Azad Engineering has scheduled its 43rd Annual General Meeting (AGM) for September 29, 2026. The meeting will convene via video conferencing at 2:30 pm to approve the adoption of audited financial statements for FY26 and key board appointments.

The primary special business item involves seeking shareholder approval for a revision in the remuneration of Chairman and CEO Rakesh Chopdar. The Board proposes increasing his annual pay to ₹528 lakh from the current ₹480 lakh, effective from April 1, 2026, covering the remainder of his existing tenure until September 12, 2026.

Director Re-Appointments

Shareholders will also vote on the re-appointment of three whole-time directors for a five-year term ending September 12, 2031. The proposed remuneration structures are as follows:

Mr. Vishnu Malpani’s variable pay component is contingent upon meeting performance parameters set by the Nomination and Remuneration Committee. Mrs. Jyoti Chopdar and Mr. Rakesh Chopdar are spouses, while Mr. Malpani has no disclosed relationship with other directors.

What the Numbers Show

The proposed remuneration for Mr. Chopdar exceeds the regulatory threshold requiring shareholder approval under Regulation 17(6)(e) of the SEBI Listing Regulations. This rule mandates consent if annual remuneration to executive directors who are promoters exceeds ₹5 crore or 2.5% of net profits, whichever is higher. The current proposal of ₹528 lakh clearly surpasses the ₹5 crore limit, necessitating the special resolution.

Voting and Logistics

The company will enable remote e-voting from September 26, 2026, at 9:00 am to September 28, 2026, at 5:00 pm. The cut-off date for voting eligibility is Friday, September 18, 2026. Members holding shares as on this date will be entitled to vote on all resolutions. The register of members will remain closed from September 23, 2026, to September 29, 2026.

Shareholders who have not registered their email addresses with the company or depository participants will receive letters containing the weblink to access the AGM notice and the Annual Report for FY26. The report is available at azad.in/annual-report/.

Azad Engineering Limited submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 to the Bombay Stock Exchange and National Stock Exchange on September 7, 2026. The filing outlines the company’s sustainability practices, governance structures, and environmental metrics for the financial year ended March 31, 2026.

Operational Overview

The company reported a turnover of ₹5,903.75 million and a net worth of ₹15,519.78 million, triggering Corporate Social Responsibility (CSR) applicability under Section 135 of the Companies Act, 2013. Its business activities are primarily focused on manufacturing, with the energy sector contributing 79.71% of turnover and aerospace and defence accounting for 17.15%.

Exports constitute a significant portion of the company’s revenue, making up 93% of total turnover. The firm serves customers across 12 international countries and 10 Indian states. Its product portfolio is dominated by airfoil/blade components, which contributed 69.35% of total turnover, followed by non-airfoil products at 29.29%.

Workforce and Human Capital

As of March 31, 2026, Azad Engineering employed 533 permanent and non-permanent employees alongside 2,315 workers. The workforce is predominantly male, with men comprising 91.93% of employees and 97.49% of workers.

The company reported a permanent employee turnover rate of 29.24% in FY26, down significantly from 71.63% in FY25. Permanent worker turnover stood at 39.80%, compared to 45.88% in the previous year.

Spending on employee and worker well-being measures rose to 0.44% of total revenue in FY26, up from 0.16% in FY25. The company provided health insurance coverage to 82.79% of permanent employees and 79.81% of permanent workers.

Environmental Metrics

Azad Engineering disclosed its energy consumption and greenhouse gas emissions for FY26. Total energy consumed was 12,19,997.43 Giga joules, primarily from non-renewable sources. This resulted in an energy intensity of 206.65 GJ/Rs in Millions of turnover.

Scope 2 greenhouse gas emissions were recorded at 5,528 metric tonnes of CO2 equivalent, a decrease from 13,287.875 metric tonnes in FY25. Scope 1 emissions remained at zero. The company generated 263.49 metric tonnes of hazardous waste, compared to just 0.41 metric tonnes in FY25. No water discharge occurred during the year.

Governance and Compliance

The Board of Directors oversees sustainability matters, with Chairman and CEO Rakesh Chopdar responsible for policy implementation. The company holds multiple certifications, including AS9100D, ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.

In terms of regulatory compliance, the company paid penalties totaling ₹11,48,862 to the Joint Commissioner of Central Tax and GST regarding blocked input tax credit and non-payment of GST for FY20 and FY21. No complaints related to corruption, conflict of interest, or sexual harassment were recorded in FY26.

What the Numbers Show

The divergence between revenue scale and waste generation warrants attention. While the company’s turnover stands at ₹5,903.75 million, hazardous waste generation surged to 263.49 metric tonnes in FY26, a sharp increase from 0.41 metric tonnes in FY25. This suggests either a change in reporting methodology or a significant shift in operational processes that increased hazardous byproducts relative to output.