Aequs Limited has announced a further investment in its wholly owned subsidiary Aequus Engineered Plastics Private Limited (AEPL) through a rights issue, as disclosed under Regulation 30 of SEBI Listing Regulations. The investment involves subscribing to 96,32,117 shares at ₹10 per equity share, representing a total investment of ₹9,63,21,170.

Investment Details and Structure

The rights issue subscription maintains Aequs Limited's complete ownership of AEPL, with no change in the percentage of shareholding. The subsidiary will continue to remain wholly owned by the parent company.

Subsidiary Financial Performance

Aequus Engineered Plastics Private Limited, incorporated on February 10, 2015, is engaged in manufacturing plastic products, parts and toys. The subsidiary's recent financial performance shows declining revenue trends over the past three years.

As of March 31, 2025, AEPL reported a loss after tax of ₹28.48 crore and a negative networth of ₹4.36 crore, indicating financial challenges that this investment aims to address.

Purpose and Utilization of Funds

The investment forms part of the utilization of IPO proceeds as specified in Aequs Limited's prospectus dated December 5, 2025. The funds will be specifically utilized for:

• Repaying existing bank loans of the subsidiary
• Meeting working capital requirements of AEPL

Regulatory Compliance

Since AEPL is a wholly owned subsidiary, this transaction is classified as a related party transaction. However, pursuant to Regulation 23(5) of SEBI Listing Regulations, transactions between a holding company and its wholly owned subsidiary do not fall within the ambit of related party transaction requirements. No governmental or regulatory approvals are required for this investment.

The promoter, promoter group, and group companies of Aequs Limited have no interest in AEPL except for the shares held by the company itself. The investment represents Aequs Limited's continued support for its subsidiary's operations and financial stability in the plastic manufacturing sector.

AEQUS Limited held its first earnings conference call as a public company on January 29, 2026, reporting strong revenue growth in Q3 FY26 while facing continued profitability challenges. The precision manufacturing company, which went public with an IPO subscribed over 100 times, demonstrated robust operational performance across its aerospace and consumer segments.

Q3 FY26 Financial Performance

The company delivered impressive top-line growth in the third quarter, with consolidated financial metrics showing strong momentum:

Nine-Month FY26 Performance Overview

For the nine-month period ending December 31, 2025, AEQUS maintained strong growth trajectory:

Segment-wise Business Performance

Aerospace Segment Leadership

The aerospace division continued as the primary revenue driver, contributing 82% of Q3 consolidated revenue with INR 2,685 million. The segment demonstrated strong profitability with EBITDA of INR 633 million, representing 163% year-over-year growth. For nine months, aerospace revenue reached INR 7,424 million with segment EBITDA of INR 1,803 million, showing 62% growth.

The company maintains a robust aerospace order book of USD 814 million, expected to be delivered over the next five years through 2031. AEQUS supplies over 5,221 parts to global OEMs including Airbus, Boeing, Collins, Safran, and Honeywell, with over 90% single-source supplier status.

Consumer Segment Scale-Up

The consumer vertical reported revenues of INR 577 million in Q3, up 157% year-over-year, though EBITDA loss widened to INR 159 million due to ongoing scale-up phase. The company received MeitY approval for PLI incentives under the electronic component manufacturing scheme and commenced deliveries to new customer Mattel during the quarter.

Operational Metrics and Capacity Utilization

AEQUS operates with significant manufacturing capacity across its integrated clusters:

Balance Sheet Strengthening

Following the successful IPO, AEQUUS significantly improved its financial position with total assets reaching INR 30.5 billion in December 2025 versus INR 18.6 billion in March 2025. Net debt to equity reduced sharply to 0.1X, reflecting deleveraging post-IPO. The aerospace segment achieved ROCE of 18.5% for nine-month FY26, improving from 14.3% in FY25.

Management emphasized the company's unique position as the only precision component manufacturer within a single SEZ in India offering fully vertically integrated manufacturing capabilities in aerospace, with partnerships including Magellan Aerospace, Aubert & Duval, and recent ventures with Accel India and Vagus Defense for UAV manufacturing.