Aeroflex Industries shares rally over 17% on strong Q2 earnings show; material costs jump 120% YoY

Aeroflex Industries shares rallied more than 17% during the trading session on Thursday, October 29, as equity investors focused on the iron and steel product manufacturing company’s strong July to September quarter profit gains, with key support from healthy revenue gains in the period.

NSE data showed that Aeroflex Industries shares surged 17.5% to hit an intraday high of ₹578.5 apiece on Thursday’s market, in comparison to ₹492.25 apiece at the previous equity market close.

Trading activity surpassed 2.88 crore equity shares during the trading session on October 29, marking an 11-times increase in overall volumes in comparison to the average one-week volumes of 26,09,912 equity shares, as per the exchange data.

The elevated interest triggered the high-volume gains on Thursday’s market, with overall activity surging 8.33 times more than the two-week average of 35,17,515 equity shares.

With the help of an increase in growth of the company’s domestic mix during the September quarter, Aeroflex Industries was able to power its 87% revenue growth. Data also showed that the Americas (North and South) business witnessed higher additions in comparison to the levels of the previous year.

Operating profit and margin gains further added to the overall sentiment of investors after the healthy Q2 earnings report.

How were the Q2 earnings?

In the Q2 earnings for FY27, Aeroflex Industries posted a 157% increase in its consolidated net profit after tax to ₹37 crore, in comparison to ₹14 crore in the corresponding quarter of the previous financial year.

The company’s revenue from core operations surged around 87% year-on-year (YoY) to ₹207 crore in the September quarter of FY27, compared with ₹111 crore in the same period of the previous year.

The revenue gains outpaced the overall increase in expenses in the period. Aeroflex Industries’ total expenses advanced 73% YoY to ₹158 crore, from ₹91 crore in the same period a year earlier.

Aeroflex Industries’ earnings before interest, tax, depreciation and amortisation (EBITDA) or operating profits expanded 94% to ₹50.34 crore in Q2 FY27, from ₹25.88 crore in Q2 FY26, as per the exchange filings.

Profit margin improves 479 bps

As per the exchange filings, Aeroflex Industries’ net profit (PAT) margins expanded by 479 basis points (bps) to 17.60% in the September quarter of FY27, from 12.82% in the same quarter of the previous year.

The company’s EBITDA margins improved by 93 basis points to 24.27% in the period, from 23.34% in the same period a year earlier.

This comes despite the nearly 120% rally in the overall raw material cost in the quarter under review due to the impact of the supply chain disruption and overall elevated cost of goods in the market.

Stock gains 197% YTD

NSE data showed that Aeroflex Industries shares have delivered 197% returns to investors on a year-to-date (YTD) basis in 2026, and have gained 6% on their investment in the last one-month period.

The exchange data showed that the stock was trading more than 19% higher in the last five market sessions.

In the longer term, Aeroflex Industries shares have delivered more than 275% returns in the last three years, and over 208% gains in the past one-year period on NSE.

Shares of Aeroflex Industries surged to their 52-week high of ₹613.70 apiece on October 14, 2026, while the 52-week low was at ₹158 apiece on January 23, 2026.

The company’s market capitalisation (m-cap) was at ₹7,454 crore during the trading session on Thursday, October 29.