Aequs Q4 FY26 Results Analysis: Aerospace EBITDA Margin Surges to 33%, Net Loss at Rs.537 Mn

Aequs Ltd's Q4 FY26 numbers came in soft. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Aerospace delivered a standout 33% EBITDA margin, beating management's 20%+ target, but the consumer segment drag and surging finance/D&A costs pushed the consolidated result to a net loss of Rs.537 Mn. The IPO has transformed the balance sheet (equity doubled, leverage halved), but the path to group-level profitability hinges on consumer segment utilization improvement.

Key Investment Insights

Key Positives

• Aerospace segment EBITDA margin reached 33.23% in Q4, up from 20.54% a year ago and well above management's 20%+ target
• Consolidated revenue grew 47.3% YoY to Rs.3,671 Mn, with aerospace revenue up 28.8% YoY
• IPO proceeds strengthened the balance sheet — total equity rose 107% to Rs.14,855 Mn and Debt/Equity improved to 0.27x from 0.61x
• Consumer segment revenue surged 375.6% YoY, increasing its share of total revenue to 17.2%
• Cash balance increased from Rs.609 Mn to Rs.3,015 Mn following the IPO, providing ample liquidity

Risk Factors

• Consolidated net loss widened to Rs.537 Mn in Q4 from a profit of Rs.89 Mn a year ago
• Finance costs surged 169% YoY to Rs.358 Mn and D&A rose 88% YoY to Rs.455 Mn, together consuming Rs.1,300 Mn in Q4
• Consumer segment EBITDA loss widened to Rs.473 Mn (margin -75%), far from the 18-20% target
• Operating cash flow was negative at Rs.988 Mn for FY26, driven by working capital build-up of Rs.2,594 Mn
• CFO resignation effective June 30, 2026 introduces leadership uncertainty