AEQUS

Aequs Limited reported robust financial results for Q3 FY26, with revenue from operations growing 51% YoY to INR 326.2 crores. EBITDA saw an impressive 353% YoY increase to INR 38.1 crores, achieving a 12% margin. For the nine months ended December 31, 2025, revenue stood at INR 863.3 crores, up 28% YoY, and EBITDA grew 85% to INR 122.2 crores, improving the EBITDA margin from 10% to 14% YoY. Despite a negative PAT of INR 42.6 crores in Q3, adjusted PAT (excluding one-time^📎 expenses) was negative INR 25.9 crores, reflecting the investment phase in the consumer segment.

The aerospace segment continues to be the primary revenue driver, contributing 86% of the nine-month FY26 revenues. Segment revenue for nine months was INR 742.4 crores, growing 26% YoY, with a strong EBITDA of INR 180.3 crores, up 62% YoY. The segment maintained a healthy EBITDA margin of 24% and an ROCE of 18.5% for the nine-month period. The order book for aerospace stands at USD 814 million, providing revenue visibility for the next five years until 2031. Current utilization in India for aerospace is 71%, with a target to reach 75%.

The consumer segment demonstrated significant growth, with Q3 FY26 revenue increasing 157% YoY to INR 57.7 crores, and nine-month revenue up 39% to INR 120.9 crores. This segment contributed 14% to the nine-month revenues. However, it is currently in a scale-up phase, leading to a widened EBITDA loss of INR 15.9 crores in Q3 and a 9% YoY fall in nine-month EBITDA to INR 31.0 crores. Management expects profitability to improve as utilization increases, with a target EBITDA margin of 18-20% at ideal utilization, similar to aerospace.

Aequs emphasizes its integrated manufacturing ecosystem and strategic partnerships. The company has partnered with Magellan Aerospace for surface treatment and Aubert & Duval for forging. Recently, it formed joint ventures with Accel India and Vagus Defense to enter the design and manufacturing of unmanned aerial vehicles for India's defense sector. In the consumer segment, a partnership with Brazilian multinational Tramontina aims to tap the global cookware market. The company also received PLI incentives approval for electronic component manufacturing, specifically for mechanical enclosures in the consumer electronics segment.

Following its IPO, Aequs has significantly improved its capital structure, with net debt to equity sharply reduced to 0.1X as of nine months FY26. Total assets increased from INR 1860 crores in March 2025 to INR 3050 crores in December 2025, reflecting IPO proceeds and investments in the consumer segment. CapEx in aerospace is continuous and planned 18-24 months out based on order book, rather than lumpy, due to long lead times for machinery. Most of the planned CapEx for the current fiscal year is already completed, with some capitalization expected in Q4.