Aequs Q1 FY27 Results (NSE: AEQUS)
Signal: Slipped to loss
The read
Q1FY27 results show a tale of two segments: Aerospace delivers 39.9% revenue growth with healthy margins, but Consumer's losses have ballooned to ₹361 Mn, overwhelming the group. Gross margin improved sharply (+1614bps) on mix shift and input cost tailwinds, yet the benefit was fully offset by rapid escalation in depreciation and finance costs (+85% each) as the company scales capacity. Consolidated profitability remains under severe pressure until the Consumer segment turns around.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹395.54 Cr | 54.8% | 7.7% |
| EBIT | ₹21.49 Cr | -46.1% | |
| Net profit | ₹-53.23 Cr | N/A | |
| EPS | ₹-0.81 | -1257.1% | |
| EBIT margin | 5.43% |
P&L walk
Gross margin expanded sharply to 57.4% (vs 41.3% YoY) on favorable mix shift to Aerospace and lower raw material costs, but EBITDA margin still collapsed to 5.4% as fixed costs (depreciation +84.7%, finance cost +87.5%) surged faster than revenue, and Consumer segment PBIT loss deepened to ₹361 Mn.
Segments
Aerospace segment remains the profit engine with PBIT of ₹730.6 Mn (22.7% margin), but Consumer segment losses surged to ₹361.4 Mn from ₹74.4 Mn YoY, dragging consolidated results into deep loss.
Key positives
- Aerospace segment revenue grew 39.9% YoY to ₹3,221.6 Mn with PBIT margin of 22.7%.
- Consumer segment revenue more than doubled (+190.4% YoY) to ₹733.9 Mn, indicating scaling of operations.
- Gross margin expanded significantly to 57.4% from 41.3% YoY, driven by favorable mix shift and lower raw material costs.
- Standalone net profit grew 5.6% YoY to ₹40.7 Mn, supported by higher other income.
Key concerns
- Consolidated net loss of ₹532.3 Mn versus profit of ₹39.2 Mn YoY, as Consumer segment losses widened to ₹361.4 Mn from ₹74.4 Mn.
- EBITDA margin collapsed to 5.4% from 15.6% YoY, as depreciation (+84.7%) and finance costs (+87.5%) surged faster than revenue.
- Consumer segment PBIT turned more negative, indicating structural profitability challenges in the scaling phase.
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