Azad Engineering Limited — Q2 FY26
Azad Engineering delivered a record Q2 FY26 with revenue of ₹142.67 crore (+28.1% YoY) and PAT of ₹33 crore (+57% YoY), driven by robust order inflows and operational efficienci...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
42%Questions answered5Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Sustainability of gross margin improvement from domestic sourcing and price negotiation.
Asked by Ahmed Bakshad, Goldman
Explained cause but gave no numbers or timeline for further margin improvement.
no quantification of sustainabilityno timeline for further improvement
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Question
just wanted to understand a uh if you can explain a little bit more on domestic sourcing and uh price negotiation also uh how much of it is sustainable I mean uh whether we will see it further going down or uh this is pretty much at the level that we are seeing now.
Management (unidentified)
this is our efforts to indigenize the supply chain... we've gotten you know Sunflag and Starwire approved for a few grades... this reduction that you see is primarily a result of this... this will only ensure us that we have a better control on the supply chain and this should you know sustain for us.
Evasive
Medium priority
Potential for aerospace margin improvement via domestic titanium sourcing.
Asked by Ahmed Bakshad, Goldman
Acknowledged possibility but gave no concrete plan or timeline.
no commitmentdeferred to OEM approval
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Question
do we expect that in aerospace as well you know due to the indigenous procurement we can see this further coming down in future?
Management (unidentified)
Unless and otherwise our OEMs agree to... take that task of qualifying the supplier... we are in talks with our OEM so that we can propose these Indian mills and then we can see that we look forward to it.
Partial answer
High priority
Implications of Safran MOU and involvement in domestic engine ecosystem.
Asked by Ahmed Bakshad, Goldman
Confirmed MOU and discussions but gave no concrete revenue or timeline details.
no specifics on contract timelinedefense program details withheld
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Question
So does it mean that now we are qualified with all the... global manufacturers... what does it mean for us... with Saffran and... AMA... do you see our part getting supplied over there?
Management (unidentified)
on the Saffron yes this is the first relationship... assessment is done and MO is signed and definitely this is one of big breakthrough... we are in discussions with couple of OEMs for... the project you mentioned and we are having very advanced discussions.
Evasive
Medium priority
Timeframe for Safran contract after MOU and assessment.
Asked by Ahmed Bakshad, Goldman
Refused to give specific timeline, citing defense sensitivity.
vague timelinedefense confidentiality cited
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Question
This Afghan MOU you mentioned that assessment has now happened. So typically uh how much time it will take for you to get the final contract?
Management (unidentified)
Very soon Mitri very soon u not only with Saffran other also uh you will you will you will come know very soon about more details as this is a defense application program. So I I cannot speak much on this.
Evasive
High priority
Reconciliation of earlier FY26 inflection point guidance vs. recent stabilization commentary.
Asked by Jay Johan, Three Netra Asset Managers
Did not reconcile the apparent contradiction; instead emphasized execution challenges.
did not directly address the shift in narrativefocused on scale of effort
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Question
in the FI24 earnings calls management are guided that FI26 would be a big shift and an inflection point... in Q4 FI25 and Q1 FI26 calls the commentary has shifted... to describe in FI20 years of stabilization consolidation... Could you help us reconcile this change?
Management (unidentified)
we are very consistent in the guidance... the facilities which we are building are massive... 10x what we added... we would say we are struggling at the moment you know to to manage the growth... That's the reason we mentioned that the team is doing a great great great job.
Evasive
High priority
Whether nonlinear growth impact is now an FY27 story.
Asked by Jay Johan, Three Netra Asset Managers
Avoided giving a clear yes/no on the timeline shift.
did not confirm or deny FY27 timelinedeflected to visit request
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Question
is it fair to say that full nonlinear growth impact uh from the new capacity is now more of an FI27 story uh with FI26 being focused on you commissioning of this new dedicated lean practice.
Management (unidentified)
this is not again this this is a parallel activity going on... everything is going in parallel... I request you to please visit us and then you can imagine the amount of work being done.
Answered
High priority
Mitigation of raw material price volatility and currency risk.
Asked by Jay Johan, Three Netra Asset Managers
Provided specific mechanisms: natural hedge and 5% fluctuation cap.
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Question
how does the comp uh company mitigate this raw material price volat volatility and currency risk and is there any clauses or hedging mechanisms in place to protect?
Management (unidentified)
we have a natural hedge... 93.9 to be precise is exports... we have a cap of 5% fluctuation... above that either you increase the price or ask your supplier to reduce the price.
Answered
High priority
Business opportunities from dedicated plants and wallet share.
Asked by Vanas Singh, ICICI security
Gave specific wallet share percentage and linked to growth guidance.
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Question
how much more business opportunities we can actually get from them considering our existing production portfolio and as well as we need to increase the approval process for the moment that to get the business higher from that on a steady state and business perspective I'm talking about.
Management (unidentified)
our wallet share with respect to our customers... is only about one and a half%... the head of growth is definitely massive... we signed phase two of that contract... growth guidance of 25 to 30% that is taking into account the massive demand.
Partial answer
Medium priority
Peak utilization timelines for new plants.
Asked by Vanas Singh, ICICI security
Gave infrastructure timeline but not peak utilization; later deflected to revenue guidance.
no specific peak utilization dateredirected to revenue guidance
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Question
can you just give us the peak utilization timelines for the already existing commission plant and the next three or four shared which are uh would be coming.
Management (unidentified)
over the next about 12 months we would want to finish the entire plant in terms of construction... in about 12 months infrastructure should be up and running and then slowly after that you will see each of the plant reaching its max capacity.
Evasive
Medium priority
Revenue contribution timeline from new plants.
Asked by Rakkesh Roy, Boring AMC Omhara Capital
Acknowledged H2 contribution but refused to quantify, deferred guidance.
no quantificationdeferred to next quarter
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Question
As you mentioned your plant is already completed. So can we expect number from Q4 or Q1 next year?
Management (unidentified)
in the H2 of this year there will be contribution that you will see but to what extent uh you know we'll only be we'll be only able to talk about it in the next quarter... we will hit our revenue guidance that we've spoken about.
Answered
High priority
Potential step-up in revenue growth beyond 25-30% with new capacities.
Asked by Pratik, Union Mutual funds
Clearly stated guidance remains 25-30%, no step-up expected near-term.
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Question
Do you reckon uh there can be a step up uh to the revenue growth momentum which we have already seen u of 25 30% which you have been guiding... do we sense a leg up uh in the revenue growth momentum going ahead?
Management (unidentified)
we urge to stick to the guidance that we sharing which is 25 to 30%. Like we've always done we strive internally to beat our guidance but for uh for everybody I think 25 to 30% is the guidance that we'd want to stick to.
Partial answer
High priority
Status of engine development contract with GTRE and delivery timeline.
Asked by Vishal, Bandan AMC
Gave vague timeline but no specifics on milestones or performance.
no specific milestone detailsdefense confidentiality
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Question
could you update on the status of the engine development contract with GT dear
Management (unidentified)
we're going to deliver it very soon I think couple of months more uh we going bit stable on that and we are on track to deliver that engine.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue guidance of 25-30% growth | 30% | 28.1% | Overstated vs filing |
| Revenue of 277 crores in H1 | ₹277 cr | ₹146 cr | Overstated vs filing |
| Annualized revenue run-rate of 577 crores | ₹577 cr | ₹146 cr | Overstated vs filing |
| EBITDA margin of 36% | 36% | 36% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.