Business
Aequs shares slide 6% after Q4 swings to loss despite strong revenue growth
The stock came under pressure even as the company posted robust revenue growth, with investors appearing concerned over rising operational costs and continued losses in the consumer electronics business.
Aequs reported a consolidated net loss of Rs 54.1 crore in Q4FY26, compared to a net profit of Rs 9 crore in the corresponding quarter last year.
However, revenue from operations surged 47% year-on-year to Rs 367.1 crore, up from Rs 249.3 crore in Q4FY25, supported by strong momentum in its aerospace business and rapid scaling of the consumer segment.
EBITDA came in at Rs 32.1 crore, while the EBITDA margin stood at 9%. Margins contracted mainly due to the commencement of commercial operations in the consumer electronics segment during Q3FY26, which led to full operating costs being booked even as utilisation levels remained low.
The consumer business contributed 17% to total quarterly revenues, highlighting the company’s ongoing expansion in the segment.
FY26 Performance: Revenue and EBITDA Rise, But Losses Widen
For the financial year FY26, Aequs Limited reported a net loss of Rs 113.3 crore, with losses widening compared to the previous financial year. Despite pressure on profitability, the company delivered strong operational performance driven by growth across its core businesses.
Revenue for the year rose 33% year-on-year to Rs 1,230.4 crore, reflecting healthy demand momentum and continued business expansion. EBITDA also registered robust growth, increasing 43% YoY to Rs 154.5 crore. The improvement in margins was supported by operating leverage benefits and enhanced cost efficiencies across operations.
The aerospace division continued to be the company’s primary growth engine during FY26, contributing significantly to overall business momentum and revenue expansion.
Key highlights include:
The aerospace segment continued to witness strong momentum during FY26, with revenue rising 27% year-on-year to Rs 1,046.4 crore. The company also strengthened its long-term business visibility, with the aerospace order book expanding to USD 889 million.
During the fourth quarter alone, Aequs added 433 new aerospace parts, taking its total aerospace portfolio to 5,654 SKUs. Overall, the aerospace SKU portfolio recorded a healthy 26% year-on-year expansion, reflecting growing scale and deeper engagement with global aerospace programs.
Meanwhile, the consumer business continued its rapid scale-up, delivering 84% revenue growth during the year.
Capacity utilisation improved across key business segments during FY26, with the consumer segment operating at 23% utilisation, while the aerospace segment reached 62% overall utilisation, including 70% utilisation in India operations.
To further strengthen its manufacturing presence, Aequs Limited announced major expansion plans through strategic investment commitments. The company signed a Rs 1,900 crore MoU with Tamil Nadu to develop an integrated aerospace ecosystem and a Rs 2,856 crore MoU with Karnataka for capacity expansion across multiple business segments.
Management Commentary
Aravind Melligeri, Executive Chairman and Chief Executive Officer, described FY26 as a “landmark year” for the company, driven by strong execution, business expansion, and its IPO.
He highlighted that the aerospace business continued to gain traction with a strong order book, while the consumer segment entered full-scale production and revenue recognition phase.
According to management, Aequs is now focused on expanding manufacturing capabilities, deepening OEM partnerships, and moving toward higher-margin aerospace programs.
Stock Performance & Technical View
Despite Wednesday’s correction, Aequs shares have rallied nearly 49% over the last three months, reflecting strong investor interest in the company’s aerospace growth story.
The company currently commands a market capitalisation of around Rs 14,500 crore, while its 52-week high stands at Rs 223.85.
On the technical front, the stock’s 14-day Relative Strength Index (RSI) is at 61.8, indicating positive momentum. An RSI below 30 is generally considered oversold, while a reading above 70 signals overbought conditions.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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