Aequs Ltd

- For FY26, most of the CapEx has already been done, with some capitalization expected in Q4, mainly for consumer electronics. - There are no significant new CapEx investments planned for the current year. - No specific mention of new fundraising through debt or equity was made during the Q3 FY26 call. - The company has reduced its net debt to equity ratio sharply to 0.1X as of nine months FY26, indicating deleveraging after the IPO. - The balance sheet is described as well-capitalized to support growth, implying no immediate need for fresh fundraising. - Management did not provide any guidance or plans on future equity or debt fundraising during the call.

- Continuous CapEx in aerospace segment, spread across quarters (Q3 and Q4 FY26) due to long lead times (up to 1 year) for machinery. - Aerospace CapEx aligns with order book and planned capacity over 18-24 months; incremental and not lumpy. - Consumer segment had significant capacity additions recently; most CapEx for FY26 is already done with some capitalization pending in Q4 FY26. - Future CapEx in aerospace depends on new program sign-ups and utilization growth, with current utilization at 71% in India and potential stable capacity around 75%. - Consumer electronics segment CapEx focused on scaling capacity, with current investments front-ended; margin improvement tied to utilization increase. - Management evaluating capacity expansion requests from customers, with decisions affecting profitability timelines and depreciation charges. - Strategic investments include joint ventures for defense segment (e.g., UAV market) but no specific CapEx details disclosed.

- Aerospace segment expected to grow north of 20% CAGR in the coming years. - Consumer segment anticipated to scale faster than aerospace, with a goal to balance both segments in the long run. - Current order book of USD 814 million in aerospace to be executed over next 5 years (till 2031), with continuous addition of new orders. - Consumer electronics business ramping up with capacity fully committed by customers; revenue growth driven by increased utilization. - Long-term EBITDA margin target for both consumer and aerospace segments around 18-24% at optimal utilization. - Capacity utilization in aerospace currently at 71%, expected to normalize at around 75%, guiding future CapEx plans. - Demand and order pipeline remain strong, with continuous customer engagements and new contracts signed regularly.

- Aerospace segment expected to grow north of 20% CAGR, with stable margins around 20-24% EBITDA due to scale and integrated ecosystem. - Consumer segment is in scale-up phase; margins currently impacted due to upfront investments but expected to improve with higher capacity utilization and operating leverage. - Management targets balancing aerospace and consumer businesses, aiming for similar margin profiles at scale. - Consumer electronics growth anticipated to be faster than aerospace, with potential breakeven timelines pending utilization and capacity decisions. - Overall EBITDA margins expected to improve as consumer segment utilization grows and consolidated profitability benefits from the mature aerospace business. - PAT positive timeline in consumer electronics is being reevaluated due to positive customer demand and capacity expansion, potentially delaying earlier estimates but viewed positively. - Continuous CapEx planned, especially in aerospace, to meet increasing demand and maintain capacity utilization around 75%.

- Current aerospace order book stands at USD $814 million (total contract value). - This order book is expected to be executed over the next five years, up to around 2031. - The order book is dynamic, with continuous signing of new contracts and renewals each quarter. - There is a consistent pipeline of RFPs, and the sales team actively converts these into contracts regularly. - For consumer electronics, there is no formal order book; capacity is built based on projected customer demand and long-term contracts. - Capacity built in consumer segment is already fully committed by customers. - Aerospace order book includes significant content for narrow-body aircraft like Airbus A320 family and Boeing 737. - Contracts typically have a duration of 5-7 years, reflecting sustained business visibility.