Shares of Aequs Ltd. plunged 18% on Tuesday, October 27, after the aerospace‑and‑consumer components maker disclosed a widened loss for the September quarter. The stock slide came on top of a 45% YoY rise in revenue to ₹409 crore, yet the company recorded a net loss of ₹52.3 crore, up from ₹21 crore a year earlier.
The loss increase was driven by a sharp drop in EBITDA margin, which contracted to 3.37% from 10% a year earlier, a decline of 51.7% YoY. Operating results were pressured by higher depreciation and finance costs, and supply‑chain bottlenecks that delayed production in the consumer segment. Despite these headwinds, the aerospace arm generated ₹322 crore in Q2, a 42% jump to ₹637 crore for the first half, while the consumer side brought in ₹87 crore, up from ₹63 crore the prior year.
Aequs’ order book grew 9% sequentially to $1.1 billion, with most contracts spanning five to seven years. Management said the company does not anticipate near‑term order‑book risks and will keep capacity utilisation in aerospace at 76% in India. Capex for FY27 has been trimmed from an earlier ₹660 cr to about ₹500 cr, with roughly ₹160 cr spent in the first half and a similar outlay expected in H2.
The company withdrew its earlier timeline for EBITDA breakeven in the consumer business by Q4 FY27 and has not set a new target. Nonetheless, it aims to grow the consumer unit four‑ to six‑fold by FY31 and expects it to become profit‑after‑tax positive by FY30. Promoters have already committed ₹650 cr through preferential warrants, and no additional capital raising is planned before FY28.
Looking ahead, Aequs will report FY27 Q3 results in the coming weeks, and analysts will closely monitor whether the shift in capex toward aerospace translates into improved margins and whether the consumer segment can hit the projected profitability milestones.