Aequs shares fell nearly 19% during trading on October 27, 2026, after the aerospace company reported a wider quarterly loss and slower-than-expected progress in its consumer business. The stock was on track for its steepest one-day decline since its December 2025 listing.

Key Takeaways

  • Aequs reported a net loss of Rs 52 crore for the July–September quarter, up from Rs 21 crore a year earlier.
  • Consumer revenue fell 21% from the previous quarter, while the company cited qualification delays and supply chain constraints.
  • Nuvama maintained a Buy rating, while JM Financial retained its Reduce call and raised its price target.

Aequs shares react to weaker profitability

The decline followed results released after market hours on October 26. Although revenue grew 45% year over year, consolidated EBITDA fell and its margin narrowed, showing that higher sales did not translate into stronger operating profitability.

The shares had reached a record high of Rs 295 earlier in October, after climbing more than 160% from a March low of Rs 113.30.

ItemDetails
Revenue from operationsRs 409 crore in Q2 FY27, versus Rs 282 crore a year earlier
Net lossRs 52 crore in Q2 FY27, versus Rs 21 crore a year earlier
EBITDARs 24 crore in Q2 FY27, down 45% year over year
EBITDA margin6% in Q2 FY27, versus 16% a year earlier

Consumer ramp-up falls short

Aequs said the increase in consumer volumes progressed more slowly than anticipated because of extended qualification timelines and supply chain constraints. It described the setback as a timing-related shift rather than a change in the underlying opportunity.

Nuvama Institutional Equities said the consumer loss widened to Rs 40 crore as revenue declined 21% from the previous quarter. JM Financial said consumer utilization fell to 17% from 22% in the first quarter of FY27.

Nuvama said the consumer EBITDA break-even target had been withdrawn without a revised timeline. JM Financial said break-even had been pushed beyond the original target of the fourth quarter of FY28.

Brokerages differ on outlook

Nuvama maintained its Buy rating and Rs 444 price target. JM Financial kept its Reduce rating but raised its target to Rs 245 from Rs 220, incorporating higher capital expenditure and associated sales and EBITDA in FY30 and FY31.

JM Financial cut its FY27 and FY28 EBITDA estimates to reflect consumer weakness. Both brokerages cited an aerospace order book of $1.1 billion; JM Financial also noted a long-term supply agreement with Safran.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.