Azad Engineering (AZAD) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly financial performance in H1 and Q2 FY26, with revenue and profitability surpassing all previous benchmarks.

• Strong order inflows and robust customer relationships, including major contracts with Mitsubishi, Safran, and other global OEMs, underpin confidence in continued growth.

• Three new lean manufacturing facilities inaugurated in 2025 for Siemens, Mitsubishi, and GE, supporting advanced turbine engine components and capacity expansion.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with statutory auditors issuing an unmodified review conclusion.

• Results include two subsidiaries: Azad VTC Private Limited and Azad Prime Private Limited.

Financial highlights

• Q2 FY26 standalone revenue: Rs 1,426.67 Mn, up 28.1% year-over-year; H1 FY26 revenue: Rs 2,771.79 Mn, up 32.1% year-over-year.

• Q2 FY26 standalone net profit: Rs 332.79 Mn, up 57% year-over-year; H1 FY26 net profit: Rs 630.70 Mn, up 64.9% year-over-year.

• Q2 FY26 EBITDA: Rs 513.8 Mn (36.0% margin); H1 FY26 EBITDA: Rs 999.0 Mn (36.0% margin).

• Basic and diluted EPS for H1 FY26 at Rs 9.75, up from Rs 6.46 in H1 FY25.

• Consolidated revenue and profit also showed strong year-over-year growth.

Outlook and guidance

• Management anticipates even stronger performance in H2 FY26, targeting 25%-30% topline growth for FY26, with guidance maintained for similar annual growth over the medium term.

• Margin sustainability expected at current levels, with potential for further improvement as operational leverage increases.

• Expansion strategy includes further capacity additions, technology-led optimization, and strategic geographic expansion.

• Management and auditors confirm compliance with Indian Accounting Standards and SEBI regulations.