Highlights
| Issue Size – 74,339,651 shares | Issue Open/Close – 03 Dec / 05 Dec, 2025 |
| Price Band (Rs.) 118 – 124 | Issue Size (Rs.) ~ 9,218 mn |
| Face Value (Rs) 10 | Lot Size (shares) – 120 |
Aequs Limited (AeL) incorporate in 2000, engaged in manufacturing and operating a special economic zone in India to offer fully vertically integrated manufacturing capabilities in the Aerospace Segment.
Company’s diverse product portfolio includes components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning for its aerospace clients, and has expanded its product portfolio to include consumer electronics, plastics, and consumer durables for its consumer clients.
AeL operate units in three manufacturing clusters in India and have two manufacturing facilities in France and the U.S with installed capacity for Aerospace clients across all facilities was around 1,719,358 machining per molding hour and 1,199,700 matching per molding hour for consumer clients for FY25.
Out of the total proceeds from the offer, ~Rs. 4,331 mn would go towards debt repayment, ~Rs. 640 mn would go towards capex and ~Rs. 1729 mn would go towards other strategic initiatives and general corporate purposes. While ~Rs. 2,518 mn would go towards existing selling shareholders of the company.
Key Highlights
- The contract manufacturing market in India is Rs. 2,249.96 Bn (USD 26.78 Bn) in FY2025, with a CAGR of 13.04 pct between 2025 to 2030, potentially reaching Rs. 4,152.50 Bn (USD 49.43 Bn) by FY2030.
- The company ranks among India’s few manufacturers with niche metallurgy capabilities, specializing in precision machining of high-end alloys like titanium for aerospace clients. It leads within a single special economic zone for end-to-end aerospace manufacturing (machining, forging, surface treatment, assembly), based on capabilities and approvals.
- As of Q1FY25, the company produced over 5,000 products for the aerospace segment under various manufacturing and assembly programs for customers, including single-aisle (A220, A320, B737) and long-range (A330, A350, B777, B787) commercial aircraft. It also maintained one of India’s largest aerospace product portfolios as of FY25.
- The company’s core strategies include (i) Increasing wallet share with existing aerospace customers by advancing up the manufacturing value chain and diversifying the customer base (ii) Grow its portfolio of consumer products (iii) Improve margins through higher value manufacturing and measures for operational efficiencies (iv) Leverage existing capabilities to increase market share in capability and sector adjacency.
- Sales of the company has grown by 6.7 pct CAGR in over FY23-25 and EBITDA grew by 45.5 pct CAGR and PAT fell by 2.9 pct CAGR over same period. During FY25 the sales of the company slipped by 4.2 pct YoY to Rs. 9,246 mn. While EBITDA of the company slipped by 40 pct YoY to Rs. 734 mn and EBITDA margin contracted by 474bps to 7.9 pct YoY in FY25. During FY25, the company reported loss of Rs. 1024 mn, which grew 734 pct YoY.
Key Risk
- Company’s revenue is highly concentrated among its top 10 customers, over 85 pct, any adverse changes affecting their financial condition will have an adverse effect on its business, results of operations, financial condition and cash flows.
- AeL’s business requires significant capital expenditure to maintain or upgrade equipment and machinery across existing manufacturing clusters and facilities. If AeL is unable to have access to capital, it may adversely affect business, results of operations, financial condition and cash flows.
- Company and certain of its subsidiaries have had negative operating cash flows in the past and may continue to have negative operating cash flows in the future, which could adversely affect results of operations and financial condition.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY26 |
| Revenue from Operations | 8121 | 9651 | 9246 | 5372 |
| EBITDA | 346 | 1223 | 734 | 557 |
| EBITDA Margin % | 4.3% | 12.7% | 7.9% | 10.4% |
| Profit | (1087.3) | (121.5) | (1024.2) | (166.8) |
| Profit Margin % | -13.4% | -1.3% | -11.1% | -3.1% |
| Installed Capacity (machining/molding hours) | 2,799,736 | 2,686,185 | 2,919,058 | 1,457,184 |
| Capacity Utilization | 39% | 44% | 42% | 44% |
Peer Comparison
| Peer Comparison | Aequs | Dixon Tech. | Unimech Aero. | Amber Ent. |
| Revenue from Operations (Mn) | 9,246 | 388,601 | 2,429 | 99,730 |
| EBITDA (Mn) | 734 | 15,278 | 921 | 7,960 |
| EBITDA Margin % | 7.9% | 3.9% | 37.9% | 8.0% |
| Profit (Mn) | -1,024 | 12,325 | 835 | 2,511 |
| Profit Margin % | -11.1% | 3.2% | 34.4% | 2.5% |
| ROCE | 0.87 | 49.0% | 25.2% | 19.5% |
| ROE | -14.3% | 48.0% | 33.1% | 11.3% |
Valuation
Aequs is a diversified contract manufacturing company that facilitates large-scale and timely production of complex products, meeting the demanding needs of global Original Equipment Manufacturers (OEMs) in both the aerospace and consumer sectors. At the upper end of the price of Rs. 124, the issue quotes at EV/Sales of 8.7x on post issue capital. The issue looks fully priced. One can apply for listing gains.
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