Aequs Ltd Q1 FY27 Results Analysis: PAT Swings to Loss, Margin Collapses 1,016 bps

Aequs Ltd's Q1 FY27 numbers came in soft. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 54.8% YoY driven by strong aerospace and consumer segment growth, but EBITDA margin collapsed 1,016 bps to 5.43% as costs outpaced revenue. Consumer segment losses widened to Rs.361.44 Mn, putting the Q4 FY27 breakeven target at risk. PAT swung to a loss of Rs.532.28 Mn from a profit of Rs.36.17 Mn in Q1 FY26, with depreciation and finance costs nearly doubling.

Key Investment Insights

Key Positives

• Consolidated revenue grew 54.8% YoY to Rs.3,955.45 Mn, driven by both aerospace and consumer segments.
• Aerospace segment revenue grew 39.9% YoY to Rs.3,221.59 Mn, with EBITDA margin of 22.7% above the 20% target.
• Consumer segment revenue surged 190.4% YoY to Rs.733.86 Mn, reflecting successful capacity additions.
• Aerospace order book stood at USD 889 Mn as of Q4 FY26, providing multi-year revenue visibility.
• Net debt-to-equity improved to 0.23x as of March 31, 2026 from 0.99x at FY25, following IPO proceeds.

Risk Factors

• EBITDA margin collapsed 1,016 bps YoY to 5.43% as total expenses grew 66.8% YoY, outpacing revenue growth by 12 percentage points.
• Consumer segment EBITDA loss widened from Rs.74.40 Mn to Rs.361.44 Mn YoY, with margin deepening to -49.2%, putting the Q4 FY27 breakeven target at risk.
• PAT swung from a profit of Rs.36.17 Mn in Q1 FY26 to a loss of Rs.532.28 Mn in Q1 FY27, driven by a 84.7% YoY surge in depreciation and 87.5% rise in finance costs.
• Depreciation nearly doubled to Rs.453.42 Mn, reflecting heavy capex that has not yet generated proportional revenue.