According to reports from CNBC TV18 and Rediff Moneynews, Aequs Ltd. has secured long-term supply agreements with Safran for aerospace applications, expanding its relationship from six entities to include Safran AeroSystems and Safran Electronics & Defense. The precision manufacturing company announced these contracts on Monday, building on its existing partnership with Safran Landing Systems and extending the relationship to other Safran entities. The agreements will support Safran's supply chain and ongoing production programs while contributing to Aequs' growth within the aerospace sector. As per Aequs, these contracts reflect the commitment of both companies to strengthen their collaboration and highlight Safran's dedication to working with trusted, high-quality industrial partners.
As reported by CNBC TV18 and Rediff Moneynews, the agreements involve major work at the upcoming Aequs Engine Components Ecosystem (AECE) in Hosur, Tamil Nadu, covering machining of superalloys parts, complex machine coating, and assembly of landing gear components for Airbus A320, A330, A350 and Boeing 787 programs. Aequs will leverage its integrated aerospace manufacturing ecosystem across forging, precision machining, special processes, surface treatments, and assembly to manufacture these products. The company's Belagavi Aerospace Cluster will serve as an integrated manufacturing base for global aerospace supply chains, with the AECE expansion enabling manufacture of all medium and large parts. The agreements further strengthen the role of Aequs' Belagavi Aerospace Cluster as an integrated manufacturing base serving global aerospace supply chains.
According to CNBC TV18 and Rediff Moneynews, Aequs chairman and CEO Aravind Melligeri stated that the components the company will manufacture for Safran are among the most demanding flight-critical products to industrialise. He emphasised that these landmark awards demonstrate the depth of aerospace manufacturing capability now available in India and the strength of the ecosystem created by the company. As per Aequs, these agreements reflect what the company was built for: long-horizon partnerships anchored in capability, reliability, and scale. Being entrusted with these products is a strong proof of the trust built with customers over the years and of the capabilities developed across manufacturing ecosystems.
According to latest reports, Aequs has achieved significant financial milestones with its aerospace business. The company's aerospace order book has surpassed $1 billion, delivering strong multi-year revenue visibility across global OEM programs. Aequs reported Q1 FY27 consolidated revenue of ₹395.5 crore, up 55% YoY, with aerospace contributing 81% of total revenue at ₹322.2 crore, up 40% year-on-year. The segment reported an EBITDA margin of 22.7% and return on capital employed of close to 22%. The securing of long-term supply agreements with Safran reinforces Aequs' execution track record in flight-critical manufacturing and moves the company into specialized superalloy machining and complete sub-assemblies, enhancing realization per aircraft and strengthening ties with dominant global Tier-1 OEMs.
According to latest reports, Aequs is significantly expanding its aerospace manufacturing capabilities to meet growing demand from global aircraft manufacturers. The company has capacity utilisation at 70% in Q1FY27, up from 62% in FY26, with management considering 75-80% utilisation as a comfortable operating range. To support expansion, Aequs signed a memorandum of understanding with the Tamil Nadu government for ₹1,900 crore investment over 10 years to establish an integrated aerospace ecosystem near Hosur, expected to begin commercial revenue generation in FY29. The company has also committed ₹2,856 crore over five years to expand precision engineering capacity in Karnataka, with management evaluating reallocation of some expenditure toward aerospace following recent wins. These investments will support future demand but also increase capital expenditure and associated costs.
