India’s Aircraft Component Sector Takes Off: A Look at the Rapid Growth

India’s aircraft component sector is booming! Global aerospace giants are increasingly sourcing from India, driving growth and expansion in domestic firms. With strong order books and a favorable tariff structure, the industry is poised for significant growth. The sector’s preparing to raise Rs 5,700 crore through IPOs, backed by investor appetite and a strong equity market.

Key Highlights:

Aequs chairman and CEO Aravind Melligeri emphasizes their critical role in the global supply chain, saying, “We build the business and invest for the long term.” With 89% of revenue from aerocomponents, Aequs is a key player. Boeing and Airbus are increasing sourcing from India, with Boeing’s annual sourcing exceeding $1 billion and Airbus targeting $2 billion by 2030.

Azad Engineering’s aerospace and defence revenue skyrockets 84% to Rs 81 crore in FY25, with a 215% stock surge since listing. CEO Rakesh Chopdar attributes this to years of consistent performance and reliability, earning trust with global OEMs like Honeywell Aerospace and Rolls Royce. The company’s order book stands at Rs 1,700 crore, 20x its annual sales, driving expansion with a new facility in Telangana.

Unimech Aerospace eyes growth via acquisitions and JVs, evaluating targets in India and the US, says co-founder Rajanikanth Balaraman. India is advancing in complex product manufacturing, with Unimech delivering 4,769 SKUs and adding 381 new ones in Q1 FY26, showcasing the country’s growing capabilities in aerospace.

Why India is a Prime Destination

IPO tracker Prime Database shows that SMPP and Aequs have received Sebi approval for initial public offerings of Rs 4,000 crore and Rs 1,700 crore, respectively. Despite being a major buyer of aircraft, India currently accounts for only 2% of the global aerospace supply chain. Companies including Aequs expect this to rise to 10% in the near future.

India is turning out to be a large aviation market for global companies. It will be 10% of the aviation market in the coming decade and we are just 2% of the supply chain. So that drives their top level thinking that where the market is, they also need to show there is significant procurement that happens.