Aequs to invest ₹230 crore in consumer electronics arm; aerospace order book at $814 million

Aequs has approved an additional ₹230 crore investment in its consumer electronics subsidiary, primarily aimed at debt reduction and fresh capital expenditure, as part of its broader post-IPO capital allocation strategy.

Speaking to ET Now, Executive Chairman & CEO Aravind Melligeri said the investment aligns with commitments outlined during the company’s IPO process.

₹230 crore investment: Debt paydown + capex push

Melligeri clarified that the fresh infusion into the subsidiary will largely go toward repaying debt, with a portion earmarked for additional capital expenditure.


Over ₹600 crore has already been invested in the consumer electronics vertical over the last 24 months. Capacity utilisation in the segment currently stands at around 31%. As utilisation improves, profitability is expected to follow.

The company views consumer electronics as a high-growth vertical, leveraging its aerospace machining and component manufacturing expertise.

Aerospace order book: $814 million visibility

As of January 2026, Aequs’ aerospace order book stands at $814 million, providing multi-year revenue visibility.

According to Melligeri:

• Aerospace contracts typically span 5–7 years.
• The current order book could be realised over a 24-month to 7-year period.
• On average, the revenue cycle spans roughly 3–4 years.

The aerospace segment contributes nearly 80–85% of consolidated revenues and continues to anchor profitability.

Margin outlook: Aerospace stable, consumer scaling up

Aequs has guided for around 20% EBITDA margins in its aerospace segment, which remains the company’s primary profit driver.

Aerospace delivered 38% year-on-year growth last quarter.

Margins are expected to remain close to the 20% mark as scale improves.

Meanwhile, the consumer electronics business remains loss-making due to significant upfront investments. However, management expects profitability to emerge as plant utilisation rises and volumes scale up.

IPO funds: Debt reduction in focus

From the ₹650 crore fresh issue raised via IPO:

• The majority was deployed toward debt repayment.
• Around ₹70–75 crore was allocated for capex expansion.
• Another ₹75 crore was earmarked for strategic initiatives and joint ventures.
• Approximately ₹100–150 crore remains under general corporate purposes.
• The company aims to optimise existing capacity before taking on additional debt.

Revenue growth target: FY26 and FY27 outlook

Aequs expects continued strong growth momentum across both verticals. Aerospace growth guidance remains above 20%, with potential for 30%+ growth in the coming year.

Consumer electronics revenue grew over 100% year-on-year and is projected to expand between 50% and 100% in the next fiscal. Management signalled confidence in crossing higher revenue milestones as both verticals scale.

Tamil Nadu MOU: Building an aero engine ecosystem

Aequs recently signed an MoU with the Government of Tamil Nadu to set up a manufacturing unit in Hosur.

Unlike its Belagavi ecosystem, which focuses on aerostructures, the new Tamil Nadu facility will concentrate on:

• Aero engine components.
• Landing gear systems.
• High-value engine-focused manufacturing.

The company plans to build a dedicated engine component ecosystem over the next decade, addressing a gap in India’s aerospace manufacturing landscape.

The bigger picture

Aequs is pursuing a dual strategy:

• Strengthening its profitable aerospace vertical with long-term contracts.
• Scaling its consumer electronics arm for high-growth potential.

With a strong order book, ongoing debt reduction, and new ecosystem investments in Tamil Nadu, the company is positioning itself for sustained multi-year expansion — albeit with near-term focus on utilisation and execution.