Aequs lifts operating margin but remains bottom-ranked among peers
Revenue momentum improved and interest costs fell, but the company remained loss-making as consumer-electronics costs and depreciation weighed on earnings.
Filed 29 Jul 2026, 19:20 IST · after market close · Aequs Ltd (AEQUS)
Key takeaways
- Consolidated operating margin recovered 2.59 percentage points QoQ to 3.73% as revenue grew 7.75% while expenses grew 4.93%.
- Net loss was broadly unchanged at Rs 53.23 cr because lower interest and tax charges offset a 19.59% QoQ deterioration in pre-tax loss.
- Aequs had the lowest operating margin among 26 reported Industrials peers, at 3.73% versus the 14.5% median.
Price around the results
Operating recovery did not reach net profit
The consolidated results show a sequential operating improvement: revenue rose 7.75% while expenses increased 4.93%, lifting operating profit by 251.43% and margin by 2.59 percentage points. That recovery was not enough to prevent a Rs 39.8 cr pre-tax loss, as interest and depreciation remained material costs. Net loss improved only 0.91% QoQ to Rs 53.23 cr.
Lower interest helped, while tax effects flattered the loss line
Interest expense fell 47.41% QoQ to Rs 18.85 cr, supporting the sequential improvement in net loss despite the weaker pre-tax result. The tax charge declined 35.51%, taking the reported tax rate to -33.72% from -62.54%, which also limited the impact on net profit. Other income fell 78.07% to Rs 9.62 cr and represented -24.17% of reported pre-tax profit, so it was not the main driver of the operating improvement.
Margin recovered from Q4 but remains below the sector
Operating margin rose from 1.14% in Q4FY26, reversing part of the decline from 8.9% in Q3FY26, rather than extending that two-quarter fall. At 3.73%, it was 10.77 percentage points below the 14.5% median for the 26 Industrials companies that had reported, placing Aequs first from the bottom.
Aerospace order growth contrasts with consumer-electronics pressure
Management said the Aerospace order book reached USD 1,004 million after a 13% sequential increase, and that Aequs signed its first fully assembled Airbus A320 wheels contract with Safran Landing Systems. The company also said it added long-term agreements with two new Aerostructures Tier-1 customers during the quarter. On costs, management attributed consumer-electronics EBITDA pressure to operating costs being expensed rather than capitalised, while higher depreciation on the expanded asset base affected the PAT loss; it said low utilisation continued to affect the Consumer segment.
Results were filed after market close
Aequs filed these consolidated results after market close, so there is no post-results stock reaction to assess yet. Its response cannot be compared with the stock's history after earlier results in this update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹396 cr | ₹367 cr | +7.75% |
| Other income | ₹10 cr | ₹44 cr | -78.07% |
| Expenses | ₹381 cr | ₹363 cr | +4.93% |
| Operating profit | ₹15 cr | ₹4 cr | +251.43% |
| Operating margin (%) | 3.73% | 1.14% | — |
| Interest | ₹19 cr | ₹36 cr | -47.41% |
| Depreciation | ₹45 cr | ₹46 cr | -0.35% |
| Profit before tax | ₹-40 cr | ₹-33 cr | -19.59% |
| Tax | ₹13 cr | ₹21 cr | -35.51% |
| Net profit | ₹-53 cr | ₹-54 cr | +0.91% |
| EPS (₹) | ₹-0.81 | ₹-0.80 | -1.25% |
Operating margin of 3.73% compares with a Industrials sector median of 14.50% across 26 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New orders
- Aequs’s Aerospace order book crossed USD 1 billion, reaching USD 1,004 million after a 13% sequential increase.
- Aequs signed long-term agreements with two new Aerostructures Tier-1 customers during the quarter.
New initiatives
- Aequs signed its first contract for fully assembled Airbus A320 wheels with Safran Landing Systems.
Problems & risks
- Consumer segment performance remained impacted by low utilisation in Q1 FY27.
- Consumer Electronics operating costs were expensed in Q1 FY27 instead of being capitalised as in Q1 FY26.
- Higher depreciation on the expanded Consumer Electronics asset base affected the Q1 FY27 PAT loss.
What to watch
- Whether operating margin holds above the Q1FY27 level of 3.73%.
- Whether interest expense remains below Rs 18.85 cr.
- Whether the Aerospace order book remains above USD 1,004 million.