Aequs Limited Soars in Q3 FY26 with Strong Aerospace and Scaling Consumer Business

Aequs Limited, an engineering-led, vertically integrated precision manufacturer, has reported a robust performance for the third quarter and nine months ended December 31, 2025. The company, which recently went public, demonstrated significant year-on-year growth in both revenue and EBITDA, driven by strong momentum in its aerospace programs and the scaling up of its consumer business. This marks a pivotal moment for Aequs as it leverages its unique ecosystem and strategic initiatives to capture growing market opportunities.

For Q3 FY26, Aequs posted a remarkable 51% year-on-year increase in revenue from operations, reaching INR 326.2 crore. EBITDA saw an impressive 353% surge to INR 38.1 crore, with EBITDA margins expanding to 12% from 4% in the previous year. The nine-month period also reflected this strong trajectory, with revenue growing 28% year-on-year to INR 863.3 crore and EBITDA increasing by 85% to INR 122.2 crore, pushing margins to 14% from 10%. While the reported PAT for Q3 was negative INR 42.6 crore, this included one-time expenses of INR 16.7 crore related to labor law changes and IPO costs. On an adjusted basis, PAT losses narrowed significantly, showing a 35% improvement YoY for Q3 and a 62% improvement YoY for the nine months.

Segmental Performance and Strategic Focus

The aerospace segment continues to be the primary revenue driver, contributing 82% of consolidated revenue in Q3 FY26 and 86% for the nine-month period. This segment grew 38% YoY in Q3, with segment EBITDA up 163% YoY to INR 63.3 crore. For the nine months, aerospace revenue increased by 26% to INR 742.4 crore, and segment EBITDA grew 62% to INR 180.3 crore. The company maintains a strong aerospace order book of USD 814 million, which is expected to be delivered over the next five years, providing significant long-term visibility. Aequs's unique vertically integrated ecosystem within a single SEZ in India, offering end-to-end manufacturing capabilities from forging to assembly, continues to be a key differentiator, enabling unmatched lead times, cost efficiency, and quality control.

The consumer segment, while smaller, is rapidly scaling up, reporting revenues of INR 57.7 crore in Q3, a 157% YoY increase. For the nine months, consumer revenue increased by 39% to INR 120.9 crore. However, the segment's EBITDA loss widened from INR 9.5 crore to INR 15.9 crore in Q3. Management explained that this is primarily due to the segment being in a ramp-up phase with front-ended investments. They anticipate that as utilization improves with scale, operating leverage will kick in, leading to improved profitability. The company has successfully industrialized its consumer electronics programs, with revenues now beginning to flow, and has added Mattel as a new customer, with shipments already commenced. Aequs also received approval from MeitY for PLI incentives under the Electronics Components Manufacturing Scheme (ECMS), further bolstering its position in this high-growth area.

Operational Efficiencies and Future Outlook

Aequs's operational discipline and well-scaled operating footprint have been crucial to its performance. Aerospace operations in India achieved 71% utilization, with a target of 75%, reflecting ramp-up in existing programs and incremental capacity. The consumer segment's capacity utilization improved to 31%, up 12% YoY, supported by capacity additions and increased throughput. The company's net debt to equity ratio sharply reduced to 0.1x as of 9M FY26, reflecting successful deleveraging following its IPO and an improved capital structure.

Management's strategic priorities remain clear: continue to grow the aerospace segment profitably, drive utilization in the consumer segment through customer additions, and explore opportunities in aerospace related to defense. The company has partnered with Accel India and Vagus Defence to enter the design and manufacturing of Unmanned Aerial Vehicles (UAVs) for India's defense requirements, aiming to be a system-level contributor. Aequs also aims to improve margins through higher value manufacturing and operational efficiencies, diversifying into more critical and complex parts. With a strong foundation, diversified portfolio, and strategic vision, Aequs Limited is well-positioned to capitalize on the favorable global industry dynamics and India's growing manufacturing push.