Aeroflex Industries is expanding its production capacity with a total investment of ₹202 crore, approved by its board of directors. This expansion targets the SS Hose & Braiding and Liquid Cooling SFN Skid Assemblies divisions, aiming to increase output and improve assembly capabilities. The company plans to finance this investment through internal accruals, equity, and bridge loan financing.
- Investment of ₹202 crore approved for capacity expansion.
- SS Hose & Braiding capacity to increase from 20 million to 30 million meters annually.
- New assembly plant to convert 70% to 75% of hoses and braids into assemblies.
- Liquid Cooling SFN Skid Assemblies capacity to double from 15,000 to 30,000 pieces annually.
- Projects expected to complete in phases by March 2028.
What are the details of the capacity expansion plan?
The board approved an increase in the SS Hose & Braiding Division's capacity from 20 million meters per year to 30 million meters per year, adding 10 million meters annually. To support this, the company will establish a new state-of-the-art assembly plant designed to convert 70% to 75% of hoses and braids into finished assemblies. This part of the expansion is projected to require an investment of ₹124 crore.
Additionally, the Liquid Cooling SFN Skid Assemblies Division will see its capacity enhanced from 15,000 pieces per year to 30,000 pieces per year, effectively doubling production. This includes setting up an additional facility dedicated to this division, with an estimated investment of ₹78 crore.
How will the company finance the expansion?
The total investment of ₹202 crore will be financed through a combination of internal accruals, equity, and bridge loan financing. This diversified approach ensures that the company can fund the expansion without over-reliance on any single source of capital.
When will the expansion projects be completed?
The capacity enhancement projects are planned to be completed in phases by March 2028. This timeline allows the company to gradually increase production while managing resources effectively.
What is the current status of capacity enhancements?
The company has already completed part of the capacity enhancement in the SS Hose & Braiding Division, reaching 20 million meters per annum. For the Liquid Cooling SFN Skid Assemblies Division, capacity has been increased to 12,000 pieces per annum, with the remaining 3,000 pieces expected to be completed by December 2026.
How has the stock reacted to the expansion news?
Following the announcement, Aeroflex Industries' shares rose to a 52-week high, trading 1.67% higher at ₹566.90 per equity share as of 2:43 PM on October 14, 2026. The stock has shown strong performance, advancing 1% over the past week and month, and soaring more than 194% year-to-date. The company’s market capitalization stands at ₹7,504.48 crore according to the National Stock Exchange data.
