Aequs Share: Can Aerospace and Consumer Electronics Deliver 45–50% Growth?
This Small-Cap Defence Stock, engaged in aerospace, consumer electronics, precision manufacturing, and integrated industrial manufacturing, serving global OEMs through advanced manufacturing ecosystems, is in focus after management guided for 45-50 percent revenue growth and around 2X (doubling) operational EBITDA growth in FY27. The company’s $1 billion-plus aerospace order book, new customer wins, capacity expansion and planned capex further strengthen its growth outlook.
With a market capitalization of Rs. 19,261.52 crore, the shares of Aequs Limited were currently trading at Rs. 287.20 per equity share, rising nearly 0.75 percent from its previous day’s closing price of Rs. 285.05 per equity share.
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Management Revenue Guidance:
Aequs Limited expects consolidated revenue to grow by around 45-50 percent in FY27. The aerospace business is expected to grow by 25-30 percent, while maintaining EBITDA margins above 20 percent. This reflects continued strong demand and growth in the aerospace segment.
The consumer business is expected to improve gradually during FY27 as capacity utilization increases. Higher utilization in consumer electronics, along with steady aerospace growth, is expected to support the company’s overall revenue growth and help Aequs achieve its FY27 growth target.
EBITDA and PAT Guidance:
Aequs Limited management expects operational EBITDA to grow by around 2x in FY27. The improvement is expected to be stronger in the second half of the year as the consumer business increases its capacity utilization. Consumer EBITDA is targeted to reach break-even by Q4 FY27, marking an important step toward better profitability.
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Aerospace is expected to remain the higher-margin business, with management targeting EBITDA margins of around 18-22 percent. The consumer business is expected to gradually improve its margins and reach around 18-20 percent over the longer term. Better utilization and operating efficiency should support overall profitability.
Over the longer term, Aequs expects to achieve PAT break-even by H1 FY28, while consumer PAT break-even is targeted by FY30. The company is also aiming for around 20 percent steady-state ROCE by FY31, reflecting its focus on improving returns from its investments and expanding businesses.
Capex Plan:
Aequs Limited plans to spend around Rs. 660 crore on capex in FY27 across its aerospace and consumer businesses. The original plan includes approximately Rs. 500 crore for consumer and Rs. 160 crore for aerospace. The company may adjust this allocation depending on business requirements and growth opportunities.
Over FY27-FY31, Aequs has planned a larger investment of around US$350-400 million. The Hosur aerospace project is expected to involve about Rs. 1,900 crore of investment over 10 years, including joint ventures. The company is targeting a steady-state ROCE of around 18-20 percent from its investments.
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Aerospace Portfolio Expansion:
Aequs Limited added 86 new aerospace parts, taking its total portfolio to 5,740 parts. The company is also expanding into higher-value areas such as aero-engine and landing-gear components, which can support future growth. In the consumer business, Aequs is focused on improving capacity utilization, expanding its range of components and moving toward integrated kit supplies to offer more complete solutions to customers.
Order Book Details:
Aequs Limited’s aerospace order book crossed US$1.004 billion at the end of Q1 FY27, rising 13 percent from US$889 million in the previous quarter. The increase reflects higher customer production rates, more parts entering regular production, and a growing aerospace product portfolio.
The company also secured important new customer agreements. Aequs signed a 15-year agreement with Safran Landing Systems to manufacture fully integrated wheels for Airbus A320 aircraft. It also added two new Tier-1 aerostructure customers through long-term agreements signed at the Farnborough Airshow, strengthening its future aerospace business.
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Advanced Aerospace Manufacturing Capabilities:
Aequs has strong end-to-end manufacturing capabilities in aerospace, allowing it to make components from start to finish within a single SEZ. Its capabilities include forging, precision machining, surface treatment, and aero assemblies. The company uses advanced machines and a 10,000-ton hydraulic press for forging, supporting the production of complex aerospace components.
Aequs manufactures and assembles structural parts, including wing and fuselage components. Its surface treatment facility is approved by Airbus and Boeing, supporting high-quality aerospace production. The company has around 220 CNC machines and 2.02 million annualized machining hours. Its partnership with Magellan Aerospace also strengthens its aerospace manufacturing capabilities and customer relationships.
Segments Revenue Mix (Q1 FY27):
Aequs Limited’s Q1 FY27 revenue was mainly driven by its aerospace business, which contributed 81 percent of total revenue, while consumer contributed 19 percent. The company also has a strong export-focused business, with 88 percent of revenue coming from exports and only 12 percent from domestic sales. This highlights Aequs’ strong presence in global aerospace and manufacturing markets.
Company Overview:
Aequs Limited is an India-based precision engineering and contract manufacturing company serving the aerospace and consumer industries. Headquartered in Bengaluru, it operates integrated manufacturing facilities across India, the United States, and France. Aequs specializes in forging, precision machining, surface treatment, plastic molding, and assembly, enabling end-to-end production of complex components.
In aerospace, it supplies components and assemblies to major global OEMs and system integrators, including Airbus, Boeing, Safran, and Collins Aerospace. Its consumer businesses span toys, electronics, plastics, and consumer durables. With more than 3,000 employees, Aequs focuses on vertically integrated manufacturing, engineering capabilities, supply-chain efficiency, and long-term global customer relationships.
Recent Quarter Results:
Looking at the company's financial highlights, Aequs Limited's revenue has increased from Rs. 256 crore in Q1 FY26 to Rs. 396 crore in Q1 FY27, which has grown by 54.6 percent. The company’s net profit has shifted from positive to negative, from a net profit of Rs. 4 crore in Q1 FY26 to a net loss of Rs. 53 crore in Q1 FY27.
Aequs Limited’s revenue has grown at a CAGR of 15 percent over the last five years. In terms of return ratios, the company's ROCE and ROE stand at 1.69 percent and -9.96 percent, respectively. Aequs Limited has an earnings per share (EPS) of Rs. -2.57, and its debt-to-equity ratio is 0.47x.