Aequs Limited recorded strong revenue growth in the September quarter, buoyed by firm aerospace demand and a broader manufacturing portfolio. Profitability, however, remained strained. Its consumer electronics business faced delayed customer qualifications, supply-chain bottlenecks and weak capacity utilisation. In response, management is directing more investment towards aerospace while keeping spending on the consumer segment in check.

The company's results for the second quarter of financial year 2027 (Q2FY27) showed that higher sales had yet to translate into stronger earnings. The first half also reflected the cost of scaling up consumer electronics operations, which were still in the pre-operational phase during the corresponding period last year.

Aequs share price fell 16.86% to ₹201.55 on the National Stock Exchange (NSE) at 10:34 am on 27 October, following the release of its quarterly results. The decline came amid continued losses and delays in ramping up the consumer business, despite strong growth in aerospace.

Aequs Q2FY27 Results: Key Financial Highlights

Aerospace Order Book Strengthens Growth Outlook

Aerospace remains the company's principal growth engine. Melligeri said the order book had reached $1.1 billion, supported by sustained demand from aircraft manufacturers. Aerospace revenue increased 44% year-on-year, while earnings before interest, tax, depreciation and amortisation rose 24%.

The company also expanded its relationship with Safran through additional long-term supply agreements. A contract to manufacture wheels for the Airbus A320 marks its first serial-production agreement with a tenure exceeding 15 years.

Consumer Business Delays Capex And Break-Even Plans

Melligeri said consumer volumes had ramped up more slowly than expected because of extended qualification timelines and supply-chain disruptions. The company is focusing on utilising existing capacity before committing further capital, with 50% utilisation identified as the threshold for reaching operating break-even in the segment.

Planned consumer investment has been reduced to ₹200–300 crore, while aerospace spending will increase. Total capital expenditure for the year is expected to be ₹500–550 crore, with a significant portion directed towards aerospace facilities, including the planned expansion at Hosur.

Funding Strategy And Long-Term Targets

Aequs intends to deploy the ₹650 crore raised through promoter-group warrants towards expansion, joint-venture investments and working capital through December 2027. Melligeri said there were currently no plans for another fundraising exercise in financial year 2028.

The company remains committed to its 2031 growth target of increasing revenue fourfold to sixfold from its financial year 2026 base. Achieving that ambition will depend on aerospace execution, disciplined capital allocation and a sustained improvement in consumer capacity utilisation.

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