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
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.
50%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Timeline for new dedicated sheds and OEM tie-ups.
Asked by Vikas Singh, ICICI Securities
Gave a broad timeline but did not specify if any more sheds are tied up with OEMs.
no specific timeline for each shedno mention of additional OEM tie-ups
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Question
So my first question pertains to our next four sheds which we are under commissioning. Could you give us the timeline and is there any more dedicated shed which we have already tied up with any OEMs at this point of time?
Management (likely Rakesh Chopdar or Vishnu)
The facilities which are already inaugurated... the building is up, machines are in... it will be done by FI26 stabilization and FI27 we can see stabilization and maximization start by FI28.
Evasive
High priority
Wallet size with Safran and growth plans given capacity constraints.
Asked by Vikas Singh, ICICI Securities
Avoided giving any specific wallet size or capacity expansion plan.
no wallet size estimatedid not address third facility question
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Question
Now we have tied up with Safran... how do we see our wallet size with them? Is there any clear idea... effectively given our capacity constraints... should we go for that 75,000 sq ft third facility simultaneously?
Management (likely Rakesh Chopdar)
Azad is a global supplier... Safran coming to India gives additional boost... Azad is playing global as well as will benefit from the obligations... this is nothing but a bonus.
Answered
Medium priority
Update on small engine development.
Asked by Vikas Singh, ICICI Securities
Provided a clear progress percentage and timeline.
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Question
Lastly on the development of that small engine which you were doing any update on the same?
Management (likely Rakesh Chopdar)
That's still under progress. We have finished... around 75%... by when you can expect the 100%? We are planning very soon, couple of months.
Evasive
High priority
Order book trajectory given strong OEM demand.
Asked by Amit Digshit, Goldman Sachs
Did not give any quantitative trajectory for order book.
no specific trajectory or numbersreframed to qualification process
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Question
How do you see the traction... this order book that we are having 6,500 crores, how do we see the trajectory... over a couple of years?
Management (likely Rakesh Chopdar)
We are at exactly the same stage with Safran, Rolls-Royce as we were with GE, Mitsubishi years ago... once qualifications are done, the door opens... we know what's coming.
Answered
Medium priority
Impact of US-India trade deal on business.
Asked by Amit Digshit, Goldman Sachs
Clearly stated tariffs have no material impact and customers are happier.
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Question
How do you see the US India trade deal as an enabler for your business?
Management (likely Rakesh Chopdar)
These tariffs won't affect the products... even if tariff goes double it will not go away... customers are more happy... it has turned around more positive.
Partial answer
High priority
Growth trajectory to 1800-2000 cr by 2030 without equity dilution.
Asked by Manish Odwal, Nirmal Bang Securities
Gave revenue visibility but did not directly answer the equity dilution question.
did not explicitly confirm no equity dilutionno timeline for self-sustaining growth
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Question
Is the growth trajectory achievable without any equity dilution... when will Azad move from capital consuming to self-sustaining growth model?
Management (likely Vishnu or Rakesh Chopdar)
We raised 240 cr in IPO, 180 cr for debt reduction... QIP of 700 cr... deploying 450-500 cr in machines should generate asset turn of 500 cr... gives visibility of 800-1000 cr incremental to 450 cr last year.
Answered
Medium priority
Nature of 156 cr general corporate expenses from QIP.
Asked by Manish Odwal, Nirmal Bang Securities
Provided a clear breakdown of the expenditure.
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Question
There's a use of general corporate expenses of 156 cr... can you just brief about the nature of this expenditure?
Management (likely Vishnu)
Deploying 450-500 cr in plant and machinery requires 10-15% ancillary... 150 cr has gone toward stabilization and balance toward long-term working capital and debt-funded machines.
Answered
High priority
Why guide 25% growth instead of 30%+ given past performance.
Asked by Miles Savla, Sha and Sava
Clearly explained the conservative guidance due to ramp-up phase.
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Question
What is restricting you to guide for 25% plus growth on the top line and not 30% plus?
Management (likely Rakesh Chopdar)
Stabilization is very important. FI26 stabilize, FI27 operating levels, FI28 maximum utilization... then I'll change my statement.
Evasive
Medium priority
Potential business from indigenous gas turbine engine.
Asked by Miles Savla, Sha and Sava
Avoided giving any business potential numbers.
no revenue potential givendeflected to national pride
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Question
Can you throw some light on kind of potential that can throw up for our company?
Management (likely Rakesh Chopdar)
This will be the first jet engine of India... we are in the last leg... we anticipate finishing deliveries in Q4... but there are challenges... we are not looking at business now.
Partial answer
High priority
Benefit from gas turbine price increases and aero foil qualification status.
Asked by Gorav, Aendas
Addressed demand but did not quantify price pass-through or qualification timeline.
no specific timeline for aero foil qualificationno quantification of price benefit
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Question
Have you seen any benefit of gas turbine price increase passed on to you... and where are we in the qualification cycle for aero foils?
Management (likely Vishnu or Rakesh Chopdar)
We are experiencing high demand... pricing decisions are not being done... contracts are long-term with 30-35% margins... aero foil qualification progressing... revenues from aero engine in coming year.
Evasive
Medium priority
Sales of services impact on gross margins and inventory/working capital days.
Asked by Gorav, Aendas
Avoided the services margin question and gave only targets, not actuals.
did not answer services questionno actual inventory days given
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Question
Have you seen sales of services going up considerably benefiting gross margins? What are inventory days and working capital days this quarter?
Management (likely Ronak)
Business is stable... we don't track business on that front... on working capital, targeting 190-200 days in H1, 140-150 days in H2.
Partial answer
High priority
Workforce hiring progress and margin impact from new plants.
Asked by Vinaya Kari, Exponent Tribe
Addressed hiring but gave only a range for margins, not a specific outlook.
did not confirm margin dip or give specific margin guidance for next FY
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Question
How is the aerospace workforce situation and what is the progress on hiring? Do you expect margins to dip next FY due to low utilization?
Management (likely Vishnu and Rakesh Chopdar)
We are onboarding 150-200 people per month... we have a training center... on margins, we guide 33-35% EBITDA margin... this quarter it's 38%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin this quarter at 38% | 38% | 39% | Understated vs filing |
| Revenue CAGR of 39% since IPO | 39% | 31% | Overstated vs filing |
| Revenue last year 450 crores | ₹450 cr | ₹159 cr | Overstated vs filing |
| Revenue 5 times growth from 2020 to 2026 | 500% | 31% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.