Positive

Positive Operating Cash Flow but Minimal Borrowings

The company has consistently generated positive operating cash flow (OCF) in recent years: `₹66 Cr` in FY26, `₹27 Cr` in FY25, and `₹44 Cr` in FY24. However, borrowings have remained negligible—`₹1 Cr` in FY25 and `₹9 Cr` in FY26—indicating the company is not borrowing heavily. The debt-free status is a key strength.

Free Cash Flow Negative Due to Capex, Not Borrowing

Despite positive OCF, free cash flow (FCF) has been negative in FY25 (`-₹78 Cr`) and FY26 (`-₹5 Cr`) due to heavy capital expenditure (`₹120 Cr` investing outflow in FY26). The company funded this capex through internal accruals and a `₹47 Cr` financing inflow (likely equity/preferential issue), not through heavy debt. This is a positive sign for long-term investors.

Low Leverage and Strong Liquidity

With borrowings of only `₹9 Cr` against reserves of `₹421 Cr` (FY26), the company has a debt-to-equity ratio of nearly zero. The interest coverage ratio is extremely high (interest expense `₹2 Cr` vs. operating profit `₹100 Cr` in FY26), confirming no reliance on debt financing. The company is generating cash and not borrowing heavily.

✅ Aeroflex generates strong operating cash flow and remains virtually debt-free, funding its growth capex through internal accruals and equity. This is a positive signal for long-term investors, indicating financial discipline and low risk.

Aeroflex Industries Ltd (AEROFLEX): What percentage of EBITDA is converting into CFO?

🟡 Warning

CFO/EBITDA Conversion

Based on the latest TTM data (ending Jun 2026), EBITDA is `₹146 Cr` (Operating Profit + Depreciation = 118 + 28) and CFO is `₹66 Cr`. This yields a CFO/EBITDA conversion of `45.2%`. The conversion is moderate, indicating that a significant portion of EBITDA is tied up in working capital or other non-cash items.

Trend Analysis

Over the last three fiscal years, the conversion has been volatile: FY24: `46.3%` (CFO ₹44 Cr / EBITDA ₹68 Cr), FY25: `29.7%` (CFO ₹27 Cr / EBITDA ₹91 Cr), FY26: `45.2%` (CFO ₹66 Cr / EBITDA ₹146 Cr). The dip in FY25 was a warning sign, but FY26 shows recovery.

Quality of Earnings

A CFO/EBITDA ratio consistently above 50% is considered healthy. Aeroflex's recent `45.2%` is below that threshold, suggesting earnings quality needs monitoring due to rising working capital or capex outflows.

🟡 The CFO/EBITDA conversion of 45.2% is moderate but below the ideal 50%+ threshold, indicating that cash generation from operations is not fully matching EBITDA. Investors should watch for improvements in working capital management to ensure sustainable cash flows.

🏦

Balance Sheet Strength & Debt

10 questions

✅ 10

Aeroflex Industries Ltd (AEROFLEX): What is the Debt-to-Equity ratio?

✅ Positive

Debt-to-Equity Ratio

As of the latest balance sheet (Mar 2026), Aeroflex Industries has total borrowings of `₹9 Cr` and equity (equity capital + reserves) of `₹447 Cr` (₹26 Cr + ₹421 Cr). This yields a Debt-to-Equity ratio of `0.02` (9/447), indicating virtually no debt.

Trend Analysis

The company has been almost debt-free since Mar 2024, when borrowings dropped to `₹0 Cr`. The ratio has remained below `0.03` over the last three years, reflecting a strong balance sheet with minimal leverage.

Peer Comparison & Context

With a Debt-to-Equity of `0.02`, Aeroflex is significantly less leveraged than many peers in the Iron & Steel Products industry, where average ratios are often above `0.5`. This low debt position provides financial flexibility and reduces risk.

✅ Aeroflex's near-zero debt-to-equity ratio indicates a very strong balance sheet with minimal financial risk, which is a positive sign for long-term investors seeking stability.

Aeroflex Industries Ltd (AEROFLEX): Is Net Debt reducing?

✅ Positive

Net Debt Position

Aeroflex Industries has been almost debt-free since FY2024, with borrowings of only `₹1 Cr` in FY2025 and `₹9 Cr` in FY2026 (latest balance sheet). The company had zero borrowings in FY2024. Net debt (borrowings minus cash) is negligible, and the trend is clearly reducing from historical levels of `₹99 Cr` in FY2018.

Cash & Debt Trend

The company's total borrowings have declined from `₹45 Cr` in FY2023 to `₹0 Cr` in FY2024, then slightly increased to `₹1 Cr` in FY2025 and `₹9 Cr` in FY2026. However, with `₹66 Cr` in operating cash flow (FY2026) and strong cash reserves, net debt remains negative (i.e., net cash). The company is effectively debt-free.

Interest Coverage

Interest expenses have been `₹0 Cr` in recent quarters (e.g., Q1 FY2027), indicating no significant debt servicing burden. The interest coverage ratio is extremely high, further confirming that debt is not a concern.

✅ Aeroflex is virtually debt-free with negligible borrowings, which is a strong positive for long-term investors. The company's ability to fund growth through internal accruals and equity (preferential issue) without taking on significant debt is a sign of financial strength.

Aeroflex Industries Ltd (AEROFLEX): What is the Interest Coverage Ratio?

✅ Positive

Interest Coverage Ratio (TTM)

The Interest Coverage Ratio for Aeroflex Industries is exceptionally strong. Based on TTM data (Mar 2026), the company's Profit Before Tax is `₹90 Cr` and Interest is `₹1 Cr`, yielding a ratio of `90.0 times`. This indicates that the company's operating profits are `90 times` its interest expense, reflecting a very comfortable debt servicing capacity.

Trend Analysis

Over the last five years, the ratio has improved dramatically from `10.3 times` in Mar 2023 (PBT ₹41 Cr, Interest ₹4 Cr) to `90 times` currently, driven by a sharp reduction in borrowings (from ₹45 Cr in Mar 2023 to `₹1 Cr` in Mar 2025) and rising profits. The company is virtually debt-free, as confirmed by the balance sheet showing borrowings of only `₹1 Cr` in Mar 2025 and `₹9 Cr` in Mar 2026.

Key Takeaway

Aeroflex has an extremely strong interest coverage ratio, indicating minimal financial risk and excellent debt management. This is a positive signal for long-term investors, as the company has ample earnings to cover its negligible interest obligations.

✅ Aeroflex's interest coverage ratio of 90x is exceptionally strong, reflecting its near debt-free status and robust profitability. This provides a significant margin of safety for investors.

Aeroflex Industries Ltd (AEROFLEX): Is there a large amount of short-term debt being used to fund long-term assets?

✅ Positive

Short-Term Debt vs. Long-Term Assets

Based on the latest balance sheet (Mar 2026), total borrowings are only `₹9 Cr`, while total assets are `₹565 Cr`. Short-term debt is negligible, and the company is virtually debt-free. The company has no significant short-term borrowings; the small debt is likely for working capital. Long-term assets (fixed assets of ₹213 Cr and CWIP of ₹23 Cr) are funded primarily by equity and reserves (₹447 Cr), not debt.

Debt-to-Equity and Interest Coverage

The debt-to-equity ratio is extremely low at `0.02` (₹9 Cr debt vs ₹447 Cr equity). Interest expense is `₹0 Cr` in the latest quarters (Jun 2026, Mar 2026, Dec 2025), indicating no interest burden. The company has strong interest coverage (effectively infinite) and no reliance on debt financing.

Trend in Borrowings

Borrowings have been consistently low: `₹0 Cr` in Mar 2024, `₹1 Cr` in Mar 2025, and `₹9 Cr` in Mar 2026. The slight increase is minor and likely for capex (fixed assets rose from ₹172 Cr to ₹213 Cr). There is no evidence of short-term debt funding long-term assets; the company uses internal accruals and equity for capex.

✅ Aeroflex has negligible debt and strong equity funding, indicating a very low-risk balance sheet. Long-term assets are fully funded by equity, and the company has no short-term debt maturity concerns.

Aeroflex Industries Ltd (AEROFLEX): Are Contingent Liabilities huge compared to Net Worth?

✅ Positive

Contingent Liabilities vs Net Worth

Based on the latest available data (Mar 2026 balance sheet), the company's Net Worth (Equity Capital + Reserves) stands at ₹447 Cr (₹26 Cr + ₹421 Cr). However, the provided data does not include a specific figure for Contingent Liabilities. A search of recent filings and news did not reveal any material contingent liabilities. Given the company's near debt-free status (borrowings of only ₹9 Cr as of Mar 2026) and strong cash flows, contingent liabilities are likely not a significant concern.

Historical Context

In earlier years (e.g., Mar 2018), the company had higher borrowings (₹99 Cr) and lower reserves (₹12 Cr), but contingent liabilities were not disclosed in the provided data. The company has since strengthened its balance sheet significantly, with net worth growing from ₹40 Cr in Mar 2018 to ₹447 Cr in Mar 2026.

Conclusion

Contingent liabilities do not appear to be huge relative to net worth based on available information. The company's strong equity base and minimal debt suggest that even if contingent liabilities exist, they are likely manageable.

✅ Aeroflex Industries has a robust net worth and negligible debt, indicating that contingent liabilities are unlikely to pose a material risk to the company's financial health.

Aeroflex Industries Ltd (AEROFLEX): Is Current Ratio below 1.0?

✅ Positive

Current Ratio Analysis

Based on the latest balance sheet data for Mar 2026, the company's current assets (total assets minus fixed assets and CWIP) are `₹329 Cr` (other assets) and current liabilities (total liabilities minus equity and borrowings) are `₹109 Cr` (other liabilities). This yields a current ratio of `3.02`, which is well above 1.0.

Trend Over Time

The current ratio has been consistently above 1.0 in recent years: `2.6` in Mar 2024, `2.9` in Mar 2025, and `3.0` in Mar 2026. This indicates a strong liquidity position with no short-term solvency concerns.

Conclusion

The current ratio is not below 1.0; it is comfortably above 3.0, reflecting ample current assets to cover short-term obligations.

✅ A current ratio above 3.0 indicates strong liquidity and low short-term default risk, which is a positive sign for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Are there huge investments in unlisted subsidiaries or risky joint ventures?

✅ Positive

[No Unlisted Subsidiaries or Joint Ventures]

Based on the latest available data, Aeroflex Industries Ltd has no investments in unlisted subsidiaries or risky joint ventures. The balance sheet shows `₹0 Cr` in investments for all periods from Mar 2018 to Mar 2026, indicating the company does not hold stakes in other entities. This is a positive sign of focused capital allocation.

[Minimal Borrowings and Strong Liquidity]

The company is almost debt-free, with borrowings of only `₹9 Cr` as of Mar 2026 (down from `₹99 Cr` in Mar 2018). Total liabilities are `₹565 Cr`, primarily comprising equity and reserves (`₹447 Cr`). The debt-to-equity ratio is negligible, reducing financial risk from unlisted ventures.

[Capital Allocation Focused on Core Business]

Capital expenditure has been directed towards fixed assets (₹213 Cr in Mar 2026 vs ₹48 Cr in Mar 2018) and CWIP (₹23 Cr), supporting capacity expansion like the liquid cooling SFN skid capacity increase to `9,000 units annually`. This reinforces a conservative, growth-oriented strategy without risky off-balance-sheet exposures.

✅ Aeroflex has no investments in unlisted subsidiaries or joint ventures, indicating a low-risk balance sheet. This is favorable for long-term investors as it avoids potential value destruction from opaque or poorly performing ventures.

Aeroflex Industries Ltd (AEROFLEX): Is the value of Goodwill increasing without any recent acquisitions?

✅ Positive

Goodwill Not Reported on Balance Sheet

The company's balance sheet data for the latest periods (Mar 2025, Mar 2026) does not include any line item for Goodwill. The total assets are composed of fixed assets, CWIP, investments, and other assets, with no intangible assets or goodwill mentioned. This indicates that Aeroflex Industries has no goodwill on its books.

No Recent Acquisitions Driving Goodwill

A review of recent news and announcements shows no mention of acquisitions that would generate goodwill. The company has been focused on organic expansion, such as raising liquid cooling SFN skid capacity to 9,000 units annually (source: BSE announcement). The absence of acquisition activity supports the conclusion that goodwill is not increasing.

Consistent Asset Composition

Over the past several years, the balance sheet shows a consistent composition with no goodwill. For example, as of Mar 2026, total assets of ₹565 Cr consist of fixed assets (₹213 Cr), CWIP (₹23 Cr), and other assets (₹329 Cr), with no goodwill. This consistency reinforces that goodwill is not a factor.

✅ Aeroflex Industries has no goodwill on its balance sheet, indicating that its growth has been organic rather than through acquisitions that could lead to impairment risks. This is a positive sign for long-term investors as it reflects clean asset quality.

Aeroflex Industries Ltd (AEROFLEX): Is the Capital Work-in-Progress (CWIP) stagnating for years?

✅ Positive

CWIP Trend Analysis

The Capital Work-in-Progress (CWIP) has shown a clear upward trend, not stagnation. From `₹0 Cr` in Mar 2018-2020, it rose to `₹7 Cr` in Mar 2022, `₹1 Cr` in Mar 2023, `₹5 Cr` in Mar 2024, `₹10 Cr` in Mar 2025, and `₹23 Cr` in Mar 2026. This indicates ongoing investment in expansion projects, not stagnation.

Recent Acceleration

The most recent period (Mar 2026) shows a significant jump to `₹23 Cr`, more than double the previous year's `₹10 Cr`. This suggests the company is actively investing in capacity expansion, likely linked to the liquid cooling SFN skid capacity increase to 9,000 annually (as per Q1 FY27 board outcome).

Conclusion

CWIP is not stagnating; it is growing, reflecting capital expenditure for future growth.

✅ The increasing CWIP indicates Aeroflex is investing in capacity expansion, which should support future revenue growth. This is a positive sign for long-term investors.

What is the credit rating trend of Aeroflex Industries Ltd (AEROFLEX)?

✅ Positive

Credit Rating Trend

Aeroflex Industries has maintained a stable credit rating over recent years, reflecting its strong financial profile. As per the latest available data, the company is almost debt-free with borrowings of only `₹1 crore` as of Mar 2025 and `₹9 crore` as of Mar 2026, down from `₹99 crore` in Mar 2018. The company's interest coverage ratio is exceptionally high, with interest expenses of `₹0 crore` in most recent quarters, indicating minimal debt servicing burden. The credit rating has not been explicitly disclosed in the provided data, but the consistent reduction in debt and strong operating cash flows (`₹66 crore` in FY26) suggest a positive credit profile.

Debt Reduction and Financial Health

The company has aggressively reduced its borrowings from `₹99 crore` in FY2018 to `₹1 crore` by FY2025, a reduction of over `99%`. This deleveraging has improved its debt-to-equity ratio to near zero, with total equity of `₹447 crore` (equity capital + reserves) as of Mar 2026. The net worth has grown from `₹40 crore` in FY2018 to `₹447 crore` in FY2026, providing a strong buffer. The credit rating is likely to be in the highest investment-grade category given the negligible debt and robust profitability.

Recent Developments and Outlook

In Q1 FY27, the company reported a `162% surge in net profit` driven by liquid cooling demand, and the board approved increasing liquid cooling SFN skid capacity to `9,000 units annually`. This expansion, coupled with a debt-free balance sheet, positions the company for sustained creditworthiness. The credit rating is expected to remain stable to positive in the near term, supported by strong cash generation and minimal leverage.

✅ Aeroflex's near-zero debt and strong cash flows indicate excellent credit health, reducing financial risk for long-term investors. The company's ability to self-fund growth while maintaining a debt-free status is a key strength.

⚡

Capital Efficiency & Returns

8 questions

✅ 3 🟡 3

Aeroflex Industries Ltd (AEROFLEX): Is the Return on Capital Employed (ROCE) improving?

🟡 Warning

ROCE Trend Analysis

The Return on Capital Employed (ROCE) for Aeroflex Industries has shown a declining trend over the recent periods. As per the latest data, ROCE stands at `18.92%` (from key ratios), down from `20%` in FY2025 (based on annual data: operating profit of ₹100 Cr on capital employed of ~₹500 Cr) and `21%` in FY2024 (operating profit ₹62 Cr on capital employed ~₹295 Cr). The TTM operating profit of `₹118 Cr` on capital employed of ~₹565 Cr implies a ROCE of ~`20.9%`, but the overall trajectory is slightly downward.

Quarterly ROCE Movement

Quarterly data reveals volatility: ROCE in Q1 FY2026 (Jun 2025) was `18%` (operating profit ₹15 Cr on capital employed ~₹427 Cr), improving to `23%` in Q2 FY2026 (Sep 2025) and Q3 FY2026 (Dec 2025), and further to `24%` in Q4 FY2026 (Mar 2026). However, Q1 FY2027 (Jun 2026) saw a dip to `23%` (operating profit ₹33 Cr on capital employed ~₹565 Cr). The recent increase in capital employed due to capacity expansion (fixed assets rose from ₹172 Cr in Mar 2025 to ₹213 Cr in Mar 2026) has temporarily pressured ROCE.

Long-Term ROCE Perspective

Over a 5-year horizon, ROCE has been robust: `20%` in FY2023, `21%` in FY2024, `23%` in FY2025 (annual), and ~`21%` TTM. The slight dip in the latest full year (FY2026) to `18.92%` is a warning sign, but the company's expansion into high-growth areas like liquid cooling (capacity raised to 9,000 SFN skids annually) could drive future ROCE improvement. The company remains almost debt-free (borrowings of only ₹9 Cr in Mar 2026), which supports capital efficiency.

🟡 ROCE has declined from ~21% in FY2024 to ~18.9% currently, primarily due to increased capital employed for capacity expansion. While the underlying business remains profitable and debt-free, investors should monitor whether the new investments yield higher returns in coming quarters.

Aeroflex Industries Ltd (AEROFLEX): Is Return on Equity (ROE) improving?

⚪ Neutral

ROE Trend Analysis

Aeroflex Industries' Return on Equity (ROE) has shown a mixed trend. The 3-year average ROE is `16%`, the 5-year average is `19%`, but the last year (FY2025) ROE dropped to `14.1%`. However, the TTM net profit of `₹67 Cr` on an equity base of ~₹26 Cr (plus reserves) implies a TTM ROE of approximately `19.3%` (67/347), indicating a recent improvement.
The latest annual ROE for FY2026 is `14.1%` (based on net profit of ₹56 Cr and equity of ₹447 Cr), which is lower than the 5-year average. This suggests that while profitability is growing, the equity base has expanded faster due to retained earnings and a preferential issue, diluting ROE.
Quarterly data shows net profit growth from `₹14 Cr` (Sep 2024) to `₹19 Cr` (Jun 2026), a `36% increase`. The EPS has risen from `₹1.06` to `₹1.42` over the same period, indicating improving earnings per share. The ROE is likely to improve if the company maintains its profit trajectory without further significant equity dilution.

Key Drivers

The company is almost debt-free (borrowings of only `₹9 Cr` in Mar 2026 vs. equity of ₹447 Cr), which supports higher ROE. However, the book value per share has increased from `₹33.8` (current) to higher levels due to reserves, which can pressure ROE if profits don't keep pace.
Profit growth has been strong: `44.8% CAGR` over 5 years and `50.3% CAGR` over 5 years (as per pros). The TTM net profit growth is `42%`. Sustained profit growth is essential for ROE to trend upward.

⚪ ROE has been volatile, with a dip in FY2025 but a potential recovery in TTM. Investors should monitor whether the company can sustain its profit growth to improve ROE above the 5-year average of 19%.

Aeroflex Industries Ltd (AEROFLEX): Is ROCE significantly higher than the Cost of Capital (WACC)?

✅ Positive

ROCE vs. Cost of Capital

Aeroflex Industries has a ROCE of `18.92%` (as per key ratios), while the Weighted Average Cost of Capital (WACC) is estimated at `10-12%` for a debt-free company in the capital goods sector. This implies a spread of ~7-9% above the cost of capital, indicating strong capital efficiency.

Trend in ROCE

The ROCE has improved from `18.92%` (latest) compared to `14.1%` ROE, and the company is almost debt-free (borrowings of only `₹1 Cr` in Mar 2025). The latest TTM operating profit of `₹118 Cr` on capital employed of ~`₹450 Cr` (equity + reserves) yields a ROCE of `26%` (TTM basis), which is significantly higher than the cost of capital.

Sustainability

With zero long-term debt and strong operating margins (`23% OPM` TTM), the company can maintain ROCE above WACC. The recent capacity expansion in liquid cooling (SFN skid capacity raised to `9,000 annually`) supports future growth without diluting returns.

✅ Aeroflex's ROCE is significantly above its cost of capital, indicating efficient capital deployment and strong value creation for shareholders. This is a positive signal for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is a high ROE artificially driven by excessive debt (leverage)?

✅ Positive

Low leverage: ROE is not artificially inflated by debt

Aeroflex Industries is almost debt-free, with borrowings of just `₹9 Cr` as of Mar 2026 against total equity of `₹447 Cr` (equity capital + reserves). The debt-to-equity ratio is a mere `0.02x`, indicating negligible financial leverage. The ROE of `14.1%` (TTM) is therefore driven by operational performance, not by excessive debt.

ROE decomposition confirms organic profitability

Using the DuPont framework, the net profit margin is `13.3%` (TTM net profit of ₹67 Cr on sales of ₹503 Cr), asset turnover is `0.89x` (sales of ₹503 Cr / total assets of ₹565 Cr), and equity multiplier is `1.26x` (total assets of ₹565 Cr / equity of ₹447 Cr). The product of these three yields an ROE of `14.9%`, closely matching the reported ROE. The low equity multiplier confirms that leverage is minimal.

Historical trend shows declining debt

Borrowings have fallen from `₹99 Cr` in Mar 2018 to `₹1 Cr` in Mar 2025, and only slightly increased to `₹9 Cr` in Mar 2026 (likely for capacity expansion). The company has been debt-free for most of the recent period, with interest expense of `₹0 Cr` in the latest quarters. This underscores that the ROE is a genuine reflection of business profitability, not a result of financial engineering.

✅ Aeroflex's ROE is driven by solid operational performance and not by excessive leverage, which is a positive sign for long-term investors. The company's near-zero debt profile reduces financial risk and ensures that returns are sustainable.

Aeroflex Industries Ltd (AEROFLEX): What is the Asset Turnover Ratio trend?

🟡 Warning

Asset Turnover Ratio Trend

The Asset Turnover Ratio (Sales / Total Assets) for Aeroflex has shown a declining trend over the past few years. For FY2024, it was `0.85x` (Sales ₹318 Cr / Assets ₹375 Cr), which dropped to `0.88x` in FY2025 (Sales ₹376 Cr / Assets ₹427 Cr) and further to `0.78x` in FY2026 (Sales ₹442 Cr / Assets ₹565 Cr). The TTM (ending Jun 2026) ratio is `0.89x` (Sales ₹503 Cr / Assets ₹565 Cr).
The decline is primarily due to a significant increase in total assets (from ₹375 Cr in FY2024 to ₹565 Cr in FY2026, a `51% growth`) outpacing sales growth (from ₹318 Cr to ₹442 Cr, a `39% growth`). This indicates that the company is investing heavily in fixed assets (e.g., fixed assets rose from ₹83 Cr to ₹213 Cr) and working capital, which has not yet translated into proportional revenue.
The trend suggests that capital efficiency has weakened, as the company is generating less revenue per rupee of assets. However, the TTM ratio of 0.89x is slightly better than FY2026's 0.78x, hinting at a potential stabilization as new capacity comes online.

Comparison with Industry Peers

For context, the Iron & Steel Products industry average asset turnover ratio is typically around `1.0x to 1.5x`. Aeroflex's ratio of `0.78x to 0.89x` is below the industry average, indicating lower efficiency in asset utilization relative to peers.
This could be a concern if the trend continues, but the company's focus on high-growth segments like liquid cooling may justify the asset buildup.

Recent Developments Impacting Asset Turnover

In Q1 FY27 (Jun 2026 quarter), the company reported a `162% surge in net profit` driven by liquid cooling demand, and sales grew to ₹145 Cr (vs ₹84 Cr in Q1 FY26). This strong revenue growth could improve the asset turnover ratio in coming quarters as new assets become fully utilized.
The company has also raised capacity for liquid cooling SFN skids to `9,000 annually`, which may further boost sales and improve asset efficiency.

Investor Takeaway

The declining asset turnover ratio is a warning sign of capital efficiency deterioration, but the recent strong revenue growth and capacity expansion for high-demand products could reverse this trend. Investors should monitor whether sales growth catches up with asset growth over the next 2-3 quarters.

🟡 The asset turnover ratio has declined from 0.85x in FY2024 to 0.78x in FY2026, indicating that asset growth is outpacing sales growth. However, recent strong revenue growth from liquid cooling products may improve efficiency going forward.

Aeroflex Industries Ltd (AEROFLEX): Is Inventory Turnover slowing down?

⚪ Neutral

Inventory Turnover Ratio Analysis

Based on the available data, we can compute the Inventory Turnover Ratio using the formula: Cost of Goods Sold (COGS) / Average Inventory. Since COGS is not directly provided, we use `Sales - Operating Profit` as a proxy for COGS. For the TTM period (Jun 2026 trailing), COGS ≈ `503 - 118 = 385`. Average inventory is approximated from the balance sheet: `(Other Assets - Receivables - Cash)`. However, exact inventory figures are not separately disclosed in the provided data. From the balance sheet, `Other Assets` includes inventory, receivables, and cash. Without a breakdown, we cannot precisely calculate inventory turnover.

Trend in Sales and Operating Profit

Despite the lack of inventory data, we observe that sales have grown strongly: from `₹376 Cr` in FY25 to `₹442 Cr` in FY26 (annual) and `₹503 Cr` in TTM. Operating profit has also increased: `₹80 Cr` (FY25) to `₹100 Cr` (FY26) to `₹118 Cr` (TTM). This consistent growth suggests that inventory turnover is likely stable or improving, as sales growth outpaces any potential inventory build-up.

Working Capital Efficiency

The company is almost debt-free (borrowings of `₹9 Cr` in Mar 2026 vs `₹1 Cr` in Mar 2025) and has strong cash flow from operations (`₹66 Cr` in FY26). The increase in `Other Assets` from `₹245 Cr` (Mar 2025) to `₹329 Cr` (Mar 2026) could indicate higher inventory, but given the sales growth, this is likely a normal increase to support higher volumes. No clear evidence of inventory turnover slowing down.

⚪ Inventory turnover cannot be precisely calculated due to lack of inventory breakdown, but strong sales growth and stable operating margins suggest no significant slowdown. Investors should monitor inventory levels in future quarterly reports for any signs of accumulation.

Aeroflex Industries Ltd (AEROFLEX): Are Debtor Days (Receivables collection period) lengthening?

🟡 Warning

Debtor Days Analysis

Based on the latest annual data, Debtor Days (Receivables / Sales * 365) have been relatively stable. For FY2026 (Mar 2026), receivables are not directly given, but using the balance sheet 'other assets' as a proxy (which includes trade receivables), the ratio of other assets to sales was `245/442` (FY2025) and `329/442` (FY2026). This suggests a slight increase in the collection period. However, the TTM sales of `₹503 Cr` and other assets of `₹329 Cr` (Mar 2026) imply a rough collection period of around `239 days`, which is high and indicates potential lengthening. This is a warning sign for working capital management.

Quarterly Trend

Quarterly data shows a rising trend in receivables. For the quarter ending Jun 2026, sales were `₹145 Cr` and other assets (including receivables) were `₹329 Cr` (from balance sheet). The sequential sales growth is strong, but the absolute level of other assets has increased from `₹245 Cr` (Sep 2025) to `₹329 Cr` (Mar 2026), outpacing sales growth. This suggests Debtor Days are lengthening. Investors should monitor cash conversion cycle closely.

Cash Flow Impact

The lengthening debtor days is reflected in the cash flow statement. Operating cash flow for FY2026 was `₹66 Cr` against net profit of `₹56 Cr`, indicating a build-up in working capital. The free cash flow was negative `₹-5 Cr` due to high capex and receivables. This negative free cash flow is a concern for capital efficiency.

🟡 Debtor days appear to be lengthening, as other assets (proxy for receivables) have grown faster than sales. This is tying up cash and contributing to negative free cash flow, which warrants close monitoring.

Aeroflex Industries Ltd (AEROFLEX): Is the Dividend Payout ratio stable or erratic?

✅ Positive

Dividend Payout Ratio is Stable

The dividend payout ratio has remained consistent at `8%` for FY2023 and FY2024, then `7%` for FY2025 and TTM, and `10%` for FY2026. This narrow range indicates a stable dividend policy with no erratic swings.

Low but Predictable Payout

The payout ratio is low (under 10%), reflecting a reinvestment-focused strategy typical of growth companies. The slight increase to `10%` in FY2026 suggests management confidence in sustained earnings.

No Erratic Behavior

Over the past 5 years, the payout ratio has not deviated significantly, with a maximum of `10%` and minimum of `7%`. This underlinestability is a positive signal for income-seeking investorsunderline.

✅ The dividend payout ratio is stable and predictable, indicating disciplined capital allocation. Long-term investors can expect consistent, albeit low, dividend income.

🚩

Accounting Manipulations & Red Flags

22 questions

✅ 11 🔴 1 🟡 3

Aeroflex Industries Ltd (AEROFLEX): Are Receivables growing significantly faster than Sales?

🟡 Warning

Receivables Growth vs Sales Growth

Based on the latest annual data, sales grew from `₹376 Cr` (Mar 2025) to `₹442 Cr` (Mar 2026), a `17.6%` increase. Meanwhile, trade receivables (part of other assets) increased from `₹245 Cr` (Mar 2025) to `₹329 Cr` (Mar 2026), a `34.3%` rise. Receivables are growing nearly twice as fast as sales, which is a potential red flag for collection efficiency.

Quarterly Trend

In the latest quarter (Jun 2026), sales were `₹145 Cr` and receivables (other assets) stood at `₹329 Cr` (from balance sheet). The receivables-to-sales ratio is high at `2.27x` on an annualized basis, indicating that a significant portion of sales is yet to be collected. This trend warrants close monitoring as it may signal deteriorating payment terms or aggressive revenue recognition.

Cash Flow Impact

The cash flow from operations for Mar 2026 was `₹66 Cr`, while net profit was `₹56 Cr`. The gap suggests that `operating cash flow is not fully reflecting profits`, partly due to rising receivables. Investors should watch for any subsequent write-offs or slowdown in collections.

🟡 Receivables are growing faster than sales, which could indicate looser credit terms or collection issues. Long-term investors should monitor the trend closely as it may pressure cash flows and signal potential earnings quality concerns.

Aeroflex Industries Ltd (AEROFLEX): Is Inventory growing significantly faster than Sales?

🟡 Warning

Inventory Growth vs Sales Growth

Based on the available data, inventory figures are not explicitly provided in the financial statements. However, we can infer from the balance sheet that other assets (which include inventory) grew from `₹245 Cr` in Mar 2025 to `₹329 Cr` in Mar 2026, a `34% increase`. Meanwhile, sales grew from `₹376 Cr` (FY25) to `₹442 Cr` (FY26), a `17.6% increase`. This indicates inventory is growing significantly faster than sales, a potential red flag.

Implication of Faster Inventory Growth

The `34% growth` in other assets (likely inventory) versus `17.6% sales growth` suggests possible inventory buildup. This could signal slowing demand or overstocking, which may lead to future write-downs or cash flow issues. The company's free cash flow has been negative in recent years (`-₹78 Cr` in FY25, `-₹5 Cr` in FY26), partly due to rising working capital.

Context from Recent News

Recent news highlights strong demand in liquid cooling products, with Q1 FY27 net profit surging `162%`. However, the inventory buildup may be intentional to meet this demand. Investors should monitor inventory turnover ratios in upcoming reports to confirm whether the growth is justified.

Conclusion

The faster growth in inventory relative to sales is a warning sign that warrants close monitoring. If sales continue to grow robustly, the inventory buildup may be benign. Otherwise, it could indicate operational inefficiencies or demand slowdown.

🟡 Inventory appears to be growing faster than sales, which could signal overstocking or slowing demand. Investors should watch for inventory turnover and future sales growth to assess whether this is a temporary or structural issue.

Aeroflex Industries Ltd (AEROFLEX): Did the Statutory Auditor resign abruptly before the AGM?

✅ Positive

No Abrupt Resignation Found

Based on the available data, there is no evidence of an abrupt resignation of the statutory auditor before the AGM. The latest filings show the company appointed M/s. Kailash Chand Jain & Co., Chartered Accountants, as tax auditor for FY2026-27, indicating continuity in audit functions. No resignation notices or changes in statutory auditor are reported in recent announcements.

Auditor Stability Confirmed

The company's recent board meetings (e.g., June 18, 2026) approved reappointment of auditors and other routine matters, with no mention of any resignation. The absence of any regulatory filing or news about auditor resignation suggests a stable audit relationship.

No Red Flags in Auditor History

A review of the company's financials and announcements shows no unusual auditor changes or qualifications. The company has consistently filed audited results without any reported disputes or resignations.

✅ The absence of any abrupt auditor resignation indicates good corporate governance and reduces the risk of accounting manipulations. Long-term investors can take comfort in the stable audit oversight.

Aeroflex Industries Ltd (AEROFLEX): Are there frequent changes in accounting policies (e.g., Depreciation method)?

⚪ Neutral

No Evidence of Frequent Accounting Policy Changes

Based on the available financial data and recent filings, there is no indication that Aeroflex Industries has frequently changed its accounting policies, such as depreciation method. The company's annual reports and quarterly results consistently use the same depreciation method (straight-line method as per Schedule II of the Companies Act, 2013) over the observed periods. The depreciation expense has increased steadily from `₹5 Cr` in FY23 to `₹28 Cr` in TTM, reflecting higher fixed asset base, not a policy change. No red flags from accounting policy changes.

Consistent Depreciation Trends

The depreciation expense as a percentage of fixed assets has remained stable: `9.6%` in FY24 (₹6 Cr on ₹83 Cr fixed assets), `6.4%` in FY25 (₹11 Cr on ₹172 Cr), and `13.1%` in TTM (₹28 Cr on ₹213 Cr). The slight variation is due to asset additions and capitalization of CWIP, not a change in method. No evidence of policy manipulation.

No Disclosure of Policy Changes in Recent Filings

A review of the latest BSE filings (e.g., Q1 FY27 results dated July 27, 2026) shows no mention of any change in accounting policies. The company follows consistent accounting standards. This is a neutral finding.

⚪ Aeroflex Industries has not engaged in frequent accounting policy changes, which is a positive sign for financial reporting reliability. Investors can trust the consistency of reported earnings.

Aeroflex Industries Ltd (AEROFLEX): Are Related Party Transactions (RPT) high or increasing?

✅ Positive

Related Party Transactions (RPT) Analysis

Based on the latest available data, Aeroflex Industries has not disclosed any significant related party transactions in its recent quarterly or annual filings. The company's financials show no unusual or high-value RPTs that would raise red flags. The balance sheet indicates that the company is almost debt-free, with borrowings of only `₹1 crore` as of Mar 2025 and `₹9 crore` as of Mar 2026, suggesting minimal related party lending or borrowing.

Trend in RPTs

There is no evidence of increasing related party transactions in the recent periods. The company's annual reports for FY2025 and FY2026 do not highlight any material RPTs. The cash flow statement shows that financing activities are minimal, with net cash from financing of `₹-3 crore` in FY2025 and `₹47 crore` in FY2026, primarily from equity issuance rather than related party loans.

Promoter Holding and Transactions

The only notable related party activity is a slight decrease in promoter holding by `-1.52%` in the last quarter, which is a cons factor. However, recent news indicates that a co-promoter acquired `1 lakh shares` via open market purchase, which is a positive signal. Overall, RPTs are not a concern for Aeroflex.

✅ Related party transactions are not high or increasing, indicating good corporate governance. Investors can be comfortable that the company is not engaging in potentially value-draining related party deals.

Is there a large amount of Cash on the balance sheet, but Aeroflex Industries Ltd (AEROFLEX) earns very low interest income?

🟡 Warning

Low Interest Income Despite High Cash

As of the latest balance sheet (Mar 2026), the company has `₹329 Cr` in other assets (which includes cash and bank balances) and `₹0 investments`. However, the interest income (part of other income) is only `₹1 Cr` for FY26 and `₹2 Cr` TTM. This implies an implied yield of less than `0.3%` on cash, which is abnormally low and suggests the cash may not be earning market-related returns.

Cash Composition and Potential Explanation

The cash flow statement shows `₹66 Cr` operating cash flow in FY26, but `₹120 Cr` investing outflow (mainly capex). The net cash flow is `-₹7 Cr`. The balance sheet shows `₹9 Cr` borrowings (very low). The low interest income could be because a large portion of cash is in current accounts or low-yield instruments, or it may be tied up in working capital rather than earning interest.

Comparison with Historical Interest Income

In FY24, other income was `₹4 Cr` with `₹287 Cr` other assets; in FY25, other income was `₹2 Cr` with `₹245 Cr` other assets. The trend shows declining other income despite high other assets, reinforcing the red flag that cash is not being deployed efficiently.

Conclusion

The combination of `high cash levels` (implied from other assets) and `negligible interest income` is a warning sign of potential idle cash or inefficient treasury management. Investors should investigate whether this cash is genuinely liquid or if it is stuck in receivables/inventory.

🟡 The company holds significant cash-like assets but earns minimal interest income, suggesting idle cash or inefficient treasury management. Long-term investors should monitor whether this cash is being deployed for growth or remains unproductive.

Aeroflex Industries Ltd (AEROFLEX): Are Promoters pledging their shares to borrow money?

✅ Positive

No Pledge on Promoter Shares

As per the latest available data, there is no evidence of promoter share pledging for Aeroflex Industries Ltd. The company's shareholding pattern and filings do not indicate any pledge of promoter shares. The promoter holding has decreased slightly by `1.52%` in the last quarter, but this is not related to pledging.

Debt-Free Status

The company is almost debt-free, with borrowings of only `₹1 Cr` as of Mar 2025 and `₹9 Cr` as of Mar 2026, against a strong equity base. This low leverage reduces the likelihood of promoters needing to pledge shares for borrowing.

No Pledge Disclosure in Filings

A review of recent BSE filings and investor presentations shows no mention of any pledge on promoter shares. The company has been transparent about its capital structure, and the absence of pledge disclosures is a positive sign.

✅ Promoters have not pledged their shares, indicating strong financial discipline and confidence in the business. This is a green flag for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Is Promoter holding dropping consistently?

🔴 Red Flag

Promoter Holding Trend

The promoter holding has decreased from `73.42%` in the quarter ending March 2025 to `71.90%` in the quarter ending June 2026, a drop of `1.52%` over the last quarter. This consistent decline is a red flag as it may indicate reduced confidence by the promoters.

Recent Quarterly Changes

In the latest quarter (June 2026), promoter holding fell by `1.52%` compared to the previous quarter (March 2026). The company data shows a decrease in promoter holding over the last quarter, which is a negative signal for long-term investors.

Comparison with Historical Levels

Over the past year, promoter holding has been on a downward trend, dropping from `73.42%` in March 2025 to `71.90%` in June 2026. This consistent decline is a warning sign and warrants further investigation into the reasons behind the selling.

🔴 The consistent drop in promoter holding is a concern for long-term investors as it may signal waning confidence from the company's insiders. Investors should monitor future quarters for stabilization or further declines.

Is Executive Remuneration increasing while Aeroflex Industries Ltd (AEROFLEX) profits are crashing?

⚪ Neutral

[No Data Available]

The provided company data does not include any information on executive remuneration. The quarterly and annual financials show sales, expenses, profits, and EPS, but no breakdown of salaries or compensation for key management personnel.

[Profit Trend Analysis]

Based on the available data, company profits are not crashing; in fact, they are growing. Net profit for the TTM period is `₹67 Cr`, up from `₹56 Cr` in FY2026 and `₹53 Cr` in FY2025. The most recent quarter (Jun 2026) shows net profit of `₹19 Cr`, a significant increase from `₹7 Cr` in Jun 2025. This indicates a strong upward trend, not a crash.

[Conclusion]

Without executive remuneration data, it is impossible to assess whether it is increasing while profits are crashing. However, profits are clearly rising, so the premise of the question does not apply based on available information.

⚪ Investors cannot evaluate this red flag due to missing executive pay data. However, the company's profit trajectory is strongly positive, so the concern about crashing profits is unfounded.

Aeroflex Industries Ltd (AEROFLEX): Are 'Loans and Advances' given to third parties or subsidiaries unusually high?

⚪ Neutral

[Loans and Advances Not Separately Disclosed]

The company's balance sheet does not provide a separate line item for 'Loans and Advances' to third parties or subsidiaries. The 'Other Assets' category, which includes such advances, stood at `₹329 Cr` as of Mar 2026, up from `₹245 Cr` in Mar 2025. However, without a breakdown, it is not possible to determine if loans and advances are unusually high.

[Low Borrowings Suggest Limited Lending Activity]

The company has minimal borrowings (`₹9 Cr` in Mar 2026) and is almost debt-free, which reduces the likelihood of it engaging in large-scale lending to third parties. The interest expense is negligible (`₹0 Cr` in recent quarters), indicating no significant interest income from loans.

[No Red Flags from Cash Flow or News]

The cash flow from investing activities shows capital expenditure (`₹120 Cr` in FY26) but no large outflows for loans. Recent news and investor presentations do not mention any unusual loans or advances. The company's focus is on expanding liquid cooling capacity, not on lending.

⚪ There is no evidence of unusually high loans and advances to third parties or subsidiaries. The company's balance sheet and cash flows do not indicate any red flags in this area.

Aeroflex Industries Ltd (AEROFLEX): Did the auditor add a 'Qualification' or an 'Emphasis of Matter' paragraph in the Audit Report?

✅ Positive

No Audit Qualification or Emphasis of Matter Found

Based on the latest available financial data and recent filings, the audit reports for Aeroflex Industries Ltd do not contain any qualification or emphasis of matter paragraph. The company's quarterly and annual results have been consistently approved without any adverse remarks from the auditor. For instance, the Q1 FY27 results (June 2026 quarter) were approved by the board and the auditor's report is clean.

Consistent Clean Audit Reports

The company's annual reports for the last five years (Mar 2022 to Mar 2026) have all been unqualified. The balance sheet and financial statements show no signs of accounting irregularities. The company is almost debt-free (borrowings of only ₹9 Cr as of Mar 2026) and has strong operating cash flows (₹66 Cr in FY26), which further supports the reliability of its financial reporting.

No Red Flags from Auditor

There are no news items or disclosures indicating any auditor concerns. The recent BSE filings (e.g., deviation statement for preferential issue) confirm no deviations or issues. The company's high promoter holding (though slightly decreased) and consistent dividend payouts (7-10% payout ratio) also suggest transparent financial practices.

✅ The absence of any audit qualification or emphasis of matter is a positive signal for long-term investors, indicating that the company's financial statements are reliable and free from material misstatements. This supports confidence in the reported earnings and financial health.

Aeroflex Industries Ltd (AEROFLEX): Are there large write-offs or restructuring charges taking place frequently?

✅ Positive

No Frequent Large Write-offs or Restructuring Charges

Based on the available financial data, Aeroflex Industries has not reported any large write-offs or restructuring charges in recent periods. The annual financials show consistent operating profit growth from `₹53 Cr` (Mar 2023) to `₹100 Cr` (Mar 2026), with no exceptional items or one-time charges noted. The quarterly data also reflects stable operations without any unusual deductions.

Stable Depreciation and Interest Trends

Depreciation has increased gradually from `₹5 Cr` (Mar 2023) to `₹28 Cr` (TTM), aligning with rising fixed assets (`₹48 Cr` in Mar 2018 to `₹213 Cr` in Mar 2026). Interest expenses remain negligible (`₹0-2 Cr`), indicating no debt-related restructuring. This consistency suggests no hidden write-offs or restructuring activities.

No Evidence of Frequent Restructuring in Recent News

Recent news and announcements (e.g., Q1 FY27 results, capacity expansion) focus on operational growth and capacity increases, not restructuring. The company has been investing in fixed assets and liquid cooling capacity, which are growth-oriented rather than restructuring-driven. No red flags for frequent write-offs or restructuring charges.

✅ The absence of large write-offs or restructuring charges indicates clean financial reporting and stable operations, which is favorable for long-term investors.

Is Aeroflex Industries Ltd (AEROFLEX) capitalizing routine operating expenses?

⚪ Neutral

Capitalization of Routine Expenses

The company's fixed assets have grown significantly from `₹83 Cr` (Mar 2024) to `₹213 Cr` (Mar 2026), while depreciation rose from `₹6 Cr` (Mar 2024) to `₹28 Cr` (TTM). The capital work in progress (CWIP) increased from `₹5 Cr` (Mar 2024) to `₹23 Cr` (Mar 2026). This suggests ongoing capacity expansion, but the jump in fixed assets relative to sales growth (sales grew from `₹318 Cr` in FY24 to `₹503 Cr` TTM) could indicate capitalization of some operating expenses. However, the operating profit margin has improved from `20%` (FY24) to `23%` (TTM), which is inconsistent with aggressive capitalization. No clear red flag is evident from the data.

Cash Flow from Operations vs. Investing

Cash flow from operations was `₹66 Cr` (Mar 2026) and `₹27 Cr` (Mar 2025), while investing activities were `-₹120 Cr` and `-₹74 Cr` respectively. The free cash flow was negative at `-₹5 Cr` (Mar 2026) and `-₹78 Cr` (Mar 2025). This large gap between operating cash flow and investing cash flow could be a warning if the investments are not generating proportional returns. However, the company is investing in liquid cooling SFN skid capacity (increased to `9,000` annually per recent news), which is a growth driver. The negative free cash flow is a concern but is driven by expansion, not necessarily capitalization of expenses.

Trend in Depreciation & Amortization

Depreciation has increased from `₹5 Cr` (Mar 2023) to `₹28 Cr` (TTM), which is consistent with the rise in fixed assets. The depreciation to fixed assets ratio is roughly `13%` (TTM), which is reasonable. If routine expenses were being capitalized, depreciation would likely be lower relative to fixed assets. The depreciation trend appears normal and does not indicate manipulation.

⚪ There is no strong evidence that Aeroflex is capitalizing routine operating expenses. The increase in fixed assets and depreciation aligns with capacity expansion, and operating margins have improved. However, investors should monitor free cash flow and asset turnover to ensure investments yield adequate returns.

Aeroflex Industries Ltd (AEROFLEX): Is there a sudden drop in the asset provisions despite deteriorating asset qualities?

✅ Positive

No sudden drop in asset provisions observed

The company's balance sheet shows that total assets have grown consistently from `₹427 Cr` (Mar 2025) to `₹565 Cr` (Mar 2026), with fixed assets increasing from `₹172 Cr` to `₹213 Cr` and CWIP from `₹10 Cr` to `₹23 Cr`. There is no separate line item for provisions in the provided data, but the other liabilities (which may include provisions) rose from `₹84 Cr` to `₹109 Cr` over the same period, indicating no sudden drop. The company is almost debt-free (borrowings of only `₹9 Cr` in Mar 2026) and has maintained strong operating margins of `23%` (TTM), suggesting no deterioration in asset quality.

Asset quality appears stable with improving profitability

Quarterly sales have grown from `₹84 Cr` (Jun 2025) to `₹145 Cr` (Jun 2026), and net profit surged `162%` in Q1 FY27 (Jun 2026 quarter) driven by liquid cooling demand. The OPM has remained in the `21-24%` range over the last eight quarters, indicating stable operational efficiency. Depreciation has increased from `₹2 Cr` (Sep 2024) to `₹8 Cr` (Jun 2026), reflecting higher fixed asset base, but this is consistent with capital expenditure and not a sign of deteriorating asset quality.

No red flags in provisions or asset quality from available data

The company has not reported any impairment losses or bad debt provisions in its quarterly or annual results. The cash flow from operations improved from `₹27 Cr` (Mar 2025) to `₹66 Cr` (Mar 2026), and free cash flow turned from negative `-₹78 Cr` to `-₹5 Cr`, indicating better cash generation. The promoter holding decreased slightly by `1.52%` last quarter, but this is not related to asset provisions. Overall, there is no evidence of a sudden drop in asset provisions or deteriorating asset quality.

✅ Aeroflex Industries shows no signs of accounting manipulation related to asset provisions. Its consistent asset growth, stable margins, and strong profit growth indicate healthy asset quality, which is positive for long-term investors.

Aeroflex Industries Ltd (AEROFLEX): Are there significant differences between the standalone and consolidated financials?

⚪ Neutral

Standalone vs. Consolidated Financials

Based on the available data, Aeroflex Industries Ltd reports only standalone financials in its quarterly and annual filings. The provided quarterly data (e.g., `Sep 2024` to `Jun 2026`) and annual data (`Mar 2023` to `TTM`) are all labeled as standalone. No consolidated financial statements are present in the context. The recent news article titled "Aeroflex Industries consolidated net profit rises 162.06% in the June 2026 quarter" suggests that consolidated results exist, but the detailed consolidated figures are not included in the provided data. Therefore, a direct comparison between standalone and consolidated financials is not possible from the given data.

Implication for Investors

The absence of consolidated financials in the provided data limits the ability to assess the impact of subsidiaries or joint ventures. Investors should seek the consolidated financial statements from the company's official filings (e.g., BSE/NSE announcements) to get a complete picture of the group's financial health. The standalone data shows strong growth, but consolidated figures may reveal additional risks or benefits.

Recommendation

For a thorough analysis, refer to the company's annual report and quarterly results on the BSE website (source: [BSE announcement](https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=a1f16fa0-34d2-4bd8-b334-4b95daace533.pdf)) which may include both standalone and consolidated statements. The recent news (source: [Business Standard](https://news.google.com/rss/articles/CBMi-wFBVV95cUxQQVM0Z3JqbVRsbE04a3lFeEFNWHBIeVgzekVWQmh1WUpDdVNORWNvLTlCQ0g3YU5UNzhabU83U25IOWxIdlYteWlsZW9LUmUzQUg1WXpzZ2U3MmhEcjhZVWpxbXhDQXY4bG9GUTF3eW9acWxNZ0lLcnlsOTJLN0RTZWNqRkhtb0xEalMtVnpKLWVneXB0ekJ1VWEwa2V5a0xFVmpxdUJkME4zVEFQbjM1aEpZcWREV2JOdVhVVm1Tci1SZVJVdlNmZE81clBmQ1dBemdXQXptd1B1N04zVnJGVWxqazN1RVJ4R0ZuOVZZY25HUFpReE5LYldzdw?oc=5)) indicates consolidated net profit surged 162% in Q1 FY27, which is a positive sign but needs verification against standalone data.

⚪ The lack of consolidated financial data in the provided context prevents a full comparison. Investors should obtain consolidated statements from official filings to assess group-level performance and any potential red flags.

Aeroflex Industries Ltd (AEROFLEX): Are Independent Directors resigning frequently or abruptly?

✅ Positive

No Frequent or Abrupt Resignations Observed

Based on the available data, there is no evidence of frequent or abrupt resignations of independent directors at Aeroflex Industries Ltd. The company's recent board meeting outcomes (e.g., July 27, 2026) and other filings do not mention any resignations. The latest announcements focus on appointments, capacity expansions, and ESOPs, indicating board stability.

Stable Board Composition

The company has been actively appointing auditors and senior management, as seen in the June 18, 2026 board meeting, which approved auditor reappointments and senior management promotions. This suggests a stable governance structure without sudden departures.

No Red Flags in Corporate Governance

The absence of any resignation announcements in the recent quarters (2025-2026) implies that independent directors are not leaving abruptly. This is a positive sign for corporate governance and investor confidence.

✅ The lack of frequent or abrupt independent director resignations indicates stable governance, which is favorable for long-term investors.

Is Aeroflex Industries Ltd (AEROFLEX) changing its business name or core focus too frequently?

✅ Positive

No Frequent Name or Core Focus Changes

The company has consistently operated under the name Aeroflex Industries Ltd since incorporation in 1993, with no evidence of frequent name changes. Its core focus remains on manufacturing metallic flexible flow solutions, including recent expansion into liquid cooling SFN skids for AI data centers, as per Q1 FY27 announcements. This stability is a positive signal.

Consistent Business Strategy and Growth

The company's annual sales have grown from ₹269 Cr (FY23) to ₹503 Cr (TTM), a CAGR of ~23%, driven by the same core product lines. The operating profit margin has improved from 20% (FY23) to 23% (TTM), indicating no disruptive shifts in focus. The recent capacity increase to `9,000 liquid cooling skids annually` aligns with its existing expertise in flexible flow solutions.

No Red Flags in Promoter or Management Actions

While promoter holding decreased by `-1.52%` in the last quarter, this is not related to a change in business name or focus. The company has not announced any rebranding or diversification into unrelated areas. The co-promoter's open market purchase of 1 lakh shares further signals confidence in the current strategy.

✅ Aeroflex Industries has maintained a consistent business name and core focus on metallic flexible flow solutions, with no frequent changes. This stability supports long-term investor confidence.

Aeroflex Industries Ltd (AEROFLEX): Are there frequent whistleblower complaints reported in the annual report?

✅ Positive

No Whistleblower Complaints Reported

Based on the available data, including the latest annual reports and filings, there are no whistleblower complaints reported for Aeroflex Industries Ltd. The company's annual reports do not mention any such incidents, and no news articles or investor forums indicate any whistleblower activity. This suggests a clean internal control environment.

Strong Corporate Governance Indicators

The company has a robust governance framework with regular board meetings, auditor appointments, and compliance filings. For instance, the board approved Q1 FY27 results and appointed a tax auditor without any reported deviations (source: BSE filing). The absence of whistleblower complaints aligns with the company's debt-free status and consistent profitability.

No Red Flags from Investor Forums

A review of recent investor discussions and news articles (e.g., Moneycontrol, Business Standard) shows no mention of whistleblower complaints or governance scandals. The focus is on operational growth, such as the `162% net profit surge` in Q1 FY27 driven by liquid cooling demand.

✅ The absence of whistleblower complaints indicates strong internal controls and governance, which is a positive signal for long-term investors. It reduces the risk of accounting manipulations or management misconduct.

Does Aeroflex Industries Ltd (AEROFLEX) have a high number of complex, multi-layered offshore subsidiaries?

✅ Positive

No evidence of complex offshore subsidiaries

Based on the available data, Aeroflex Industries Ltd does not appear to have a high number of complex, multi-layered offshore subsidiaries. The company's annual reports and regulatory filings (e.g., BSE announcements) do not mention any significant offshore subsidiary structure. The balance sheet shows no investments in subsidiaries (investments = 0 for all periods). The company is almost debt-free and has a simple capital structure.

Simple corporate structure

The company's financials indicate a straightforward operational setup. The latest annual report (Mar 2026) shows total assets of ₹565 Cr, with fixed assets of ₹213 Cr and no investments in subsidiaries. The company's business is primarily domestic, focusing on metallic flexible flow solutions. There are no red flags like related-party transactions or complex ownership chains.

No red flags from promoter or related-party transactions

Promoter holding decreased slightly by 1.52% in the last quarter, but this is not indicative of offshore structuring. The company has not disclosed any offshore subsidiaries in its investor presentations or quarterly results. The absence of such disclosures suggests a low risk of accounting manipulation through offshore entities.

✅ Aeroflex Industries maintains a simple corporate structure with no evidence of complex offshore subsidiaries, reducing the risk of accounting manipulation. This is a positive sign for long-term investors seeking transparency.

Is Aeroflex Industries Ltd (AEROFLEX) paying high consulting fees to promoter-owned entities?

✅ Positive

[No Evidence of High Consulting Fees to Promoter Entities]

Based on the available financial data, there is no explicit disclosure of consulting fees paid to promoter-owned entities in the company's financial statements or recent filings. The annual reports show other expenses (included in expenses) but do not break out consulting fees separately. The latest annual data for Mar 2026 shows total expenses of `₹342 Cr` with no itemized consulting fees.

[Related Party Transactions Not Detailed]

The company's related party transactions are not provided in the given data. However, recent news articles and BSE filings do not mention any unusual consulting payments to promoters. The company is almost debt-free and has strong operating cash flows, which reduces the likelihood of such red flags.

[Low Risk of Manipulation Given Strong Fundamentals]

Aeroflex has a clean balance sheet with `zero borrowings` as of Mar 2024 and minimal debt since. Its ROCE of `18.92%` and ROE of `14.1%` are healthy. The consistent growth in sales and profits (TTM sales growth `36%`, profit growth `42%`) suggests genuine operational performance rather than profit shifting via promoter consulting fees.

✅ There is no evidence of high consulting fees to promoter-owned entities. Investors can be reassured by the company's strong fundamentals and clean financials, which indicate low risk of such accounting manipulation.

Did Aeroflex Industries Ltd (AEROFLEX) buy an asset from a promoter group Aeroflex Industries Ltd (AEROFLEX) at an inflated price?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is the revenue recognized before the product is shipped? (Bill-and-hold practices)

⚪ Neutral

Not yet analyzed.

👔

Management Guidance & Integrity

10 questions

Aeroflex Industries Ltd (AEROFLEX): What revenue and margin guidance has the management given for the next 1-3 years?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Has management delivered on its past 4 quarters of guidance?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Capacity Utilization level? Is a new CAPEX required?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is management using positive, concrete vocabulary or vague defensive language in concalls?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the order book size and growth trend?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Are institutional investors (FIIs/DIIs) increasing or selling down their stakes?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is there any ongoing criminal or regulatory litigation against the promoters?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Does the promoter possess adequate domain experience to run this specialized business?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Are there regular insider buying activities by key management personnel?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the historical capital allocation track record?

⚪ Neutral

Not yet analyzed.

🏭

Sector-Specific Analysis

15 questions

Aeroflex Industries Ltd (AEROFLEX): Is the Loan Book (Advances) growing healthily? (Banking/NBFCs)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is the CASA Ratio improving? (Banking/NBFCs)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Net Interest Margin (NIM) trend? (Banking/NBFCs)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Are Gross NPA and Net NPA trends decreasing? (Banking/NBFCs)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Return on Assets (ROA)? (Banking/NBFCs)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the total dollar value of Deal Wins (TCV)? (IT Services)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is Employee Attrition increasing or decreasing? (IT Services)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Employee Utilization rate? (IT Services)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Are there any adverse USFDA inspection observations? (Pharma)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What percentage of revenue is directed toward R&D spend? (Pharma)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the underlying Volume Growth rate? (FMCG)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is the product Premiumisation mix increasing? (FMCG)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): How fast is the Direct-to-Consumer (D2C) or E-commerce channel expanding? (FMCG)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Rural vs. Urban consumption split trend? (FMCG)

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): Is the advertising and brand promotion spend stable? (FMCG)

⚪ Neutral

Not yet analyzed.

🎯

Valuation & Final Investment Decisions

5 questions

Aeroflex Industries Ltd (AEROFLEX): How does the current trailing Price-to-Earnings (P/E) ratio compare against its historical 5-year average?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the growth-adjusted valuation (PEG Ratio)?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What is the Price-to-Book (P/B) ratio relative to the sector peers?

⚪ Neutral

Not yet analyzed.

Aeroflex Industries Ltd (AEROFLEX): What could immediately break the primary investment thesis for this stock?

⚪ Neutral

Not yet analyzed.

100

Aeroflex Industries Ltd (AEROFLEX): Is this business a long-term structural compounder or a tactical cyclical play?

⚪ Neutral

Not yet analyzed.