Azad Engineering Ltd(AZAD)

NSE: AZADBSE: 544061

₹ 2,484.6-2.79%refreshed 23 Oct, 03:56 pm ISTMarket cap: ₹ 16,046 crWebsite: www.azad.inUpdated: 24 Oct 2026

About

Azad Engineering Ltd is a Hyderabad-based manufacturer of highly engineered critical components for global OEMs across aerospace, defence, energy, and oil & gas sectors, with a workforce of around 2,500. In FY26 the company reported revenue of INR 602.98 crores with an order book of approximately INR 6,500 crores, representing about 11 - 12x its annual revenue. Exports constitute the dominant share of sales, reaching 93.0% of standalone revenue in FY26.^[1][2][3]

Business segments

Energy & Oil & Gas: contributed 79% of FY25 revenue at INR 3,586 million, up 26.0% YoY; includes gas turbine components and power generation parts for global OEMs.^[4]
Aerospace & Defence: contributed 17.9% of FY25 revenue at INR 807 million, up 84.1% YoY; crossed the INR 100 crore milestone for the first time in FY26 at INR 101 crores (~17.2% of revenue), growing ~25% YoY.^[4][3]
In Q1 FY27 Energy & O&G grew 26.7% YoY and Aerospace & Defence grew 24.7% YoY on a standalone basis, with A&D revenue reaching INR 286.9 mn and Energy & O&G INR 1,384.2 mn.^[5]
Oil & Gas was a nascent revenue contributor in FY26 (under INR 10 crores, entirely in qualification phase); FY27 is expected to be the first year of material ramp-up from this sub-segment.^[3]

Products and capabilities

Core products are highly engineered critical rotating and stationary components - airfoils, nozzle vanes, blades, and turbine hot-section parts - manufactured to aerospace and energy OEM specifications.^[6][3]
In July 2026 Azad delivered the ATGG (Advanced Turbo Gas Generator), India's first indigenous expendable turbojet engine, to GTRE/DRDO - marking its evolution from component manufacturer to propulsion system integrator.^[5]
Subsidiary Azad VTC achieved NADCAP accreditation for coatings, placing it on the qualified manufacturers list for aerospace and defence and reducing external vendor dependency.^[6]
Hot-section capability for land-based and aviation turbines is being established at the Mitsubishi dedicated facility, expected to be ready in approximately 7 - 8 months from Q1 FY27.^[5]

Manufacturing operations

The company operates its newest mega plant at Tunikibollaram, Hyderabad, built on lean manufacturing principles with dedicated factories and offices for individual OEM customers.^[1]
On 28 September 2026, two additional exclusive lean manufacturing facilities for GE Vernova's gas power business were inaugurated, each spanning 7,600 sq m.^[7]
Phase 1 construction at the Azad Centre of Excellence covers approximately 94,899 sq m; civil construction was 80% stabilised in Q1 FY27 with full closure targeted by Q3 FY27.^[5]
Phase 2 expansion is planned at 67,267 sq m, to commence only after Phase 1 construction is complete.^[6]

Key operating numbers

Order book stood at approximately INR 6,500 crores (publicly disclosable portion) as of FY26-end, segmented as over $400 mn Energy, over $200 mn A&D, and over $100 mn Oil & Gas - approximately 11 - 12x FY26 revenue.^[3]
Standalone revenue grew 30.3% YoY to INR 5,903.8 mn in FY26; Q1 FY27 standalone revenue grew 26.8% YoY to INR 170.5 crores.^[3][5]
EBITDA margin (standalone) was 36.9% in FY26 (+140 bps YoY), 38.6% in Q3 FY26, and 37.6% in Q1 FY27 (+150 bps YoY).^[3][8][5]
Export revenue share was 93.0% of standalone revenue in FY26 and 88.0% in Q1 FY27.^[3][5]
Raw material consumption expenses fell from 14.9% of sales in H1 FY25 to 12.3% in H1 FY26 through qualification of domestic suppliers Sunflag and Star Wire for energy-grade alloys, yielding a ~4 - 5% cost benefit versus import sourcing.^[6][5]
Each of the 8 dedicated plants at Tunikibollaram is guided to generate INR 150 - 180 crores at full utilisation, implying approximately INR 1,200 crores peak revenue from the new campus alone.^[5]

Customers and distribution

Azad serves many of the world's leading OEMs across aerospace, defence, energy and oil & gas; one customer accounted for more than 10% of FY25 revenue, and the top 5 customers contributed INR 2,352.65 mn in FY25.^[1][4]
Named OEM relationships include Mitsubishi Heavy Industries (8-year single-source LTCPA for hot-section nozzle vane segments, USD 83 mn; Phase 2 expanding combined value to INR 1,387 crores / USD 156 mn), GE Steam Power, Siemens Energy, Baker Hughes, Rolls-Royce, Safran Aircraft Engines, Pratt & Whitney, and GE Vernova.^[3][6][8][7]
Azad is described as the only qualified partner in India for certain gas turbine OEM programs, a direct beneficiary of high OEM demand driven by data centre power requirements.^[8]

Expansion and capex

Total capex capitalised in FY26 was INR 392 crores; net block increased by INR 1,465 mn in FY25 through investments in advanced machining, automation and product development.^[3][4]
The infrastructure build-out phase was characterised as approximately 70 - 80% complete as of FY26-end; the next major capex cycle is being planned for FY29 onwards.^[3][5]
INR 450 - 500 crores of incremental plant and machinery capex is guided to generate INR 800 - 1,000 crores of incremental revenue at 1.7 - 2x asset turns.^[8]

Recent developments

28 September 2026: Two exclusive lean manufacturing facilities for GE Vernova's gas power business inaugurated at Tunikibollaram, each 7,600 sq m.^[7]
22 July 2026: Azad delivered the ATGG - India's first indigenous expendable turbojet engine - to GTRE/DRDO and was advised to prepare for significant scale-up in production volumes after testing is completed.^[5]
April 2026: Baker Hughes dedicated lean manufacturing facility (7,600 sq m) inaugurated, becoming the fourth OEM-dedicated facility commissioned since listing.^[5][3]
Q4 FY26: Mitsubishi Heavy Industries awarded Azad single-source status and signed an 8-year LTCPA for hot-section nozzle vane segments valued at USD 83 mn - parts previously manufactured in-house by MHI.^[3]
Q2 FY26: MOU signed with Safran Aircraft Engines for critical rotating engine components for strategic defence platforms, and engagement confirmed with Pratt & Whitney for highly engineered critical rotating aerospace components.^[6][8]
Rolls-Royce civil aircraft engine airfoil qualification parts were almost complete as of Q1 FY27, with first batch delivery expected within Q2 FY27.^[5]
Chairman and CEO Rakesh Chopdar's remuneration was revised from INR 480 lakhs to INR 528 lakhs per annum, requiring shareholder special resolution approval as it is likely to exceed INR 5 crore or 2.5% of net profits.^[1]

Market Cap

₹16,046 Cr

High / Low

₹3,126 / 1,359

Stock P/E

127.3

Price / Book

11.6

Book Value

₹237

EPS

₹20.6

No. of Shares

6.46 Cr

ROCE

11.8%

ROE

9.1%

OPM

33.6%

Debt / Equity

0.30

Sales

₹603 Cr

Net Profit

₹134 Cr

Promoter holding

55.8%

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