Aequs
Aequs is an engineering-led manufacturer of precision components for aerospace and consumer manufacturers worldwide.
- Public company
- Belagavi, KA, INIndia
Aequs is an engineering-led manufacturer of precision components for aerospace and consumer manufacturers worldwide.
What could change its growth trajectory, and what would confirm it?
These Safran contracts may lift Aequs's aerospace program work since they introduce coating plus landing gear assembly for the Airbus A320, A330 and A350 programmes and the Boeing 787 programme and extend the longstanding relationship with Safran Landing Systems to Safran Aerosystems; real production and order conversion will confirm the effect.
Among Boeing, Embraer, ATR and COMAC, aircraft supply may act as a swing factor for aircraft production.
What is the investment case, and what must be true for it to hold?
Aequs can build its aerospace business if aircraft production forecasts convert into supplier demand, with customer concentration and order variability as the principal threats. The company performs complex machining and coating and assembles landing gear components for the Airbus A320, A330 and A350 programmes and the Boeing 787 programme, alongside Boeing, Embraer, ATR and COMAC. Its top 10 customer groups bring in over 82% of revenue and have been with the company on average for 11 years, while contracts are mostly based on as-required orders rather than fixed long-term volumes.
Aerospace utilization was 67–70%, while consumer manufacturing used only 22% of installed capacity.
Which risks could break the thesis, and what would warn of them?
Aequs's growth thesis faces customer-demand and cash-conversion constraints: 82.5% of revenue derives from the top 10 customer groups, whose contracts rely mostly on "as required" orders rather than fixed long-term volumes, and the cash conversion cycle lengthened to 253 days in FY25 from 157 days in FY23. This exposes the firm to changes in orders and working-capital pressure.
Of Aequs's borrowings, 39.9% — ₹212.9 crore — was unhedged foreign currency debt. Aequs plans to use its latest fundraising to reduce borrowings and expand its aerospace business.
What does the product do for its buyer, and how is it delivered?
Aequs supplies finished precision components to buyers across aerospace systems and consumer product lines, produced end to end within co-located manufacturing ecosystems. Its aerospace portfolio covers engine systems, landing systems, cargo and interiors, structures, assemblies and turnings, while its consumer components span homeware, toys and electronics made from plastics and metallurgy. Within each ecosystem, forging, precision machining, surface treatment and assembly operate side by side in one location.
Aequs operates manufacturing facilities. These facilities are located in India, the USA and France.