Aequs Posts Quarterly Loss of 52.4 Crore Rupees as Operating Revenue Grows 45.3%
Key Facts
This came despite a 45.3% increase in operating revenue to 409.1 crore rupees, from 281.6 crore a year earlier. Quarter on quarter, revenue rose 3.4%. The comparison shows that sales growth was not matched by a similar improvement in the bottom line during the quarter.
EBITDA, or earnings before interest, taxes, depreciation and amortization, fell 45% year on year to 24.5 crore rupees, although it rose 14% from the previous quarter. By contrast, expenses excluding finance costs, depreciation and amortization increased 56.2% to 395.2 crore rupees, from 253.1 crore a year earlier. The divergence between revenue growth and declining EBITDA stands out in the quarter’s performance, while the company also reported a higher net loss than a year earlier. The quarterly improvement in EBITDA reflects a comparison with the previous quarter, not the same period last year.
Aerospace remained the company’s largest revenue driver, generating 351.4 crore rupees in the quarter, up 44.2% from 243.7 crore a year earlier. The segment accounted for 85.9% of total revenue, according to coverage published on results day. On the results call, management said aerospace capacity utilization was 69%, reaching 76% in India. The company added 9 CNC machines during the quarter, taking the total to 229 machines, with annualized equivalent operating hours of 2.12 million. Management said aerospace capacity utilization rose 8% year on year despite the additional capacity.
Consumer business revenue rose 52% to 57.7 crore rupees, compared with 37.9 crore a year earlier. Management attributed slower volume growth to extended qualification periods and supply constraints, describing it as a "timing-related transition rather than a change in the underlying opportunity." On the results call, it said operating costs for new capacity in the consumer business are now being charged to results after commercial operations began, whereas the corresponding costs in the previous year were pre-operating in nature. It also cited delayed qualification and process adjustments in consumer electronics, a gaming customer transition, shortages of some components and transport disruption as factors that slowed the ramp-up in volumes. Management said it was reassessing the breakeven timeline, without specifying a new date on the call.
In aerospace, the order book stood at 1.1 billion dollars, up 9% quarter on quarter in the second-quarter update. Management said execution of the order book typically takes 5 to 7 years, with exceptions for longer contracts. NDTV Profit coverage had reported that capacity utilization reached 70% in the first quarter of fiscal year 2027, compared with 62% in fiscal year 2026, and that the order book exceeded 1 billion dollars and grew 13% sequentially in the first quarter. It also reported that Aequs signed a 15-year agreement with Safran to produce assembled wheels for the Airbus A320 program. The new Hosur facility is expected to begin generating commercial revenue in fiscal year 2029, according to the same coverage.
Capital expenditure stood at 159.7 crore rupees in the first half of fiscal year 2027, while the company said promoter guarantees of 650 crore rupees are intended to support the expansion phase, including the Hosur facility. Investing.com India data showed the stock closed 2.91% higher at 242.40 rupees in the same session. These figures show a positive close on results day, rather than the decline attributed to 27 October in the initial draft. The company’s performance combines growth in operating revenue with widening losses, while its expansion plans are aimed at increasing capacity and supporting execution of the aerospace order book.