Azad Engineering (AZAD) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue and PAT in Q1FY27, driven by strong growth in Energy & Oil & Gas and Aerospace & Defence segments, and delivered India's first indigenous expendable turbojet engine, marking a significant technological milestone and expanding addressable markets.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by auditors with an unmodified conclusion.

• Maintained robust order book with new agreements and contracts across global OEMs, supporting long-term growth targets.

• Results prepared in accordance with Ind AS and SEBI guidelines; both standalone and consolidated statements include subsidiaries Azad VTC Private Limited and Azad Prime Private Limited.

Financial highlights

• Standalone revenue from operations for Q1FY27 was ₹1,705.19 million, up 26.8% YoY; standalone EBITDA rose 32.1% YoY to ₹640.7 million (37.6% margin); standalone PAT increased 21.2% YoY to ₹363.5 million (21.3% margin).

• Consolidated revenue from operations for Q1FY27 was ₹1,725.99 million, up 25.9% YoY; consolidated EBITDA was ₹643.6 million (37.3% margin); consolidated PAT was ₹351.6 million (20.4% margin).

• Standalone basic EPS for Q1FY27: ₹5.63; consolidated basic EPS: ₹5.53.

• Other income moderated due to normalization of foreign currency gains; employee and finance costs increased with capacity expansion.

• Working capital days targeted to reduce from 200 in H1 to 160–180 in H2, with debtor days expected to fall to 90.

Outlook and guidance

• Long-term annual revenue growth guidance reiterated at over 25%, with expectations for accelerated growth from Q3 and Q4 as new capacity comes online.

• Margin guidance remains at 32–35%, though recent performance has consistently exceeded 35%.

• Substantive P&L contribution from new manufacturing lines expected from H2-FY27 onwards.

• No speculative expansions; growth anchored in firm, long-cycle contracts and multi-year order book visibility.

• Significant capital raised and ongoing investments in capacity and employee stock options indicate growth focus.