Aequs Limited, the precision engineering firm based in Belagavi, Karnataka, is undergoing a profound transformation in India's aerospace landscape.

Long recognised for supplying critical components to giants like Airbus and Boeing, the company is now venturing boldly into defence manufacturing. This shift promises to position Aequs as a pivotal player in India's quest for self-reliance in high-tech defence systems.

The catalyst for this pivot is a strategic investment in Ajna Aerospace & Defence Private Limited. On 6 March 2026, Aequs subscribed to equity shares and seed compulsorily convertible preference shares worth ₹10.01 crore, securing a 33.33% stake on a fully diluted basis. This creates an equal three-way joint venture with Accel India and Vagus Defence Tech & Aerospace Fund I.

Ajna's mandate is ambitious: it will license UAV intellectual property from international partners in Germany, Israel, and Ukraine, while developing proprietary Indian IP. The focus encompasses manufacturing, assembly, testing, marketing, and sales of unmanned aerial vehicles both domestically and globally. Aequs steps in as the operational manufacturing arm, leveraging its precision expertise.

Executive Chairman and CEO Aravind Melligeri emphasised the intent to move beyond mere components. "We did not want a component manufacturing play on the defence side," he stated. "We wanted a system-level play." Revenues from UAVs are projected to commence in FY28, potentially as early as FY27, contingent on swift government contract approvals.

This timing aligns perfectly with surging demand for defence drones in India. On 3 March 2026, the Defence Procurement Board greenlit the development phase of the Ghatak stealth drone project and proposed acquiring 60 units, pending Defence Acquisition Council approval. India's technology roadmap envisions up to 100 stealth UCAVs for the Indian Air Force and 50 for the Army.

Aequs's credentials make it ideally suited for this surge. With established ties in the defence supply chain and precision manufacturing prowess, the company eyes future opportunities, including components for the Advanced Medium Combat Aircraft (AMCA). Melligeri highlighted these as integral to the long-term vision.

Yet, the drone venture is merely one pillar. In February 2026, Aequs inked a ₹1,900 crore memorandum of understanding with the Tamil Nadu government for a fully vertically integrated aero engine component manufacturing facility. This 10-year investment mirrors the company's 15-year journey in Belagavi, where it achieved 100% in-country value addition for Aerostructures.

Aero engines represent a technically demanding frontier with immense potential. A commercial aircraft arrives with two engines, but over a 30-year lifecycle, components require frequent replacement. The aftermarket dwarfs original equipment sales, drawing global manufacturers eager to diversify supply chains beyond concentrated regions.

Aequs already contributes significantly here, supplying parts for engine systems, landing gear, and structures in programmes like the Airbus A320 and Boeing 737. Aerospace accounts for 89% of its FY25 revenues. The Tamil Nadu facility aims to replicate Belagavi's vertical integration model, creating competitive advantages through deliberate capacity building and global partnerships.

Financially, Aequs is scaling aggressively. Its December 2025 IPO raised ₹670 crore, listing on the NSE at a 12.9% premium to the issue price of ₹140 per share. Q3 FY26 revenues jumped 51% to ₹326.2 crore, though net losses widened amid heavy investments in future growth.

These dual initiatives—the Ajna JV for drones and the Tamil Nadu MoU for engines—form a cohesive strategy. Aequs harnesses its world-class infrastructure and OEM relationships to ascend into higher-value defence and aerospace systems.

This evolution underscores India's Make in India ambitions in defence. From a reliable parts supplier, Aequs is redefining itself as a systems integrator, quietly scripting one of the nation's most compelling industrial narratives.

ET News