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View Claim Ledger →Azad Engineering Ltd — Q3 FY26
Azad Engineering delivered a strong Q3 FY26 with revenue of ₹155.9 crore (+31% YoY), EBITDA of ₹60.1 crore (+40.7% YoY), and PAT of ₹34 crore (+40.1% YoY).
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Azad Engineering delivered a strong Q3 FY26 with revenue of ₹155.9 crore (+31% YoY), EBITDA of ₹60.1 crore (+40.7% YoY), and PAT of ₹34 crore (+40.1% YoY). EBITDA margin expanded to 38.6% (+260 bps YoY), driven by favorable product mix and operating leverage despite ramp-up costs. The order book remains robust at ₹6,500+ crore, providing multi-year visibility. Management reiterated 25%+ revenue growth guidance over the coming years, with margin sustainability in the 33-35% range. Key growth drivers include deepening engagements with Safran, Pratt & Whitney, and Rolls-Royce for aerospace components, and strong demand from energy OEMs for gas turbines. Capacity expansion is on track, with stabilization expected by FY27 and full utilization by FY28. Risk: Execution delays in new plant qualifications or workforce ramp-up could temper near-term growth.
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Promises
3 promises
Promise Tracker
0 delivered, 0 close, 3 missed.
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Risks
4 risks
Risk Intelligence
New Plant Qualification Delays
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Transcript
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Call Transcript
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Read Transcript →Quarter Snapshot
Order Book
₹6,500+ Cr
+QoQ growth (not quantified)
Order book provides multi-year revenue visibility; has grown every quarter since listing.
9M PAT vs FY25 Full Year
Exceeded FY25 PAT
+55% YoY (9M PAT growth)
9-month profitability already surpassed full-year FY25 level, demonstrating scalability.
Indigenous Jet Engine Progress
~75% complete
N/A
India's first 100% indigenous jet engine, developed with GTRE, expected to be ready in a few months.
Workforce Addition Rate
150-200 per month
N/A
Company is hiring and training 150-200 people monthly to support capacity expansion.
What Changed vs Last Quarter
NEW
25%+ Revenue Growth Over Coming Years
Management expects revenue to grow at 25% or more annually, backed by order book and plant readiness.
NEW
EBITDA Margin Guidance of 33-35%
Long-term EBITDA margin target of 33-35% is sustainable, with current quarter at 38.6%.
NEW
New Plant Stabilization by FY27, Max Utilization by FY28
New facilities for GE, Mitsubishi, and Siemens will stabilize operations by FY27 and reach maximum utilization by FY28.
NEW
Aerospace Revenues Starting from FY27
Revenues from new aerospace customers (Rolls-Royce, etc.) are expected to begin in FY27.
DROPPED
FY26 topline growth of 25-30%
Management reiterated guidance for 25-30% revenue growth for FY26, with H1 already at ₹277 crore (32.1% YoY).
DROPPED
EBITDA margin sustainability around 36%
Management expects to sustain current EBITDA margin levels, with potential improvement from operating leverage as new facilities stabilize.
DROPPED
Capex deployment of ₹700 crore QIP proceeds
Approximately ₹213 crore deployed so far; asset turnover target of 1.7-1.8x, progressively moving to 2x.
DROPPED
New facility stabilization by FY26-end
Phase 1 of new facilities to be completed over next 12 months; revenue contribution expected in H2 FY26.
NEW RISK
New Plant Qualification Delays
Stabilization of new plants is complex and may take longer than expected, delaying revenue ramp-up.
NEW RISK
Workforce Availability and Training
Hiring and training skilled workers at scale is challenging; any shortfall could impact production targets.
NEW RISK
Working Capital Days Higher Than Target
Inventory days are elevated due to ramp-up; management targets 140-150 days but current levels are higher.
NEW RISK
Dependence on Few Large OEMs
Revenue concentration on key customers (GE, Mitsubishi, Siemens) poses risk if any program is delayed.
RISK GONE
Execution risk in capacity ramp-up
Management acknowledged that stabilizing 10x capacity expansion is a 'marathon task' and may delay revenue inflection to FY27.
RISK GONE
Customer concentration and contract termination clauses
Contracts include termination clauses if performance fails; reliance on few large OEMs (Mitsubishi, Siemens, Safran) poses risk.
RISK GONE
Raw material price volatility and forex risk
Despite natural hedge and 5% fluctuation cap, any sustained raw material price increase beyond cap could pressure margins.
RISK GONE
Defense contract disclosure limitations
Management declined to provide details on Safran MoU and GTRE engine program, citing defense sensitivity, creating uncertainty for investors.
Fast read
Guidance and risk preview
Management expects revenue to grow at 25% or more annually, backed by order book and plant readiness.
Stabilization of new plants is complex and may take longer than expected, delaying revenue ramp-up.
View Risks →