Azad Engineering (AZAD) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 111 crores, up 35% year-over-year, with a robust order book of INR 4,200 crores and record performance driven by deeper client engagement and major new contracts with global OEMs such as Siemens Energy, Baker Hughes, Mitsubishi Heavy Industries, Rolls Royce, and Honeywell Aerospace.

• Expansion plans include a 10x capacity increase, phased new facilities from FY 2026, and international manufacturing setup in Saudi Arabia, supporting a long-term goal to increase wallet share from 1-2% to 5%.

• Standalone and consolidated unaudited financial results for Q2 and H1 FY2024-25 were approved, reflecting continued growth in revenue and profitability year-over-year.

Financial highlights

• Q2 FY25 revenue from operations was INR 111 crores (Rs. 1,114.1 Mn), up 34.5% year-over-year; H1FY25 revenue rose 32.2% to Rs. 2,098.2 Mn.

• Adjusted EBITDA for Q2 FY25 was INR 21 crores (Rs. 412.9 Mn, 37.1% margin), with EBITDA margins improving by 200 basis points quarter-over-quarter.

• Profit after tax for Q2 FY25 was INR 21 crores (Rs. 208.82 Mn), up from INR 19 crores in Q2 FY24; H1 PAT was Rs. 382.00 Mn, up from Rs. 268.47 Mn year-over-year.

• Net debt as of September stood at INR 112 crores, with net debt to equity reduced to 1.22x in FY24 from 1.50x in FY23.

Outlook and guidance

• Guidance maintained for 25%-30% annual revenue growth, with internal targets set higher due to strong order inflow and capacity expansion.

• Margin improvement expected through operating leverage, process optimization, and backward integration.

• Revenue from new facilities and contracts expected to ramp up from FY 2026, with incremental growth anticipated as capacity constraints ease.