Aequs shares slide 6% to losses after Q4 despite strong revenue growth

Shares of Aequs Ltd fell 6.25% during Wednesday’s trading session to Rs. 198.39 was reached.

Even as the company posted strong revenue growth, the stock came under pressure, with investors worried about rising operational costs and continued losses in its consumer electronics business.

Aequs reported in Q4FY26 Rs. 54.1 crore, compared to Rs. 9 crore as against a net profit of Rs.

However, income from operations rose 47% year-on-year to Rs. 367.1 crore, which in Q4FY25 was Rs. 249.3 crore, supported by strong momentum in its aerospace business and rapid scaling of customer segments.

EBITDA Rs. 32.1 crore, while the EBITDA margin stood at 9%. Commencement of commercial operations in the consumer electronics segment during Q3FY26 compressed margins, resulting in full operating expenses being booked despite lower utilization levels.

The consumer business contributed 17% to total quarterly revenue, highlighting the company’s ongoing expansion in the segment.

FY26 Performance: Revenue and EBITDA rise, but losses are wide

For the financial year FY26, Aequs Ltd. reported Rs. 113.3 crore, an increase over the previous financial year. Despite pressure on profitability, the company delivered a strong operational performance driven by growth in its core businesses.

Revenue for the year grew by 33% YoY to Rs. 1,230.4 crore, reflecting healthy demand momentum and continued business expansion. EBITDA also registered strong growth, rising 43% year-on-year to Rs. 154.5 crores. Margin improvements were supported by operating leverage gains and enhanced cost efficiencies across operations.

The aerospace division continued to be the company’s primary growth engine during FY26, contributing significantly to overall business momentum and revenue expansion.

Key highlights include:

The aerospace segment continued to witness strong momentum during FY26, with revenues up 27% year-on-year to Rs. 1,046.4 crores. The company also strengthened its long-term business visibility with the aerospace order book expanding to USD 889 million.

During the fourth quarter alone, Aequs added 433 new aerospace parts, bringing its total aerospace portfolio to 5,654 SKUs. Overall, the aerospace SKU portfolio recorded a healthy 26% year-over-year expansion, reflecting increasing scale and deeper engagement with global aerospace programs.

Meanwhile, the consumer business continued its rapid scale-up, delivering 84% revenue growth during the year.

Capacity utilization in key business segments improved during FY26, with the consumer segment operating at 23% utilization, while the aerospace segment reached 62% overall utilization, including 70% utilization in India operations.

To further strengthen its manufacturing presence, Aequs Limited announced major expansion plans through strategic investment commitments. The company has signed an agreement with Tamil Nadu to develop an integrated aerospace ecosystem worth Rs. 1,900 crore MoU was signed and with Karnataka for capacity expansion in multiple business segments Rs. 2,856 crore MoU was signed.

Management Commentary

Executive Chairman and Chief Executive Officer Arvind Melligeri described FY26 as a “landmark year” for the company, driven by strong execution, business expansion and its IPO.

He highlighted that the aerospace business continues to gain traction with a strong order book, while the consumer segment has entered the phase of full-scale production and revenue recognition.

According to management, Aequs is now focused on expanding manufacturing capabilities, deepening OEM partnerships and moving towards higher margin aerospace programs.

Stock performance and technical view

Despite Wednesday’s correction, Aequs shares are up nearly 49% over the past three months, reflecting strong investor interest in the company’s aerospace growth story.

The company currently has around Rs. 14,500 crore with a market cap, while its 52-week high of Rs. is 223.85.

On the technical front, the stock’s 14-day Relative Strength Index (RSI) is at 61.8, indicating positive momentum. An RSI below 30 is generally considered oversold, while a reading above 70 indicates overbought conditions.

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