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Aequs shares plunged 19% after the aerospace components manufacturer reported a sharp increase in its consolidated loss for the September quarter, as a steep decline in operating earnings offset strong revenue growth.
The company posted a consolidated loss of ₹52.3 crore in Q2 FY27, compared with a loss of ₹20.59 crore in the corresponding quarter last year. Revenue from operations, however, rose 45.3% year-on-year to ₹409.1 crore from ₹281.5 crore. EBITDA fell 45% to ₹24.5 crore from ₹44.3 crore a year earlier.
For the first half of FY27, revenue grew 50% year-on-year to ₹804.6 crore, supported by expansion in the aerospace and consumer businesses.
Including proportionate contributions from joint ventures (JVs), Aequs reported Q2 revenue of ₹448 crore, up 44% year-on-year and 4% sequentially. EBITDA on the same basis declined 36% year-on-year to ₹33.1 crore, although it improved 8% from the preceding quarter.
Aequs' aerospace segment continued to anchor its growth, with Q2 revenue rising 44% year-on-year to ₹351.4 crore. Revenue for the first half increased 42% to ₹673.6 crore.
The segment's EBITDA rose 24% year-on-year to ₹78.3 crore in Q2 FY27, while first-half EBITDA increased 29% to ₹151.4 crore.
The company's aerospace order book reached $1.1 billion, marking a 9% increase over the previous quarter. Aequs also signed an agreement with Safran to manufacture wheels for A320 aircraft. The company described this as its first serial-production contract with a tenure of more than 15 years.
During the quarter, Aequs added 238 parts to its aerospace portfolio, taking its range to 5,978 stock-keeping units (SKUs). It also installed nine computer numerical control (CNC) machines, bringing the segment's total to 229. Further, new long-term supply agreements with Safran expanded its relationships to six entities and widened its manufacturing scope across critical aerospace components.
Aequs' consumer business recorded revenue growth of 52% year-on-year to ₹57.7 crore in Q2 FY27. First-half revenue more than doubled to ₹131 crore, registering 107% growth.
However, the segment continued to weigh on profitability. Its EBITDA loss widened to ₹40.1 crore in Q2 from ₹36.1 crore in the June quarter. The loss for the first half stood at ₹76.3 crore.
Aequs said its promoter group would invest ₹650 crore through preferential warrants to fund the next phase of capacity expansion, strategic joint-venture investments and working capital requirements.
The company incurred capital expenditure of ₹159.7 crore in the first half of FY27 as it continued to strengthen its manufacturing capabilities, including through its upcoming Hosur manufacturing ecosystem.
Nuvama Institutional Equities retained its ‘Buy’ rating on Aequs and maintained its discounted cash flow (DCF)-based target price of ₹444, citing the company’s aerospace business strength and the promoter group’s proposed investment of ₹650 crore through warrants.
The brokerage described the promoter infusion as a sign of commitment, highlighting the group’s financial stake in the company’s growth plans. It also underscored Aequs’ aerospace franchise, which generates margins of around 22% and has an order book of $1.1 billion.
Nuvama noted that Aequs is expanding beyond aerostructures into engine and landing gear components at its upcoming Hosur facility, potentially broadening its aerospace manufacturing capabilities.
Aequs share price opened at ₹213.55 apiece on the BSE, the stock touched an intraday high of ₹218.15 per share, and an intraday low of ₹196.55 per share.
Gaurav Arora, Head of Research at SAHI, said Aequs has formed a classic bull-trap pattern after failing to sustain its breakout above the resistance level of ₹277. The rejection trapped buyers who entered following the breakout, triggering a reversal and a subsequent gap-down move that has weakened the stock’s technical structure.
Arora identified ₹204 as the immediate support level, near which the stock is currently trading. A sustained hold above this level could provide some stability, while a decisive breakdown could lead to a deeper correction towards ₹182.50, a zone where the stock has previously found support.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, a SEBI-registered research analyst firm, said Aequs has witnessed sharp profit-booking on the weekly chart, with the stock declining nearly 10% over the week to trade around ₹212.
He identified ₹205 as the immediate support zone, where buying interest needs to emerge to prevent further weakness. The crucial support lies at ₹180, and a breakdown below this level could weaken the technical structure further.
Radhakrishnan added that the stock’s technical outlook would turn bullish only after a weekly close above ₹250. Such a breakout could pave the way for an upward move towards ₹325, followed by ₹365. Until then, he advised caution, noting that investors should wait for confirmation of a trend reversal rather than rush into the stock.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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