Shares of Aeroflex Industries Ltd skyrocketed 17% on 29 October after the company raised its revenue growth outlook for the financial year 2027 after reporting strong business growth and increasing demand for its liquid cooling solutions. 

The company expects revenue to grow by around 60% during the year, up from its earlier guidance of 35%.

The revised outlook reflects growing demand for products used in data centres, where artificial intelligence applications require advanced cooling systems to manage heat generated by powerful computing equipment.

Aeroflex reported revenue of around Rs 207 crore for the September quarter, marking an increase of 87% from the same period last year. Earnings before interest, tax, depreciation and amortisation rose to around Rs 50 crore, while net profit increased to around Rs 36.6 crore.

The company also reported that liquid cooling solutions contributed 24% of its revenue during the first half of FY27. This business is becoming an important growth driver as companies expand their AI infrastructure.

To meet rising demand, Aeroflex plans to invest Rs 202 crore in expanding its manufacturing capacity. The investment will increase stainless steel flexible hose production capacity to 30 million metres annually and liquid cooling skid assembly capacity to 30,000 units annually by March 2028.

Management expects the expansion to support its longer term target of achieving revenue of around Rs 1,500 crore by FY30.

Aeroflex’s growing presence in the data centre market could create new business opportunities. 

At 1:15 pm, the shares of Aeroflex Industries were trading 13.02% higher at Rs 556.70 on NSE. 

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