Aequs Ltd Q1 FY27 Earnings Call: Order Book Crosses $1 Billion, Guides 45-50% Revenue Growth

Aequs Ltd held its Q1 FY27 earnings call on July 29, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Revenue Surges 55% YoY; Operational EBITDA Improves Sharply

• Rs.3,955 million consolidated revenue in Q1 FY 2026-2027 — up 55% YoY and 8% sequentially, driven by aerospace (+40% YoY) and consumer segment tripling to 19% of mix (from 10% a year ago).
• Rs.148 million operational EBITDA (ex-other income) — more than threefold sequential improvement from Rs.42 million in Q4 FY 2025-2026, as consumer segment EBITDA loss narrowed by Rs.112 million.
• Rs.215 million reported EBITDA (incl. other income) at 5% margin — down from Rs.399 million in Q1 FY26 due to consumer scale-up costs; net loss improved to Rs.532 million from an adjusted Rs.631 million in Q4 FY26.
• Rs.189 million finance costs in Q1 FY27 — reduced sharply from Rs.358 million in Q4 FY26 after loan repayments of ~Rs.2,527 million.
• 125 days net working capital — improved from 127 days at FY26 year-end; cash and equivalents stood at Rs.2,340 million.

Aerospace Order Book Crosses $1 Billion; Consumer on Track for 125-150% Growth

• $1,004 million aerospace order book at quarter-end — up 13% sequentially from $889 million, supported by 86 new aerospace parts (total 5,740 parts).
• 15-year agreement with Safran Landing Systems for A320 wheels — "first complete 'Make in India' build from aluminum to finished parts", a single-source contract with unspecified but "much larger margin".
• Two new aerostructure Tier-1 customers signed at Farnborough air show — management evaluating accelerated aerospace capex to meet new customer timelines.
• 190% YoY consumer revenue growth in Q1 FY27 to Rs.734 million — 16% QoQ driven by better product mix; management guided full-year consumer growth of 125–150% over FY 2025-2026.
• 45–50% total revenue growth guidance for FY 2026-2027 — implying a back-ended ramp to reach Rs.1,700–1,800 crore, with consumer EBITDA breakeven targeted by Q4 FY27.
• Consumer customer for electronics remains confidential — only Tramontina (durables) and Metal (toys) were named; management declined to disclose the electronics OEM.

Rs.660 Crore Capex for FY27; Hosur Facility First Phase Operational by Q3-Q4 FY28

• Rs.660 crore total capex guided for FY 2026-2027 — originally split ~Rs.500 crore consumer / ~Rs.160 crore aerospace, but aerospace acceleration and consumer optimization may shift mix; total unchanged.
• $350–$400 million long-term capex plan for FY 2027-2031 — total funding need ~$500 million, of which ~$150 million expected from markets; no immediate fundraising in FY27 unless for inorganic or pull-in.
• Consumer capacity utilization at ~23% in Q1 FY27 — management targets 40–50% by Q4 FY 2026-2027; consumer capex of Rs.400-500 crore remains conditional on utilisation ramp.
• Hosur facility (engine & landing gear) first phase operational in the "second half between September to March time frame of next year of FY27 to 28" — i.e., Q3–Q4 FY 2027-2028; revenues expected from FY 2028-2029.
• Rs.1,900 crore total investment (incl. JVs) for Hosur over 10 years — vertical integration to be completed by 2030; machining will continue beyond.
• Aerospace utilisation at 80% — machines added at ~one per week since December to match order book; additional capex in aerospace triggered by high utilisation.

EBITDA Expected to Double in FY27; Steady-State ROCE of 18–20% Targeted

• ~Rs.180 crore operational EBITDA target for FY 2026-2027 — doubling from FY 2025-2026, weighted to H2 as consumer segment reaches breakeven by Q4 FY27.
• 23% aerospace segment EBITDA margin in Q1 FY27 — guided at 18–22% for full year; consumer segment EBITDA margin guided at 18–20% for FY27 as utilisation improves.
• Rs.361 million consumer segment EBITDA loss in Q1 FY27 — improved sequentially from Rs.473 million in Q4 FY26; breakeven affirmed by Q4 FY 2026-2027.
• Steady-state ROCE of 18–20% for each capex allocation — management cited "~20% steady-state ROCE targeted by FY 2030-2031" for the broader capital plan.
• PAT milestones disclosed: "breakeven by H1 FY 2027-2028 (consumer by FY 2029-2030)" — with consumer turning EBITDA-positive in Q4 FY27, net income positive expected in H1 FY28.
• Depreciation of ~Rs.45–46 crore per quarter — expected to persist through FY27 unless additional capex is deployed.

Talent, Sourcing, and Long-Term Consumer Ambition

• ~99% of raw material imported as of Q1 FY27 — no near-term change expected due to lack of qualified Indian sources; only one or two aluminium alloys qualified for commercial aerospace.
• Global tariff changes have not altered customer sourcing strategies — management stated supply-chain allocations remain "very stable" in both aerospace and consumer.
• Talent management is "inherent DNA" according to management — the company trains people from scratch using regional talent in tier-3 locations; JVs have expanded retention.
• Consumer segment five-year mix target of 40–60% of revenue — management described a "five-year target of 40-60%", with aerospace remaining larger for at least five years despite consumer's higher growth rate.
• Internal roadmap to become the "largest manufacturer of aero engine components" (period unspecified) — linked to new capabilities at the Hosur facility.
• CFO transition — Dinesh Iyer stepped down end-June 2026; Harish Bung leading finance function in the interim.