Azad Engineering (AZAD) Q2 26/27 earnings summary

Executive summary

• H1 FY27 consolidated revenue rose 28.6% YoY to INR 3,635.34 million; EBITDA increased 34.3% to INR 1,366.4 million and profit reached INR 660.87 million.

• Six customer-dedicated facilities spanning 44,800 sq. m are commissioned; throughput is beginning in Q3 FY27, with revenue ramp expected from Q4 and full ramp-up by Q2 FY28.

• Installed capacity supports an annual revenue run rate above INR 1,300 crore by FY28-end; long-term annual revenue growth guidance remains above 25%.

Financial highlights

• Consolidated Q2 FY27 revenue was INR 1,909.35 million, up 31.1% YoY; EBITDA was INR 722.7 million, up 37.5%, with a 37.9% margin.

• Consolidated Q2 profit was INR 309.27 million, down 5.2% YoY; H1 profit was INR 660.87 million, up 6.5%.

• Standalone H1 revenue was INR 3,583.22 million, up 29.3%; EBITDA was INR 1,345.1 million, up 34.7%, and profit was INR 671.73 million, up 6.6%.

• Standalone Q2 revenue reached a record INR 187.8 crore, up 31.6% YoY; EBITDA rose 37.1% to INR 70.4 crore and PAT was INR 30.8 crore.

Outlook and guidance

• New-capacity throughput is expected to improve in H2 FY27; revenue is expected to ramp from Q4 FY27, with all plants fully ramped by Q2 FY28.

• Installed capacity supports an annual revenue run rate above INR 1,300 crore by FY28-end; long-term annual growth guidance remains above 25%.

• Management expects higher output to convert inventory into sales, receivables and cash, improving cash generation from Q4; Q1 next FY is expected to be more normalized.

• Further CapEx from FY29 depends on customer visibility following qualifications; Mangampet is prepared for phase II expansion.