Aequs reported a net loss of ₹53.2 crore for the first quarter of FY27, despite a 55% surge in revenue to ₹395.5 crore. The decline in profit was driven by high operational costs in the company's expanding consumer electronics division. Investors should track the company's progress toward its target of achieving consumer segment breakeven by Q4 FY27.
Aequs reported a net loss of ₹53.2 crore for the first quarter of fiscal year 2027, reversing the ₹3.9 crore profit recorded in the same quarter last year. While the top-line revenue grew by 55% year-on-year to ₹395.5 crore, the company's operating profit, or EBITDA, fell by 46% to ₹21.5 crore. This resulted in a margin contraction to 5%, down from the higher levels seen in previous periods. The primary reason for this decline is the company's decision to expense operational costs for its consumer electronics segment rather than capitalizing them, reflecting a shift in accounting treatment compared to the previous year.
Aerospace Segment Performance and Order Book
The aerospace division remains the company's main revenue driver, contributing ₹322.2 crore to the total, a 40% increase over the previous year. This performance was supported by increased production rates for existing clients and the addition of new components to its manufacturing portfolio. The aerospace order book has grown to over $1 billion, representing a 13% sequential increase. Notably, the aerospace segment generated an EBITDA of ₹73.1 crore, a 35% increase compared to the same period last year, although it showed a slight decline compared to the previous quarter due to changes in other income components.
Consumer Electronics Growth and Strategic Targets
Although the consumer electronics segment is currently affecting the bottom line, it is seeing rapid top-line growth. Revenue from this division nearly tripled to ₹73.4 crore, accounting for 19% of the company's total revenue, compared to 10% in the first quarter of FY26. Capacity utilization in the consumer segment currently sits at 22%, indicating significant room for scaling as production volumes increase. The aerospace segment, by contrast, operates at 70% capacity utilization.
Management has reiterated a clear roadmap for future profitability. The company aims to reach EBITDA breakeven for the consumer division by the fourth quarter of FY27 and expects to achieve consolidated profit after tax (PAT) breakeven by the first half of fiscal year 2028. To support these goals, Aequs recently secured contracts with two new aerospace Tier-1 customers and signed a manufacturing agreement with Safran Landing Systems for Airbus A320 wheels. Investors should closely monitor the company's ability to ramp up consumer segment capacity utilization and execute on its stated breakeven timelines, as these are critical to improving overall margins and return on capital employed in the coming quarters.