Azad Engineering (AZAD) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a year of record performance, with consolidated revenue of INR 6,029.8 million, up 31.8% year-over-year, and PAT of INR 1,335.6 million, up 54.4% year-over-year.

• Four new dedicated manufacturing facilities were commissioned, supporting capacity expansion and major contract wins with global OEMs such as Mitsubishi, Siemens, GE Vernova, and Baker Hughes.

• The company maintained a strong export orientation, with 93% of revenue from international markets and a diversified customer base across 12 countries.

• Growth is driven by multi-year technical qualifications and deep integration with global OEMs, not short-term market shifts.

• Audited standalone and consolidated financial results for FY26 were approved, with statutory auditors issuing unmodified opinions.

Financial highlights

• Standalone revenue for FY26 was INR 5,903.8 million, up 30.3% year-over-year; consolidated revenue was INR 6,029.8 million.

• EBITDA margin improved to 36.9% (standalone) and 37.1% (consolidated); PAT margin rose to 22.4%.

• Profit after tax grew 54.5% year-over-year to INR 1,321.6 million (standalone) and INR 1,335.6 million (consolidated).

• EPS for FY26 was INR 20.46 (standalone) and INR 20.57 (consolidated), up from INR 14.87 and INR 14.66 in FY25.

• Other income increased due to FX gains and treasury income; finance costs rose due to additional loans.

Outlook and guidance

• Management guides for 25%+ top-line growth for FY27 and expects this trajectory to continue multi-year.

• Strategic focus on wallet share gains, product diversification, technology-led optimization, and geographic expansion, including a planned facility in Saudi Arabia.

• Margin guidance remains at 33%-35%+, with potential upside as operating leverage improves.

• Focus areas include ramping up new plants, commissioning remaining facilities, deepening customer relationships, and normalizing working capital.

• Confident in sustaining strong growth momentum, supported by industry tailwinds and ongoing investments in capacity expansion.