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Revenue
₹146 Cr
verified against source
Revenue YoY
28.1%
reported change
EBITDA
₹51.36 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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 efficiencies from domestic sourcing. EBITDA margin improved to 36.02% as raw material costs declined. The company signed a phase-2 contract with Mitsubishi (total value ₹1,387 crore) and an MoU with Safran for defense engine components. Management reiterated 25-30% topline growth guidance for FY26, with H1 already at ₹277 crore. New dedicated facilities are ramping up, but stabilization remains a near-term focus. Key risk: execution delays in commissioning 10x capacity expansion could pressure margins and growth timelines.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated guidance for 25-30% revenue growth for FY26, with H1 already at ₹277 crore (32.1% YoY).
- Management expects to sustain current EBITDA margin levels, with potential improvement from operating leverage as new facilities stabilize.
- Approximately ₹213 crore deployed so far; asset turnover target of 1.7-1.8x, progressively moving to 2x.
- Phase 1 of new facilities to be completed over next 12 months; revenue contribution expected in H2 FY26.
Risks flagged
- Management acknowledged that stabilizing 10x capacity expansion is a 'marathon task' and may delay revenue inflection to FY27.
- Contracts include termination clauses if performance fails; reliance on few large OEMs (Mitsubishi, Siemens, Safran) poses risk.
- Despite natural hedge and 5% fluctuation cap, any sustained raw material price increase beyond cap could pressure margins.
- Management declined to provide details on Safran MoU and GTRE engine program, citing defense sensitivity, creating uncertainty for investors.
Key quotes
- Our wallet share is only about one and a half percent. So the head of growth is definitely massive.
- FI26 is key for stabilization. We need to stabilize first. We need to put things in place.
- The decisions that OEMs take on these mission and life critical parts are not based on cost.
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