Aequs FY25: Loss Soars 7X YoY To INR 102 Cr

Bengaluru-based contract manufacturing startup Aequs saw its net loss soar 618.7% to INR 102.3 Cr in the fiscal year 2024-25 (FY25) from INR 14.2 Cr in the year ago period, on the back of mounting operational pressures and exceptional losses.

Largely to blame for the bloated losses was the impairment loss on goodwill of INR 48.3 Cr during the fiscal for its subsidiary Aequs Force Consumer Products Pvt Ltd (AFCPPL).

Piling on top of this was revenue from operations, which declined 4.19% to INR 924.6 Cr in the fiscal under review as against INR INR 965 Cr a year ago.

Including other income of INR 34.6 Cr, the company’s total income stood at INR 959.2 Cr in FY25, down a marginal 2.94% from INR 988.3 Cr in FY24.

Aequs earns its revenue primarily from two business segments – aerospace and consumer. While the former contributed INR 824.6 Cr, the consumer segment added INR 100 Cr Cr to its kitty.

The company shared the numbers in its updated draft red herring prospectus (UDRHP) filed with SEBI. Its public issue comprises a fresh issue of up to INR 720 Cr and an offer-for-sale (OFS) component of 3.2 Cr shares.

As part of the OFS, Amicus Capital will sell the largest chunk of 2.7 Cr shares via its three funds, while the Melligeri Private Family Foundation and individual shareholder Ravindra Mariwala plan to sell 13.1 Lakh and 12.7 Lakh shares, respectively.

Founded in 2006 by Aravind Melligeri, Aequs is a diversified contract manufacturer that caters to clients in aerospace, toys, and consumer durables sectors. It supplies customised components and assemblies to major aerospace OEMs, such as Airbus, Boeing, Safran, and Collins Aerospace.

Geographically, the US and France account for the biggest chunk of its revenues at 23% and 22%, respectively. Germany (12%), India (11%), the UK, Sweden, and Hong Kong also contribute to its top line. This global footprint enables Aequs to serve OEMs worldwide while benefiting from India’s cost advantages.

The company’s business model relies on heavy vertical integration and in-house capabilities, from forging, machining, coating, and molding to assembly and testing.

Breaking Down Aequs’ Expenses

In FY25, the company’s total expenses grew a marginal 1% to INR 851.2 Cr compared to INR 842.8 Cr in the year ago period. Almost half (48% to be precise, or INR 408.3 Cr) of its expenditure went towards importing raw materials from Germany, the US, Taiwan, and other special economic zones.

Employee Benefit Expenses: Costs under this head increased 10.7% to INR 158.7 Cr in the fiscal year under review from INR 143.4 Cr in FY24.

Subcontracting Expenses: These expenses remained almost flat at INR 118.3 Cr in FY25 versus INR 118.6 Cr in the year ago fiscal.

Consumption Of Spares: Expenses under this head increased 7.71% to INR 47.5 Cr from INR 44.1 Cr in FY24.

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