AZAD - Azad Engineering
📢 Recent Corporate Announcements
Azad Engineering Limited has scheduled a group meeting with institutional investors and analysts on March 13, 2026, in Hyderabad. The meeting is organized by Goldman Sachs and is set to commence at 9:00 AM IST. The company has explicitly stated that discussions will be based on publicly available information and no unpublished price-sensitive information (UPSI) will be shared. Such meetings are standard practice for listed companies to maintain transparency and engage with the investment community.
- Group meeting with investors and analysts scheduled for March 13, 2026
- Event organized by global financial services firm Goldman Sachs
- Meeting to be held in Hyderabad starting from 9:00 AM IST onwards
- Company confirms no unpublished price-sensitive information (UPSI) will be discussed
Azad Engineering reported a strong Q3 FY26 with revenue growing 31% YoY to ₹155.8 crores and PAT rising 40.1% to ₹34 crores. The company's 9-month profitability has already surpassed the total profit of FY25, driven by a robust order book of over ₹6,500 crores. Management maintains a positive outlook with a 25%+ revenue growth guidance and sustainable EBITDA margins in the 33-35% range. New facilities for global OEMs like GE and Siemens are currently in the stabilization phase, with full utilization expected by FY28.
- Q3 FY26 Revenue grew 31% YoY to ₹155.8 crores; EBITDA rose 40.7% to ₹60.1 crores.
- 9-month PAT grew by 55% YoY, already exceeding the entire FY25 profit level.
- Order book remains strong at over ₹6,500 crores, providing multi-year revenue visibility.
- EBITDA margins remained stable with a long-term target range of 33% to 35%.
- Capacity expansion for GE, Mitsubishi, and Siemens is on track for full utilization by FY28.
Azad Engineering Limited has released the audio recording of its earnings conference call held on February 14, 2026. The call discussed the company's unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025. This disclosure is a routine regulatory requirement following the announcement of quarterly financial results, providing transparency for shareholders who could not attend the live session.
- Earnings conference call conducted on February 14, 2026, at 11:00 AM IST.
- Covers financial performance for the quarter and nine-month period ended December 31, 2025.
- Official audio recording link provided for public access to management commentary.
Azad Engineering reported a strong performance for Q3 FY26, with consolidated revenue from operations growing 30.2% YoY to ₹158.72 crore. Net profit for the quarter rose significantly by 44.1% YoY to ₹34.17 crore, driven by robust operational execution. On a nine-month basis, the company's PAT surged to ₹95.75 crore compared to ₹61.73 crore in the previous year. The company maintains healthy margins with a basic EPS of ₹5.27 for the quarter.
- Consolidated Revenue from Operations increased 30.2% YoY to ₹1,587.19 million in Q3 FY26.
- Net Profit (PAT) for the quarter grew 44.1% YoY to ₹341.71 million.
- 9M FY26 Revenue reached ₹4,414.36 million, up from ₹3,304.28 million in 9M FY25.
- Basic EPS for the quarter improved to ₹5.27 compared to ₹4.71 in the same period last year.
- Total expenses for the quarter were managed at ₹1,190.40 million against a total income of ₹1,668.56 million.
Azad Engineering reported a strong performance for Q3 FY26, with consolidated revenue from operations growing 30.2% year-on-year to ₹1,587.19 million. Net profit for the quarter increased significantly by 43.8% YoY to ₹341.17 million, up from ₹237.20 million in the same period last year. For the nine-month period ended December 2025, the company's profit reached ₹957.54 million, a 55.1% increase compared to 9M FY25. The company maintained steady growth momentum with total income for the nine-month period rising to ₹4,705.09 million.
- Consolidated Revenue from operations grew 30.2% YoY to ₹1,587.19 million in Q3 FY26.
- Net Profit (Consolidated) surged 43.8% YoY to ₹341.17 million for the quarter ended December 31, 2025.
- 9M FY26 Consolidated Profit stands at ₹957.54 million, up from ₹617.25 million in 9M FY25.
- Basic EPS for the quarter improved to ₹5.11 compared to ₹4.01 in the year-ago period.
- Total Consolidated Income for the nine months ended Dec 31, 2025, rose to ₹4,705.09 million from ₹3,439.19 million YoY.
Azad Engineering Limited has announced its earnings conference call scheduled for February 14, 2026, at 11:00 AM IST. The call will focus on the unaudited financial results for the third quarter and nine months ended December 31, 2025. Senior management, including the CEO and CFO, will be present to discuss operational and financial performance. This is a routine but essential event for shareholders to gain insights into the company's growth and margin profile.
- Earnings call scheduled for February 14, 2026, at 11:00 AM IST
- Discussion will cover Q3 and 9M FY26 unaudited financial results
- Top management including CEO Rakesh Chopdar and CFO Ronak Jajoo to participate
- Universal dial-in numbers provided: +91 22 6280 1309 and +91 22 7115 8210
Azad Engineering Limited has informed the stock exchanges about a change in the legal constitution of its Statutory Auditors, M/s. M S K A & Associates. The auditing firm has converted from a partnership into a Limited Liability Partnership (LLP) effective January 13, 2026. This is a purely administrative change, and the firm will continue as the Statutory Auditor for the remainder of its approved tenure. There is no change in the actual audit engagement or the personnel involved.
- Statutory Auditor M/s. M S K A & Associates converted to an LLP effective January 13, 2026
- The firm is now known as M S K A & Associates LLP with ICAI Registration No. 105047W/W101187
- No change in the audit engagement or the remaining period of the approved tenure
- The company was formally notified of this change on January 22, 2026
Azad Engineering Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the period ended December 31, 2025. The filing confirms that the company's Registrar and Share Transfer Agent, KFin Technologies Limited, has processed all dematerialization and rematerialization requests. This ensures that the shareholding records are updated and the securities are listed on the BSE and NSE. Such filings are standard procedural requirements for all listed Indian companies to maintain regulatory transparency.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Confirmation received from Registrar KFin Technologies Limited dated January 2, 2026
- Verification that dematerialized securities are listed on relevant stock exchanges
- Adherence to SEBI (Depositories and Participants) Regulations, 2018 confirmed
Azad Engineering Limited has announced the closure of its trading window for all designated persons and their connected relatives starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming Q3 FY26 financial results. The window will remain closed until 48 hours after the announcement of the un-audited standalone and consolidated financial results for the quarter ending December 31, 2025. The specific date for the board meeting to approve these results will be announced separately.
- Trading window closure effective from January 1, 2026
- Applies to financial results for the quarter ending December 31, 2025
- Window reopens 48 hours after the official announcement of un-audited results
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015
Azad Engineering Limited has announced a group meeting with analysts and institutional investors scheduled for December 11, 2025. The meeting will be held in Hyderabad starting at 9:00 a.m. to discuss the company's performance based on publicly available information. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be disclosed during this session. Such meetings are routine for listed entities to maintain transparency with the investment community.
- Group meeting with analysts and institutional investors on December 11, 2025.
- The meeting is scheduled to take place in Hyderabad starting from 9:00 a.m.
- Discussions will be limited to publicly available information with no UPSI shared.
- The schedule is subject to change based on exigencies of the host or company.
Financial Performance
Revenue Growth by Segment
In H1 FY26, the Energy and Oil & Gas segment grew by 35.7% YoY, while the Aerospace & Defence segment registered a 30.3% improvement. Total revenue for H1 FY26 reached INR 277.18 Cr, a 32.1% increase from INR 209.8 Cr in H1 FY25. Q2 FY26 revenue was INR 142.67 Cr, up 28.1% YoY.
Geographic Revenue Split
Exports contribute between 93.9% and 95% of total revenue as of Q2 FY26. This high export concentration acts as a natural hedge against foreign exchange fluctuations because inflows and outflows are balanced in foreign currency.
Profitability Margins
Profitability showed significant expansion in H1 FY26: PBT margin stood at 32.2% (INR 89.24 Cr, up 64.3% YoY) and PAT margin reached 22.7% (INR 62.99 Cr, up 64.9% YoY). The improvement is driven by operational efficiency and a reduction in raw material consumption costs as a percentage of revenue.
EBITDA Margin
EBITDA margin for H1 FY26 was 36.0% (INR 99.90 Cr), representing a 37.1% YoY growth in absolute EBITDA. Q2 FY26 EBITDA margin was 36.02% (INR 51.36 Cr). Margins have stabilized due to effective cost control and the onboarding of domestic suppliers.
Capital Expenditure
The company is executing a massive expansion, building three customer-specific plants for Siemens, Mitsubishi, and GE Steam. These facilities are described as being 10x the size of previous operations. While specific total INR Cr for the current cycle is not fully aggregated, the company is deploying machines equivalent to its entire existing base to support 25-30% growth.
Credit Rating & Borrowing
As of August 06, 2025, CARE Ratings reaffirmed a 'CARE A; Stable' rating for long-term bank facilities (enhanced to INR 208.32 Cr) and 'CARE A2+' for short-term facilities. This was an upgrade from the 'CARE A-; Stable' rating assigned in November 2024, reflecting improved financial profiles and consistent growth.
Operational Drivers
Raw Materials
The company utilizes high-value alloys for mission-critical components. Specific alloy names like Titanium or Inconel are not explicitly listed, but they are categorized as 'high-value alloys' required for energy and aerospace turbines.
Import Sources
Historically high import dependency, but the company is actively 'onboarding domestic suppliers' to reduce costs and supply chain lead times. Specific countries of origin are not disclosed beyond the shift toward Indian domestic sourcing.
Key Suppliers
Not disclosed in available documents; referred to generally as 'global OEMs' for demand and 'domestic suppliers' for procurement.
Capacity Expansion
Current expansion includes three dedicated plants for Siemens, Mitsubishi, and GE Steam. A new forging plant is also partly operational as of November 2025. These plants are designed to handle a 'massive' increase in demand, with the goal of scaling to meet 10x previous production volumes.
Raw Material Costs
Raw material consumption as a percentage of revenue has decreased in Q2 FY26 due to supply chain excellence and domestic sourcing. The company manages volatility through contracts where it absorbs the first 5% of price fluctuations, after which prices are renegotiated with customers or suppliers.
Manufacturing Efficiency
Efficiency is tracked through EBITDA margins (36%) and the achievement of NADCAP accreditation for coatings by the subsidiary Azad VTC, which places the company on the 'qualified manufacturers list' for global aerospace OEMs.
Strategic Growth
Expected Growth Rate
25-30%
Growth Strategy
Growth will be achieved by increasing 'wallet share' with existing global OEMs from the current 1.5% to higher levels. This involves building dedicated, customer-specific manufacturing plants, signing multi-phase contracts (e.g., Mitsubishi Phase 2), and expanding into engine manufacturing through MOUs with partners like Safran.
Products & Services
Critical aircraft rotating components, turbine blades, mission-critical components for power generation, and specialized parts for oil and gas equipment.
Brand Portfolio
Azad Engineering, Azad VTC (subsidiary), Azad Prime (subsidiary).
New Products/Services
Expansion into aircraft engine manufacturing components via the Safran MOU and the commercialization of new products in the Aerospace & Defence segment which drove a 30.3% growth in H1 FY26.
Market Expansion
Targeting increased penetration in the global Aerospace and Energy markets by becoming a 'Center of Excellence' for global OEMs.
Market Share & Ranking
The company currently holds approximately 1.5% of the addressable 'wallet share' of its existing customers' spend, suggesting significant room for ranking improvement.
Strategic Alliances
MOU with Safran Aircraft Engines for critical rotating components; long-term partnerships with Mitsubishi (Phase 2 signed 2025), GE Steam, and Siemens.
External Factors
Industry Trends
The industry is shifting toward consolidated supply chains where OEMs prefer 'dedicated facilities' from proven partners. Azad is positioning itself by building these specific plants to capture a larger share of the growing aerospace engine and clean energy turbine markets.
Competitive Landscape
Competes with global precision engineering firms, but differentiates through dedicated customer-specific infrastructure and a lower-cost Indian manufacturing base.
Competitive Moat
The moat is built on 'precision performance' and high switching costs for OEMs. Mission-critical components require years of qualification; Azad's NADCAP accreditation and proven track record with life-critical parts create a high barrier to entry that is sustainable due to the long-term nature of OEM contracts.
Macro Economic Sensitivity
Highly sensitive to global industrial CAPEX in energy and aerospace sectors. A slowdown in global turbine demand would directly impact the 95% export-oriented revenue base.
Consumer Behavior
Not applicable as the company is a B2B industrial manufacturer.
Geopolitical Risks
Trade barriers or geopolitical tensions affecting global aerospace supply chains could disrupt the delivery of mission-critical components to Western OEMs.
Regulatory & Governance
Industry Regulations
Operations must comply with NADCAP (National Aerospace and Defense Contractors Accreditation Program) standards for coatings and other aerospace manufacturing processes to remain on qualified vendor lists.
Environmental Compliance
Approved CSR spending of INR 81.90 Lakh for FY25, focused on Education, Health, and Wellness. The company has a CSR committee to oversee these funds.
Taxation Policy Impact
Effective tax rate is not explicitly stated, but PBT of INR 89.24 Cr vs PAT of INR 62.99 Cr implies a tax expense of approximately 29.4% for H1 FY26.
Legal Contingencies
The company states there were no material penalties or strictures imposed by stock exchanges or statutory authorities related to capital markets in the last three years. Specific values for pending labor or tax cases are not disclosed.
Risk Analysis
Key Uncertainties
Execution risk associated with building facilities 10x the current size and the complexity of managing parallel growth of 30-35% while maintaining 36% EBITDA margins.
Geographic Concentration Risk
Extremely high geographic concentration in export markets (95%), making the company vulnerable to global trade policy changes.
Third Party Dependencies
High dependency on a few 'Global OEMs' (Siemens, Mitsubishi, GE, Safran) for the majority of revenue, though this is mitigated by long-term contracts.
Technology Obsolescence Risk
Risk is mitigated by the 'Center of Excellence' and ongoing investment in advanced manufacturing infrastructure to keep pace with evolving turbine and engine technologies.
Credit & Counterparty Risk
Low risk due to established relationships with 'reputed original equipment manufacturers' who have strong credit profiles.