Aeron Composite Ltd. (AERON)
SME CapIndustrials stocks · SME cap · NSE
Aeron Composite Ltd. provides 360-degree Fiber Reinforced Polymer (FRP) solutions, including structural profiles, gratings, rods, poles, and rebars. These products serve as corrosion-free, lightweight alternatives to steel and aluminum, powering infrastructure across utilities, telecom, oil & gas, renewable energy, and industrial sectors globally.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -13% YoY · PAT -80% YoY · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹103 Cr | -12.7% | -12.0% |
| EBITDA | ₹8 Cr | -11.1% | -11.1% |
| Operating margin | 8.0% | -100 bps | +0 bps |
| PAT | ₹1 Cr | -80.0% | -85.7% |
| PAT margin | 1.0% | -545 bps | -501 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 revenue saw marginal growth to Rs 221.8 Cr (+1.7% YoY), but PAT declined significantly by 34.6% to Rs 8.7 Cr. EBITDA margin compressed to 8.5% from 9.5% in FY25. H2FY26 performance showed a sharp sequential decline in PAT (-79%) and EBITDA (-28%).
Despite commissioning a new manufacturing facility and strategic entry into GFRP Rebar, Aeron's FY26 financial performance, particularly in H2, indicates significant margin compression and profit decline. This raises concerns about the effective ramp-up of new capacity and overall operational efficiency.
Revenue by Geography (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
GFRP Rebar Segment
INTACTEntered GFRP Rebar in FY25; commercial sales started March 2025. Expansion from 2 to 5 lines by FY27, and Rebar Bend lines from 4 to 8 by H1FY27.
Carbon Fiber Products (CFRP)
INTACTVenturing into CFRP for wind energy, railways, and renewable energy applications, with product introduction by end of H1FY27.
Global Export Expansion
INTACTWidening global footprint with focused export expansion and brand visibility in high-potential international markets.
India's Composite Consumption
INTACTBenefiting from India's rapidly rising composite consumption driven by infrastructure, renewables, and utilities.
New Manufacturing Facility
INTACTCommissioned a fully integrated 51,671 sq. mtr. manufacturing facility at Mehsana, Gujarat, with production capacity ramped up to 22,000 MT.
FRP Rebar Line Expansion
INTACTFRP Rebar capacity to expand from 2 to 5 lines by FY27, and Rebar Bend production lines to increase from 4 to 8 by H1FY27.
CFRP Product Introduction
INTACTCarbon Fiber Products to be introduced by end of H1FY27 in the new facility.
Capex Utilization
INTACTRs. 28 Cr from IPO proceeds to be utilized for expansion, including 3 FRP Rebar machines, 4 Rebar bend machines, and CFRP building & machines.
Indian FRP Composites Market Growth
INTACTIndian Fiber Reinforced Polymer Composites (FRP) market projected to grow from $0.89 billion in 2021 to $1.9 billion by 2026.
Indian GFRP Rebar Market Growth
INTACTIndian GFRP Rebar market projected to grow from USD 24.88 million in 2023 to USD 110.91 million by 2030.
Government Initiatives
INTACTGovernment initiatives and policies promote eco-friendly, corrosion-resistant construction materials.
Profitability Erosion
UNDER_STRESSSignificant decline in PAT (34.6% YoY) and PAT margin (3.9% in FY26 vs 6.1% in FY25), with H2FY26 showing a 79% QoQ PAT drop.
Capacity Underutilization
UNDER_STRESSCapacity utilization dropped to 48.5% in FY26 from 68.0% in FY25, indicating challenges in leveraging new capacity.
Increased Debt & Finance Costs
UNDER_STRESSNet Debt to EBITDA increased to 1.38x in FY26 from -0.01x in FY25, alongside higher finance costs (Rs 3.2 Cr in FY26 vs Rs 2.0 Cr in FY25).
Working Capital Management
UNDER_STRESSElongated working capital cycle with Receivable days at 84 and Inventory days at 95 in FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing full-year trends and the impact of strategic initiatives. However, QoQ comparison (H2FY26 vs H1FY26) is critical to evaluate recent operational momentum, the immediate impact of new capacity, and the sharp deterioration in profitability.
Revenue from Operations
UNDER_STRESSFY26: Rs 221.8 Cr (+1.7% YoY); H2FY26: Rs 103 Cr (-13.3% QoQ)
EBITDA
UNDER_STRESSFY26: Rs 18.8 Cr (-9.6% YoY); H2FY26: Rs 7.9 Cr (-28.3% QoQ)
PAT
UNDER_STRESSFY26: Rs 8.7 Cr (-34.6% YoY); H2FY26: Rs 1.5 Cr (-79.2% QoQ)
EBITDA Margin
UNDER_STRESSFY26: 8.5% (vs 9.5% in FY25); H2FY26: 7.6% (vs 9.2% in H1FY26)
Capacity Utilization Target
INTACTTargeting >60-65% utilization by FY27 through automation, process upgrades, and scale efficiencies.
Revenue Growth Target
INTACTTargeting 15%+ Revenue Growth (3 Years CAGR).
EBITDA Margin Target
INTACTTargeting 10%+ EBITDA Margin.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | 48.5% (FY26) | Ramp-up towards the >60-65% target by FY27, indicating effective utilization of new capacity. |
| EBITDA Margin | 8.5% (FY26) | Improvement towards the 10%+ target, especially given the recent decline and increased costs. |
| GFRP Rebar & CFRP Contribution | Initial sales (GFRP Rebar), introduction by H1FY27 (CFRP) | Tangible revenue contribution and margin accretion from these new high-growth segments. |
| Working Capital Cycle | Receivable days 84, Inventory days 95 (FY26) | Efficiency improvements in working capital management to reduce days and improve cash flow. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -5.7% / mo · MACD +
Technical chart
AERONdaily · 1Y · AUTO-5.9%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 65. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~6.0% over last month) — short-term momentum negative.
- RSI(14) at 65 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 32% off 52W high · 19% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 46 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 46 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 59.1%.
- Growth contributes 18/25 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -2 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 42nd percentile of the scored universe and 40th percentile within Industrials. Main check: financial discipline is weak at 50/100.
Healthy Trust Lite: Promoter holding is 73.6%. Key concern: ROCE trend is -12.6%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 40th pctile, median 68 · SME: 51st pctile, median 64
5 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.6%.
- ▸Promoter pledge is zero.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸ROCE trend is -12.6%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 15.90
- P/B
- 1.29
- EV/EBITDA
- 7.65
- Market Cap
- 141.00Cr
Profitability
- ROE
- 8.41%
- ROCE
- 9.77%
- ROA
- 4.25%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 10.00%
Balance Sheet
- Debt/Equity
- 0.53
- Interest Coverage
- 6.33×
- Altman Z
- 2.97
- Book Value
- 64.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- 6.00 Cr
- EPS TTM
- 5.12
Shareholding
- Promoter Hold
- 73.63%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 25%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.