Shares of Aeroflex Industries Ltd fell sharply by over 7% on Monday, July 29, closing at ₹191.29 on the NSE. The stock was among the top losers of the day, reacting to the company’s weak financial performance for the quarter ended June 2025 (Q1 FY26).
The company reported a significant 42.24% year-on-year (YoY) decline in net profit, which dropped to ₹7.17 crore in Q1 FY26 from ₹12.41 crore in the same period last year. Profit before tax also slipped 41.85% YoY to ₹9.71 crore, reflecting a sharp deterioration in bottom-line performance.
Revenue from operations fell by 6.03% to ₹84.33 crore compared to ₹89.75 crore in Q1 FY25. Total income also declined by 6.73% YoY. The company’s EBITDA came in at ₹15.81 crore, down 17.34% from ₹19.13 crore last year. The EBITDA margin compressed to 18.68% from 21.07%, while PAT margin dropped by 520 basis points to 8.46%.
Rising costs continued to pressure margins. Cost of material consumed rose to ₹53.38 crore, while employee benefit expenses increased to ₹9.06 crore from ₹7.97 crore in the previous year. Other operating expenses also edged higher.
The earnings miss and margin contraction led to a negative sentiment among investors, resulting in a sharp sell-off in Aeroflex shares.
