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    Aequs Q1 FY27 earnings call

    AEQUS
    Capital Goods·29 Jul 2026
    Management Summary

    Aequs Limited reported a strong Q1 FY27 with consolidated revenue up 55% YoY, driven by robust aerospace growth and a significant ramp-up in the consumer segment. While reported EBITDA was impacted by lower other income, operational EBITDA improved threefold sequentially, and consumer segment losses narrowed. The aerospace order book surpassed USD 1 billion, and the company remains confident in achieving consumer EBITDA breakeven by Q4 FY27.

    Highlights

    5

    • Consolidated revenue grew 55% year-on-year to INR 3,955 million, demonstrating a strong start to the year.

    • Aerospace segment revenue increased by 40% year-on-year and 6% sequentially to INR 3,222 million, supported by higher customer build rates and additional parts into production.

    • Consumer segment revenue nearly tripled, growing 190% year-on-year and 16% sequentially to INR 734 million, with its contribution to total revenue increasing from 10% to 19%.

    • The aerospace order book crossed the USD 1 billion mark, a 13% sequential increase from USD 889 million, indicating strong future visibility.

    • Consumer segment EBITDA loss narrowed by INR 112 million sequentially (24%), showing initial progress towards profitability goals.

    Concerns

    3

    • Reported EBITDA at INR 215 million (5% margin) was lower than Q4 FY26 due to lower other income, primarily foreign exchange gains.

    • The company reported a PAT loss of INR 532 million for Q1 FY27, although it was an improvement from the adjusted Q4 FY26 loss of INR 631 million.

    • Raw material sourcing remains 99% imported, with no qualified domestic sources, posing a long-term challenge for localization.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Revenue3,955 Mn+55.0%YoY
    2. 02Reported EBITDA215 Mn
    3. 03Reported EBITDA Margin5%
    4. 04Operational EBITDA148 Mn+2.5%QoQ
    5. 05PAT Loss-532 Mn+15.7%QoQ

    Segment breakdown

    • Aerospace3,222 Mn81.4%
    • Consumer734 Mn18.6%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    USD 1 billion

    as of 2026-06-30

    quantified
    13.0% QoQ

    "The aerospace order book crossing the USD1 billion mark is a powerful validation of trust placed in Aequs by leading global OEMs, the scale and depth of our program portfolio and the enduring strength of our aerospace business."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹830 million this quarter · ₹660 crores (FY27) planned

    Debt

    Debt disclosed

    Liquidity

    Cash ₹2,340 million

    Further INR 537 million in other bank balances for Q1 FY27.

    Guidance & targets

    17
    CategoryTargetPriority
    Revenue
    Consolidated Top-line Revenue Growth
    45-50%
    		High
    Revenue
    Aerospace Revenue Growth
    25-30%
    		High
    Revenue
    Consumer Revenue Growth
    125-150%
    		High
    Revenue
    Hosur Revenue Kick-off
    Kick-off
    		High
    Profitability
    Consolidated Operational EBITDA Growth
    Doubling
    		High
    Profitability
    Consumer EBITDA Breakeven
    Breakeven
    		High
    Profitability
    Consolidated PAT Break-even
    Breakeven
    		High
    Profitability
    Consumer PAT Break-even
    Breakeven
    		High
    Profitability
    Overall ROCE
    20%
    		High
    Margin
    Aerospace Segment EBITDA Margins
    Above 20%
    		High
    Margin
    Aerospace EBITDA Margin
    18-22%
    		High
    Margin
    Consumer EBITDA Margin
    18-20%
    		High
    Capacity
    Consumer Capacity Utilization
    40-50%
    		High
    Capacity
    Hosur First Facility Commencement
    Commencement
    		High
    Capex
    Total Capex (5 years)
    USD 350-400 million
    		High
    Capex
    Hosur Capex
    INR 1,900 crores
    		High
    Share of Revenue
    Consumer Share of Total Revenue
    40-60%
    		High

    What to watch in Q2 FY27

    5

    Aerospace Order Book Reflection of New Wins

    next quarter
    CurrentNew wins not yet reflected in order book
    TargetNew wins from Farnborough (A320 wheels, 2 new Tier-1 customers) reflected in order book

    Why it matters

    These new contracts are significant and expected to boost the order book, providing further revenue visibility.

    You should see these new wins reflect in the next quarter's order book.

    Risks & concerns

    3
    RiskSeverity

    Other Income Volatility

    Reported EBITDA was affected by low other income, primarily foreign exchange fluctuation, which is not projected for future periods. — Management acknowledged

    medium

    Consumer Segment Profitability Timeline

    The consumer segment is currently operating at a loss, with breakeven targeted by Q4 FY27, requiring consistent ramp-up and execution. — Management acknowledged

    medium

    Raw Material Sourcing Dependency

    99% of raw materials are imported, and there are currently no qualified domestic sources, posing a challenge for supply chain localization and resilience. — Management acknowledged

    medium

    Q&A highlights

    6

    “I mean if you really look at it, Gaurav, it's the first time in India we have complete Make in India wheels all the way from aluminum source to the finished parts, that's the first achievement and one of the longest agreement we have signed in our history of Aequs, I would say 15 year agreement we have signed with the right adjustments and everything. ... Means obviously if you look at across the margin, it's a much larger margin to us.”

    Reveals the strategic importance and higher profitability of the new 15-year 'Make in India' contract for Airbus A320 wheels, indicating a significant long-term revenue stream and margin uplift.

    asked by Gaurav Nagori

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Driven by Aerospace and Consumer Growth

    Aequs Limited reported a robust start to FY27 with consolidated revenue growing 55% year-on-year to INR 3,955 million, an 8% sequential increase. This growth was broad-based, with the aerospace segment expanding 40% YoY to INR 3,222 million and the consumer segment nearly tripling its revenue by 190% YoY to INR 734 million. The consumer segment's contribution to total revenue increased from 10% a year ago to 19% this quarter, reflecting the ramp-up of consumer electronics at Hubballi.

    02

    Operational EBITDA Improvement Despite Reported Figure Dip

    While reported EBITDA stood at INR 215 million with a 5% margin, lower than Q4 FY26, this was primarily due to reduced other income, particularly foreign exchange gains. Excluding other income, operational EBITDA significantly improved from INR 42 million in Q4 FY26 to INR 148 million in Q1 FY27, a more than threefold sequential increase. This demonstrates strong execution and progress towards profitability, especially with the consumer segment's EBITDA loss narrowing by INR 112 million sequentially.

    03

    Aerospace Order Book Crosses USD 1 Billion Mark

    A significant achievement for the quarter was the aerospace order book crossing the USD 1 billion mark, representing a 13% sequential increase from USD 889 million. The company also secured long-term agreements with two new aerostructure Tier-1 customers and its first contract for fully integrated Airbus A320 wheels with Safran Landing Systems. These new wins, which are expected to reflect in the next quarter's order book, underscore Aequs's growing global presence and capabilities, particularly in 'Make in India' flight-critical products.

    04

    Strategic Expansion and Capacity Utilization Focus

    Aequs's FY27 priorities include growing aerospace revenue by 25-30% with EBITDA margins above 20%, driving consumer utilization to unlock operating leverage, and achieving consumer EBITDA breakeven by Q4 FY27. The company aims for 40-50% consumer capacity utilization by Q4 FY27. The Hosur ecosystem is planned for new capabilities in aero-engine and landing gear components, with the first facility expected to commence operations in H2 FY27 and revenue kick-off by FY29.

    05

    Disciplined Capital Allocation and Debt Management

    Capital expenditure for Q1 FY27 was INR 830 million, with a full-year plan of INR 660 crores for FY27. The company has a 5-year capex plan (FY27-FY31) of USD 350-400 million. Debt reduction efforts included loan repayments of approximately INR 2,527 million and a net reduction of INR 789 million in short-term borrowings, leading to a decrease in finance costs. Net working capital days improved from 127 days at FY26 end to 125 days in Q1 FY27, reflecting better cash conversion.

    This is an AI-generated summary of a publicly available earnings call transcript.