Aequs Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aequs Ltd filed with BSE on 02 Jun 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 FY26 consolidated revenue growth of 33% to INR12,304 million with EBITDA up 43% to INR1,545 million, while Q4 revenue reached INR3,671 million, up 47% year-on-year. The aerospace segment grew 27% for the year with expanding order books and new parts additions, while the consumer segment scaled revenue 84% but remained EBITDA-loss making as new capacity ramped up. Management also disclosed Hasbro's decision to stop sourcing from the company, the signing of a long-term agreement with Mattel, two state MoUs for future capex, and the planned departure of the CFO at the end of June 2026.
Numbers mentioned
Consolidated revenue: INR12,304 million (FY26)
p. 3
“with our full year consolidated revenue growing by 33% to INR12,304 million.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
EBITDA: INR1,545 million (FY26)
p. 3
“EBITDA grew 43% to INR1,545 million, with the margins expanding to 13%.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Revenue: INR3,671 million (Q4 FY26)
p. 3
“We capped-off the year with the strongest quarter in Aequs history, with INR3,671 million in revenue and 47% year-on-year growth.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Aerospace segment revenue: INR10,464 million (FY26)
p. 5
“The vertical delivered revenue of INR3,040 million in Q4 and closed the full year at INR10,464 million, representing a robust 27% growth year-on-year.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
Aerospace order book: USD $889 million
p. 5
“As a result, our order book in aerospace stood at robust USD $889 million.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
Consumer segment revenue share: 17% (Q4 FY26)
p. 5
“In Q4, consumer accounted for 17% of our total revenue, up from just 5% a year ago.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
Q4 EBITDA margin: 9% (Q4 FY26)
p. 6
“EBITDA was INR321 million at 9% margin.”
Dinesh Iyer, page 6 of the filed PDF · View the filing
Full year PAT: loss of INR1,133 million (FY26)
p. 6
“Full year PAT was a loss of INR1,133 million.”
Dinesh Iyer, page 6 of the filed PDF · View the filing
Aerospace segment EBITDA: INR2,813 million (FY26)
p. 6
“and EBITDA was INR2,813 million, up 76% year-on-year.”
Dinesh Iyer, page 6 of the filed PDF · View the filing
Consumer segment EBITDA loss: INR783 million (FY26)
p. 6
“The consumer segment EBITDA loss was INR783 million for the full year, a 173% increase year-on-year, which reflects our planned investment to build capacity at scale.”
Dinesh Iyer, page 6 of the filed PDF · View the filing
Aerospace segment ROCE: 20% (FY26)
p. 6
“Aerospace segment ROCE for FY26 was 20%, up from 14% in FY25, which is in line with our expectation, and demonstrates our ability to scale efficiently.”
Dinesh Iyer, page 6 of the filed PDF · View the filing
Net debt-to-equity ratio: 0.23 (as of March 31, 2026)
p. 7
“Our net debt-to-equity ratio was 0.23 as of March 31, 2026, an improvement from 0.99x at the end of FY25, which shows that we are well capitalized for the next phase of growth.”
Dinesh Iyer, page 7 of the filed PDF · View the filing
Net working capital days: 151 days (FY26)
p. 7
“Net working capital days increased to 151 days in FY26 from 132 days in FY’ 25, which was primarily driven by growth in revenues.”
Dinesh Iyer, page 7 of the filed PDF · View the filing
Cash and cash equivalents: INR3,015 million (as of March 31, 2026)
p. 7
“Cash and cash equivalents stood at INR3,015 million as of March 31, 2026, compared to INR609 million at the end of FY25.”
Dinesh Iyer, page 7 of the filed PDF · View the filing
Consumer utilization: 23% (current)
p. 5
“Our primary focus this year will be driving capacity utilization from 23% today to a target of 40% to 50% by the year end.”
Rajeev Kaul, page 5 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
“which should deliver 25% to 30% revenue growth, with EBITDA margins maintained at 20% at the segment level.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Consumer EBITDA — break even · Q4 FY27
stated firmly by Aravind Melligeri
p. 4
“Third, move our consumer EBITDA to break even by Q4 FY27, which will be a major inflection point for our consolidated profitability.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Consolidated revenue growth — 45% to 50% · FY27
stated firmly by Aravind Melligeri
p. 4
“At a consolidated level, we are expecting approximately 45% to 50% top-line revenue growth.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Operational EBITDA — doubling · FY27
stated firmly by Aravind Melligeri
p. 4
“We project doubling our operational EBITDA, proving immense operating leverage embedded in our current business model.”
Aravind Melligeri, page 4 of the filed PDF · View the filing
Consolidated PAT — break-even · H1 FY28
stated conditionally by Rajeev Kaul
p. 6
“we fully expect to see consolidated PAT hit break-even by H1 FY28.”
Rajeev Kaul, page 6 of the filed PDF · View the filing
Consumer segment capex — INR500 crores approx · FY27
stated firmly by Harish Bang
p. 7
“And in our consumer segment, we have planned about INR500 crores approx for the full year FY27.”
Harish Bang, page 7 of the filed PDF · View the filing
Aerospace segment capex — INR160 crores approx · FY27
stated firmly by Harish Bang
p. 7
“On Capex: In our aerospace segment, we have planned about INR160 crores approx.”
Harish Bang, page 7 of the filed PDF · View the filing
Consumer segment revenue growth — 125% to 150% · FY27
stated firmly by Harish Bang
p. 8
“On consumer, we see a revenue growth of about 125% to 150%.”
Harish Bang, page 8 of the filed PDF · View the filing
Tamil Nadu aerospace investment — INR1,900 crores · 10 years
stated firmly by Aravind Melligeri
p. 3
“In February 2026, we signed an MoU with the government of Tamil Nadu to invest INR1,900 crores for 10 years for a new vertically integrated aerospace manufacturing ecosystem within a new aerospace and defense park at Hosur, across 250 acres in the SIPCOT Shoolagiri Industrial Park.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Karnataka investment — INR2,856 crores · 5 years
stated firmly by Aravind Melligeri
p. 3
“And in March 2026, we signed a second MoU with the government of Karnataka, committing investments of INR2,856 crores over five years across our existing clusters in Belagavi and Hubballi.”
Aravind Melligeri, page 3 of the filed PDF · View the filing
Consumer segment EBITDA margin — 20% · long-term
stated as an aspiration by Aravind Melligeri
p. 10
“In consumer, we have guided the similar margins as the aerospace, overall 20% EBITDA is our long-term goal.”
Aravind Melligeri, page 10 of the filed PDF · View the filing
Aerospace long-term growth rate — 20-plus percent · long-term
stated as an aspiration by Aravind Melligeri
p. 12
“The 20-plus percent is what we have guided in the past, in the long-term”
Aravind Melligeri, page 12 of the filed PDF · View the filing
Consumer electronics revenue at target asset turn — closer to '29 · around 2029
stated conditionally by Aravind Melligeri
p. 18
“Most probably closer to in '29.”
Aravind Melligeri, page 18 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 gave capex figures for each segment and confirmed a long-term agreement with Mattel expected to absorb capacity impact from Hasbro's exit.
Answered by Rajeev Kaul
Asked by Nikhil Jain: What is planned capex for FY27-28 in each segment, and what is the roadmap for Mattel after Hasbro's exit?
p. 7
“Yes, we have signed a long-term agreement with Mattel and both sides are fully committed to scaling volumes.”
Rajeev Kaul, page 7 of the filed PDF · View the filing
Management said there was no significant margin impact due to long-term material agreements, though logistics costs and working capital increased.
Answered by Aravind Melligeri
Asked by Priyankar Biswas: Was there any margin impact from the West Asia crisis and airspace closures?
p. 8
“in the last quarter, we did not see any significant impact from a margin perspective.”
Aravind Melligeri, page 8 of the filed PDF · View the filing
Management clarified the 27% figure includes other income and excludes unallocated corporate costs, whereas the 20% guidance is like-for-like.
Answered by Harish Bang
Asked by Suraj Malu: How does the FY26 aerospace EBITDA margin of 27% reconcile with the 20% guidance for FY27?
p. 9
“So, 27% is the segment EBITDA, which includes other income and it excludes the unallocated corporate costs.”
Harish Bang, page 9 of the filed PDF · View the filing
Management said the additional capital is driven by customer demand to capture a meaningful share of India manufacturing requirements as utilization ramps up.
Answered by Aravind Melligeri
Asked by Bhavika Singhvi: Why is additional capex being added in consumer segment when utilization is only 23%?
p. 10
“this additional capital is basically, driven by clear customer demand and the opportunity to capture the meaningful share of the customer India manufacturing requirement.”
Aravind Melligeri, page 10 of the filed PDF · View the filing
Management described lead times of up to 75 weeks for steel and 52 weeks for titanium, and said they now cover about 125% of quarterly needs versus 70% previously.
Answered by Aravind Melligeri
Asked by Nikhil Jain: What are typical lead times for sourcing titanium and superalloys, and has the West Asia crisis changed procurement strategy?
p. 14
“Some of the specific steels as high as - - we're talking 65 weeks to 75 weeks lead times. And titanium typically is 52 weeks lead time.”
Aravind Melligeri, page 14 of the filed PDF · View the filing
Management indicated Q4 depreciation was about INR45-46 crores with additions expected, interest expected to reduce, and margins of 18-20% expected at 75-80% utilization.
Answered by Harish Bang
Asked by Disha: What is the depreciation and interest run rate expected for FY27, and when will consumer margins reach 18-20%?
p. 15
“Yeah. So, Q4, our depreciation was about INR45 crores or INR46 crores approximately.”
Harish Bang, page 15 of the filed PDF · View the filing
Management reiterated that Q4 was the first quarter with full manufacturing costs and that utilization improvement to 40-50% would drive margin recovery and breakeven by Q4 FY27.
Answered by Dinesh Iyer
Asked by Bhavey Ahuja: How confident is management on consumer segment breakeven given Hasbro's exit and continued losses?
p. 17
“As we mentioned earlier, as utilization improves from 23% to 40% to 50%, the absorption of depreciation and fixed costs will be significant through the higher volumes and margins will recover sharply, which is why we have guided that in Q4 FY27, we should be at EBITDA breakeven.”
Dinesh Iyer, page 17 of the filed PDF · View the filing
Risks flagged
Hasbro discontinued raising purchase orders, revising its manufacturing and sourcing strategy
p. 5
“Hasbro has informed us that it has revised manufacturing and sourcing strategy and told us they will stop raising POS with us.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
West Asia crisis causing supply constraints and increased logistics costs requiring higher inventory buildup
p. 8
“What we did see were some supply constraints and a slight increase in logistics costs, but in our view, these were not material for the business.”
Aravind Melligeri, page 8 of the filed PDF · View the filing
Extended lead times for steel and titanium sourcing forcing early inventory build and higher working capital
p. 15
“So, we have to go through some strategy changes to address this. And it costs us working capital, but at least we are making sure the customer deliveries are there and we're protecting our customer needs.”
Aravind Melligeri, page 15 of the filed PDF · View the filing
Heavy depreciation from consumer capex expected to keep consolidated PAT negative for much of the year
p. 5
“the heavy depreciation load from these strategic consumer investments will – keep our overall PAT negative for much of the year.”
Rajeev Kaul, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.