Order Book Or Contract Wins
Expected: Multi-yearHIGH confidence
What: Order Book Value: INR 6,500 Crores+
“Our order book remains strong at over INR6,500 crores plus, providing multiyear revenue visibility.”
Azad Engineering Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +56.5%Average6w Streak
In , Azad Engineering Ltd (Aerospace & Defence - Equipments) is outperforming Nifty 500 with +56.5% relative strength. Fundamentals: Average. On a 6-week streak.
Azad Engineering Ltd Key Facts
- PE Ratio
- 122.0x
- Market Cap
- ₹14,955 Cr
- PAT Growth YoY
- +46%
- Revenue Growth YoY
- +33%
- OPM
- 39.0%
- RS vs Nifty 500
- +56.5%
PE: Near PeakStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
👔Promoter stake down 10.5% this quarter
🌐FII stake increased 6.0% this quarter
🏛️DII accumulation — stake up 4.1%
💰Trading 54% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Multi-yearHIGH
2. Operating Leverage Inflection
FY27-FY28HIGH
3. New Product Or Brand Launch
Next couple of monthsMEDIUM
Key Risks
1. Need to recruit and train 1,000 workers for new plants within a short timeframe
MEDIUM2. Potential impact of U
LOW3. Exposure to foreign exchange fluctuations due to high export volume
LOWSector-Specific Signals
Order BookINR 6,500 Cr
Export Revenue %93.9%
Stabilization PhaseFY26
Working Capital Cycle190 to 200 days
Key Numbers
PAT Growth YoY
+46%
Stable
Revenue YoY
+33%
Stable
Operating Margin
39.0%
+300 bps YoY
PE Ratio
122.0
Current Price
₹2,316
Fundamental Score
45/100
Average
3Y PAT CAGR
+44%
Market Cap
15.0K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Azad Engineering Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: FY27-FY28HIGH confidence
What: Asset Turn: 1.7x to 2.0x
Impact: Revenue potential of INR 1,500-1,600 Cr
“we should be able to generate anywhere around 1.7 to 2 asset turn... gives you the entire roadmap from INR400 crores to say INR1,500 crores.”
New Product Or Brand Launch
Expected: Next couple of monthsMEDIUM confidence
What: Project Completion %: 75%
“on the development of that small engine... we are around 75% on that... positioned to deliver the engine [in a couple of months].”
Client Mining Cross Selling Wallet Share
Expected: OngoingMEDIUM confidence
What: Wallet Share: Single-digit
“we will still be doing a single-digit wallet share with our customers... headroom for growth is definitely massive.”
Geographical Expansion
Expected: OngoingLOW confidence
What: Export Revenue %: 93.9%
“today, we can say 93.9%, to be precise, is exports. So the risk of that factory is always covered.”
EBITDA Margin of 38.6% vs 33-35% guidance
HIGH confidence
What: EBITDA Margin of 38.6% vs 33-35% guidance
“But even this quarter, you can look at our EBITDA margin, it's been at 38%, right? So I would want to still continue to guide 33% to 35%.”
What Are the Key Risks for Azad Engineering Ltd?
Earnings deceleration risks from management commentary
Need to recruit and train 1,000 workers for new plants within a short timeframe
MEDIUMTrigger: The cost of not having employees is disproportionately higher than the cost of hiring in this precision industry.
Management view: Built an execution engine to source 150-200 people per month and established an internal training center.
Monitor: labor
Potential impact of U
LOWTrigger: Concerns regarding trade policy changes between the U.S. and India.
Management view: Management states products are essential and long-qualification, making them difficult to replace even with tariffs.
Monitor: geopolitical
Exposure to foreign exchange fluctuations due to high export volume
LOWTrigger: 93.9% of revenue is derived from exports.
Management view: Natural hedge exists as both inflows and outflows are in foreign currency.
Monitor: fx
Volatility in raw material prices for high-value alloys
LOWTrigger: Reliance on OEM-approved sources for specialized materials.
Management view: Tri-party agreements with OEMs and suppliers include clauses to pass through fluctuations above 5%.
Monitor: commodity
What Is Azad Engineering Ltd's Management Saying?
Key quotes from recent conference calls
“remain confident in achieving as projected 25% to 30% top line growth for the year. [Previous Revenue Growth guidance]”
“this will be the first jet engine of India, it was 100% indigenous... we are in the last leg, right, of the design phase. [Initiative: Indigenous Jet Engine Development]”
“I want to recruit 1,000 people over the next -- so the idea is that we do not want the business to be deprived of manpower. [Risk (labor): MEDIUM]”
“these tariffs won't affect the products what Azad is holding because they are essential... it takes a lot of time to develop any other supplier. [Risk (geopolitical): LOW]”
What Did Azad Engineering Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 155.8 Crores
YoY +31%QoQ +9.2%
Why: Growth was supported by strong execution across the energy program and steady scaling within the aerospace segment.
Revenue growth remains consistent with the company's long-term trajectory of approximately 32% for the 9-month period.
EBITDA
INR 60.1 Crores
YoY +40.7%Margin 38.6%
Why: Margin expansion was driven by an improved product mix, pricing discipline across long-term contracts, and better absorption of fixed overheads.
The 38.6% EBITDA margin significantly exceeded the management's long-term guidance range of 33% to 35%.
PAT
INR 34 Crores
YoY +40.1%QoQ +3%
Why: Profitability was boosted by operating leverage, stable margins, and interest income generated from fixed deposits of QIP proceeds.
9-month FY26 profitability has already exceeded the full-year levels achieved in FY25.
Other Highlights
• Order book stands at over INR 6,500 Crores providing multi-year revenue visibility.
• 9-month FY26 revenue growth reached nearly 32% year-on-year.
• The company successfully capitalized new plants dedicated to GE, Mitsubishi, and Siemens programs.
What Sector Metrics Matter for Azad Engineering Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
INR 6,500 Cr
Why: Consistent growth in wallet share and new customer onboarding.
Export Revenue %
93.9%
Why: Focus on global OEM partnerships for critical engine components.
Stabilization Phase
FY26
Why: FY26 is designated as a year of stabilization for new facilities before reaching peak utilization in FY28.
Working Capital Cycle
190 to 200 days
Why: Targeting reduction to 140-150 days in H2 through supply chain optimization.
Incremental Asset Turn
1.7x to 2.0x
Why: Expected efficiency from new INR 500 Cr investment in plant and machinery.
Global OEM Wallet Share
1% to 1.5%
Why: Current penetration level with major customers like Mitsubishi, GE, and Siemens.
New Employee Target
1,000 workers
Why: Required to staff the massive 10x capacity expansion currently underway.
Energy & Oil/Gas Revenue Share
81%
Why: Dominant segment contribution during the current quarter.
Aerospace & Defence Growth
34%
YoY +34%
Why: Scaling of critical rotating engine components for global defense platforms.
Mitsubishi (MHI) Contract Value
INR 1,387 Cr
Why: Expansion into Phase 2 of the contract for advanced turbine airfoils.
What Is Azad Engineering Ltd's Management Guidance?
Forward-looking targets from management for Coming years
Revenue Growth Target
25%
OPM Guidance
33–35%
Capex Plan
₹500 Cr
Revenue Outlook
25% plus
Margin Outlook
REAFFIRMED
Capex Plan
INR 450-500 Crores
Plant and machinery for incremental deployment
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Revenue Growth: 25% to 30% → 25% plus
How Fast Is Azad Engineering Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +33% | +33% | Stable |
| PAT (Net Profit) | +46% | +44% | Stable |
| OPM | 39.0% | +300 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Azad Engineering Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Azad Engineering Ltd's latest quarterly results?
Azad Engineering Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +45.8% (stable)
- Revenue Growth YoY: +32.5%
- Operating Margin: 39.0% (expanding)
Is Azad Engineering Ltd's profit growing or declining?
Azad Engineering Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +45.8% (latest quarter)
- PAT Growth QoQ: +6.1% (sequential)
- 3-Year PAT CAGR: +44.2%
- Trend: Stable — consistent growth pattern
What is Azad Engineering Ltd's revenue growth trend?
Azad Engineering Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +32.5%
- Revenue Growth QoQ: +8.9% (sequential)
- 3-Year Revenue CAGR: +33.1%
How is Azad Engineering Ltd's operating margin trending?
Azad Engineering Ltd's operating margin is expanding.
- Current OPM: 39.0%
- OPM Change YoY: +3.0% basis points
- OPM Change QoQ: +3.0% basis points
What is Azad Engineering Ltd's 3-year profit and revenue CAGR?
Azad Engineering Ltd's long-term compounding rates
- 3-Year Profit CAGR: +44.2%
- 3-Year Revenue CAGR: +33.1%
Is Azad Engineering Ltd's growth accelerating or decelerating?
Azad Engineering Ltd's earnings growth is stable with positive momentum on a sequential basis.
- YoY Acceleration: -11.3% bps
- Sequential Acceleration: -7.7% bps
What is Azad Engineering Ltd's trailing twelve month (TTM) performance?
Azad Engineering Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹122 Cr
- TTM PAT Growth: +58.4% YoY
- TTM Revenue: ₹569 Cr
- TTM Revenue Growth: +34.5% YoY
- TTM Operating Margin: 36.8%
Is Azad Engineering Ltd overvalued or undervalued?
Azad Engineering Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 122.0x
- Price-to-Book: 10.1x
What is Azad Engineering Ltd's current PE ratio?
Azad Engineering Ltd's current PE ratio is 122.0x.
- Current PE: 122.0x
- Market Cap: 15.0K Cr
How does Azad Engineering Ltd's valuation compare to its history?
Azad Engineering Ltd's current PE is 122.0x.
- Current PE: 122.0x
- Valuation Assessment: Significantly Overvalued
What is Azad Engineering Ltd's price-to-book ratio?
Azad Engineering Ltd's price-to-book ratio is 10.1x.
- Price-to-Book (P/B): 10.1x
- Book Value per Share: ₹229
- Current Price: ₹2316
Is Azad Engineering Ltd a fundamentally strong company?
Azad Engineering Ltd is rated Average with a fundamental score of 45.41/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +32.5% (10% weight)
- PAT Growth YoY: +45.8% (10% weight)
- PAT Growth QoQ: +6.1% (10% weight)
- Margins expanding (10% weight)
Is Azad Engineering Ltd debt free?
Azad Engineering Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹312 Cr
What is Azad Engineering Ltd's return on equity (ROE) and ROCE?
Azad Engineering Ltd's return ratios over recent years
- FY2023: ROCE 16.0%
- FY2024: ROCE 21.0%
- FY2025: ROCE 12.0%
Is Azad Engineering Ltd's cash flow positive?
Azad Engineering Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹54 Cr
- Free Cash Flow (FCF): ₹-864 Cr
- CFO/PAT Ratio: 62% (adequate)
What is Azad Engineering Ltd's dividend yield?
Azad Engineering Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹2316
Who holds Azad Engineering Ltd shares — promoters, FII, DII?
Azad Engineering Ltd's shareholding pattern (Mar 2026)
- Promoters: 55.8%
- FII (Foreign): 14.8%
- DII (Domestic): 11.7%
- Public: 17.7%
Is promoter holding increasing or decreasing in Azad Engineering Ltd?
Azad Engineering Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 55.8% (Mar 2026)
- Previous Quarter: 55.8% (Dec 2025)
- Change: 0.00% (stable)
How long has Azad Engineering Ltd been outperforming Nifty 500?
Azad Engineering Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Azad Engineering Ltd a new momentum entry or an established outperformer?
Azad Engineering Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Azad Engineering Ltd?
Azad Engineering Ltd has 6 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Reflects increasing trust from global OEMs and expansion of wallet share.
- Operating Leverage Inflection — New facilities are moving from stabilization to maximum utilization.
- New Product Or Brand Launch — Development of India's first indigenous small jet engine is nearing completion.
- Client Mining Cross Selling Wallet Share — Deep integration with OEMs like Safran and Pratt & Whitney creates high entry barriers.
What are the key risks in Azad Engineering Ltd?
Azad Engineering Ltd has 4 key risks worth monitoring
- [MEDIUM] Need to recruit and train 1,000 workers for new plants within a short timeframe — The cost of not having employees is disproportionately higher than the cost of hiring in this precision industry.
- [LOW] Potential impact of U — Concerns regarding trade policy changes between the U.S. and India.
- [LOW] Exposure to foreign exchange fluctuations due to high export volume — 93.9% of revenue is derived from exports.
- [LOW] Volatility in raw material prices for high-value alloys — Reliance on OEM-approved sources for specialized materials.
What did Azad Engineering Ltd's management say in the latest earnings call?
In Q3 FY26, Azad Engineering Ltd's management highlighted
- "remain confident in achieving as projected 25% to 30% top line growth for the year. [Previous Revenue Growth guidance]"
- "this will be the first jet engine of India, it was 100% indigenous... we are in the last leg, right, of the design phase. [Initiative: Indigenous Jet..."
- "I want to recruit 1,000 people over the next -- so the idea is that we do not want the business to be deprived of manpower. [Risk (labor): MEDIUM]"
What is Azad Engineering Ltd's management guidance for growth?
Azad Engineering Ltd's management has provided the following forward guidance for Coming years
- Revenue growth target: 25%
- OPM guidance: 33–35%
- Capex plan: ₹500 Cr for Plant and machinery for incremental deployment
- Management tone: bullish
- Milestone: [REAFFIRMED] Revenue Growth: 25% to 30% → 25% plus
What sector-specific metrics matter most for Azad Engineering Ltd?
Azad Engineering Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: INR 6,500 Cr — Consistent growth in wallet share and new customer onboarding.
- Export Revenue %: 93.9% — Focus on global OEM partnerships for critical engine components.
- Stabilization Phase: FY26 — FY26 is designated as a year of stabilization for new facilities before reaching peak utilization in FY28.
- Working Capital Cycle: 190 to 200 days — Targeting reduction to 140-150 days in H2 through supply chain optimization.
- Incremental Asset Turn: 1.7x to 2.0x — Expected efficiency from new INR 500 Cr investment in plant and machinery.
- Global OEM Wallet Share: 1% to 1.5% — Current penetration level with major customers like Mitsubishi, GE, and Siemens.
Is Azad Engineering Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Azad Engineering Ltd may be worth studying
- Earnings growing at +45.8% YoY
- Operating margins are expanding — OPM at 39.0%
- Cash flow is positive — CFO ₹54 Cr
What is the investment thesis for Azad Engineering Ltd?
Azad Engineering Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +32.5% YoY
- Margins expanding
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Need to recruit and train 1,000 workers for new plants within a short timeframe
What is the future outlook for Azad Engineering Ltd?
Azad Engineering Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Need to recruit and train 1,000 workers for new plants within a short timeframe
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.