Aequs Limited reported a confirmed aerospace order book of USD 814 million, providing execution visibility over the next five years up to about 2031, as the company continues to expand its vertically integrated manufacturing operations while scaling up recently commissioned consumer manufacturing capacity.
Aequs Limited, a manufacturer of precision aerospace and consumer components, said the aerospace backlog represents total contract value to be delivered over a multi-year period under long-term contracts, typically spanning five to seven years. Management said the order book is expected to be replenished on an ongoing basis as new programmes are added and existing contracts are renewed.
“Our aerospace segment continues to be profitable with a strong order book of USD 814 million,” said Aravind Melligeri, Executive Chairman and Chief Executive Officer. He said the backlog reflects sustained demand from global original equipment manufacturers as sourcing activity continues to shift towards India.
The aerospace business remained the primary earnings anchor during the quarter, contributing about 82 percent of consolidated revenue. India-based aerospace operations were running at around 71 percent utilisation, with management guiding for a steady-state utilisation level of about 75 percent. For the nine months ended December 2025, the aerospace segment reported EBITDA margins of about 24 percent.
“Aerospace being our mature business segment continues to anchor profitability,” said Dinesh Iyer, Chief Financial Officer. “For the nine months, our margins have been in the 20 percent plus range, and we continue to see margins in that range going forward.”
The company said its aerospace manufacturing model is built around a vertically integrated ecosystem covering forging, machining, surface treatment, special processes and assembly within a single special economic zone in Karnataka. Management said this structure supports complex, highly regulated aerospace programmes and underpins long-term customer relationships.
Capital expenditure in aerospace is expected to continue on a rolling basis. Melligeri said capacity planning is undertaken 18 to 24 months in advance because of long equipment lead times. “It is continuous capex. It is not lumpy capex in aerospace, because we win orders and look at the capacity over 18 months,” he said.
Alongside aerospace, Aequs is scaling its consumer manufacturing business, which includes toys, cookware and consumer electronics. Most of the consumer electronics capacity has already been commissioned, with current utilisation at about 31 percent. Management said the low utilisation has adversely affected EBITDA in the short term, although customer demand is fully committed.
“Majority of the capacity has come online, and today our utilisation is only at 31 percent,” Melligeri said. “As utilisation will continue to improve on a quarterly basis, you will see improving EBITDA numbers and profitability.”
During the quarter, the company received approval under the electronic component manufacturing incentive scheme for mechanical enclosures used in consumer electronics. It also commenced deliveries to Mattel in the toys segment, with revenue recognition beginning in the third quarter.
Looking ahead, Aequs said it is expanding its aerospace portfolio beyond aerostructures into higher-value components such as landing gear and engine parts, leveraging its integrated forging and machining capabilities. Management reiterated that all aerospace supplies are executed under long-term contracts, providing multi-year execution visibility.
Aequs Limited operates manufacturing clusters in Belagavi, Hubballi and Koppal in Karnataka, with additional facilities in France and the United States, supplying precision components to aerospace and consumer industry customers.