Aerospace Component Maker Aequs Launches IPO Amidst Financial Scrutiny

December 2, 2025 at 12:46 AM•2 min read

Aerospace component manufacturer Aequs plans an IPO to raise ₹3,188 crore for debt repayment and expansion, despite recent losses and lower margins.

Key Points

1Aequs plans to raise ₹3,188 crore through its IPO, comprising a fresh issue of ₹670 crore and an offer for sale of ₹2,518 crore.
2The company has reported net losses for the last three fiscal years, with an FY25 EBITDA margin of 11.7%, significantly below peer averages.
3Aerospace revenue grew 18.7% annually to ₹824.6 crore (FY23-FY25), but the consumer segment declined 33.6% in the same period.
4Investors are advised to monitor Aequs' financial clarity post-listing due to ongoing losses and lower operating margins compared to competitors.

Aequs, an Indian aerospace components manufacturer, is launching an Initial Public Offering (IPO) to raise a total of ₹3,188 crore. This includes a fresh issue of ₹670 crore for debt repayment, capital expenditure, and acquisitions, plus an offer for sale of ₹2,518 crore. Post-IPO, the promoter group's stake will reduce from 64.5% to 59.1%. Aequs operates three manufacturing clusters in India and two facilities in France and the United States, with approximately 89% of its revenue generated from international markets.

The company has reported net losses for the past three years, primarily due to its household appliances segment. While its aerospace business, contributing over 90% of revenue through components for aircraft like the A220, A320, B737, A330, A350, B777, and B787, grew 18.7% annually to ₹824.6 crore between FY23 and FY25, it remains highly dependent on the global aviation sector. Aequs' EBITDA margin was 11.7% in FY25, significantly lower than the 35-38% reported by peers.

The consumer segment's revenue dropped by 33.6% to ₹100 crore in the same period. The cash conversion cycle days increased from 157 in FY23 to 253 in FY25, and 89% of revenue comes from its top ten clients. With no reported profit, the company's price-to-sales (P/S) multiple is nine, compared to 21-89 for competitors. Given these financial challenges and the lack of profitability, investors are advised to await clearer financial performance post-listing before making investment decisions.