Azad Engineering (AZAD) Q1 26/27 earnings summary

Executive summary

• Achieved record quarterly revenue and PAT in Q1 FY27, driven by strong growth in Energy & Oil & Gas and Aerospace & Defence segments, and delivered India's first indigenous expendable turbojet engine, expanding addressable markets.

• Successfully commissioned new facilities, including a 7,600 sq m Baker Hughes plant, with further expansion at Tunikibollaram Industrial Park on track.

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

• Unaudited standalone and consolidated financial results for Q1 FY27 were approved by the Board and reviewed by auditors with an unmodified conclusion.

Financial highlights

• Standalone revenue from operations for Q1 FY27 grew 26.8% year-on-year to ₹1,705.19 million; standalone EBITDA rose 32.1% to ₹640.7 million (37.6% margin); standalone PAT increased 21.2% to ₹363.5 million (21.3% margin).

• Consolidated revenue for Q1 FY27 reached ₹1,725.99 million, EBITDA ₹643.6 million (37.3% margin), and PAT ₹357.45 million (20.4% margin).

• Standalone basic and diluted EPS for Q1 FY27: ₹5.63 and ₹5.44, up from ₹4.64 in Q1 FY26.

• Other income declined due to lower foreign currency gains; employee and finance costs increased with capacity expansion.

Outlook and guidance

• Long-term annual revenue growth guidance reiterated at over 25%, with expectations of higher growth as capacity utilization increases and new manufacturing lines contribute from H2 FY27.

• Margin guidance remains at 32%-35%, despite recent performance above this range.

• No explicit forward-looking guidance in statutory filings, but significant capital raised and ongoing investments indicate a growth focus.