Aequs Ltd Engineering Company Fundamental Analysis

Aequs is an engineering-led, vertically integrated contract manufacturing company with a strong presence in aerospace and an emerging consumer manufacturing business. Its aerospace ecosystem covers precision components, machining, forging, surface treatment and assemblies, allowing the company to serve global OEMs and Tier-1 suppliers through an integrated manufacturing model. The consumer segment is being scaled across consumer electronics and other products, creating an additional long-term growth avenue. FY26 revenue increased 33% YoY to ₹1,230.4 crore and EBITDA rose 43% to ₹154.5 crore, with EBITDA margin improving to 13%. However, the company remained loss-making, reporting a consolidated PAT loss of ₹113.3 crore for FY26. Q1 FY27 revenue increased a strong 54.8% YoY to ₹395.5 crore, but net loss remained high at ₹53.2 crore. Aerospace revenue grew 39.9% to ₹322.2 crore and generated a segment profit of ₹73.1 crore, while consumer revenue surged 190.4% to ₹73.4 crore but recorded a ₹36.1 crore segment loss. The major growth drivers are increasing aerospace outsourcing, new programs with global customers, capacity utilisation and the ramp-up of consumer manufacturing. The IPO has also substantially strengthened the balance sheet; FY26 debt-equity declined to around 0.23x and net worth increased sharply. However, the current valuation requires close attention: Groww reports a market capitalisation of about ₹16,287 crore, negative TTM earnings, P/B around 10.96x and ROE of -7.41%. The key risks are continued consolidated losses, high depreciation and finance costs, execution risk in new consumer facilities, working-capital requirements and the substantial valuation relative to present earnings. The central factor to monitor is whether strong aerospace growth and consumer scale-up can eventually translate into sustainable consolidated profitability.