Azad Engineering (AZAD) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked record performance with consolidated revenue of ₹6,029.8 million, up 31.8% year-over-year, and PAT of ₹1,335.6 million, up 54.4% year-over-year, driven by consolidation, capacity expansion, and organizational strengthening.

• Four dedicated manufacturing facilities were inaugurated, including a new plant for Baker Hughes in April 2026, and OEM qualifications were strengthened.

• Secured major long-term supply agreements, including an eight-year single-source contract with Mitsubishi Heavy Industries for turbine nozzle vanes.

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

• Focus for FY 2027 includes ramping up new plants, commissioning remaining facilities, deepening customer relationships, and normalizing working capital.

Financial highlights

• Standalone revenue for FY 2026 was ₹5,903.8 million, up 30.3% year-over-year; consolidated revenue reached ₹6,029.8 million, up 31.8% year-over-year.

• Q4 FY 2026 standalone revenue rose 26.4% year-over-year to ₹1,573.9 million.

• EBITDA margin improved to 36.9% for FY 2026; PAT margin at 22.4%.

• Standalone net profit for FY 2026 was ₹1,321.61 million; consolidated net profit attributable to owners was ₹1,335.63 million, up 54.4% year-over-year.

• Other income increased due to forex gains and treasury income.

Outlook and guidance

• Confident in sustaining strong business momentum with 25%+ top-line growth guidance for FY 2027 and beyond, supported by industry tailwinds and ongoing investments.

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

• Oil and gas segment expected to ramp up materially in FY 2027.