Aequs (AEQUS) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue grew 55% year-on-year to ₹3,955 million, with 8% sequential growth, driven by strong Aerospace growth and a tripling of Consumer segment revenue.

• Order book surpassed USD 1 billion, up 13% sequentially, reflecting customer confidence and expanding program commitments.

• Operational EBITDA improved more than threefold sequentially to ₹148 million as Consumer segment losses narrowed and volumes increased.

• PAT loss improved sequentially to ₹532 million from an adjusted Q4 FY26 loss of ₹631 million.

• Major contract wins included a 15-year agreement for Airbus A320 wheels with Safran Landing Systems and two new aerostructure tier one customers.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹3,955.45 million, up from ₹2,555.70 million in Q1 FY26, with 8% sequential growth.

• Reported EBITDA was ₹215 million (5% margin), down from ₹399 million in Q1 FY26, due to recognition of consumer electronics operating costs.

• Operational EBITDA (excluding other income) increased from ₹42 million in Q4 FY26 to ₹148 million in Q1 FY27, with margin rising from 1% to 4%.

• PAT loss improved to ₹532 million from an adjusted Q4 FY26 loss of ₹631 million.

• Exports accounted for 88% of revenue in Q1 FY27.

Outlook and guidance

• Full-year revenue growth expected at 45%-50%, with operational EBITDA targeted to double, weighted to the second half as consumer utilization builds.

• Consumer EBITDA breakeven targeted by Q4 FY27, consolidated PAT breakeven by H1 FY28.

• Aerospace revenue is guided to grow 25%-30% with segment EBITDA margins above 20%.

• Vision 2031 targets: 4-6x revenue growth, 18-22% EBITDA margin, and 20% steady-state RoCE.

• The merger of subsidiaries is not expected to have a material impact on consolidated financial results.