Shares of Aequs Ltd have surged nearly 98% in about three months, rising from an all-time low of Rs 113 in March to Rs 223 by the end of May.
The sharp rally followed a series of developments, including record quarterly results, a strong aerospace order book and management guidance that points to a significant jump in earnings in FY27.
Aerospace order book provides visibility
One of the biggest drivers behind the stock’s rise has been the company’s aerospace order book.
As of March 2026, Aequs had an aerospace order book of $889 million, or around Rs 8,461 crore.
That is equivalent to roughly eight to nine times the segment’s FY26 revenue of Rs 1,046 crore.
The company has:
- 5,654 aerospace SKUs.
- Long-term supply relationships with global OEMs.
- An order pipeline that continued to expand during FY26.
According to the company, the orders have already been won and are under execution.
Aerospace profitability improves
Growth in the aerospace business was accompanied by higher profitability.
During FY26:
- Segment EBITDA rose 76% to Rs 281 crore.
- Segment EBITDA margin reached 27%.
- Return on capital employed increased to 20% from 14%.
In the fourth quarter, aerospace EBITDA more than doubled from a year earlier.
Management has guided for:
- 25%-30% aerospace revenue growth in FY27.
- EBITDA margins of around 20%.
Entry into engine components expands opportunity
The company has traditionally derived most of its aerospace business from aerostructures.
It is now moving into:
- Aero-engine components.
- Landing gear components.
These products require capabilities in:
- Forging.
- Machining.
- Surface treatment.
Aequs has developed these facilities at its Belagavi cluster.
Revenue from engine components is expected to start contributing from FY28.
Investment commitments exceed Rs 4,700 crore
Two recently announced memorandums of understanding have also attracted investor attention.
The company signed:
- A Rs 2,856 crore MoU in Karnataka to expand the Belagavi aerospace cluster and consumer manufacturing operations in Hubballi.
- A Rs 1,900 crore MoU in Tamil Nadu to establish what the company described as India’s first fully integrated aero-engine and landing gear manufacturing ecosystem at Hosur.
Together, the planned investments amount to Rs 4,756 crore.
FY27 outlook signals earnings acceleration
Management has projected:
- 45%-50% growth in consolidated revenue.
- A doubling of operational EBITDA in FY27.
The consumer business reported an EBITDA loss of Rs 78 crore in FY26 because of ramp-up costs.
Management expects the segment to reach breakeven by the fourth quarter of FY27 as capacity utilisation rises from 23% to 40%-50%.
About the company
Aequs Ltd, formerly known as Aequs Private Limited, is headquartered in Bengaluru.
The company has 2.22 million square feet of manufacturing space across facilities in:
- Belagavi.
- Hubballi.
- Koppal.
It also operates facilities in France and Texas.
Aequs supplies components to global aerospace companies, including:
- Airbus.
- Boeing.
- Safran.
- Collins Aerospace.
Its installed capacity stands at 4.70 million machining and moulding hours annually.
TL;DR:
Aequs shares have rallied 98% in three months, supported by a Rs 8,461 crore aerospace order book, improving profitability, Rs 4,756 crore of planned investments and management guidance for strong revenue and EBITDA growth in FY27.
AI summary
- Aequs shares climbed 98% from March to May.
- The company has an aerospace order book worth Rs 8,461 crore.
- Aerospace EBITDA rose 76% in FY26.
- Planned investments total Rs 4,756 crore.
- Management expects revenue growth of 45%-50% and a doubling of EBITDA in FY27.
