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, led by strong Aerospace and a tripling of Consumer segment revenue.

• The aerospace order book surpassed USD 1 billion, up 13% sequentially, supported by new long-term contracts, including a 15-year agreement for Airbus A320 wheels with Safran Landing Systems.

• Operational EBITDA improved more than threefold sequentially to ₹148 million, driven by narrowing Consumer losses and increased volumes, despite reported EBITDA being lower due to reduced other income.

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

• Capex investment of ₹830 million in the quarter supports future growth initiatives.

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 and ₹321 million in Q4 FY26, mainly due to lower other income.

• 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 loss of ₹631 million in Q4 FY26.

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

Outlook and guidance

• Full-year revenue growth guidance remains at 45%-50%, with operational EBITDA expected to double, weighted to the second half as Consumer utilization ramps up.

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

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

• Long-term, Consumer business is expected to reach 40% of revenue over five years, with steady-state ROC of 18%-20%.

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