Azad Engineering , a prominent player in the engineering sector, has reaffirmed its robust growth trajectory for the fiscal year 2026 (FY26). The company has maintained its revenue growth outlook at an impressive 25-30%, signaling confidence in its business strategy and market position.

Margin Expectations and Financial Projections

In a recent update, Azad Engineering outlined its financial expectations for FY26:

• Revenue Growth: The company is targeting a revenue growth rate of 25-30%, indicating strong market demand for its products and services.
• EBITDA Margins: Azad Engineering expects to achieve EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins in the range of 33-35%. This projection suggests the company's focus on operational efficiency and profitability.
• Depreciation Forecast: The company anticipates a depreciation figure of approximately Rs. 48.00 crore for FY26, providing insights into its asset base and investment strategy.

Growth Drivers and Future Outlook

Azad Engineering's management has expressed optimism about stronger growth possibilities once new facilities commence operations. This indicates that the company is in an expansion phase, with investments in new infrastructure expected to drive future growth.

The company's confident outlook comes on the heels of its performance in the first quarter ended June 30, 2025. According to the LODR data, Azad Engineering reported the following key figures for Q1 FY2026:

Market Position and Investor Relations

Azad Engineering's stock has been attracting investor attention. The company recently hosted an earnings conference call on August 5, 2025, to discuss its Q1 FY2026 results with analysts and investors, demonstrating its commitment to transparent communication with stakeholders.

As Azad Engineering continues to execute its growth strategy, investors and industry observers will be keenly watching the company's ability to capitalize on new facilities and maintain its projected margins in an evolving market landscape.

Note: Investors are advised to conduct their own research and consult financial advisors before making investment decisions based on this information.

Azad Engineering , a manufacturer of high-precision and OEM components, has reported a robust financial performance for the first quarter of fiscal year 2026, with significant growth in both revenue and profitability.

Strong Financial Performance

The company's standalone profit for the quarter ended June 30, 2025, soared to ₹299.94 crore, marking a substantial 75% increase from ₹171.30 crore in the same quarter of the previous year. This impressive growth in profitability was accompanied by a 36.7% year-on-year rise in revenue from operations, which reached ₹1,345.12 crore compared to ₹984.09 crore in Q1 FY25.

Improved Margins and Operational Efficiency

Azad Engineering's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY26 stood at ₹485.10 crore, representing a significant 46.8% increase from the previous year. The EBITDA margin improved to 36.1%, up from 33.6% in Q1 FY25, indicating enhanced operational efficiency and cost management.

Segment-wise Performance

The company's growth was primarily driven by strong performances in its key business segments:

1. Energy and Oil & Gas: This segment witnessed a robust 41.7% year-on-year growth, contributing significantly to the overall revenue increase.
2. Aerospace & Defence: Revenue from this segment grew by 26.3% compared to the same quarter last year.

Export-driven Growth

Azad Engineering continues to maintain a strong export focus, with overseas sales accounting for 92% of the total revenue in Q1 FY26, up from 90.5% in the corresponding quarter of the previous year.

Management Commentary

Rakesh Chopdar, Chairman and CEO of Azad Engineering, commented on the results: "We are encouraged by the strong momentum in our business during Q1FY26, as we delivered our highest-ever quarterly performance in both revenue and profitability terms. The strong sales performance reflects the continued trust our customers place in our execution capabilities across key verticals."

Future Outlook

Looking ahead, Mr. Chopdar added, "FY26 will be a year of consolidation and stabilization, as we focus on systematically ramping up our new facilities to effectively serve our expansive orderbook exceeding ₹60 billion. With strong execution, growing demand across sectors, and a healthy pipeline, the company is well-positioned to sustain its high-growth trajectory and reinforce its leadership position in the manufacturing sector."

Expansion and Utilization of Funds

The company recently raised funds through a Qualified Institutions Placement (QIP) and has been strategically utilizing these resources. As of June 30, 2025, Azad Engineering has utilized ₹2,028.29 crore of the ₹7,000 crore raised, with the majority allocated towards capital expenditure and general corporate purposes.

Azad Engineering's strong Q1 FY26 results underscore its growing prominence in the high-precision manufacturing sector, with a clear focus on export markets and key industries such as energy, oil & gas, and aerospace & defence. The company's robust order book and ongoing expansion efforts suggest a positive outlook for the coming quarters.