Aequs is an integrated aerospace manufacturing company operating from the Belagavi SEZ in Karnataka. It earns revenue by producing precision-engineered aerospace components through machining, forging and aerostructure manufacturing. Its products are used in global aerospace supply chains for aircraft structures and assemblies. The company focuses on large-scale, export-driven aerospace manufacturing enabled by SEZ benefits.

Major clients are aerospace OEMs and Tier-1 suppliers (as inferred from SEZ approval categories for aerospace parts). The company’s major facility is a 65,000 sq. ft. machining unit located inside the Aequs Aerospace SEZ, spread across 743,492 sq. meters. The SEZ is approved under the SEZ Act 2005, audited by the Development Commissioner’s office, with strong compliance and infrastructure for aerospace production.

The product portfolio includes machined components, forged parts and aerostructure assemblies. These products fall into the mid-life and replacement cycle of aircraft platforms, supporting long-term client programs. The SEZ approval covers machining, warehousing, manufacturing and testing of aerospace parts. While the order book details are not provided in the document, the company’s capability setup indicates multi-year execution cycles due to aerospace qualification and long-term supply contracts.

The company has undergone administrative restructuring under the SEZ authority and continues to execute long-term expansion through approved aerospace manufacturing operations. The future plan, as inferred from the SEZ approval, includes scaling precision machining, forging and assembly capability within the fully approved aerospace SEZ area. No specific merger or capex numbers are mentioned in the document, but the SEZ development indicates sustained capacity expansion.

Employees & Banker

As of September 30, 2025, the company had 1,892 full time employees. The Banker to the Company is HDFC Bank Limited.

MANAGEMENT & VISION

The SEZ operations are overseen by the Development Commissioner’s office, with administrative oversight previously managed by officials such as Shri G.K. Vishwanath (I.A.S.) as per the document timeline. While individual management profiles are not listed, the company’s vision aligns with building a globally competitive aerospace manufacturing ecosystem within India. The long-term goal appears to position Belagavi SEZ as a consolidated aerospace manufacturing hub with scaling capacities in machining, forging and aerostructures.

Funding for future expansions is expected to be aligned with SEZ-enabled incentives, internal accruals from export-linked aerospace contracts, and strategic capital investments to expand machining and assembly lines. The SEZ structure also facilitates cost-efficient expansion through shared infrastructure and streamlined regulatory support.

INDUSTRY OVERVIEW

Aequs operates in the aerospace manufacturing industry, which is characterized by high entry barriers, intensive certifications and long product cycles. Although the document does not provide industry numbers, the Indian aerospace manufacturing market is generally driven by global outsourcing trends and government incentives for domestic manufacturing.

Globally, aerospace component manufacturing is a multi-hundred-billion-dollar industry with steady long-term growth driven by aircraft fleet expansion, defence modernization and rising MRO demand. India’s aerospace components market continues to grow due to cost competitiveness and SEZ-based export facilitation. The industry typically grows between 5%–8% annually worldwide, with India growing faster due to localization initiatives.

MAJOR RISK FACTORS

1. Dependence on Aerospace Sector Cycles
Aequs’ revenue depends heavily on global aerospace demand. Any slowdown in aircraft production, supply chain disruptions or OEM program delays can directly affect the company’s machining capacity utilization and export-driven order flow.

2. High Compliance & Certification Requirements
Aerospace manufacturing requires stringent audits, certifications and ongoing regulatory compliance. Any deviation can lead to delays in approvals, production stoppages or disqualification from OEM supplier programs, impacting long-term business continuity.

3. Concentration of Operations in SEZ
The company’s operations are concentrated within the Belagavi Aerospace SEZ. Any change in SEZ policies, tax benefits, regulatory environment or administrative processes can materially impact operational efficiency and profitability.

4. Capital-Intensive Operations
Aerospace machining and forging operations require continuous capital investment in high-precision equipment. Limited access to capital, rising borrowing costs or delays in capex execution may restrict the company’s ability to scale capacity.

5. Customer Concentration Risk
Aerospace supply chains typically rely on a few large OEM and Tier-1 clients. Although the document does not list specific clients, high dependence on a few customers may affect revenue if any single client reduces orders.

6. Long Qualification Cycles
Aerospace components require long approval and testing cycles before production begins. Delays or failures in qualifying parts may postpone revenue generation and affect future order execution schedules.

KEY STRENGTHS & OPPORTUNITIES

1. Integrated Aerospace Manufacturing SEZ
Operating within a dedicated aerospace SEZ provides Aequs a strong competitive advantage through shared infrastructure, regulatory benefits, tax advantages and a cluster-driven ecosystem that enhances efficiency and global competitiveness.

2. Specialized Machining & Forging Capabilities
The company’s focus on aerospace machining, forging and fabrication positions it strongly in a high-entry-barrier segment requiring precision, certifications and long-term client relationships—enabling stable, multi-year revenue streams.

3. Large SEZ Infrastructure Footprint
With 743,492 sq. meters of approved SEZ area, Aequs has substantial capacity for expansion. This large industrial footprint supports scaling of multiple aerospace verticals under a unified operational ecosystem.

4. Long-Term Supply Programs
Aerospace clients typically provide multi-year production schedules once components are qualified. While specific order book numbers are not provided, the business nature supports sustained revenue visibility through long product lifecycles.

5. Strong Regulatory Compliances
The SEZ documentation and periodic audits ensure strong governance and operational compliance. Such regulatory alignment enhances customer confidence, essential for aerospace OEMs that prioritize supply chain reliability.

6. Opportunity from Global Outsourcing Trends
Increasing outsourcing by global aerospace OEMs to cost-efficient markets like India provides Aequs the opportunity to capture higher-value work packages, expand machining programs and grow export revenues.