Aequs Limited has signed a non-binding Memorandum of Understanding with the Government of Tamil Nadu on February 16, 2026, marking a significant step in the company's expansion plans. The agreement involves Guidance, the nodal agency of the Government of Tamil Nadu, and focuses on establishing a new manufacturing facility in the state.

Investment and Manufacturing Scope

The MoU outlines an ambitious investment plan for aerospace component manufacturing in Tamil Nadu. Key details of the proposed investment include:

Government Support and Incentives

The Government of Tamil Nadu has committed to providing comprehensive support for the manufacturing unit establishment. The state government will offer:

• Infrastructure Support: Necessary infrastructural facilities and regulatory facilitation subject to applicable laws
• Power Supply: Uninterrupted power supply on best-effort basis
• Policy Incentives: Standard incentives as per existing Tamil Nadu Government policies
• Facilitation Services: Administrative and regulatory support through the Guidance agency

Strategic Significance

This domestic agreement represents Aequs Limited's strategic expansion into Tamil Nadu's manufacturing ecosystem. The company specializes in aerospace components, and this MoU will enable manufacturing of critical aircraft components including engines, landing gear, and various aircraft systems within the state.

The agreement is structured as a non-binding MoU, providing flexibility for both parties while establishing the framework for future collaboration. The ten-year investment timeline demonstrates the company's long-term commitment to developing manufacturing capabilities in Tamil Nadu.

Regulatory Compliance

Aequs Limited has disclosed this development in compliance with Regulation 30 of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. The company confirmed that this arrangement does not constitute a related party transaction, ensuring transparency in corporate governance practices.

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.