Azad Engineering Limited has expanded its manufacturing base in Hyderabad with the inauguration of three new lean facilities dedicated to Siemens Energy, Mitsubishi Heavy Industries (MHI) and GE Steam Power. The plants, part of a wider capacity enhancement programme, are designed to produce complex rotating and stationary airfoils and other precision components for advanced turbine and aerospace engines.
The new units mark a tenfold increase in Azad’s production capacity and will support its 25 to 30 percent annual growth guidance. The company said full operational ramp-up is expected within 12 to 18 months.
“We recently inaugurated one of our new lean manufacturing facilities for Siemens at our Hyderabad plant,” said Rakesh Chopdar, Chairman and Chief Executive Officer. “This state-of-the-art facility will support and supply highly engineered airfoils and assemblies for advanced gas, industrial and thermal turbine engines. With this, we now have three dedicated lean factories inaugurated at the new site.”
Azad’s expansion is backed by a strong order pipeline from global original equipment manufacturers. The company secured a second-phase contract with MHI during the quarter, taking the combined value to INR 13.87 billion (USD 166 million) over five years. It also signed a memorandum of understanding with Safran Aircraft Engines to develop critical rotating components for strategic defence platforms, marking its first collaboration with the French engine maker.
“Our strength in engineering and innovation has enabled us to build long-term partnerships with major OEMs. These relationships have transformed into repeat business, long-term contracts and strong revenue visibility,” said Managing Director Murali Krishna Bhupatiraju.
Azad’s revenue for the second quarter of FY2026 rose 28.1 percent year-on-year to INR 143 crore, with an EBITDA margin of 36 percent and profit after tax margin of 23.1 percent. For the half year ended September 2025, revenue reached INR 277 crore, an increase of 32 percent over the previous year.
The company said its growth was supported by operational efficiencies and domestic sourcing initiatives. “Raw material consumption has reduced due to onboarding of domestic suppliers and enhancing our supply chain excellence,” said Chief Financial Officer Ronak Jajoo. The firm has qualified Indian mills including Sunflag Iron & Steel and Star Wire India for select turbine grades, and is in talks with OEMs to approve indigenous suppliers for aerospace-grade superalloys and titanium.
Azad’s energy and oil and gas segment contributed 81 percent of total revenue in Q2 FY2026, while aerospace and defence accounted for 17 percent, growing 34 percent year-on-year. Exports made up nearly 95 percent of turnover, providing a natural hedge against foreign exchange fluctuations.
The company has deployed INR 213 crore from its INR 700 crore Qualified Institutional Placement proceeds toward capacity expansion, targeting an asset turnover ratio of 1.7 to 1.8 times. It is also establishing a Centre of Excellence to advance coating technologies and process automation across its divisions.
“We are investing in technology, talent and capacity—the foundations that will define the next phase of Azad’s journey,” said Whole-Time Director Vishnu Malpani. “FY2026 is a year of stabilisation as we ramp up our new facilities, but the opportunities ahead in aerospace, defence and energy are significant.”
Azad Engineering Limited, based in Hyderabad, manufactures high-precision turbine and engine components for power generation, aerospace, defence and oil and gas sectors. Its clients include global OEMs such as Rolls-Royce, GE, Siemens, Mitsubishi Heavy Industries and Safran.