Shares of Aeroflex Industries Ltd surged by 10% in Wednesday's trading session, reaching a new record high of Rs 613.50 apiece. This significant jump follows the company's announcement of a substantial Rs 202 crore expansion plan aimed at boosting its manufacturing capabilities across key divisions.
Major Capacity Expansion Underway
The company's board has greenlit a two-pronged expansion strategy. A sum of Rs 124 crore is allocated to increase the annual capacity of its Stainless Steel (SS) Hose and Braiding Division from 20 million metres to 30 million metres. Concurrently, an investment of Rs 78 crore will double the production capacity for its liquid cooling SFN skid assembly business, expanding from 15,000 to 30,000 pieces per year.
These ambitious expansion projects are slated for phased completion by March 2028. Aeroflex Industries plans to finance this Rs 202 crore investment through a combination of internal accruals, equity, and bridge-loan financing.
Ashish Kacholia's Investment and Financial Performance
Prominent investor Ashish Kacholia held a 2.27% stake in Aeroflex Industries, amounting to 3 million shares, at the close of the June 2026 quarter. The expansion news is expected to bolster investor sentiment, signaling future growth potential and increased production capacity.
The company has demonstrated strong financial performance recently. In the April-June quarter of the 2027 fiscal year, consolidated revenue from operations saw a year-on-year increase of 72.4%, reaching Rs 145.4 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) surged by 116.4% to Rs 33.5 crore, while profit after tax (PAT) jumped an impressive 162.2% to Rs 18.8 crore.
Aeroflex Industries specializes in manufacturing stainless steel flexible flow solutions and has been actively expanding its presence in the liquid cooling sector. The current expansion builds on previous capacity increases, with the SS Hose and Braiding capacity already at 20 million metres per year and liquid cooling SFN skid assembly capacity reaching 12,000 pieces annually, with the remaining 3,000 pieces expected by December 2026.