Stock Jumps After Entering ₹2,856 Cr MoU with Karnataka Govt to Expand Manufacturing Business

Synopsis:- Shares gained 2% after a ₹2,856 crore expansion plan across Karnataka boosted growth visibility. Operating metrics improved with margins rising from 3% to 9%, supported by 2.22 million sq. ft. capacity. However, rising losses indicate cost pressures despite a strong aerospace-led business and long-term demand outlook.

The shares of a prominent precision component manufacturer gained up to 2 percent in today’s trading session after the company entered into a domestic MoU with the Government of Karnataka to expand the manufacturing of aerospace precision engineering products.

With a market capitalization of Rs 8,185.47 crore, the shares of Aequs Ltd were trading at Rs 122.05 per share, increasing around 0.83 percent as compared to the previous closing price of Rs 121.05 apiece.

Manufacturing Expansion

The shares of Aequs have seen bullish movement after entering into a domestic MoU with the Government of Karnataka to expand the manufacturing of aerospace precision engineering products and consumer electronics enclosures. The company plans to invest around ₹2,856 crore over five years from FY26 across Belagavi SEZ and Hubballi clusters, strengthening its production capabilities through subsidiaries while aligning with long-term industrial growth plans.

Moreover, this agreement enables Aequs to secure faster approvals, regulatory clearances, and better access to utilities and incentives. It also improves coordination with state departments, ensuring smoother execution of expansion projects. Consequently, the initiative enhances operational efficiency, supports capacity scaling, and positions the company to capitalize on rising demand in aerospace and durable goods manufacturing.

Financial & Other Highlights

The company reported strong top-line growth, with revenue rising 51% from ₹216 crore in Q3FY25 to ₹326 crore in Q3FY26. However, losses widened from ₹40 crore to ₹43 crore, indicating that despite higher sales, cost pressures and operational inefficiencies continue to impact overall profitability.

Aequs Limited showed improvement in operating performance over the year. Operating profit increased from ₹7 crore in Dec 2024 to ₹29 crore in Dec 2025. Similarly, operating profit margin (OPM) rose from 3% to 9%, indicating better cost control and improved efficiency despite overall profitability remaining under pressure.

Aequs Limited demonstrates strong operational capabilities with a vertically integrated model across aerospace and consumer segments. The company operates 2.22 million sq. ft. of manufacturing space and a large aerospace portfolio. With 100% in-country value addition, 3.96 million annual capacity, and 424 CNC machines, it reflects scale, efficiency, and strong long-term customer relationships.

Aequs Limited derives around 86% of its revenue from the aerospace segment, highlighting its strong industry focus. The company offers a wide portfolio of over 5,221 products, supported by “one-stop-shop” capabilities and extensive testing. With global clients like Airbus and Boeing, it benefits from long-cycle programs and high-value, recurring business opportunities.

Aequs Limited is a precision manufacturing company focused on the aerospace and consumer goods segments. It operates a vertically integrated model with strong in-house capabilities and global customer relationships. With a growing presence in high-value engineering and long-term contracts, the company is steadily expanding its scale, efficiency, and role in global supply chains.

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