Aeroflex Industries will raise its liquid cooling skid assembly capacity to over 15,000 units by the second quarter of FY27, nearly doubling current levels, Managing Director Asad Daud said, as the company bets on data centre-linked manufacturing to power its next phase of growth.
The company has already expanded capacity from 6,000 units to nearly 9,000 units, with production at the enhanced scale underway since 1 July.
Skid assemblies are used in data centres to remove heat from high-density servers, reducing downtime risk and enabling scalable deployment for hyperscale operators.
Asked whether the company's 30-35% revenue growth guidance for the year had factored in this expansion, Daud said, "Our guidance of between 30% to 35% growth was considering the expansion in capacity that we are having in the skid assemblies, because that's a sector which last year we just started at the end of Q3. We believe that over the next couple of years, the liquid cooling SFN skid assemblies will contribute at least 30% to 40% of the sales of the company."
On near-term contribution, he added, "We expect that in the current financial year, it will contribute about 15-20% of our overall sales."
On margins, Daud said the new business currently tracks the company's legacy operations. "In terms of the margin, the overall blended margin for this business is in the same lines as our core business. However, we have not yet focused our attention on improving efficiencies because right now the focus is more on supply rather than efficiency."
Over the next three to four years, he said, "the idea is to increase our overall margins from about 23% right now to about 25%."
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Daud also credited the company's core business for the strong outlook, pointing to demand from overseas markets. "We are seeing high demand coming in now especially from US and Europe, and after especially the tariffs being removed from the month of February, we are seeing increasing demand coming in from the US economy as well."
Aeroflex Industries revenue rose roughly fivefold over six years, with margins expanding from 15% to 23% over the same period.
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