Aequs Ltd Q4 FY26 Earnings Call: Guides 45-50% Revenue Growth, Consumer EBITDA Breakeven Targeted Q4 FY27

CompoundingAI Research Published May 26, 2026 6 min read

Aequs Ltd held its Q4 FY26 earnings call on May 26, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarterly Revenue amid Consumer Ramp-Up Costs

Q4 FY26 revenue of Rs.3,671 million— highest quarterly revenue in Aequs history, growing +47% YoY, driven by aerospace strength and consumer scaling.
Q4 FY26 EBITDA of Rs.321 million at 9% margin— compressed from consumer electronics capacity ramp-up; full manufacturing costs hit the P&L for the first time after the plant was commissioned in Q3 FY26.
Q4 FY26 PAT loss of Rs.541 million— reflecting higher depreciation from new capacity and tax provisions; consolidated PAT is expected to remain negative through most of FY27.
FY26 consolidated revenue Rs.12,304 million— +33% YoY; EBITDA Rs.1,545 million at 13% margin, expanding 100 bps YoY despite consumer drag.
Net debt-to-equity improved sharply to 0.23x— from 0.99x at end-FY25, with cash and equivalents of Rs.3,015 million providing balance sheet flexibility for the capex programme.
Fixed asset turnover moderated to 1.18x— from 1.84x in FY25, expected to recover as consumer electronics utilisation improves toward guided levels.

Aerospace FY26 revenue Rs.10,464 million— +27% YoY; segment EBITDA Rs.2,813 million, up +76% YoY, with segment ROCE improving to 20% (from 14% in FY25).
Order book of $890 million at end-FY26— representing 8–9x FY26 aerospace revenue, signalling multi-year visibility; 433 new parts added in Q4 FY26 alone, portfolio expanding to 5,654 SKUs (+26% YoY).
Surface treatment capability built over 15 years— management cited this as a key competitive moat enabling faster delivery of integrated, larger parts; order book is "growing faster than in the past" with new parts added quarterly.
FY27 aerospace revenue growth guided at 25–30%— with EBITDA margin maintained at ~20% segment level; driven by aero structures and vertical integration into engine components.
Joint venture with Magellan Aerospace (API)— performing in line with the core aerospace business, providing additional engine-component capabilities.
West Asia crisis precautionary inventory— 4–6 weeks of buffer built in aerospace, lifting working capital days from 130 to 150+; expected to persist through Q2 FY27 until logistics stabilise.

Consumer FY26 revenue Rs.1,840 million— +84% YoY; contributed 17% of Q4 FY26 total revenue (vs 5% a year ago) but EBITDA loss of Rs.783 million reflected planned investment in capacity.
Capacity utilisation at 23% as of Q4 FY26— management guided improvement to 40–50% by end-FY27, with EBITDA breakeven targeted in Q4 FY27; fixed-cost absorption at higher utilisation is expected to drive sharp margin recovery.
FY27 consumer revenue growth guided at ~125–150%— supported by additional CAPEX of ~Rs.530 crore in FY27; long-term EBITDA margin target of ~20% at 75–80% utilisation, with ROCE expected in line with aerospace at steady state.
Hasbro informed Aequs it will stop issuing purchase orders— management stated "this will not impact overall consumer business growth"; a long-term agreement with Mattel has been signed post the discontinuation, with metal volumes expected to absorb capacity.
Ravi Kumar Asudani appointed Head of Engineering for Consumer— effective Q1 FY27, brings 16 years of global tooling & manufacturing design experience from Apple; strengthens capability as the segment scales.
Dependency on China for critical equipment— being addressed with customers, but qualified Indian alternatives will take time; no near-term risk of margin compression cited given high value-add and complexity in consumer components.

MOU with Tamil Nadu government— management "signed MOU with Tamil Nadu government to invest Rs.1,900 crores over 10 years for a vertically integrated aerospace manufacturing ecosystem in Hosur" at SIPCOT Shoolagiri Industrial Park.
MOU with Karnataka government— management "signed MOU with Karnataka government to invest Rs.2,856 crores over 5 years for aerospace expansion in Belagavi and consumer capacity enhancement in Hubballi."
Total guided capex of Rs.2,800 crores+ over the next 5 years— across Belgaum and Hubli clusters, including ~Rs.800 crore for Karnataka; FY27 specific capex: ~Rs.530 crore for consumer, Rs.160 crore for aerospace (total ~Rs.690 crore).
No capacity additions planned for US or France— all new capacity is being added in India; US facility serves ITAR-compliant defence programs at low volumes, French facility supports engine and landing gear component capabilities.
Consumer gross block of ~Rs.830 crore— with an additional ~Rs.500 crore capex, peak asset turnover expected at ~1.5x; management guided that consumer segment turnover could reach ~Rs.2,000 crore, "most probably beyond FY29".
FY27 capex funded through debt and internal accruals— management declined to provide a specific funding breakdown (to be taken offline); interest expense is expected todecreasein FY27 compared to FY26.

93–94% of total sales are USD-linked— providing a natural hedge against INR depreciation; long-term agreements with customers protected material costs during the West Asia crisis.
Steel lead times of 65–75 weeks; titanium and superalloys at 52 weeks— due to West Asia disruptions, management proactively covers 125% of quarterly raw material needs upfront (up from 70% historically), increasing working capital but ensuring customer deliveries.
Net working capital days increased to 151 in FY26— from 132 days in FY25, driven by precautionary inventory build; expected to persist through Q2 FY27 before logistics stabilise.
Q4 FY26 depreciation run rate of ~Rs.45–46 crore— additions from capacity enhancements in both segments will increase depreciation further in FY27; consumer heavy depreciation keeps consolidated PAT negative through most of FY27.
Consumer steady-state EBITDA margins of 18–20% achievable at 75–80% utilisation— management expects to reach 40–50% utilisation in FY27; no near-term margin compression risk cited due to high value-add and complexity.
No PLI income booked in FY26— FY27 will be the first eligible year for PLI benefits, providing a potential margin tailwind if utilisation targets are met.

FY27 consolidated revenue growth guided at 45–50%— operational EBITDA expected to double, driven by aerospace margin stability and consumer scaling; aerospace segment growth of 25–30% at ~20% EBITDA margin.
Consumer EBITDA breakeven targeted in Q4 FY27— with utilisation improving toward 40–50%; management expects consumer revenue growth of ~125–150% in FY27, with a goal of reaching 50% utilisation.
Consolidated PAT breakeven expected by H1 FY28— heavy depreciation from consumer investments will keep PAT negative through most of FY27, with inflection expected as utilisation improves and fixed-cost absorption kicks in.
CFO Dinesh Iyer stepping down at end-June 2026— for personal reasons; Harish Bung (VP Finance) designated as interim contact pending replacement; the transition is expected to be orderly with no impact on reported guidance.
Established advanced materials R&D ecosystem at IIT Dharwad— focusing on material characterisation, failure analysis, and manufacturing process simulation; supports long-term vertical integration and margin expansion goals.
Risk: Hasbro discontinuation and China equipment dependency— Mattel agreement and metal volumes are expected to offset the Hasbro gap, but any slippage in the consumer ramp-up timeline could delay the FY27 EBITDA breakeven target.