Aequs Expands Consumer Electronics Business Alongside Aerospace Operations
Manufacturing company Aequs has doubled down on its consumer electronics venture, which accounted for 19% of its revenue in the first quarter.
Manufacturing firm Aequs reported its first-quarter financial results, highlighting growth in its consumer electronics segment alongside its established aerospace business.
The company's aerospace division, which produces components for giants like Airbus and Boeing, remains its primary revenue driver and underpins its market capitalization of approximately ₹15,000 crore. However, consumer electronics emerged as a significant growth area, contributing 19% of the company's top line in the quarter ending June, more than doubling its share from the previous year.
Aequs is actively diversifying beyond its aerospace roots, significantly investing in its consumer electronics vertical. This segment manufactures a wide range of products, including portable computers, smart devices, wearables, toys, and consumer durables. The segment's revenue reached ₹73.4 crore, though it also incurred a loss of ₹36.1 crore, a decrease from the previous quarter.
Significant investments are planned for the consumer electronics sector. Approximately ₹500 crore of the company's planned ₹660 crore capital expenditure for fiscal year 2027 is allocated to this segment to scale capacity and broaden the product portfolio. Furthermore, in March, the company signed a memorandum of understanding with the Karnataka government for a substantial expansion of its consumer electronics manufacturing capacity in the Hubballi region.
Management projects that consumer electronics could contribute 40-60% of the company's total revenue within the next five years, with the segment expected to reach breakeven by the end of the fiscal year. Aequs aims to increase the segment's capacity utilization from the current 23% to 40-50% to achieve profitability.