Azad Engineering Limited has taken a significant step forward in the aerospace sector by entering into a Master Terms Agreement with Pratt & Whitney Canada Corp. This international collaboration aims to bolster Azad's manufacturing capabilities in the aerospace industry, aligning with national strategic priorities.

Key Details of the Agreement

The agreement focuses on the development and manufacturing of aircraft engine components, establishing a framework for long-term collaboration between the two companies. Here are the essential aspects of the partnership:

Strategic Implications

This partnership represents a significant move for Azad Engineering in strengthening its position in the aerospace manufacturing sector. By collaborating with a renowned entity like Pratt & Whitney Canada, Azad is poised to enhance its capabilities and potentially expand its market presence in the international aerospace industry.

Confidentiality and Disclosure

While the agreement marks a notable development for Azad Engineering, specific details such as the size of the order, financial considerations, and execution timeframe have not been disclosed due to confidentiality agreements. This level of discretion is common in such high-stakes international partnerships within the aerospace sector.

Alignment with National Priorities

The collaboration is notably in line with national strategic priorities, potentially contributing to India's push for self-reliance and technological advancement in critical sectors like aerospace. This alignment could have positive implications for both the company and the broader industry landscape in India.

Conclusion

The Master Terms Agreement between Azad Engineering and Pratt & Whitney Canada represents a strategic move in the aerospace manufacturing sector. While the financial implications remain undisclosed, the long-term nature of the collaboration suggests potential for Azad Engineering's growth and development in aircraft engine component manufacturing. As this partnership unfolds, it will be interesting to observe its impact on Azad's market position and the broader aerospace industry in India.

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

Key Developments

1. 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.

2. 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.

3. 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.

4. 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.