Azad Engineering Reports Record Q2 FY26 Performance with 28% Revenue Growth
Azad Engineering Limited achieved its best-ever quarterly and half-yearly performance in Q2 FY26. Revenue reached INR 143.00 crores, up 28.1% year-on-year. EBITDA margin improved to 36.0%, while PAT margin increased to 23.1%. The Energy and Oil & Gas segment contributed 81.0% of total revenue. Key developments include a new manufacturing facility for Siemens, expansion of a Mitsubishi contract, strategic partnership with Safran, and NADCAP accreditation for its subsidiary. The company maintains its 25-30% revenue growth guidance for the year.
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Azad Engineering Limited , a leading manufacturer of highly engineered complex rotating and stationary components, has reported its best-ever quarterly and half-yearly performance for Q2 FY26. The company's revenue reached INR 143.00 crores, marking a robust 28.1% year-on-year growth.
Financial Highlights
Q2 FY26 Performance
- Revenue: INR 143.00 crores (up 28.1% YoY)
- EBITDA Margin: 36.0% (improved from 35.7% in Q2 FY25)
- PAT Margin: 23.1% (increased from 18.9% in Q2 FY25)
H1 FY26 Performance
- Revenue: INR 277.00 crores (compared to INR 210.00 crores in H1 FY25)
- EBITDA Margin: 36.0%
- PAT Margin: 22.7%
Segment-wise Performance
| Segment | Q2 FY26 Revenue (INR crores) | YoY Growth | Contribution to Total Revenue |
|---|---|---|---|
| Energy and Oil & Gas | 117.00 | - | 81.0% |
| Aerospace and Defence | 24.00 | 34% | 16.9% |
Key Developments
New Manufacturing Facility: Azad Engineering inaugurated a new lean manufacturing facility for Siemens at its Hyderabad plant. This state-of-the-art facility will produce highly engineered complex rotating and stationary airfoils, along with critical components for advanced gas, industrial, and thermal float turbine engines.
Mitsubishi Contract Expansion: The company secured Phase 2 of a contract with Mitsubishi Heavy Industries (MHI), bringing the combined contract value to INR 1,387.00 crores over 5 years.
Strategic Partnership with Safran: Azad Engineering signed its first Memorandum of Understanding (MOU) with Safran Aircraft Engines for critical rotating engine components for strategic defence platforms.
NADCAP Accreditation: The company's subsidiary, Azad VTC Private Limited, achieved NADCAP accreditation for coatings, validating its commitment to meeting stringent aerospace and defence industry quality standards.
Management Commentary
Rakesh Chopdar, Chairman and CEO of Azad Engineering, stated, "In Q2 and H1 FY '26, our performance has been financially assertive and strategically pivotal, driven by robust order inflows and progress on our planned capex, setting a strong foundation for sustained growth and long-term value creation."
The company maintains its revenue growth guidance of 25-30% for the year, with expectations of a significantly stronger performance in the second half of FY26.
Future Outlook
Azad Engineering is well-positioned to capitalize on opportunities emerging within the indigenous engine manufacturing ecosystem. The company's expanding manufacturing capabilities, deep industry insights, and strong client relationships are expected to drive both repeat business and new orders.
As the company continues to ramp up production at its new facilities, it anticipates further growth and operational excellence in the coming quarters. The management remains focused on stabilizing operations and achieving its growth targets while maintaining healthy profit margins.
With its strategic partnerships, technological advancements, and expanding product portfolio, Azad Engineering is poised for continued success in the highly engineered components market for energy, aerospace, and defence sectors.
Historical Stock Returns for Azad Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.44% | -5.03% | -2.20% | -2.37% | -2.55% | +137.82% |
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