Thank you very much, Karthik. Good evening, good morning to all participants on the call depending on the geographies you logged in from.

We welcome you to the Q3 and 9-month FY 2026 earnings call, the first earnings call for Aequs Limited post the listing. Before we proceed this call, let me remind you that the discussion may contain forward-looking statements that may involve known or [unknown?]

risks, uncertainties, or other factors. It must be viewed in conjunction with our business risks that could cause future results, performance, or achievement to differ significantly from what is expressed or implied in such forward-looking statements.

Please note that we have mailed the results and the same is available on the exchange. In case you have not received the same, please write to us, and we'll be happy to send the same over to you.

To take us through the results and answer your questions today, we have the management of Aequs Limited represented by Mr. Aravind Melligeri, Executive Chairman and CEO; Rajeev Kaul, Managing Director; Dinesh Iyer, Chief Financial Officer; and Harish Barnwal, Vice President Finance.

We will start the call with a brief overview of the quarter gone past and then conduct the Q&A session. With that said, I'll now hand over the call to Aravind.

Over to you, Aravind.

Thank you, Diwakar. Thank you.

Good evening, everyone. Thank you for joining this call, the first one after our becoming public company.

This is an important moment in our journey. The strong reception to our IPO was, which was subscribed more than 100 times, reinforces the trust placed in us by our customers, partners, and our share now our shareholders.

This also reflects the confidence placed in us by our investors and the dedication of thousands of colleagues across manufacturing clusters in Belagavi, Hubballi, Koppal in India, and units in France and US. As you may know, Aequs began its operations in 2006-7 as part of QuEST Global with the ambition of building a resilient, scalable institution from for a long term.

Early customer insights showed that aerospace success would require a fully integrated manufacturing ecosystem. This led us to our first facility in Belagavi in 2009-10.

That milestone marked the start of our multi-decadal journey to build a world-class manufacturing ecosystem in India for the world. The focus was also on maximizing in-country value add.

We originally started with about 20% in-country value add. Today, we have evolved into 100% in-country value add for select parts like aircraft wheels for the global commercial aerospace industry.

Today, Aequs is the only precision component manufacturing manufacturer operating within a single Special Economic Zone in India to offer fully vertically integrated manufacturing capabilities in the aerospace segment. This sets us apart from other manufacturers with selective manufacturing capabilities amongst the suppliers across the world.

This unique approach gained global acclaim in 2016 when Airbus conferred Aequs an Innovation Award in recognition of unique ecosystem that we have built here in Belagavi. Subsequently, our scale, capabilities, and compliance-driven approach in aerospace segment has enabled us to venture into consumer industry with a unique value proposition through manufacturing ecosystems.

We strongly believe in partnerships and treating people equally. This led us to rebrand as Aequs in 2014, reflecting our view that all stakeholders are partners in growth.

Aequs in Latin means equal. This philosophy has embedded in our values of transparency, trust, and respect, and institutionalized as a DNA of Aequs.

Quite naturally, we have leveraged global partnership to enhance these ecosystems through joint ventures to gain in-process capabilities. We have partnered with Magellan Aerospace of Canada for surface treatment, with Aubert & Duval of France for forging.

More recently, we have partnered with Axiscades India and Aegis Defence to enter the design and manufacturing of unmanned aerial vehicles, primarily for India defence requirements. In consumer segment, we partnered with Brazilian multinational Tramontina to tap the global cookware market.

We have thus emerged as one of the India's largest end-to-end aerospace suppliers to OEMs, tier 1s, and such as Airbus, Boeing, Collins, Safran, Saab, Honeywell, to name a few. In the consumer verticals, we apply the same engineering discipline to produce precision components for consumer electronics, toys, and cookware for global leaders.

Many of our relationships with the top OEMs in the aerospace segment and clients in the consumer industry span over a decade. This is a validation of a trust that we have built as a reliable partner with scale to meet their growing demands.

Speaking of the industry scenario, aerospace and aerospace and consumer segment have addressable market that over $447 billion and $126 billion, respectively, by 2030. Speaking of the opportunity in the commercial aerospace market

Again, I think I will repeat this sentence in case somebody missed. Speaking of the opportunity in commercial aerospace market for the Indian supply chain company, this market opportunity India is only 2% of the global supply chain, whereas currently or about 5% of the global market India has, and this is going to go into a 10% of the global India is going to be at 10% of the global market for a commercial aerospace industry.

Our focus has been to grow India as in line with the global market, what India opportunity provides. This dynamic offers the tailwinds for India manufacturing, including the cost-competitive, skilled engineering talent and rapidly maturing quality ecosystem to capture growing share of global aerospace sourcing, particularly OEMs diversify their diversified supply chains to leverage India.

Coming back to this quarter's performance, this quarter's performance reflects the strength in our operations, which we will discuss in further details during the call. The growth was driven by ramp-up in the aerospace programs and scaling up in the consumer business.

Our aerospace segment continues to be profitable, with a strong order book of $814 million. In consumer electronics, the programs we won earlier are now industrialized.

We are starting to see the revenues coming through. During the quarter, we received approval from MeitY for PLI incentives under the Electronic Component Manufacturing Scheme.

Further, we brought on Mattel as a new customer and shipment started last quarter in the Q3, and we started recognition of revenue. As we step into the new phase as a listed company, our focus remains unchanged: to deepen capabilities, expand our integrated ecosystems to support our global customer programs from India.

Thank you once again for your trust and support. I will now hand over to Rajeev Kaul, the co-founder and Managing Director, who'll walk you through our operations and road map in greater detail.

Thank you, Aravind. Thank you, everyone, for joining us today.

We are grateful for your time and interest in our company. As Aravind explained to you, we are a precision manufacturing company.

We make complex, high-quality components for some of the world's biggest brands, which include almost every aerospace OEMs, tier 1s, and consumer companies, including a large consumer electronics brand. Our manufacturing presence is vertically integrated, meaning we manage the manufacturing process end-to-end.

It starts from forging, machining, molding, stamping, special process, various secondary processes, and assembly. Everything is done at our three integrated clusters in Belagavi, Hubballi, and Koppal, supported by facilities in France and the US.

This setup has kept us close to customers while, at the same time, capitalizing on India's position as a value-oriented supplier. Our integrated ecosystem gives a strong operating leverage, shared infrastructure across ecosystems, and delivers faster cycles and better cost efficiency.

We have built deep process expertise across forging, machining of titanium, high-strength aluminum alloys, steel, and superalloys, supported by Nadcap-certified surface treatment that meet stringent aerospace standards. These capabilities require years of investment and qualification, making them difficult to replicate and establishing a strong competitive moat for our business.

In terms of manufacturing capability, we can handle large, long-term aerospace programs as well as short-cycle consumer production at high efficiency. We currently operate around 3.96 million machining and molding hours annually, which is supported by our 424 CNC machines and 161 molding machines.

Now I would like to explain our two segments in detail: aerospace and consumer. In aerospace, we manufacture critical parts of aircraft for aerostructure, actuation, engine, landing gear, and interiors, with a comprehensive portfolio of 5,221 parts as of December end.

These programs are highly regulated, and qualification cycles are long. Once approved, they tend to stay with us for years, which gives us visibility and sustained growth.

The aerospace industry is also difficult to enter, but has a large runway for entrenched players like Aequs. This vertical contributes around 86% of our revenues during the 9-month period of FY 2026.

Global OEMs are increasingly rebalancing their supply chain and turning to India as a reliable manufacturing partner. As Aequs, we are well positioned to benefit from this shift, offering a fully integrated, global-certified ecosystem that delivers consistent quality and scalable capacity, supported by strong engineering talent, competitive cost structure, and efficient SEZ operations.

We have seen meaningful growth in sourcing from major OEMs, including Airbus and Boeing. In consumer, we apply the same precision and discipline to make components and products for consumer electronics, toys, and cookware.

While this vertical contributes 13% of our revenues during the 9 months, we are seeing rapid expansion of demand in this segment. At the end of the quarter, our aerospace order book stood at USD 814 million.

During the quarter, we also commenced deliveries to Mattel, and the consumer electronics programs awarded earlier have been fully industrialized, with revenues now beginning to flow. Before I close, I would like to highlight one thing that truly defines Aequs: our people.

We have a strong team of 735 engineers out of total workforce strength of over 2,968. That reflects the significant investment in our engineering capability.

They are the reason we take a new product development to commercial production with speed and precision. We'll continue to build on this strength.

With that, I would like to thank you for your time, and will hand over to Dinesh Iyer, our CFO, who will walk you through the financials and the key highlights for the quarter. Thank you.

Thank you, Rajeev. Good evening, everyone.

I'll be taking you through the financial highlights for the quarter and the first 9 months of FY 2026. For Q3, revenue from operations stood at INR 3,262 million, reflecting a strong 51% growth year on year, which is also the highest quarterly revenue for Aequs Limited, driven by continued growth in the aerospace and consumer verticals.

We reported an EBITDA of INR 381 million, up 353% year on year. This translates to an EBITDA margin of 12%.

PAT for the quarter was at INR -426 million, but this includes both the impact of the labor code expense and IPO-related expenses amounting to INR 167 million. Our adjusted PAT, after removing these one-time items, would have been a -259 million.

For 9 months FY 2026, revenues stood at INR 8,633 million, up 28% year on year, and once again led by strong momentum in the aerospace and consumer segments. Our EBITDA grew 85% from INR 662 million to INR 1,222 million, improving our EBITDA margin from 10% to 14% year on year.

We have also been able to reduce our PAT loss from INR 1,115 million in the 9 months FY 2025 to INR 593 million, an improvement of 47% year on year. If we adjust for the one-time labor code expense and IPO-related expenses, our adjusted PAT for the 9 months would be INR a loss of INR 426 million.

Coming to our JVs, if we include our proportionate share of the joint ventures that we have, total adjusted revenue for Q3 stood at 3,554 million, up 49% year on year, while EBITDA grew 228% to 449 million rupees, resulting in an EBITDA margin of 13%. For 9 months, revenue including JVs would be 9,482 million INR and EBITDA INR 1,410 million, reflecting a 15% margin with growth in revenue of 29% and EBITDA growth of 75%, respectively.

Our aerospace joint ventures continue to deliver strong margins, reinforcing the integrated ecosystem that differentiates Aequs, from forging and special processing to machining and assembly. In Q3, the aerospace business contributed INR 2,685 million, translating to 82% of consolidated revenue.

Aerospace revenue grew 38%, with segment EBITDA at 633 million, which was up 163% year on year. For 9 months, the aerospace revenue was 7,424 million, which showed an increase of 26%, and segment EBITDA was 1,803 million INR, which reflected a 62% year-on-year growth.

The consumer vertical reported revenues of INR 577 million in Q3, up 157% year on year. While our EBITDA loss in this segment widened from 95 million to 159 million, this is primarily due to us being in a scale-up phase.

As our utilization improves with scale, we expect operating leverage to improve our profitability. For 9 months, the consumer segment revenue increased to 1,209 million, showing a 39% increase, and segment EBITDA fell to 159 million, which was a 9% year on year.

Turning to our balance sheet, total assets stood at around 30.5 billion INR in December versus 18.6 billion in March 2025, reflecting IPO proceeds, investment in capex for consumer segment, and increase in working capital in line with business growth. Coming to the key ratios, our balance sheet metrics continue to improve.

Net debt to equity reduced sharply to 0.1x as of 9 months FY 2026, reflecting deleveraging following the IPO and improved capital structure. Due to significant capacity additions in consumer segment, fixed asset turnover moderated during the period to 0.84x from 1.3x.

Excluding the capacity addition in consumer segment, which is starting to deliver revenues, the ratio would have been 2.14x. The ongoing ramp-up across consumer programs is expected to improve utilization.

Net working capital days stood at 120 days of sales as of 9 months FY 2026, broadly in line and showing a slight improvement over FY 2025, which was 132 days on sales, reflecting the long cycle nature of aerospace programs and inventory build to support growth. Aerospace segment ROCE was 18.5% for 9 months FY 2026, reflecting a good improvement over FY 2025, which was 14.3%.

This was driven by the operating leverage. Consumer segment, being in a ramp-up phase with investments front-ended, shows negative ROCE, which is expected to turn positive as utilization increases.

To summarize, top-line growth remains strong, margins are improving driven by operating leverage, and our balance sheet is well capitalized to support growth. Aerospace, being our mature business segment, continues to anchor profitability, while the consumer segment will move towards profitability with increased capacity utilization.

Our priorities remain clear: first, continue to grow aerospace segment profitably; second, drive utilization in consumer segment on the back of customer additions; and third, continue to look for opportunities in aerospace related to defense. With that, we will now open the floor for questions.

Thank you.

Hello, am I audible?

Yeah. Firstly, many congratulations for the IPO debut and for good set of numbers.

Basically, I have few questions. One around your business side.

As an aerospace company, I just want to know the management view, why they entered on the consumer segment, especially on the plastic engineering? Going forward, what's their view on the same?

The second question I have regarding the results. The consumer segment margins of Q3 have been impacted.

I want to know the reason behind it. Even though you are doing good in terms of electronic side, why margin got impacted in Q3?

Okay. This is Aravind Melligeri.

Back in 2016-2017 is when we expanded into consumer from aerospace. The thesis at that time was our capability, if you really look at precision manufacturing and also the requirement, what is required for toys industry, was pretty much similar with respect to the compliance and also the regulations.

In a sense, if you look at it, compliance regulation and safety side of it especially. The global customers who came to India, they were looking for manufacturer with a background of aerospace, automotive, that kind of thing.

We saw the opportunity to enter this vertical and scale without compromising any on investment possibilities in the aerospace side. Apart from leveraging the high precision capability which is required for molds and manufacturing and also the assembly side of it, this is an opportunity to scale.

It's a fairly large market, and it's about $80 billion global market on toys. There are no players in India at that point in time significantly contributing.

We have entered that market. Later, we decided that we expand this into consumer electronics, where opportunity is much larger than what we have seen.

As a product portfolio, if you look at capability perspective, Aequs has always driven on the capability in the manufacturing, the machining, we have stamping, and similar in the plastic injection molding is there, and in consumer electronics, we are doing stamping and precision machining and injection molding. There is a combination which comes into the consumer side of business also.

That's the reason we believe it's a complementary for us to leverage capability of what we have learned in aerospace and to apply for consumer. It's a much higher volume.

What has taken 15 years for us to grow in aerospace, this can happen within few years in a consumer industry because of the way the product scales in this industry. The second one is on the consumer performance perspective, we invested on this product in the consumer electronics over the last 24 months, and we just started product

Yeah. Majority of the capacity has come online, and now, because of that, our EBITDA looks much worse than what it was in the previous quarter.

As our utilization is today only at 35%, and utilization will continue to improve on a quarterly basis, you will see the improve in the EBITDA numbers and also profitability. We have to work with this.

Because early in investment phase, and it is working through and making sure that we are going to get the utilization up and correspondingly translating into our profitability.

I have a follow-up question on this. On aerospace, you are profitable.

Because of the consumer segment, your aerospace margins are getting wiped off. Is there any plan you are thinking to do something in future?

Because I think in the plastic side, consumer segment has been loss-making since a lot of time. Is management planning to do something regarding the same?

The second question is regarding the ecosystem. As it's highlighted that because of your ecosystem, which is the precision making, I'm a little confused that why it's not getting reflected on your margins, being an aerospace company, you are making margins less than 20% and I just want to understand how this ecosystem is helping you on aerospace side.

Hi, this is Dinesh here. Maybe I'll just take that question, and I'll just take the last part of that question.

Again, if you see our segment results, if you see aerospace for the 9 months reported, it's at 24% margins. The margins are healthy there.

That's the margins that you should reflect. In terms of consumer, again, I think what we just mentioned in the sort of introduction is the manufacturing business requires investment upfront.

If I take consumer electronics or toys, I think the investments have been made upfront. If you see year on year, we are showing a steady growth in revenues.

With the revenue growth, you will get the leverage, and the margin should come back. The focus two things: one, on consumer electronics, already we have the customer in place.

The products are getting industrialized. The demand is there.

We should see revenue growth. With revenue growth, you will see the leveraging of whatever investments we have made in terms of capex and people that we have got on board.

It's a similar situation for toys as well. We have the fixed assets in place.

As the revenues grow, you will see a leveraging, and we should start getting into a good margin profile. I hope that addresses your question.

Got it. Thank you so much.

Hi, and good evening, team. Congratulations for the results and IPO listing.

My first question is on the aerospace business. Can you help us understand what are the timelines of execution of the order backlog which you have shared in terms of number of years?

Also, if you can share with us the guidance for fiscal 2026 and if any you have for fiscal 2027 for this point in time? That's the first question on aerospace.

On consumer part of the business, it would be helpful if you can help us understand how is the order book with a key customers on the consumer electronics part of the portfolio which you have recently added. What is the road map to scale the revenues in that segment?

You did highlight that the segment turning profitability is contingent on the improvement in utilization levels. Basis the order book that we have, in your view, by when are we expecting the business to break even and turn profitable?

What is the kind of capex requirement in this business that you're forecasting for the next 12 to 18 months?

Thank you. For the first question, in terms of order book, again, as we mentioned, the order book is USD 814 million.

We expect this to get delivered over the next 5 years. This order book is there up to about 2030, '31.

Obviously, we continue to win new orders, this is not a static number. The number of

$814

million will be delivered between now and 2031 as the projects start scaling up. The second question, in terms of

We can consider this as the TCV value, right?

Yes, this is the TCV, total contract value. That's correct.

Sure. Thank you.

Sure.

On the consumer electronics, again, in terms of order book, typically, the structure with the customer is that we build capacity based on demand that they project. Typically, the way it works is they have a certain demand.

We work with them to build the capacity to sort of fulfill that demand, which is why I said the demand is already there, and where you'll start

seeing

the ramp-up in revenues. There's no order book as such, but the way they work with their contract manufacturer is they build the capacity to meet their demand.

Sure. Basis the indication you have on demand Yeah.

Toys just to add Oh,

sorry. Go ahead.

Basis the demand ramp-up forecasts that you have from the customer, in your view, how should we look at the growth or volume scale-up in this business? At what utilization levels, in your view, the consumer business will be turning profitable or at least break even?

Any timelines do we have for the same?

See, timelines, I think we'll have to see as it goes. I think today, if you see, we are seeing a growth in the quarter.

In terms of again, what I can say is that capacity that we've built is already fully committed by the customer. Now it's a question of how our ramp meets that requirement.

There's no issue of demand. It's only our ability to scale at a quicker pace that will meet the demand.

That's the

Sure. Yeah.

Due to the ongoing memory chip both steep hike in the prices and availability shortages, have you seen any volume impact, or probably since we are in the early phase of ramp-up, we are broadly unaffected by some of these macros here?

Renuka, this is Aravind. Just to give you a little bit of broader on this thing, look, the products have been qualified in the consumer electronics, both the products, and commercial shipment has started.

The customers are happy with where we are, and, in fact, they've asked us to increase our capacity. Obviously, there's no issue with the market share perspective, volume perspective, because we are very small percentage of the overall market share of the customer's space.

Correct.

Right? We don't see that as an issue at this point in time.

Sure. Second question would be given that India has now signed up with EU on the FTAs, we have a French unit there.

In any way, do you think our portfolio tends to benefit on any import of certain components coming up for Europe, or especially on the aerospace part of the business?

Actually, aerospace itself did not have any kind of tariffs between US and EU, sorry, EU and India. It has been 0-0.

Where our consumer toys has certain tariff, certain products has. Consumer electronics typically don't ship to Europe.

Obviously, our customer since our contracts are always ex-works or delivery duty unpaid, customers typically bear the duties. In that situation, we become more competitive in this situation when the if the tariff, whatever the 4-5% is there, goes to zero, in those areas.

Correct. Got it.

Lastly, to close, would you like to share any guidance on revenue margins for fiscal 2026? Or anything for fiscal 2027 at this point in time?

No, Renuka, not at this time.

Sure. Thank you.

Thank you, and best wishes to you.

Thank you.

Hello. Am I audible, sir?

Yes.

Sir. Congrats on a very healthy set of numbers on growth.

Sir, just a few questions. On the order pipeline or on order book, you highlighted USD 814 million as the current order book in aerospace.

Just wanted to understand how would be the ramp-up in order book? Is there any order pipeline that we could work with for the next 1-2 years or in upcoming quarters?

Or how would we go about that? Any indications?

This is a constant process. Sales team is in the front.

Our customer engagements are continuously RSP pipeline continues to happen, and we convert some of them into contracts every quarter. That gets added into our order backlog.

That's what we will communicate every quarterly basis, what's our current order book looks like. You'll see that continuous update on quarterly basis.

It's a continuous process. Every quarter, it moves up, whatever it is, depending on what we executed plus what we signed up.

Sir. It could be in tandem with what the revenue growth is currently there, and it would move along the same lines as what we could work with.

Is that fair assumption?

Look, these contracts are anywhere between 5 to 7 year when we sign new contracts. Some of the contracts signed long back would be ending, and new renewals could have happened.

All that combination will come up. Obviously, it's a measure of what would we deliver in next 5 years.

Sir. On the capex requirement, what would be the capex that we could assume for this year and for aerospace and consumer, if you would like to provide a split of the capex?

This year, most of the capex is already done. There'll only be some more capitalization.

The spend has happened. Some more capitalization will happen in the consumer electronics.

Otherwise, we should not see any new capex that are coming in. You will see some numbers that is getting into capitalized things to post, but otherwise, there are no significant investments in this year.

Okay. Just my last question on the component manufacturing scheme approval that you have mentioned.

Just wanted to know for what product or segment if any particular segment was this for?

This is for consumer electronics segment, mechanical enclosures.

Fine, sir. Thank you, sir.

Hello, am I audible?

Yes.

Thank you, sir. Congratulations for the listing, and thank you for the opportunity.

I had this question. What would be our wallet share in absolute terms for aircraft, maybe the narrowbody ones?

Going forward, what could be the growth in this per-share aircraft?

Look, we are not currently disclosing the exact content per aircraft at this stage. Obviously, I can qualitatively say that Airbus A321 is a significant content as a overall revenue perspective for Airbus A320 family for us as Aequs.

Narrowbody overall is generally a largest revenue share what we have today, and which continues to be because the volumes are largest in the industry. Also growth is also highest in the single-aisle market, which is predominantly Airbus A320 and 737.

Both are growing in the volume. That will continue to have a larger share for us also and winning opportunity also for us.

Having said that, we have enough content of long-range both on 350, 787, 777, 777X, and that's the overall narrative I can provide.

Got it. Could you provide a mix of what could be the one-time delivery part and what could be the repeat business part of this?

We don't do any one-time delivery parts at all. We generally all of everything what we do is under contract, long-term contract.

No, as in what could be for the fresh aircraft and what could be for the MRO business part?

Yeah. Because everything we deliver is under contract to the OEMs or tier 1s.

It's left to them. We are no differential pricing at least out of India.

Little bit, I would say, in our French facility, we segregate between MRO and aftermarket and OEM. Then there is a content which there, obviously, it's a differential pricing.

That's how it works.

Sir. Fine.

Sir, on the consumer electronics side, is there any change in capacities, for enclosures, if I'm not wrong, we had 10,000 per day capacity and watch cases, we had 4,000 per day kind of capacity. Is there any change in that as you said capitalization is still yet to be done?

What could be the final capacity for that?

Look, we are not commenting on that specific question.

Okay. Got it, sir.

Thank you. All the best for the

Thank you.

Thank you, sir, for giving me the opportunity. My first question is client-wise breakup of revenue if you can tell us, from Boeing, Airbus, and

We don't provide that split.

Okay. Sir, the next question is, recently, we have observed many Indian groups are trying to build up commercial aerospace manufacturing in India.

How we are seeing that opportunity?

Look, we would be happy to supply to anybody who does commercial aerospace or aircraft build. We have no issue with it.

Ultimately, these are all approved by the OEMs. If you are supplying to the OEMs, if all these designs are not done in India, these are existing designs getting built in India.

If you are supplying to that original design, those same parts will end up coming here, if they set up a factory here.

It

just translates.

Okay. How you are seeing about the opportunity in the defense aircraft manufacturing in India?

Look, we have capacity to support anyone. Question comes down to is in the defense side of it, we would like to be more of a system-level contributor.

That's why we announced joint venture partnership with Axiscades and Aegis Defence to get into the UAV market design and manufacturing. We believe we would like to play at a system level in that segment in the India defense specifically.

We do support the defense activities in France and US locally also.

Okay. Thank you, sir.

That's all from my side. Thank you.

Hope I'm audible.

Yes. Yeah.

My question is on the consumer side. On the consumer side, we have toys and electronics, right?

The cookware business we are doing via JV now. My question is how much of a rough mix would be of this quarter or for the 9 months would be from toys and from electronics?

Second question would be from toys perspective, in one of the TV interviews, I have heard you say that you are in line with we're bringing on some new customers for the toys business. How is that going?

How is the Hasbro's business currently perspective? Because this all dipped in the last year.

Again, we are seeing that Hasbro is planning to shift again from China to India. Is that how is the growth in the toys business?

The third one would be with the electronics business, as I understand once the ramp-up comes, we would be seeing the profitability. How do we see maybe how many months or how many quarters roughly we can get to achieving that ramp-up?

If you can comment on any of the steps.

Let me maybe try to answer this question. The consumer side, you're asking how much is the toys versus the consumer electronics.

We don't split that number because predominantly is evolving segment for us. Today, I can say that the consumer electronics is a small portion of the overall 9 months.

We believe it's going to accelerate much faster, and it's going to be a significant portion of our consumer business as we go forward.

Okay.

Toys perspective customer basis, we have onboarded Mattel as a new customer strategically, long term, on agreement signing. We believe Hasbro is also growing and will continue to grow both of them.

That's how we look at it. We have existing capacity.

We're not investing any new capacity in this vertical at this stage.

I get that. Okay.

Mattel, when will the revenue kick in Oh, already started the revenue. Okay.

Q3. Last quarter.

Q3. Okay.

Good. Thank you.

On the last one, when would be at least on that PAT basis, we would be break-even for consumer, or else when we'll be achieving that revenue potential in consumer?

Sorry, we couldn't hear that properly.

No. When we would be PAT break-even in consumer segment, and when we'll be achieving the revenue potential which we are aiming in consumer?

Maybe a rough estimate of how many quarters down the line we would be like that.

We cannot put that exactly at this point in time because our utilizations are going up to take some more and also same time, our customers are happy and asking us to increase our capacity. We have to bring those equations together to figure it out how it works out.

We need some more time to get to that question this exact point in time. Right.

Okay. Maybe one last question.

On the aerospace segment, what would be our recurring capex? Because it's a capital-intensive business, I understand.

What would be the recurring capex which we would be incurring year-on-year? In line with depreciation, or whether they would be incremental?

The capex in aerospace you're asking?

Yeah. Because it's a capital-intensive, it will be recurring continuously.

Whether it will be in line with depreciation, or there will be an incremental capex on top of depreciation?

It's depends on the programs we sign up. Obviously, we have some head room in the utilization today.

Where are 71% in India utilization. We have opportunity to go 75% still.

The capex evaluation happens on a continuous basis. Because both opportunities there, more parts we take, more programs we take at this stage is a fairly a good lock for us for long term.

We would like to take as much as possible. We have ability to take on.

Okay. Aerospace 75% potential.

What will be the potential for consumer, Mr.

Sure. Thank you.

First question is, what are typical consumer segment gross margins for toys and electronics?

Sorry, we couldn't hear you properly. Can you repeat that, please?

Sir, I asked what are typical consumer segment gross margins for toys and electronics?

Long term, once we reach an ideal utilization, our margins will be broadly in line with aerospace. You can model around that.

Just to, again, clarify that if you see capability in consumer electronics and aerospace, capability is very similar. Again, the processes are same: it's machining, surface treatment, all of that is similar.

The margins also will be on similar lines.

Understood, sir. Understood.

On the aerospace side, when you said major revenues coming from Airbus, which product are we exactly supplying to Airbus?

We have more than 2,000 part numbers we deliver to Airbus across various divisions of Airbus: Airbus UK, Airbus France, Airbus Germany. It's wing components, the fuselage, various components we deliver.

That's a very broad question. Some we deliver indirectly also through the tier 1s, Safran.

There's a combination of parts. 5,000 parts we overall deliver to the our customers, and over 2,000 for Airbus.

Understood.

Understood. Because I think I saw that you are supplying doors to Airbus in your investor presentation.

I have heard that, I guess, Dynamatic Technologies also won a huge order for all the doors. Is it a different program or are you aware of this?

In fact, we also supply to Dynamatic. Dynamatic is also our customer.

We work on a different program.

Got it. Understood.

That's it from my side. Thank you.

Hello, yeah. Hi, sir.

How are you? I just wanted to ask a question that I believe that Aequs is also part of the Apple supply chain, the Apple ecosystem, for watches and the MacBook.

Where exactly are you placed right now in the whole agreement, and have you started supplying items to them? Is it a permanent contract which you have with them?

Look, in the consumer electronics industry, pretty much we supply components, as mentioned earlier. We're part of a consumer ECMS scheme, which is recognized for the mechanical enclosures.

That's a core area for us. It's a mechanical components we supply to the consumer electronics industry.

That's all I can comment at this point in time.

Capacity that we're building is underwritten.

Yeah.

In terms of demand, there's no concern.

Got it, sir. Thank you.

Hello. Thank you so much for the opportunity.

Basically, I want to understand the margin break-up. Because in consumer, you have a three different components to deliver, like consumer electronics, plastic, consumer durables.

Can you give the bifurcation of approx margin, how much the particular segment is contributing? The other question is on the aerospace, because we know that in aerospace, even though you have a 5,000-plus SKUs, I just want to know that does Aequs hold any sole supplier status for some of the components?

If you could provide guidance on that.

To the first question, this is Dinesh here. The first question, again, like we said, at a consumer overall on a segment basis, you should see at a steady state with ideal capacity a margin similar to aerospace, which is about 18-20% EBITDA margin.

That's what we should look for. In terms of the single source, I'll just hand over to Rajeev to address that question.

With respect to the single source, we're over 90% on the number of parts we mention for aerospace.

Okay. I just want to know you supply to tier 2, tier 3 suppliers, and even the tier 1.

Can you provide the bifurcation or break-up of the same? How much comes from the tier 1 or tier 2, 3 suppliers?

See, we can't provide that bifurcation, but generally, they're only Airbus and Boeing. Whatever goes to these two people at the end of the day.

Tier 1, tier 2, wherever we deliver will go at the end of the day to these two guys.

Okay. Fine.

Thank you.

Hi. Congratulations on great set of numbers.

I have two questions, actually. The first one is basically during the pre-IPO interviews or the interactions by the management in the public, actually management was guiding for the overall PAT positive will be achieved by the end of FY 2027, if I'm not wrong.

Are we still on track to achieve that guidance?

Look, our overall PAT positive will be driven by the consumer electronics maturity. There are some dynamics which are coming in, which especially with the customer being happy and asking us to increase the capacity.

We need to make that evaluation, how does that play out into our profitability timeline. That's the reason we earlier said we need some more time to make that call on the timeline of consumer electronics profitability.

Whereas aerospace continues to increase profitability, and without consumer electronics, achieving the profitability will make an overall consolidated business profitability because aerospace continues to grow and our losses will start coming down. We cannot give exact at this stage.

Understood. Just a follow-up on that.

Since now you are looking for more time to give this guidance or the clarity because of the positive surprise which you are receiving from the customer. Only thing is that we need to recalibrate and then re-evaluate the timeline to achieve that, but it is on the positive side of it, not on the other side, if I understand correctly.

Yeah. Things are going well.

Obviously, customer is asking us to look at more capacity. That has an impact on the timeline, because capex comes with a capex and depreciation and capacity addition.

So Got it. Understood.

Though we are getting a new customer capacity addition request, it may drag the timeline a bit because of the capacity addition and the respective depreciation charges so on.

Yeah. It's a choice for us, what path we take.

Okay. Can we expect this clarity in the next conference call, by any chance?

I can't because there is another element of utilization also, which we have to factor in. Utilization is growing continuously.

You saw last quarter to this call, utilization has grown. We will continue to work together to figure out what it means.

Sir. Thank you very much.

That's all I have. Once again, congrats on a great set of numbers on the growth front.

Thank you.

Thank you for this call. Sir, this is preliminary for me to understand, my questions will be elementary here.

Just wanted to understand what kind of scale of business that we are targeting maybe 3 years out, because one of our divisions, consumer division, is in a scale-up phase, and the other business is in a growth phase. Where do we plan to reach maybe 3 years out?

As you said, the margins on a optimal utilization basis might be around 18-20% that one would target. How far is that?

If these two questions can be answered, please.

I would answer it in a way what I can say is our goal is to balance the consumer and aerospace business in a long run. We want to get there as fast as possible because that's an opportunity we have.

That means we have to scale consumer side faster. It'll happen because that's how the nature of the business is.

Obviously, the margins, we are guiding always that consumer and aerospace will have similar margin profiles, when you're at scale. That's the two points which I want to make.

I hope that answers your question. Sir,

just to put that in numbers, I think we've done something like 800-odd crores in the first 9 months. We're on a run rate probably of 1,200 crores on this sales, right?

Where do we see 3 years out? Maybe is on a conservative basis, say 25% is a right CAGR to assume for your company, or is it likely to be higher?

Some direction on that would be helpful to us to understand.

I'd just say, if you see that, we have opportunity to grow north of 20% in our aerospace business, what we are seeing, what we are guiding. Obviously, consumer has much faster than that.

That we point in time.

Got it. Would love to meet you and understand the business in greater detail.

This call is good to have a basic understanding, but would look forward to meet you guys sometime. Yeah.

Please reach out to investor relationship team, and

sure,

we can do.

Thank you so much.

Hi. Am I audible?

Yes.

Hi. Congratulations, sir, on a good set of numbers.

My first question is on your EBITDA margin profile on your aerospace segment. If you could just help me understand from what I understand is that you are a tier 1 supplier to OEMs.

I would expect that the EBITDA margin you would have some sort of a pricing power, that's how we understand the industry. Compared to a few other players in this industry, we see your margin profile at around 20 to 24%.

Is that something which is going to improve going forward, or is this the base that we should assume going forward?

See, again, the specific question, for the 9 months, our margins have been 24%, and we continue to see the margin range in 20% plus range. That's what we see.

I think important thing, while we will not comment on other companies, I think important thing to see is the scale at which we are operating, which is significantly larger, I think, the competitors you're referring to. We are comfortable at this level, and also, you have to remember we have a ecosystem which has multiple capabilities.

All of those call for investment. The advantage is that gives us a deeper sort of insight into the customer.

Our global presence is also a cost structure, but that gives us a better traction with the customer. Those are the differentiators.

If you see the ecosystem and global presence, gives us an advantage in terms of being a long-term partner to the customer at a very large scale. Just to add again, all our investments are large scale, we don't do in a smaller scale.

Those initial costs will be there, but this gives us a longer-term relationship with the customers. Okay.

But

20% plus is what we should expect even going forward?

That's correct. That's right.

Okay. Got it.

Got it. Sir, one more question would be that like since we have a huge backlog, right, order backlog, but in even in the aerospace segment, we are seeing, 65% utilization.

Like could you help understand that? Like why is the utilization not higher?

Yeah. Sorry.

With respect to the aerospace, currently, our utilization in India is around 71%.

Our

overall generally in the year, utilization of around 75%. That's where we guide our utilization to be reaching for the maximum utilization.

Okay. All right.

Thank you. Thanks for answering my questions.

Hello, thank you, sir. Sir, on the aerospace side of things, how should we look at the high value-added products like the landing gear system and engine system?

Going forward, what are the plans on these segments? What could be the maybe revenue share and margin improvement?

Any broad idea on this?

Look, today, majority of our aerospace business is aerostructures. As a part of our stated strategic objective is to expand into landing gear and engine components, which we already do, by the way.

In French facilities, predominantly, that's what they do, and in India also, we do. Our vertically integrated ecosystem, especially forging and machining combination and surface treatment, is very suited to do the landing gears.

We are engaged with all our key landing gear customers, and that's an opportunity for both on engine and landing gear. More vertically integrated, we will end up doing better on overall margin perspective.

Got it, sir. Just one more follow-up.

As you said, our capacity utilization are at 71%, and stable utilization could be 75%. Going forward, in FY 2028, can we see capex in the aerospace segment?

There's a capex which continues to happen in the aerospace. We had capex last quarter, Q3 also, and you'll see some in Q4 also.

It's a continuous capex. It's not a lumpy capex in aerospace because we win orders, and we look at the capacity over 18 months, what is required, because the lead times to get machines in aerospace is long.

It could be as much as 1 year for us. We plan 18 to 24 months out capacity demand and based on the order book what we have and what needs to be executed, and that's how it is done.

We keep adding machines.

Got it, sir. Thank you so much.

Appreciate for all of you joining our first call, and look forward to engaging further with you all during the course of the quarter and in the future. Thank you.