Aequs Limited — Investor Meet, 02-06-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Aequs Limited held an earnings conference call to discuss financial results for the quarter and full year ended March 31, 2026. Management provided an overview of performance and future outlook.

**Financial Performance:**

Full year consolidated revenue grew 33% YoY to ₹12,304 million, with EBITDA up 43% to ₹1,545 million, improving margins to 13%. The fourth quarter saw record revenue of ₹3,671 million, a 47% YoY increase. The aerospace segment revenue grew 27% YoY to ₹10,464 million, with EBITDA up 76% to ₹2,813 million. The consumer segment revenue grew 84% YoY to ₹1,840 million, with an EBITDA loss of ₹783 million. Full year PAT was a loss of ₹1,133 million, narrowing from a loss of ₹11% in FY25 to -9% in FY26.

**Management Commentary & Outlook:**

Management highlighted FY26 as a landmark year with strong execution and IPO. They are focused on scaling aerospace revenue by 25-30% with 20% EBITDA margins, and driving consumer segment utilization towards break-even by Q4 FY27. Consolidated revenue is projected to grow 45-50% in FY27, with operational EBITDA doubling, driven by significant operating leverage. New MoUs were signed for substantial investments in aerospace manufacturing ecosystems in Tamil Nadu (₹1,900 Cr) and Karnataka (₹2,856 Cr). A new Head of Engineering for the consumer segment was appointed.

**Order Book & Operational Updates:**

The aerospace order book stands at USD $889 million. The company is moving into higher complexity landing gear and engine components. Consumer segment revenue contribution grew to 17% in Q4 FY26 from 5% a year ago, with expansion plans to increase capacity utilization from 23% to 40-50% by year-end.

**Analyst Q&A Highlights:**

Queries focused on planned capex for FY27 (₹160 Cr for aerospace, ₹500 Cr for consumer), roadmap with Mattel following Hasbro's exit, eligibility for PLI income from FY27, and revenue/margin guidance. Discussions also covered the impact of the West Asia crisis on logistics and working capital, with management stating material price pass-through via back-to-back agreements. Discussions touched on the USD linkage of sales (93-94%), consumer segment gross block (₹830 Cr + ₹500 Cr planned), and a 1.5x asset turn target for consumer electronics. Reconciliation for aerospace EBITDA margins was provided, clarifying the 27% includes other income and excludes unallocated costs. Management expects aerospace segment EBITDA margins to remain around 20%. For the consumer segment, a 20% EBITDA margin target is set at 75-80% utilization. Capex funding for FY27 will be through borrowings and internal accruals. The company is confident in sustaining consumer electronics margins due to significant value addition. Concerns regarding China dependency for equipment were addressed with ongoing efforts to find alternate vendors. The company plans to reach an asset turnover of ₹2,000 Cr in the consumer business by FY29. US and France entities support ITAR defense and engine/landing gear components respectively, with capacity expansion focused on India.

**Strategic Themes & Sentiment:**

Management expressed confidence in achieving growth targets and leveraging the integrated manufacturing platform. The strategic focus is on scaling operations in India for both aerospace and consumer segments, driven by customer demand and long-term vision for precision manufacturing. The tone is confident and optimistic about future financial returns and strategic growth.