Aequs Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aequs Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aequs reported Q1 FY27 consolidated revenue growth of 55% year-on-year to INR3,955 million, with aerospace revenue up 40% and consumer revenue nearly tripling. Reported EBITDA declined sequentially due to lower other income, but management highlighted that operational EBITDA excluding other income rose from INR42 million to INR148 million sequentially, driven by a narrowing consumer segment loss. Management also disclosed a new long-term agreement for fully assembled Airbus A320 wheels with Safran Landing Systems and an aerospace order book that crossed USD1 billion.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR3,955 million (Q1 FY27)
p. 3
“Consolidated revenue grew 55% year-on-year to INR3,955 million, up 8% sequentially on what was already the strongest quarter in our history.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Reported EBITDA: INR215 million (Q1 FY27)
p. 3
“Reported EBITDA at INR215 million is lower than the Q4, but that movement is mainly due to other income, foreign exchange, which was unusually high in the Q4.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Operational EBITDA (excluding other income): INR148 million (Q1 FY27)
p. 3
“On the operational basis, excluding the other income, EBITDA improved from INR42 million in Q4 to INR148 million, a more than three-fold sequential improvement, driven by narrowing consumer loss.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Consumer segment EBITDA loss narrowing: INR112 million (Q1 FY27 vs Q4 FY26)
p. 3
“Our consumer segment EBITDA loss narrowed by INR112 million sequentially.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Aerospace revenue: INR3,222 million (Q1 FY27)
p. 4
“Aerospace revenue increased by 40% year-on-year and 6% sequentially to INR3,222 million.”
Rajeev Kaul, page 4 of the filed PDF · View the filing
Aerospace order book: USD1,004 million (Q1 FY27)
p. 6
“The aerospace business continues to grow strongly, supported by higher customer build rates, the progression of additional parts into production, and USD1,004 million order book.”
Harish Bang, page 6 of the filed PDF · View the filing
Consumer revenue: INR734 million (Q1 FY27)
p. 6
“Consumer revenue increased by 190% year-on-year and 16% sequentially to INR734 million.”
Harish Bang, page 6 of the filed PDF · View the filing
Consumer segment EBITDA: loss of INR361 million (Q1 FY27)
p. 6
“The segment's EBITDA stood at a loss of INR361 million compared with a loss of INR74 million in Q1 FY'26 and narrowed from a loss of INR473 million in Q4 FY'26.”
Harish Bang, page 6 of the filed PDF · View the filing
PAT: loss of INR532 million (Q1 FY27)
p. 6
“PAT stood at a loss of INR532 million for Q1 FY'27.”
Harish Bang, page 6 of the filed PDF · View the filing
Cash and cash equivalents: INR2,340 million (Q1 FY27)
p. 7
“Cash and cash equivalents were INR2,340 million with a further INR537 million in other bank balances for Q1 FY'27.”
Harish Bang, page 7 of the filed PDF · View the filing
Capital expenditure: INR830 million (Q1 FY27)
p. 7
“Capital expenditure during the quarter was INR830 million and closing cash stood at INR2,340 million.”
Harish Bang, page 7 of the filed PDF · View the filing
Net working capital days: 125 days (Q1 FY27)
p. 7
“We saw an improvement in the working capital efficiency with net working capital days reducing from 127 days at the end of FY'26 to 125 days in Q1 FY'27 (calculated on a quarterly annualized basis).”
Harish Bang, page 7 of the filed PDF · View the filing
New parts added to aerospace portfolio: 86 new parts, total 5,740 (Q1 FY27)
p. 4
“During the quarter, we added 86 new parts, further expanding one of India's most extensive aerospace manufacturing portfolio to 5,740 parts.”
Rajeev Kaul, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Aerospace revenue growth — 25% to 30% · FY27
stated firmly by Aravind Melligeri
p. 4
“First, grow aerospace revenue profitably 25% to 30% with a segment EBITDA margins above 20%.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Consolidated revenue growth — approximately 45% to 50% · FY27
stated firmly by Aravind Melligeri
p. 4
“At a consolidated level, we continue to expect approximately 45% to 50% top-line revenue growth for the full year with the doubling of our operational EBITDA, a target that is weighted to the second half as consumer utilization builds through the year.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Consumer EBITDA breakeven — breakeven · Q4 FY27
stated firmly by Aravind Melligeri
p. 4
“Third, move our consumer EBITDA breakeven by Q4 FY27, which will be a major inflection point in our consolidated profitability.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Hosur facility revenue start — FY29
stated firmly by Rajeev Kaul
p. 5
“we expect revenues kick off from FY'29.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
Consumer capacity utilization — 40% to 50% · Q4 FY27
stated conditionally by Rajeev Kaul
p. 11
“See, first let me address your capacity utilization. So current quarter we did around 22% and we still hold by Q4 to touch 40% to 50%.”
Rajeev Kaul, page 11 of the filed PDF · View the filing
Hosur first facility commissioning — September to March, FY27 to FY28
stated firmly by Aravind Melligeri
p. 11
“The first facility will commence in the second half between September to March timeframe of next year of FY27 to FY28 and that's why Rajeev was reflecting that FY29 when we'll start seeing some revenue coming out of that facility.”
Aravind Melligeri, page 11 of the filed PDF · View the filing
Hosur total investment — INR1,900 crores · over 10 years
stated firmly by Aravind Melligeri
p. 12
“We have committed about INR1,900 crores in in total investment in that, including, investment into JVs what we have.”
Aravind Melligeri, page 12 of the filed PDF · View the filing
FY27 total capex — INR660 crores · FY27
stated firmly by Harish Bang
p. 12
“Yes, so this year what we laid down, right, our total capex overall including aero and consumer would be about INR660 crores for FY27. And we stick to this number.”
Harish Bang, page 12 of the filed PDF · View the filing
5-year capex plan — USD350 million to USD400 million · FY27 to FY31
stated firmly by Harish Bang
p. 12
“In terms of future capex, again we have laid down a plan from this year to FY31 for the next five years investing about USD350 Million to USD400 Million of overall capex.”
Harish Bang, page 12 of the filed PDF · View the filing
EBITDA margin guidance — 18% to 22% · next two to three years
stated firmly by Harish Bang
p. 11
“Yes, on the EBITDA margin, yes, we are guiding towards 18% to 22% and that's what we have laid down in our Investor Day as well.”
Harish Bang, page 11 of the filed PDF · View the filing
PAT breakeven — breakeven · H1 FY28
stated firmly by Harish Bang
p. 11
“One is of course PAT break-even by H1 of FY28, consumer PAT break-even by FY30, and we'll have a decent PAT in FY31, which will translate to about 20% steady state ROCE in FY31.”
Harish Bang, page 11 of the filed PDF · View the filing
Consumer share of overall top-line — 40% to 60% · over 5 years
stated as an aspiration by Harish Bang
p. 18
“So, if you see Q1 we are at about 19% and as our utilization increases the share will start increasing and over a period of 5 years we expect 40% - 60% consumer.”
Harish Bang, page 18 of the filed PDF · View the filing
Consumer EBITDA margin guidance — 18% to 20%
stated firmly by Harish Bang
p. 18
“Aerospace we have guided at 18% to 22% and consumer 18% to 20%, yes.”
Harish Bang, page 18 of the filed PDF · View the filing
Fundraise requirement — about USD150 million
stated conditionally by Aravind Melligeri
p. 16
“Yes, we do. We did communicate that most probably about USD150 million kind of a raise we'll have to do. We are not planning to do anything this year unless there is advanced pull-in of capex or inorganic piece, you know.”
Aravind Melligeri, page 16 of the filed PDF · View the filing
Consumer segment revenue growth — 125% to 150% · FY27 over FY26
stated firmly by Harish Bang
p. 16
“So, as we I mean guided earlier, our aerospace growth will be about 25% to 30% over FY26 and consumer will see about 125% to 150% over FY26.”
Harish Bang, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management described the contract as a long-term, first-of-its-kind Make in India wheels agreement but declined to disclose specific margins.
Answered by Aravind Melligeri
Asked by Gaurav Nagori: Details on the Safran Landing Systems A320 wheels contract and whether its profitability exceeds the aerospace segment average.
p. 8
“So I think, I cannot comment on the specific margins, but it's a great asset and it's a globally very attractive offer for the customer.”
Aravind Melligeri, page 8 of the filed PDF · View the filing
Management said there was no capacity expansion; the change reflects better utilization and yield rather than added capacity.
Answered by Rajeev Kaul
Asked by Gaurav Nagori: Why did consumer utilization dip quarter-on-quarter from Q4 to Q1 despite revenue growth?
p. 8
“No, we have not done any capacity expansion. It is not because of the capacity expansion.”
Rajeev Kaul, page 8 of the filed PDF · View the filing
Management said no specific changes were observed due to tariffs and customer strategies remain stable.
Answered by Aravind Melligeri
Asked by Disha: Have global tariff and trade policy changes accelerated customer localization toward India?
p. 10
“Look, our I mean we are not seeing any specific changes due to these tariffs.”
Aravind Melligeri, page 10 of the filed PDF · View the filing
Management confirmed 22% utilization in the current quarter and reiterated the target of reaching 40% to 50% by Q4.
Answered by Rajeev Kaul
Asked by Akash: What capacity utilization was achieved in the current quarter and outlook for Q4?
p. 11
“See, first let me address your capacity utilization. So current quarter we did around 22% and we still hold by Q4 to touch 40% to 50%.”
Rajeev Kaul, page 11 of the filed PDF · View the filing
Management said the first facility will commence between September and March of FY27-28, with total investment of INR1,900 crores over 10 years.
Answered by Aravind Melligeri
Asked by Deep Shah: Details on Hosur plant investment and timeline for first phase operationalization.
p. 12
“INR1,900 crores over a period of 10 years actually.”
Aravind Melligeri, page 12 of the filed PDF · View the filing
Management said the original split was INR500 crores for consumer and INR160 crores for aerospace, with possible reallocation toward aerospace.
Answered by Harish Bang
Asked by Deepak: What is the split of FY27 capex between consumer and aerospace, and could it change?
p. 12
“So INR660 crores, I mean originally, we had given a split of about INR500 crores for consumer and INR160 crores for aerospace. We may see some acceleration in aerospace capex and that may be compensated by some reduction or saving & optimization in consumer”
Harish Bang, page 12 of the filed PDF · View the filing
Management declined to disclose the contract value, saying it will show up in next quarter's order book.
Answered by Aravind Melligeri
Asked by Deepak: What is the size of the Safran wheels contract?
p. 13
“We are not disclosing that contract value. It should show up in order book next quarter because none of the Farnborough contracts - whatever we have done is not reflecting right now in our order book.”
Aravind Melligeri, page 13 of the filed PDF · View the filing
Management could not disclose the consumer electronics customer due to confidentiality but named Tramontina and Mattel for durables and toys.
Answered by Aravind Melligeri
Asked by Rushikesh: Can you share customer names in consumer electronics, toys, and durables?
p. 18
“Because of confidentiality. And Tramontina is on our consumer durable side and Mattel is our consumer toys.”
Aravind Melligeri, page 18 of the filed PDF · View the filing
Management said raw material sourcing is almost entirely imported due to lack of qualified domestic sources.
Answered by Aravind Melligeri
Asked by Rashmi: How much raw material sourcing is localized within India versus imported?
p. 19
“I think our raw material is like 99% is imported. So, I don't think there is any possibility of changing that anytime soon, because we don't have any qualified sources in India for that to change.”
Aravind Melligeri, page 19 of the filed PDF · View the filing
Risks flagged
Consumer segment remains loss-making with utilization still ramping up
p. 6
“The segment's EBITDA stood at a loss of INR361 million compared with a loss of INR74 million in Q1 FY'26 and narrowed from a loss of INR473 million in Q4 FY'26.”
Harish Bang, page 6 of the filed PDF · View the filing
Raw material sourcing is almost entirely dependent on imports with no near-term change expected
p. 19
“I think our raw material is like 99% is imported. So, I don't think there is any possibility of changing that anytime soon, because we don't have any qualified sources in India for that to change.”
Aravind Melligeri, page 19 of the filed PDF · View the filing
Capex plans for consumer segment are contingent on utilization ramp-up materializing
p. 14
“If the utilization is not going to happen then some portion of the capex will not happen.”
Aravind Melligeri, page 14 of the filed PDF · View the filing
Cash flow from operations was negative due to higher working capital requirements
p. 7
“Cash flow from operations was negative INR414 million, primarily reflecting the additional working capital required to support the higher operating cycle.”
Harish Bang, page 7 of the filed PDF · View the filing
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