IPO-Bound Aequs’ H1 FY26 Loss Narrows To INR 17 Cr

SUMMARY

The aerospace-focused manufacturer reported revenue from operations of INR 537.2 Cr in H1 FY26, a 17% increase from INR 458.9 Cr in the same period last year

Total expenses stood at INR 481.4 Cr, slightly up compared to INR 417.7 Cr a year ago

Aequs managed to narrow its consolidated net loss for H1 FY26 by 76.2% to INR 17 Cr from INR 71.7 Cr in the year-ago period

IPO-bound contract manufacturing company Aequs managed to narrow its consolidated net loss for H1 FY26 by 76.2% to INR 17 Cr from INR 71.7 Cr in the year-ago period, on the back of growth in its top line and improvement in margins.

The aerospace sector-focussed manufacturer’s revenue from operations zoomed 17% to

INR 537.2 Cr during the period under review from INR 458.9 Cr in H1 FY25. Including other income, total income rose 18.9% to INR 565.5 Cr from INR 475.5 Cr in H1 FY25.

Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturer that caters to clients in aerospace, toys, and consumer durables sectors. It supplies customised components and assemblies to major aerospace OEMs such as Airbus, Boeing, Safran, and Collins Aerospace.

The company earns revenue from two segments – aerospace and consumer.

In H1 FY26, the aerospace segment remained the company’s core growth driver, raking in revenue of INR 474 Cr as against INR 394.7 Cr in H1 FY25. The consumer segment added INR 63.2 Cr to the top line in the first half of FY26, marginally lower than INR 64.3 Cr in H1 FY25.

Meanwhile, expenses rose over 15% to INR 481.4 Cr from INR 417.7 Cr a year ago

Consequently, the company’s EBITDA grew 45.5% to INR 84.1 Cr during the period under review from INR 57.8 Cr in H1 FY25. EBITDA margin expanded to 15.66% from 12.60% a year ago.

Where Did Aequs Spend?

Here’s a breakdown of the key expense heads for the company:

Cost Of Materials Consumed: Cost of materials consumed increased 5.8%, coming in at INR 208.5 Cr compared to INR 197.0 Cr in H1 FY25.

Employee Benefit Expenses: The company spent INR 92.8 Cr on its employees in H1 FY26, up 21.7% from INR 76.2 Cr a year ago.

Subcontracting Expenses: The spending under this head rose 20.9% to INR 72.7 Cr from INR 60.1 in H1 FY25.

Aequs En Route To Dalal Street

Aequs filed its RHP for its IPO, which will comprise a fresh issue of up to INR 670 Cr and an OFS of up to 2.03 Cr shares, yesterday. The company has set the price band price at INR 118 to INR 124 for the public offering, which will open on December 3. Anchor bidding will take place on December 2, while the shares are expected to make their public market debut on December 10.

At the upper end of the IPO price band, Aequs is seeking a valuation of INR 8,316 Cr (about $930 Mn), while the total issue size would be INR 922 Cr (about $103 Mn).

In FY25, Aequs’ net loss soared 618.7% to INR 102.3 Cr from INR 14.2 Cr in the previous fiscal, on the back of mounting operational pressures and exceptional losses. Revenue from operations declined 4.19% to INR 924.6 Cr in FY25 as against INR 965 Cr a year ago.