Azad Engineering (AZAD) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached Rs. 1,558.04 Mn, up over 31% YoY, with EBIT at Rs. 600.9 Mn, and PAT at Rs. 340.43 Mn, both up over 40% YoY; nine-month PAT grew 55.3% YoY, surpassing FY25 full-year levels.

• Order book exceeds Rs. 6,500 crores, ensuring multi-year revenue visibility and consistent growth.

• Major contracts and deepening relationships with global OEMs such as Safran, Pratt & Whitney, GE, Mitsubishi, Siemens, Rolls Royce, and Honeywell.

• Three new lean manufacturing facilities inaugurated in Hyderabad during FY26 to support growth and strategic partnerships.

• FY26 is a transition year focused on capacity stabilization, with full utilization expected by FY28.

Financial highlights

• Q3 FY26 revenue: Rs. 1,558.04 Mn (+31.4% YoY); nine-month revenue: Rs. 4,329.83 Mn (+31.8% YoY).

• Q3 EBIT: Rs. 600.9 Mn (+40.7% YoY); Q3 EBITDA margin at 38.6%; nine-month EBITDA up 38.4% YoY.

• Q3 PAT: Rs. 340.43 Mn (+40.1% YoY); nine-month PAT up 55.3% YoY.

• EPS for Q3 FY26 was Rs. 5.27, up from Rs. 4.11 YoY; nine-month EPS at Rs. 15.02, up from Rs. 10.57 YoY.

• Margins remain stable despite ramp-up costs and higher depreciation from new assets.

Outlook and guidance

• Confident in achieving 25–30% annual revenue growth, supported by a strong order book and capacity expansion.

• EBITDA margin guidance maintained at 33%–35% for the long term.

• FY26 is a stabilization year; operating leverage benefits expected from FY27 as utilization improves.

• Focused on execution excellence, fulfilling GTRE project commitments, and advancing strategic investments.