The article outlines the performance and growth outlook of the company, which focuses on high-precision, high-complexity components and assemblies for global OEMs and Tier-1 suppliers, especially in civil aviation.
With a market capitalization of Rs 18,376crore, Aequs Ltd’s share closed at Rs 274 per share, down by 1.95 percent from its previous close. The stock of the company gave a return of 81 percent over the last year.
About the Company
Aequs Limited is a manufacturing company based in Belagavi, Karnataka, with a major focus on the aerospace industry. The company makes precision components and provides manufacturing services for global aerospace companies. Its operations cover multiple stages such as forging, machining, surface treatment, and assembly, allowing it to provide several manufacturing processes under one ecosystem.
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Apart from aerospace, Aequs has expanded into consumer electronics, durable goods and toys. The company operates manufacturing facilities in Karnataka for these businesses and is using this segment to diversify beyond aerospace. In Q1 FY27, aerospace remained its largest business, while consumer revenue saw strong growth during the quarter.
How much Money did the Company make, and from where?
QoQ: Revenue from operations increased to Rs 395.5 crore in Q1 FY27 from Rs 367.1 crore in Q4 FY26, registering an 8 percent growth QoQ. EBITDA declined to Rs 21.5 crore from Rs 32.1 crore, down 33 percent QoQ, while the EBITDA margin fell to 5 percent from 9 percent QoQ. The company reported a PAT loss of Rs 53.2 crore compared with a PAT loss of Rs 54.1 crore in Q4 FY26, while PAT margin improved to negative 13 percent from negative 14 percent.
YoY: Financial highlight: Revenue from operations increased to Rs 395.5 crore in Q1 FY27 from Rs 255.6 crore in Q1 FY26, registering 55 percent growth YoY. EBITDA fell to Rs 21.5 crore from Rs 39.9 crore, down 46 percent YoY, while the EBITDA margin declined to 5 percent from 16 percent. The company reported a PAT loss of Rs 53.2 crore in Q1 FY27 against a PAT of Rs 3.9 crore in Q1 FY26, while PAT margin stood at negative 13 percent compared with 1 percent.
Segment Breakup
Aerospace remained Aequs’ largest business in Q1 FY27, contributing 81 percent of total revenue at Rs 322.2 crore, compared with 90 percent in Q1 FY26. Revenue from the segment grew 40 percent YoY and 6 percent QoQ, supported by higher production and demand from the aerospace business.
The consumer business contributed 19 percent of total revenue at Rs 73.4 crore, compared with 10 percent in Q1 FY26. Revenue from the segment surged 100 percent YoY and grew 16 percent QoQ, increasing its contribution to the company’s overall revenue during the quarter.
Exports continued to form the majority of Aequs’ revenue, contributing 88 percent or Rs 347.8 crore in Q1 FY27, compared with 89 percent in Q1 FY26. Domestic revenue stood at Rs 47.7 crore, contributing the remaining 12 percent of total revenue during the quarter.
Major Development: Airbus A320 Wheels Contract, Aequs has signed a 15-year agreement with Safran Landing Systems to manufacture fully integrated Airbus A320 wheels at its Belagavi facility. The wheels will use India-sourced, aerospace-qualified aluminium and involve forging, machining, surface treatment, and assembly. Management said the contract has a larger margin profile as the order is expected to be added to the order book next quarter.
Future Outlook
FY27 Growth Guidance: Aequs expects consolidated revenue to grow 45 to 50 percent in FY27, while operational EBITDA is targeted to double from FY26 levels. Aerospace revenue is expected to grow 25 to 30 percent, while consumer revenue growth is guided at 125 to 150 percent.
The company expects the consumer business to improve as capacity utilisation increases. Management is targeting consumer EBITDA breakeven by Q4 FY27, supported by higher utilisation and better operating performance across its consumer businesses.
Capex Plans: The company plans to spend around INR 660 crore in FY27, earlier split between INR 500 crore for consumer and INR 160 crore for aerospace. However, aerospace capex may be accelerated. Overall capex for FY27 to FY31 is planned at USD 350 million to USD 400 million.
Long-Term Investments: Aequs plans to invest INR 1,900 crore over 10 years in its Hosur facility, focused on expanding its manufacturing capabilities. It also plans an additional INR 2,800 crore investment across the consumer and aerospace businesses in Karnataka, supporting its long-term expansion plans.
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Conclusion
Aequs is targeting 45 to 50 percent consolidated revenue growth in FY27, supported by 25 to 30 percent growth in aerospace and 125 to 150 percent growth in the consumer business. Its aerospace order book has crossed Rs 9,500 crore, while the 15-year Safran agreement adds another long-term opportunity. However, the company still needs to improve consumer utilisation and achieve the targeted EBITDA breakeven by Q4 FY27.
With large capex plans and investments across aerospace and consumer businesses, Aequs is aiming to build capacity for long-term growth. The company’s ability to deliver its FY27 growth guidance, improve consumer profitability, and convert its strong aerospace order book into revenue will remain key factors to watch going forward.