Azad Engineering Limited reported revenue growth of more than 31 percent year-on-year in the third quarter of FY ’26 and said its order book exceeded INR 65 billion, providing multi-year visibility as newly built manufacturing facilities move toward stabilization. The company indicated that FY ’26 would remain a transition year, with stable operating levels expected from FY ’27 and maximum capacity utilisation from FY ’28.
“Our order book remains strong at over INR6,500 crores plus, providing multiyear revenue visibility,” said Rakesh Chopdar, Chairman and Chief Executive Officer of Azad Engineering Limited. “FY ’26 remains a transition year where stabilization efforts continue. The larger operating leverage benefits will be more visible from FY ’27 onwards as capacity utilization improves.”
Revenue for Q3 FY ’26 stood at INR 1,558 million, compared with the corresponding period a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose more than 40 percent year-on-year to INR 601 million, while profit after tax increased over 40 percent to INR 340 million. For the first nine months of FY ’26, revenue grew nearly 32 percent year-on-year, and profitability exceeded the full-year FY ’25 level.
The company has capitalised new plants dedicated to programmes for GE, Mitsubishi and Siemens. Management said the facilities are at different stages of qualification and certification, reflecting the stringent validation processes required for aerospace and energy components.
From a capital allocation perspective, Azad has raised approximately INR 7 billion through a qualified institutional placement (QIP) to fund expansion. Vishnu Malpani, Whole-Time Director, said the company plans to deploy around INR 2 billion to INR 2.5 billion toward infrastructure and approximately INR 4.5 billion to INR 5 billion toward plant and machinery over FY ’27 and FY ’28. About INR 2.5 billion of plant and machinery was capitalised during the first nine months of FY ’26.
“Based on plant readiness, secured order book and customer demand visibility, we remain confident of achieving 25% plus revenue growth over the coming years,” Chopdar said.
Azad also highlighted progress in aerospace, including engagement and contract progression with Safran and Pratt & Whitney for critical rotating components. Malpani said the company expects EBITDA margins in the range of 33 percent to 35 percent to remain sustainable over the long term.
Azad Engineering reported that aerospace and defence are steadily increasing their share of revenue, while energy and oil and gas continue to contribute the majority. Management indicated that aerospace will play a more important role over the medium term in diversifying the company’s business mix.
A key highlight of the quarter was engagement and contract progression with Safran and Pratt & Whitney for highly engineered critical rotating aerospace components. Rakesh Chopdar said these partnerships were built over years of engineering validation and qualification and represent “high entry barriers and deep integration stickiness into customer programs.”
The company also confirmed progress with Rolls-Royce. Vishnu Malpani said Rolls-Royce engagement began in 2024 and that supply is expected to begin in FY ’27. He added that the company has recently finalised a contract with Pratt & Whitney and notified the exchanges.
Management described aerospace aerofoil qualification as progressing aggressively. Malpani said the company is becoming part of not only legacy platforms but also new engine platforms that will drive future aviation programmes across major engine manufacturers.
Chopdar explained that Azad’s current stage with Safran, Pratt & Whitney and Rolls-Royce is similar to its earlier engagement phase with GE, Mitsubishi and Siemens in the energy segment. He indicated that once qualification cycles are completed, the company expects increased wallet share and deeper programme integration.
In addition, the company stated that it is expanding capabilities beyond compressor aerofoils into combustion components for land, sea and air turbine applications. Management described this as part of a broader long-term capability development strategy that will translate into revenue over the coming years.
Overall, aerospace growth is currently qualification-driven, with revenue scaling expected to follow successful validation, certification and production ramp-up.
In addition, the company said it is jointly developing a 100 percent indigenous jet engine with the Gas Turbine Research Establishment (GTRE), with Azad responsible for manufacturing and GTRE leading elements of the design phase. Management indicated that the project is approximately 70 percent to 75 percent complete, with manufacturing in its final phase and delivery expected in the coming months, subject to technical validations. The engine is intended for use in strategic defence unmanned aerial vehicles (UAVs), drones and anti-ship missile systems, and is positioned as an import substitute currently sourced from overseas. The company said potential volumes could be substantial but clarified that the project is not included in current revenue projections and that commercial guidance would be provided once orders are confirmed.
Azad Engineering Limited manufactures precision components for aerospace, defence, energy and oil and gas applications, supplying global original equipment manufacturers from its facilities in Hyderabad, Telangana.