Aerpace Industries: consolidated loss widens 71% YoY to ₹5.89 Cr, still no core revenue

Aerpace Industries' consolidated revenue from operations was nil for a fourth straight quarter, with the only income being ₹0.23 Cr of other income, while total expenses rose to ₹6.15 Cr — widening the consolidated net loss to ₹5.89 Cr (EPS -₹0.38), 71% deeper than the ₹3.45 Cr loss a year ago (Q2 FY26) and 42% worse than the ₹4.15 Cr loss in Q1 FY27. Standalone (parent-only) tells a sharper version of the same story: the loss nearly tripled YoY to ₹5.51 Cr from ₹1.90 Cr, as parent-level total expenses grew 133% YoY to ₹6.72 Cr versus a 74% YoY rise in consolidated expenses (₹6.15 Cr) — the gap indicates cost growth is concentrated at the standalone entity rather than in the Supercars/Dubai subsidiaries, a divergence worth flagging since readers will see both numbers. With core revenue still nil, conventional NPM/OPM are not meaningful (both sit near -100%, matching our own comparison records for the prior two quarters); the loss is being driven purely by the cost base building ahead of revenue — consolidated employee benefit expense ₹2.42 Cr, finance costs ₹0.50 Cr, depreciation ₹0.93 Cr and other expenses ₹2.31 Cr, versus a combined ₹3.53 Cr a year ago. The company continued capitalising setup costs rather than expensing them: ₹1.77 Cr went into CWIP this quarter (₹2.22 Cr for the half-year) on import/installation of machinery, and Intangible Assets under Development — the R&D/product line for the Superwing, Supercar and Aerdock programme — grew to ₹32.88 Cr from ₹27.67 Cr at FY26-end. There is no analyst coverage or formal management guidance on record for this filing — a micro-cap in transition with no revenue yet on its new "aerpace" vertical — so vsStreet and vsGuidance cannot be assessed; no management press release was available in the context either. Alongside results, the board approved reallocating ₹30 Cr of the ₹36.62 Cr balance warrant-conversion proceeds (from the September 2026 preferential allotment of 1.5 Cr warrants to promoter entity N K Family Private Trust) toward ₹15 Cr capex and ₹15 Cr loan repayment, trimming the pure working-capital use to ₹18.83 Cr. Current borrowings jumped to ₹52.70 Cr from just ₹1.42 Cr at FY26-end, funding that capex and working-capital build. The quarter also saw two new director appointments (September 8 and September 24) and a trading-window closure ahead of results — consistent with a company actively building out governance and leadership as it scales a still pre-revenue business line.