AequsQ1 FY27
Aequs Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹256Market Cap: ₹17.4K CrSector: Aerospace & Defense
Management growth scorecard
Revenue
Category 1
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →Aerospace segment expected to grow at 25% to 30% over FY26.
- →Consumer segment poised for rapid growth of 125% to 150% over FY26.
- →For FY27, total top-line guidance around INR1,700 to 1,800 crores.
- →Consumer segment’s revenue share targeted to grow from ~19% in Q1 FY27 to 40%-60% over next 5 years.
- →Utilization in consumer electronics projected to increase from ~23% towards 40%-50% by Q4 FY27, aiming for EBITDA break-even.
- →Capacity expansion investments ongoing, including INR660 crores capex planned for FY27 split between aerospace and consumer.
- →Long-term capex plan of USD 350-400 million over five years (FY27-FY31) to support growth.
- →Working capital days expected to remain stable (~125 days).
- →Revenue growth driven by scaling production, ramping new customers, and broadening product portfolios across segments.
Margin guidance
Category 3- →The company targets doubling operational EBITDA in FY27 compared to FY26, aiming for around INR180 crores EBITDA.
- →Consumer segment is expected to grow rapidly, with revenue share increasing from 19% currently to 40-60% over the next 5 years.
- →Aerospace segment to grow 25-30% over FY26, with a strong order book and new facilities like Hosur coming operational by FY29.
- →The company aims for EBITDA margins of 18-22% in aerospace and 18-20% in consumer electronics.
- →PAT break-even is targeted by H1 FY28; consumer segment expects PAT break-even by FY30, with a decent PAT and 20% steady-state ROCE by FY31.
- →Capital expenditure of USD 350-400 million planned for FY27-FY31, with about USD150 million expected to be raised from the market.
- →Consumer EBITDA break-even is expected by Q4 FY27, supported by utilization improvement and cost absorption.
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Fundraise plans
Yes- →The company plans a capital expenditure of USD 350-400 million over the next 5 years (FY27 to FY31).
- →They expect about USD 150 million of fundraising to support this investment.
- →No fundraising is planned for the current year unless there is an advanced pull-in of capex or an inorganic acquisition.
- →Capex funding will be a mix of internal accruals and external funds.
- →For the INR 1,900 crores Hosur capex, it is spread over 10 years, not just the next year, reducing immediate funding pressure.
Order book
Yes- →Aerospace order book crossed USD 1 billion, with a 13% sequential increase from USD 889 million in the previous quarter.
- →New contracts, including the fully integrated Airbus A320 wheels with Safran Landing Systems, will reflect in the next quarter’s order book.
- →The company signed a 15-year agreement for the wheels contract, marking one of the longest agreements in Aequs' history.
- →Order book growth is driving ongoing capital expenditure, especially in aerospace, to support increasing customer build rates and production capacity.
- →The order book strength validates trust from global OEMs and underpins the company’s expectations for scalable revenue growth over FY27 and beyond.
Capex plans
Yes- →FY27 planned capex is INR 660 crores, split approximately INR 500 crores for consumer and INR 160 crores for aerospace, subject to utilization ramp-up and optimization.
- →INR 1,900 crores capex planned for the Hosur aerospace facility over 10 years, focused on engine and landing gear components, with first phase operational between Sep FY27 and Mar FY28.
- →Additional INR 2,800 crores investment planned between consumer and aerospace in Karnataka (not finalized for next year).
- →5-year capex plan from FY27 to FY31 targets USD 350-400 million overall.
- →Expectation to raise approximately USD 150 million externally; internal accruals to fund remaining investments.
- →Capex linked to utilization; if utilization lags, some capex portions may be adjusted or deferred.
- →Focus on vertical integration and expanding capabilities, especially in aerospace engine components and consumer electronics.
How does Aequs rank vs peers in Aerospace & Defense?
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