USD 1.1 Billion Aerospace Order Book: Aequs Share Price Crashes Over 15% as Losses Widen and EBITDA Margin Shrinks from 16% to Just 6%

Aequs is building an integrated precision-manufacturing platform across Aerospace and consumer products, with aerospace providing the more established profit engine while consumer electronics capacity is still moving through its utilisation ramp. The company reported a 45 per cent YoY increase in consolidated revenue from operations to Rs 409.1 crore for the quarter ended September 30, 2026, but profitability weakened as consumer costs rose ahead of volume absorption.

Earnings before interest, Tax, depreciation and amortisation (EBITDA) fell 45 per cent YoY to Rs 24.5 crore, pulling the consolidated EBITDA margin down to 6 per cent from 16 per cent a year earlier. Consolidated net loss widened to Rs 52.2 crore from Rs 20.6 crore. Aequs said the YoY comparison was not directly comparable because consumer electronics costs were expensed in FY27, whereas these costs were treated as pre-operative in the corresponding FY26 period.

Sequentially, the trend was more constructive. Revenue rose 3 per cent from Rs 395.5 crore in the June quarter, EBITDA increased 14 per cent from Rs 21.5 crore and the loss narrowed from Rs 53.2 crore. For the first half of fiscal 2027 (H1 FY27), revenue rose 50 per cent to Rs 804.6 crore, although EBITDA nearly halved to Rs 46 crore and net loss widened to Rs 105.4 crore.

Aerospace remained the principal driver. Segment revenue increased 44 per cent YoY to Rs 351.4 crore in the September quarter, while segment EBITDA rose 24 per cent to Rs 78.3 crore. Its Order Book reached USD 1.1 billion, up 9 per cent QoQ. The Safran A320 aircraft wheels agreement, Aequs’ first serial-production contract exceeding 15 years, adds long-term visibility and expands its role in landing-system manufacturing.

Consumer revenue grew 52 per cent YoY to Rs 57.7 crore, but the segment’s EBITDA loss widened to Rs 40.1 crore from Rs 36.1 crore in the June quarter. Management attributed this to slower-than-expected volume ramp-up, extended customer qualification timelines and supply-chain constraints. A Rs 650 crore promoter-group investment through preferential warrants is intended to fund capacity expansion, joint-venture investments and working-capital needs.

As of 11:11 am on October 27, 2026, Aequs shares were trading at Rs 204.25, down 15.63 per cent from the previous close. The stock was about 29 per cent below its 52-week high of Rs 288.20, though it remained above the 52-week low of Rs 115.05. The company had a market capitalisation of Rs 16,236.8 crore. Foreign institutional ownership rose 0.76 percentage points to 5.93 per cent, while domestic institutional ownership increased 0.42 percentage points to 9.17 per cent.

What This Means for Investors

The quarter underlines Aequs’ two-speed operating profile. Aerospace is scaling with healthy profitability, a larger order book and deeper Safran engagement, which supports medium-term revenue visibility. The consumer business, however, remains the key determinant of consolidated earnings. Its growing revenue has not yet generated adequate fixed-cost absorption, and the slower qualification cycle has pushed out the path to operating breakeven.

The development is mixed for the investment case. The aerospace pipeline and long-duration wheels programme strengthen strategic relevance, while the promoter warrants provide additional funding flexibility for expansion and working capital. Yet earnings delivery depends on converting consumer capacity into utilisation without a further rise in losses or cash absorption. At 142.88 times trailing 12-month enterprise value-to-EBITDA, the valuation continues to place considerable weight on future margin recovery, making execution in consumer programmes and capital discipline especially important.

Disclaimer: The article is for informational purposes only and not investment advice.