Aequs Ltd Reports Strong Revenue Growth Amidst Wider Net Loss in FY26

Aequs Ltd's consolidated revenue surged 33% to ₹12,304 million in FY 2025-26, while EBITDA grew 43% to ₹1,545 million. The company reported a net loss of ₹1,133 million, a widening from ₹1,024 million in the previous fiscal year.

Reader Takeaway: Strong revenue growth driven by expansion; net loss increase due to heavy investment.

What just happened

Aequs Limited announced its financial results for the fiscal year 2025-26, revealing a significant 33% increase in consolidated revenue to ₹12,304 million. Consolidated EBITDA also saw a substantial rise of 43%, reaching ₹1,545 million, improving the EBITDA margin to 13% from 12%. Despite the top-line growth and improved operational profitability, the company's net loss after tax widened to ₹1,133 million from ₹1,024 million in FY 2024-25.

Why this matters

Investors are observing Aequs's strategic shift towards aggressive capacity expansion. While revenue and EBITDA growth indicate successful scaling, the widening net loss highlights the significant upfront costs and investment phase the company is undergoing. The company is focused on transitioning from capacity-led investment to utilization-led scale.

The backstory

Aequs is in an investment-heavy growth phase. The company has been scaling up its Consumer Electronics business and expanding its Aerospace segment. This period of investment is reflected in the financial results, with management attributing the net loss to depreciation and finance costs from new capacities and the consumer business scale-up.

What changes now

The company is seeking shareholder approval at its 26th AGM on September 04, 2026, for the 'Aequs Restricted Stock Unit Plan 2026' and related party transactions. These are corporate actions to incentivize employees and ensure continued operational support. The RSU plan aims to create a pool of 1,500,000 RSUs.

Risks to watch

The primary risk lies in the company's ability to effectively utilize its newly expanded capacities and manage the profitability of the investment-intensive consumer business. The increasing debt burden from ongoing capital expenditures and the timeline for achieving consolidated profit after tax breakeven (expected in H1 FY28) are key monitoring points.

Peer comparison

While specific peer data for FY26 is not detailed in the filing, Aequs operates in the Aerospace and Consumer Electronics segments. Its Aerospace division, with a USD 889 million order book, shows strong multi-year visibility. The Consumer Business is growing rapidly, contributing 15% of consolidated revenue.

Context metrics (time-bound)

• Consolidated Revenue: ₹12,304 Mn (FY26) vs ₹9,246 Mn (FY25) - Up 33%
• Consolidated EBITDA: ₹1,545 Mn (FY26) vs ₹1,080 Mn (FY25) - Up 43%
• Net Loss after Tax: (₹1,133 Mn) (FY26) vs (₹1,024 Mn) (FY25)
• Aerospace Revenue: ₹10,464 Mn (FY26) - Up 27% YoY
• Consumer Business Revenue: ₹1,840 Mn (FY26) - Up 84% YoY
• Approved 5-year Investment: ₹2,856 crore
• MoU for Additional Investment: ₹1,900 crore at Hosur

What to track next

Investors will be closely watching the company's progress towards its stated milestones: Consumer EBITDA breakeven by Q4 FY27 and consolidated PAT breakeven in H1 FY28. The successful integration of new capacities and effective management of the consumer segment's ramp-up will be critical.