AEQUS - Aequs
📢 Recent Corporate Announcements
Aequs Limited has finalized an investment of ₹10.01 crore into a joint venture focused on the Unmanned Aerial Vehicle (UAV) sector. The company subscribed to 10,000 equity shares and 9,91,000 Seed Compulsorily Convertible Preference Shares (CCPS) at a total price of ₹100 per share. This venture, in partnership with Accel India and Vagus Defence, aims to develop, manufacture, and market drones both in India and internationally. This move marks a strategic expansion into the high-growth defense technology and aerospace IP segment.
- Total investment of ₹10.01 crore in Ajna Aerospace & Defence Private Limited
- Subscription includes 10,000 Equity Shares and 9,91,000 Seed CCPS at ₹100 per share (including premium)
- Joint venture partners include Accel India VIII (Mauritius) Ltd and Vagus Defence Tech & Aerospace Fund I
- Business focus includes sourcing IP, developing proprietary drone technology, and manufacturing UAVs
- Target markets include both domestic Indian defense requirements and international sales
Aequs Limited has executed a Letter of Subscription to invest INR 10.01 Crores into Ajna Aerospace & Defence Private Limited (AADPL), a newly incorporated UAV manufacturing firm. This investment secures a 33.33% stake for Aequs on a fully diluted basis as part of a Joint Venture with Accel India and Vagus Defence Tech. AADPL specializes in Unmanned Aerial Vehicles (UAVs) and autonomous platforms for defense and industrial use. The transaction, consisting of equity and convertible preference shares, is expected to conclude by March 31, 2026.
- Investment of INR 10.01 Crores for a 33.33% equity stake on a fully diluted basis.
- Subscription includes 10,000 equity shares and 9,91,000 Seed Compulsorily Convertible Preference shares.
- Securities acquired at a price of INR 100 per share, including a premium of INR 90.
- Joint Venture partners include Accel India VIII (Mauritius) Ltd and Vagus Defence Tech & Aerospace Fund I.
- Target entity AADPL focuses on UAV/UAS manufacturing and IP development for defense and security sectors.
Aequs Limited has issued a postal ballot notice to seek shareholder approval for several key resolutions, primarily the ratification and amendment of its 'ESOP 2025' plan. The plan involves the grant of up to 2,04,00,000 options, which includes secondary acquisition of shares through a trust route and company-provided funding for these purchases. Additionally, the company is seeking approval for material related party transactions with Aequs SEZ Private Limited and director nomination rights under a prior shareholders' agreement. The e-voting period for these resolutions concludes on March 27, 2026.
- Ratification of Aequs Employee Stock Option Plan 2025 (ESOP 2025) covering 2,04,00,000 equity shares.
- Approval for secondary market acquisition of shares via a Trust route for ESOP implementation.
- Authorization for the company to provide funds to the Aequs Stock Option Plan Trust for share purchases.
- Approval for material related party transactions between the company/subsidiaries and Aequs SEZ Private Limited.
- E-voting period scheduled from February 26, 2026, to March 27, 2026, with results by March 31.
Aequs Limited has initiated a postal ballot to seek shareholder approval for several key resolutions, primarily the ratification and amendment of its 'ESOP 2025' plan involving up to 2.04 crore equity shares. The company is also proposing to implement a trust route for secondary share acquisitions and extend ESOP benefits to employees of its holding and subsidiary companies. Furthermore, investors are asked to approve material related party transactions with Aequs SEZ Private Limited and formalize director nomination rights under a 2023 Shareholders' Agreement. The e-voting process concludes on March 27, 2026, with results expected by March 31, 2026.
- Ratification of Aequs Employee Stock Option Plan 2025 covering up to 2,04,00,000 equity shares.
- Approval sought for secondary market purchase of shares via a trust route and company funding for the same.
- Proposed material related party transactions between the company/subsidiaries and Aequs SEZ Private Limited.
- Formalization of director nomination rights and alteration of the Articles of Association.
- Remote e-voting period scheduled from February 26, 2026, to March 27, 2026.
Aequs Limited has approved the acquisition of a 50% stake in Aequs Foundation, a Section 8 non-profit entity, for a nominal cash consideration of INR 10,000. The acquisition involves 1,000 equity shares purchased from Hubballi Durable Goods Cluster Private Limited via a secondary transaction. Aequs Foundation reported a turnover of INR 1.168 crore and a net worth of INR 0.028 crore for the fiscal year ending March 31, 2025. This move is intended to consolidate CSR activities and improve the visibility of social welfare expenditures under the corporate umbrella.
- Acquisition of 1,000 equity shares representing 50% of the total share capital of Aequs Foundation.
- Total cash consideration for the transaction is a nominal amount of INR 10,000.
- Aequs Foundation's turnover for FY 2024-25 stood at INR 1.168 crore with a net worth of INR 0.028 crore.
- The transaction is a related party transaction conducted at arm's length based on an independent valuation.
- The acquisition is expected to be completed within one month from the date of board approval.
Aequs Limited has announced its participation in the IIFL 17th Global Investors’ Conference scheduled for February 24, 2026, in Mumbai. The company's management will engage in both group and one-on-one meetings with institutional investors and analysts. This interaction is part of the company's regular investor outreach program to discuss business performance and strategy. The schedule is subject to change based on participant or company exigencies.
- Participation in the IIFL 17th Global Investors’ Conference on February 24, 2026
- Meetings will be held in-person in Mumbai
- Format includes both Group and One-on-One interactions with institutional investors
- Disclosure made under Regulation 30 of SEBI (LODR) Regulations, 2015
Aequs Limited has informed the exchanges that its management will be participating in the IIFL 17th Global Investors' Conference in Mumbai. The event is scheduled for February 24, 2026, and will involve group or one-on-one meetings with institutional investors and analysts. This is a routine disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015. Such interactions are standard for listed entities to maintain engagement with the financial community.
- Participation in the IIFL 17th Global Investors' Conference in Mumbai.
- The meeting is scheduled to take place on February 24, 2026.
- Format includes both group and one-on-one interactions with institutional investors.
- The schedule is subject to change based on exigencies of the company or participants.
Aequs Limited has injected ₹230.7 crore into its wholly owned subsidiary, AeroStructures Manufacturing India Private Limited (ASMIPL), by subscribing to 7.99 million shares at ₹288.76 each. This investment is a strategic deployment of IPO proceeds aimed at reducing the subsidiary's debt and funding capital expenditure. ASMIPL is a core growth engine for the company, reporting a turnover of ₹5,082 million and a profit of ₹334 million in FY25. The transaction maintains ASMIPL as a 100% subsidiary while strengthening its balance sheet for future manufacturing demands.
- Total investment of ₹2,307.12 million (₹230.7 crore) through a rights issue subscription.
- ASMIPL turnover grew 40.7% from ₹3,612 million in FY23 to ₹5,082 million in FY25.
- The subsidiary reported a Profit After Tax (PAT) of ₹334 million and a net worth of ₹2,237 million for FY25.
- Funds are specifically earmarked for bank loan repayment and meeting CAPEX requirements as per IPO prospectus.
- Subscription price set at ₹288.76 per equity share for 7,989,750 shares.
Aequs Limited has signed a non-binding Memorandum of Understanding (MoU) with Guidance, the nodal agency of the Government of Tamil Nadu, to establish a new manufacturing facility. The company, along with its group partners, proposes to invest up to ₹1,900 crores over the next ten years. The unit will focus on high-precision components for aircraft engines, landing gear, and other aerospace systems. The state government will provide infrastructure support and standard policy incentives to facilitate this long-term project.
- Proposed investment of up to ₹1,900 crores over a 10-year period
- Focus on manufacturing components for aircraft engines, landing gear, and systems
- MoU signed with Guidance, the nodal agency of the Government of Tamil Nadu
- Government to provide infrastructure support and standard policy incentives
- Project aims to strengthen the company's domestic manufacturing footprint in the aerospace sector
Aequs Limited has announced its participation in the Anand Rathi - Sashakt Bharat Aerospace & Defense Conference 2026. The event is scheduled for February 17, 2026, in Mumbai and will involve the company's management. The interaction will consist of both group and one-on-one meetings with institutional investors and analysts. This disclosure is part of the company's routine investor relations activities under SEBI Regulation 30.
- Management participation in Anand Rathi - Sashakt Bharat Aerospace & Defense Conference 2026.
- The meeting is scheduled to take place in person in Mumbai on February 17, 2026.
- Format includes both Group and One-on-One interactions with institutional investors.
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Aequs Limited reported its highest-ever quarterly revenue of INR 3,262 million in Q3 FY26, a 51% YoY increase driven by aerospace and consumer segments. While EBITDA surged 353% to INR 381 million, the company reported a net loss of INR 426 million due to one-time IPO and labor code expenses totaling INR 167 million. The aerospace segment remains the primary driver, contributing 86% of revenue with a robust order book of USD 814 million. Expansion into consumer electronics and toys is progressing with new client Mattel and recent PLI incentive approvals.
- Revenue grew 51% YoY to INR 3,262 million, marking the highest quarterly performance to date.
- Aerospace order book stands at USD 814 million, providing significant long-term revenue visibility.
- EBITDA increased by 353% YoY to INR 381 million with an operating margin of 12%.
- Commenced shipments for Mattel and received MeitY approval for PLI incentives in electronic components.
- Reported PAT was negative INR 426 million, heavily impacted by one-time listing and labor-related costs.
Aequs Limited has injected ₹9.63 crore into its wholly owned subsidiary, Aequs Engineered Plastics Private Limited (AEPPL), through a rights issue subscription of 96.32 lakh shares. This investment is a planned utilization of IPO proceeds aimed at debt repayment and meeting working capital requirements for the subsidiary. However, AEPPL's financial health is under pressure, with revenue declining from ₹135.6 crore in FY23 to ₹54.65 crore in FY25. The subsidiary reported a net loss of ₹28.48 crore and a negative net worth of ₹4.36 crore as of March 31, 2025.
- Invested ₹9.63 crore by subscribing to 96,32,117 equity shares at ₹10 per share
- AEPPL revenue declined significantly from ₹135.6 crore in FY23 to ₹54.65 crore in FY25
- Subsidiary reported a net loss of ₹28.48 crore and negative net worth of ₹4.36 crore for FY25
- Capital injection sourced from IPO proceeds to be used for bank loan repayment and working capital
- AEPPL remains a 100% wholly owned subsidiary post-investment
Aequs Limited has invested ₹4 crore in its wholly-owned subsidiary, Aequs Toys Private Limited (ATPL), by subscribing to 40 lakh equity shares at ₹10 each. This capital infusion is a planned utilization of IPO proceeds as per the company's December 2025 prospectus. The funds are earmarked for the subsidiary's working capital requirements. While ATPL is currently loss-making, with a net loss of ₹31.72 crore in FY25, the parent company continues to support its manufacturing and sales operations.
- Investment of ₹4,00,00,000 (₹4 crore) through a rights issue in Aequs Toys Private Limited.
- Subscription of 4,000,000 equity shares at a price of ₹10 per share.
- Utilization of IPO proceeds to meet working capital requirements of the subsidiary.
- Aequs Toys reported a turnover of ₹9.14 crore and a net loss of ₹31.72 crore for FY 2024-25.
- The subsidiary remains 100% owned by Aequs Limited with no change in control.
Aequs Limited has officially released the audio recording of its earnings conference call for the third quarter and nine months ended December 31, 2025. The call was conducted on January 29, 2026, following the announcement of the company's unaudited financial results. This filing is a standard regulatory requirement under SEBI (LODR) Regulations, 2015, to ensure transparency for shareholders. Investors can access the full recording via the company's investor relations website to understand management's perspective on the quarter's performance.
- Earnings conference call for Q3 and 9M FY26 was successfully held on January 29, 2026.
- Audio recording is now publicly available on the company's website under the investor section.
- The disclosure complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- The call pertains to the financial performance for the period ending December 31, 2025.
Aequs Limited reported strong operational performance for Q3 FY26, with revenue growing 51% YoY to ₹3,262 Mn and EBITDA surging 353% to ₹381 Mn. While the company reported a net loss of ₹426 Mn for the quarter, the 9M FY26 losses narrowed significantly to ₹593 Mn from ₹1,115 Mn in the previous year. The aerospace segment remains a powerhouse with a massive orderbook of USD 814 Mn, and the company is diversifying into the UAV defense sector. High export exposure at 90% and new client additions like Mattel indicate strong global traction.
- Q3 FY26 Revenue increased 51% YoY to ₹3,262 Mn, while 9M FY26 EBITDA grew 85% to ₹1,222 Mn.
- EBITDA margins expanded by 800 bps YoY to 12% in Q3 FY26 due to operating leverage.
- Aerospace orderbook stands at a robust USD 814 Mn with 90% of total revenue derived from exports.
- Net loss for 9M FY26 narrowed by 47% to ₹593 Mn, despite ₹167 Mn in one-time IPO and labor-related costs.
- Strategic entry into UAV manufacturing for Indian defense and receipt of MeitY PLI approval for electronics.
Financial Performance
Revenue Growth by Segment
Total Operating Income decreased by 3.94% YoY to INR 927.00 Cr in FY25 (Provisional) from INR 965.02 Cr in FY24. While segment-specific growth percentages are not explicitly broken down, the company operates across Aerospace, Toys, and Consumer Durables, with growth expected to be driven by confirmed order books in these divisions.
Geographic Revenue Split
The company operates manufacturing facilities in India, France, and the United States. Specific percentage splits per region are not disclosed, but the international facilities complement Indian operations to serve global aerospace and consumer markets.
Profitability Margins
The company reported a Net Loss (PAT) of INR 101.70 Cr in FY25 (Provisional), a significant decline from a loss of INR 14.28 Cr in FY24. PAT margin deteriorated from -1.45% to -10.53% YoY. This decline is attributed to high interest costs and operational overheads during the scale-up of new business segments.
EBITDA Margin
EBITDA margin contracted to 8.21% in FY25 (Provisional) from 12.83% in FY24. Absolute EBITDA fell by 38.54% to INR 76.10 Cr from INR 123.82 Cr, reflecting pressure on core operating profitability due to increased costs in the contract manufacturing segments.
Capital Expenditure
Not explicitly disclosed in absolute INR Cr for future periods, but the company has historically invested in the 400-acre Koppal Toy Cluster and vertically integrated aerospace facilities in Belagavi, France, and the US.
Credit Rating & Borrowing
The company's long-term bank facilities were rated IVR BB/Stable (Withdrawn in August 2025). Previous ratings were IVR BB/Negative under the 'Issuer Not Cooperating' category. Interest coverage ratio declined to 1.32x in FY25 from 1.94x in FY24, indicating reduced cushion for debt servicing.
Operational Drivers
Raw Materials
Specific raw material names like aluminum alloys or specialized plastics are not listed, but 'imported components' are identified as a major cost driver, particularly for the Toys and Consumer Durables segments.
Import Sources
Raw materials and components are sourced globally to support facilities in India, France, and the USA, with a high dependency on imports for the toy manufacturing ecosystem.
Capacity Expansion
The company operates the Koppal Toy Cluster, a 400-acre campus designed to house an entire toy manufacturing ecosystem. It also maintains specialized aerospace facilities for precision machining, forging, and surface treatment.
Raw Material Costs
Raw material costs are a significant portion of the cost structure, evidenced by high inventory holding requirements. Specific percentage of revenue is not disclosed, but procurement strategies focus on vertical integration to control the value chain.
Manufacturing Efficiency
Capacity utilization percentages are not disclosed, but the company demonstrated a ~90% average utilization of fund-based working capital limits, indicating high operational activity levels.
Strategic Growth
Growth Strategy
Growth is targeted through a 'cluster-based' manufacturing model, specifically the 400-acre Koppal Toy Cluster, and by leveraging long-term supply agreements with global aerospace and consumer durable OEMs to ensure steady revenue streams.
Products & Services
Precision machined AeroSystems, Aerostructures, landing gear, engine components, sheet metal fabrication, forged parts, toys, and consumer durable goods.
Brand Portfolio
Aequs, Koppal Toy Cluster.
New Products/Services
Contract manufacturing of consumer durable goods (commenced 2020) and the expansion of the toy manufacturing ecosystem are the primary new revenue drivers.
Market Expansion
Expansion is focused on scaling the India-based clusters while utilizing French and US facilities to provide 'near-shore' support to global aerospace clients.
Strategic Alliances
The company has entered into a Shareholders' Agreement with investors including Amicus Capital, Amansa Investments, and Catamaran Ekam (Catamaran Advisors LLP).
External Factors
Industry Trends
The industry is shifting toward integrated contract manufacturing where OEMs prefer 'end-to-end' partners. Aequs is positioned as a vertically integrated player to capture this shift from component supply to full assembly.
Competitive Landscape
Competes with global aerospace tier-1 and tier-2 suppliers and large-scale contract manufacturers in the toy and consumer durable space.
Competitive Moat
The company's moat is built on its specialized infrastructure (Koppal Toy Cluster) and aerospace certifications. These are sustainable because the capital intensity and regulatory requirements for aerospace manufacturing prevent rapid competitor entry.
Macro Economic Sensitivity
Highly sensitive to global aerospace cycles and consumer spending on toys and durables. A 1% decline in global air travel demand typically correlates with reduced orders for aerostructures and engine components.
Consumer Behavior
Demand for toys and consumer durables is driven by increasing outsourcing by global brands to Indian manufacturing hubs to diversify away from China.
Geopolitical Risks
Operations in the US, France, and India expose the company to trade policy changes and cross-border regulatory shifts in the aerospace and defense sectors.
Regulatory & Governance
Industry Regulations
Subject to strict aerospace manufacturing standards, surface treatment environmental norms, and toy safety standards for global exports.
Risk Analysis
Key Uncertainties
The primary uncertainty is the continued weak financial profile, with a PAT loss of INR 101.70 Cr in FY25. Failure to turn profitable could impact the ability to sustain the high debt of INR 416.87 Cr.
Geographic Concentration Risk
While diversified across India, France, and the US, a significant portion of manufacturing assets is concentrated in the Karnataka region (Belagavi and Koppal).
Third Party Dependencies
High dependency on global OEMs for orders and international suppliers for specialized components.
Technology Obsolescence Risk
Risk is mitigated by constant investment in precision machining and prototyping capabilities for next-generation aircraft components.
Credit & Counterparty Risk
The company faces information availability risk, as noted by its previous 'Issuer Not Cooperating' status, which can affect its ability to secure favorable credit terms.