01 — At a Glance
The Precision Machine That Can’t Seem to Make Profit
- 52-Week High / Low₹165 / ₹114
- Q3 FY26 Revenue₹326 Cr (₹3,262 Mn)
- Q3 FY26 PAT-₹43 Cr (-₹426 Mn)
- Q3 FY26 EPS-₹0.64
- 9M FY26 Loss (Adjusted)-₹426 Mn
- Book Value₹13.85
- Price to Book8.45x
- Dividend Yield0.00%
- IPO Price (Dec 2025)₹144.76
- Current Return (IPO)-19.2%
The Reality Check: Aequs went public at ₹144.76 in December 2025, raised ₹670 crore fresh capital, and three months later, the stock trades at ₹117 — a 19.2% loss. Meanwhile, Q3 revenue hit ₹3,262 million (+51% YoY), but the net loss ballooned to ₹426 million. The IPO money is being torched. The consumer segment is a loss-making furnace. And management says “profitability depends on utilization.” Spoiler: utilization is at 31%. Do the math.
02 — Introduction
The Company That Builds Plane Parts While Losing Money at Light Speed
Meet Aequs. Founded in 2000. Precision aerospace manufacturing. 5,000+ different aircraft components. The only fully vertically integrated aerospace ecosystem in India operating from within a single SEZ (Special Economic Zone). Three plants in India. Two abroad. Clients: Airbus, Boeing, Safran, Collins. Revenue: ₹3,262 million in Q3. Net loss: ₹426 million. Stock price down 19% since IPO.
The company is a tale of two businesses awkwardly held together by one stock price. Aerospace: mature, profitable, with 18.5% ROCE and a ₹814 million USD order book stretching to 2031. Consumer electronics: brand new, unprofitable, with 31% utilization and losses widening quarter after quarter. Management says consumer will be profitable “eventually.” Investors ask “when.” Finance people answer “we need more time.”
In December 2025, Aequs listed on Indian exchanges and raised ₹670 crore in fresh capital — meant for debt repayment, capex, and “general corporate purposes.” Three months later, the stock has halved from IPO highs, capital is being burned through consumer expansion, and the Board just approved an ESOP worth 2.04 crore options, a ₹1,900 crore MoU with the Indian government, and a brand new JV called Ajna Aerospace. The plot has layers. So does the financial bleeding.
Concall Insight (Feb 2026): Management explicitly stated: “Capacity that we have built is already fully committed by the customer. There’s no issue of demand. It’s only our ability to scale.” Translation: We have orders. We’re just incompetent at profit.
03 — Business Model: WTF Do They Even Do?
Precision Machining + Aerospace + Toys + Broken Dream = Aequs
Aequs operates three distinct business lines all fighting for attention and capital.
Aerospace Segment (86% of 9M revenue): They manufacture high-complexity components for commercial aircraft—landing gears, wheels, brackets, actuation systems, interior fittings. Content on Airbus A320 family, A350, Boeing 777/787. They forge, machine, assemble, treat surfaces, test. They do it all within one SEZ. Management loves pointing out they’re the “only” vertically integrated shop in India doing this. They probably are. They probably wish they weren’t.
Consumer Segment (14% of 9M revenue): They entered toys in 2016, expanded to consumer electronics and durables. Q3 saw consumer revenue surge 157% YoY to ₹577 million. But the segment EBITDA loss widened to ₹159 million, blamed on “ramp-phase fixed costs” and “capacity coming online.” Management’s long-term promise: consumer EBITDA margins will eventually match aerospace (18–20%). Today: operating at 31% capacity. Tomorrow: probably still operating at 31% capacity.
Joint Ventures: Aequs is now co-owning operations across three continents. Magellan Aerospace (Canada) for surface treatment. Aubert & Duval (France) for forging. Accel India + Vagus Defense for UAV design. A brand-new Ajna Aerospace JV for unspecified reasons. Every JV is a “capability acquisition” and a potential money pit.
Aerospace Portfolio5,221Part Numbers
Order Book (USD)814MThrough 2031
Consumer Util.31%Bleeding Red
Management’s Favorite Phrase: “Fully vertically integrated ecosystem.” Translation: We have capex everywhere, debt everywhere, and JVs everywhere. Synergies are “forthcoming.”
💬 Hot take: Is Aequs an aerospace company pretending to be a consumer conglomerate, or a consumer conglomerate pretending to be an aerospace company? Vote in the comments.
04 — Financials Overview
Q3 FY26: Growth That Hides Loss
