Aequs: $1 billion order book, four straight years of losses

Aequs Limited (NSE: AEQUS) grew Q1 FY27 consolidated revenue 55% to ₹395.5 crore. Aerospace, at 81% of revenue, grew 40% to ₹322.2 crore. The stock is up 96% since its December 2025 listing and trades at 12.4 times book value. What happened Aerospace EBITDA rose 35% to ₹73.1 crore, though it was below the ₹101 crore in Q4 FY26. Utilisation was 70% globally and 78% in India. The aerospace order book crossed $1 billion, rising 13% QoQ from $889 million. Aequs signed two new aerostructures Tier-1 agreements and won its first contract to manufacture Airbus A320 wheels for Safran Landing Systems under a 15-year sole-source deal. Why it matters The order book change matters. The portfolio now has 5,740 qualified products, with 86 added in Q1 alone. The top three customer groups have an average relationship of 15 years. My view Four consecutive years of losses: ₹(110), ₹(14), ₹(102) and ₹(113) crore. Operating profit is positive. Interest, depreciation and other costs consume it. IPO proceeds cut net debt to equity to 0.34 times from 0.88 times. But operating cash flow turned negative at ₹41.4 crore as working capital expanded. Full year FY27 capex is ₹660 crore, including ₹160 crore for aerospace. The Hosur ecosystem needs ₹1,900 crore over 10 years, with revenue from FY29. JM Financial downgraded to Reduce in May 2026 with a ₹210 target. The stock closed at ₹275, about 31% above that. What I am watching Q2 FY27 results, operating cash flow turning positive, and the first consolidated profit. On the chart, ₹200 is the IPO listing area and the key support. My stance: Wait for one profitable quarter. The order book is real. The profits are not yet there. Disclosure: I do not hold a position in Aequs Limited at the time of writing. This is not investment advice.