Aequs Q4 FY26 loss: revenue up 47%, shares slide on costs

Overview: Aequs shares fall after Q4 turns weak

Aequs Limited shares fell sharply on May 27, 2026 after the company reported a consolidated net loss for Q4 FY26, reversing a profit in the year-ago quarter. Reports during the session showed the stock down as much as 9.42% to ₹191.77, while another update pegged the price at ₹191.74 as of May 27, 2026. At around 10:05 AM, the stock was quoted at about ₹195 on the NSE, down 7.77% from the previous close of ₹211.63. By the end of the day, the stock was reported to have closed around ₹211.60, down 2.13%. The reaction reflected investor focus on profitability and margin pressure despite strong revenue growth.

Q4 FY26: Consolidated profit swings to loss

For the March quarter (quarter ended March 31, 2026), Aequs reported a consolidated net loss of ₹53.72 crore, compared with a net profit of ₹8.92 crore in Q4 FY25. Some reports rounded the quarterly loss to about ₹54.1 crore, against a profit of about ₹9 crore in the comparable period last year. The company also reported a pre-tax loss of ₹33.27 crore in Q4 FY26, versus a pre-tax profit of ₹5.87 crore in Q4 FY25. Revenue from operations for the quarter was reported at about ₹367 crore (₹367.1 crore in some reports), up 47% year-on-year. The March quarter revenue growth was linked to performance in the aerospace business, which was cited as a key driver.

FY26: Full-year loss widens even as revenue jumps

On an annual basis, Aequs reported a consolidated net loss of ₹113.25 crore in FY26, compared with a net profit of ₹102.34 crore in FY25. Other reports put FY26 net loss at about ₹113.3 crore and described it as higher than the prior year’s loss figure cited in parts of the coverage. Revenue from operations rose 33.08% to ₹1,230.43 crore in FY26 from ₹924.60 crore in the previous fiscal. The company’s FY26 performance therefore showed a clear divergence: strong topline growth alongside a sharp deterioration in bottom-line profitability.

EBITDA and margins: Sharp compression highlighted

A key pressure point in the coverage was EBITDA and margin compression. Aequs’ earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 23% year-on-year to ₹321 crore from ₹416 crore in the year-ago period. EBITDA margin narrowed to 9% from 17% a year earlier. The company attributed the margin decline mainly to the commencement of commercial operations in the consumer electronics segment during Q3, which resulted in full operating costs being reflected in the profit and loss account while utilisation remained low. This cost-utilisation mismatch was repeatedly cited as the core reason for weaker profitability.

Segment commentary: Aerospace strength, consumer electronics drag

The aerospace business was described as the largest growth driver, with segment revenue rising 27% year-on-year to ₹1,046.4 crore in FY26. Management commentary and media summaries pointed to robust execution and program maturity in aerospace supporting revenue momentum. At the same time, the consumer electronics business was linked to higher operating costs and losses, particularly after commercial operations began and capacity utilisation stayed low. The market response suggested investors are tracking how quickly utilisation improves relative to fixed and ramp-up costs.

IPO context and management remarks

Aequs went public in December 2025 and raised ₹921.81 crore, according to the information provided. Executive Chairman and CEO Aravind Melligeri described FY26 as a “landmark year” defined by execution, business expansion and the IPO. He also said the company’s quality standards and delivery reliability continued to support long-term relationships with original equipment manufacturers. These statements were positioned alongside the quarterly loss to show that the expansion cycle is underway, even as near-term profitability has weakened.

Analyst and broker reaction

JM Financial downgraded the stock to ‘Reduce’, as noted in the provided coverage. The downgrade was mentioned in the context of investor concern over rising operational costs and losses in the consumer electronics business. The stock’s sharp intraday fall to the ₹191-₹192 zone, and the negative moves quoted across exchanges, underscored the sensitivity to margin and earnings visibility.

Key numbers at a glance

Stock price moves reported during the session

What to watch next

The immediate focus for investors is whether utilisation in the consumer electronics segment improves quickly enough to offset the full operating costs now flowing through the profit and loss account. At the same time, the aerospace segment’s FY26 revenue growth and scale remain central to Aequs’ topline trajectory. The company’s board has approved the Q4 FY26 financial results, and management has framed FY26 as an expansion year following the December 2025 IPO. Near-term market attention is likely to remain on margins and the pace of ramp-up in newly commercialised operations.

Company contact details cited in the disclosures

The provided information listed Mr. Rajeev Kaul as Managing Director. The contact details cited included the email ID company.secretary@aequs.com and phone number +91 9632058521. The address referenced was Aequs SEZ, No. 437/A, Hattargi Village, Hukkeri Taluk, Belagavi – 591243, Karnataka, India.