Aequs FY26 revenue jumps 33% to Rs 1,230 crore

Key takeaway from Aequs’ FY26 earnings

Karnataka-based contract manufacturer Aequs Ltd reported strong top-line growth in FY26, led by aerospace and a rapid scale-up in its consumer segment. Consolidated revenue from operations rose 33% year-on-year to Rs 1,230 crore in FY26. However, losses widened despite the growth, reflecting higher operating costs as new capacity and programmes ramped up. The company announced the earnings after market hours.

FY26 financial performance: growth with higher losses

For FY26, Aequs posted a net loss of Rs 113.3 crore, compared with a loss of Rs 102.4 crore in the previous year. The company attributed pressure on profitability to its consumer electronics business entering commercial operations, which raised operating costs while capacity utilisation remained low. The FY26 performance underlines a common feature of scale-up phases in manufacturing, where fixed costs rise ahead of full utilisation.

March quarter numbers: sharp revenue rise, deeper quarterly loss

In the March quarter, revenue from operations increased 47% year-on-year to Rs 367 crore, aided by growth in the aerospace business. The company recorded a net loss of Rs 54.1 crore for the quarter. Aequs said profitability during the quarter was impacted as the consumer electronics business began commercial operations and incurred higher operating costs at low utilisation.

Aerospace remained the primary growth driver

Aequs’ aerospace business continued to be the largest driver of growth. Segment revenue rose 27% year-on-year to Rs 1,046.4 crore in FY26. The company described aerospace as its key growth engine, supported by demand from global original equipment manufacturers and system integrators.

Aequs said it is a tier-1 supplier to global aerospace original equipment manufacturers and system integrators, including Airbus, Boeing, Safran and Collins Aerospace. The positioning matters because tier-1 work typically requires stringent quality systems, consistent delivery, and long programme cycles.

Order book and portfolio expansion in aerospace

The company reported an aerospace order book of $189 million. During the March quarter, Aequs added 433 new aerospace parts, taking its total portfolio to 5,654 stock keeping units (SKUs). These additions are relevant operational indicators because qualifying more parts generally broadens the addressable work scope across platforms and can support higher factory loading.

In an earlier update referenced in the provided material, Aequs’ executive chairman Aravind Melligeri said the aerospace order book stood at $114 million and that Q3 revenue grew 51% year-on-year to Rs 326.2 crore.

Consumer segment: faster growth, near-term cost pressure

Aequs said its consumer business grew 84% year-on-year during FY26 as it expanded manufacturing programmes across electronics, plastics and durables. The segment contributed 17% of overall revenue in the fourth quarter, according to the company.

In the consumer business, Aequs works with toy makers Hasbro and Spin Master, and has partnerships with cookware and houseware brands including Brazil’s Tramontina and Wonderchef. The company also highlighted that commercial operations in consumer electronics increased operating costs while utilisation was still low, weighing on profitability in the quarter.

IPO in December 2025 and management commentary

Aequs went public in December 2025, raising Rs 921.81 crore. Commenting on the year, Aravind Melligeri, executive chairman and chief executive officer, said FY26 was a “landmark year” defined by execution, expansion, and the IPO. He added that the company’s quality standards and delivery reliability continued to support long-term relationships with original equipment manufacturers.

Expansion plans backed by state-level investment memorandums

During the year, Aequs signed investment memorandums with the Karnataka and Tamil Nadu governments worth Rs 285.6 crore and Rs 190 crore, respectively. The company said these were to expand its aerospace and consumer manufacturing operations. Such memorandums indicate planned capacity additions, but the timeline and financial impact depend on execution and utilisation ramp-up.

Key financial and operating metrics at a glance

Market impact: what investors typically track from this update

From the information disclosed, the market focus is likely to remain on two moving parts: the pace of aerospace growth and the cost trajectory in consumer electronics as utilisation rises. The FY26 numbers show that revenue expansion is being delivered, particularly in aerospace, but losses have not yet narrowed at the consolidated level. The March quarter commentary also highlights that the consumer electronics ramp-up phase can temporarily raise operating costs.

The IPO in December 2025 and the signed investment memorandums indicate the company is in an expansion cycle. For investors, the near-term question is how quickly new capacity and programmes translate into higher utilisation and operating leverage, given the company’s disclosure that low utilisation in consumer electronics is affecting profitability.

Conclusion

Aequs closed FY26 with higher revenue and a larger loss, with aerospace remaining the core growth driver and consumer electronics contributing to cost pressure during the ramp-up. Next, investors will watch how utilisation improves in consumer electronics and how the aerospace order book converts into revenue across upcoming quarters.